Income Taxes

9 Months Ended

Jan. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income taxes decreased $75.3, or 100 percent, during the three months ended January 31, 2025, as compared to the prior year. The effective income tax rate for the third quarter of 2025 varied from the U.S. statutory income tax rate of 21.0 percent primarily due to state income taxes and an unfavorable permanent impact associated with the goodwill impairment charge for the Sweet Baked Snacks reporting unit, partially offset by the reversal of a deferred tax liability upon completion of the sale of the Voortman Cookies Limited entity, and a favorable noncash deferred tax benefit associated with the integration of Hostess Brands into our Company. The effective income tax rate for the third quarter of 2024 varied from the U.S. statutory income tax rate of 21.0 percent primarily due to state income taxes and unfavorable tax impacts associated with the acquisition of Hostess Brands.

Income taxes decreased $32.3, or 18 percent, during the nine months ended January 31, 2025, as compared to the prior year. The effective income tax rate for the first nine months of 2025 varied from the U.S. statutory income tax rate of 21.0 percent primarily due to state income taxes and unfavorable permanent impacts associated with the goodwill impairment charge for the Sweet Baked Snacks reporting unit and the sale of the Voortman business, partially offset by the favorable noncash deferred tax benefit associated with the integration of Hostess Brands into our Company. The effective income tax rate for the first nine months of 2024 varied from the U.S. statutory income tax rate of 21.0 percent primarily due to state income taxes and unfavorable tax impacts associated with the acquisition of Hostess Brands, partially offset by a favorable tax impact of the sale of the Sahale Snacks business.

Within the next 12 months, it is reasonably possible that we could decrease our unrecognized tax benefits by an estimated $0.8, primarily as a result of the expiration of statute of limitation periods.