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Income Taxes
 12 Months Ended
Apr. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesIn response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act"). Among other provisions, the CARES Act makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. In addition, the Consolidated Appropriations Act (the "2021 Tax Act") enacted a temporary exception to the limitation for meals and entertainment paid or incurred after December 31,
2020. This and the CARES Act provisions applicable to the Company have been applied to the current year ending April 30, 2022.

Income tax expense was comprised of the following:
 FISCAL YEARS ENDED APRIL 30
(in thousands)202220212020
CURRENT    
Federal$8,748 $25,683 $29,072 
State3,295 5,639 7,581 
Foreign417 1,018 533 
Total current expense12,460 32,340 37,186 
DEFERRED   
Federal(21,316)(10,741)(7,508)
State(4,049)(1,896)(4,261)
Foreign(352)(203)(142)
Total deferred benefit (25,717)(12,840)(11,911)
Total expense (benefit)(13,257)19,500 25,275 
Other comprehensive income (loss)21,944 (1,156)(573)
Total comprehensive income tax expense$8,687 $18,344 $24,702 

The Company's effective income tax rate varied from the federal statutory rate as follows: 
 FISCAL YEARS ENDED APRIL 30
 202220212020
Federal statutory rate21.0 %21.0 %21.0 %
Effect of:
Federal income tax credits5.4 %(1.2)%(0.9)%
Stock compensation(0.3)0.2 (0.1)
Uncertain tax positions1.7 — — 
Meals and entertainment(0.4)0.1 0.3 
Valuation allowance for deferred taxes— — 0.7 
Foreign0.6 0.6 0.4 
Other(0.6)0.2 0.7 
State income taxes, net of federal tax effect3.4 3.2 3.4 
Effective income tax rate30.8 %24.1 %25.5 %
The significant components of deferred tax assets and liabilities were as follows:
 APRIL 30
(in thousands)20222021
Deferred tax assets:  
Accounts receivable$1,941 $1,781 
Pension benefits— 815 
Product liability1,739 1,321 
Employee benefits5,604 5,746 
Tax credit carryforwards5,542 5,433 
Operating leases liabilities29,255 32,975 
Other1,862 2,086 
Gross deferred tax assets, before valuation allowance45,943 50,157 
Valuation allowance(5,122)(4,914)
Gross deferred tax assets, after valuation allowance40,821 45,243 
Deferred tax liabilities:  
Pension benefits194 — 
Inventory1,095 3,851 
Depreciation27,178 22,116 
Intangibles18,085 29,123 
Operating leases right-of-use assets26,980 31,320 
Interest rate swaps3,457 — 
Other703 606 
Gross deferred tax liabilities77,692 87,016 
Net deferred tax liability$36,871 $41,773 

We have not recorded deferred income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. Undistributed earnings that are indefinitely reinvested in foreign operations are not significant as of April 30, 2022.

The Company recorded a valuation allowance related to deferred tax assets for certain state investment tax credit ("ITC") carryforwards and foreign tax credit ("FTC") carryforwards. Deferred tax assets are reduced by a valuation allowance when, after considering all positive and negative evidence, it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. The Company determined that there will not be sufficient foreign source income to fully utilize the current year and carry forward FTCs. Therefore, the Company updated the valuation allowance for the current year activity of $0.2 million related to FTCs.

The gross amount of state tax credit carryforwards related to state ITCs as of April 30, 2022 and 2021 was $3.7 million and $3.8 million, respectively. These credits expire in various years beginning in fiscal 2028. Net of the federal impact and related valuation allowance, the Company recorded $0.4 million and $0.5 million of deferred tax assets related to these credits as of April 30, 2022 and 2021, respectively. The Company accounts for ITCs under the deferral method, under which the tax benefit from the ITC is deferred and amortized into income tax expense over the book life of the related property. As of April 30, 2022 and 2021, a deferred credit balance of $0.4 million and $0.5 million, respectively, is included in other liabilities on the consolidated balance sheets. 

The gross amount of FTC carryforwards as of April 30, 2022 and 2021 is $1.9 million and $1.7 million, respectively, which begin to expire in fiscal 2029.
The following table summarizes the activity related to unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:
 APRIL 30
(in thousands)20222021
 Change in Unrecognized Tax Benefits  
 Balance at beginning of year$1,491 $2,305 
 Additions based on tax positions related to the current year 49 115 
 Additions based on tax positions of prior years1,286 — 
 Statute of limitations lapses(756)— 
 Reductions for tax positions of prior years settlements— (929)
 Balance at end of year$2,070 $1,491 
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, 2022, federal tax years 2018 through 2021 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.