Income Taxes

12 Months Ended

Apr. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Income tax expense attributable to earnings consisted of the following components:

	Years ended April 30,
	2025		2024		2023
Current tax expense:
Federal	$	85,207	$	78,542	$	95,336
State	20,764		22,394		22,365
	105,971		100,936		117,701
Deferred tax expense	59,958		53,252		23,126
Total income tax expense	$	165,929	$	154,188	$	140,827

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows: 

	As of April 30,
	2025		2024
Deferred tax assets:
Accrued liabilities and reserves	$	8,996	$	9,075
Deferred revenue	17,845		15,222
Accrued bonus compensation	10,023		10,272
Workers compensation	13,013		11,281
Operating and finance lease obligations	144,997		55,739
Asset retirement obligations	12,921		10,036
Deferred compensation	3,151		2,909
Equity compensation	8,944		8,018
State net operating losses and tax credits	2,500		2,568
Other	8,197		4,523
Total gross deferred tax assets	230,587		129,643
Less valuation allowance	550		550
Total net deferred tax assets	230,037		129,093
Deferred tax liabilities:
Property and equipment depreciation	(799,404)		(667,680)
Goodwill	(66,754)		(52,900)
Other	(10,784)		(5,363)
Total gross deferred tax liabilities	(876,942)		(725,943)
Net deferred tax liability	$	(646,905)	$	(596,850)

At April 30, 2025, the Company had net operating loss carryforwards for state income tax purposes of $236,448, which are available to offset future state taxable income. The state net operating loss carryforwards begin to expire in 2031. In addition, the Company had state tax credit carryforwards of $2,133, which begin to expire in 2027.

The valuation allowance for state net operating loss and state tax credit deferred tax assets as of April 30, 2025 and 2024 was $550. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected taxable income, and tax planning strategies in making this assessment.

Total reported tax expense applicable to the Company’s continuing operations varies from the tax that would have resulted from applying the statutory U.S. federal income tax rates to income before income taxes.

	Years ended April 30,
	2025		2024		2023
Income taxes at the statutory rates	21.0	%	21.0	%	21.0	%
Federal tax credits	(1.0)	%	(1.0)	%	(1.3)	%
State income taxes, net of federal tax benefit	3.4	%	3.7	%	4.0	%
Impact of phased-in state law changes, net of federal benefit	(0.1)	%	(1.0)	%	(0.4)	%
ASU 2016-09 benefit (share-based compensation)	(0.4)	%	(0.1)	%	(0.3)	%
Nondeductible executive compensation	0.8	%	0.9	%	1.1	%
Other	(0.4)	%	—	%	(0.1)	%
	23.3	%	23.5	%	24.0	%

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company had a total of $10,773 and $10,747 in gross unrecognized tax benefits at April 30, 2025 and 2024, respectively, which is recorded in other long-term liabilities in the consolidated balance sheets. Of this amount, $8,510 represents the amount of unrecognized tax bene

fits that, if recognized, would impact our effective tax rate. Unrecognized tax benefits increased $26 during the twelve months ended April 30, 2025, due primarily to the increase associated with income tax filing positions for the current year exceeding the decrease related to the expiration of certain statute of limitations. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2025		2024
Beginning balance	$	10,747	$	10,957
Additions based on tax positions related to current year	2,382		2,570
Reductions due to lapse of applicable statute of limitations	(2,356)		(2,780)
Ending balance	$	10,773	$	10,747

The total net amount of accrued interest and penalties for such unrecognized tax benefits was $266 and $350 at April 30, 2025 and 2024, respectively, and is included in other long-term liabilities. Net interest and penalties included in income tax expense for the twelve month periods ended April 30, 2025 and 2024 was a decrease in tax expense of $84 and a decrease in tax expense of $36, respectively.

A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. The State of Illinois is currently examining tax years 2020 and 2021. The Company has no other ongoing federal or state income tax examinations.

At this time, the Company’s best estimate of the reasonably possible change in the amount of the gross unrecognized tax benefits is a decrease of $2,500 during the next twelve months mainly due to the expiration of certain statute of limitations. The federal statute of limitations remains open for the tax years 2021 and forward. Tax years 2019 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.