Accounting for Uncertainty in Income Taxes

The Company accounts for its income tax uncertainties in accordance with ASC Topic 740, “Income Taxes.”

The following table summarizes the activity related to unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:



	APRIL 30
(in thousands)	2019		2018
Change in Unrecognized Tax Benefits
Balance at beginning of year	$	928	$	28
Additions based on tax positions related to the current year	120		—
Additions for tax positions of prior years	1,192		—
Acquisitions, divestures, and other	—		900
Balance at end of year	$	2,240	$	928

The Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities, and the Company has accrued a liability when it believes that it is not more likely than not that it will realize the benefits of tax positions that it has taken or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with accounting standards. As of April 30, 2019, federal tax years 2015 through 2018 remain subject to examination. The Company believes that adequate provisions have been made for all tax returns subject to examination. The Company is currently not under federal audit. If the liability for uncertain tax positions is released the entire amount would impact the Company’s effective tax rate.