Income Taxes

12 Months Ended

Apr. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 14: Income Taxes

The following table sets forth our income (loss) before income taxes.

	Year Ended April 30,
	2025		2024		2023
Domestic	$	(1,087.6)	$	975.8	$	(23.6)
Foreign	40.8		20.6		14.4
Income (loss) before income taxes	$	(1,046.8)	$	996.4	$	(9.2)

The following table summarizes the components of the provision for income taxes.

	Year Ended April 30,
	2025		2024		2023
Current:
Federal	$	228.0	$	234.1	$	217.9
Foreign	11.7		10.1		5.4
State and local	52.3		48.7		49.5
Deferred:
Federal	(45.4)		(35.7)		(158.5)
Foreign	(0.5)		(2.3)		(1.0)
State and local	(62.1)		(2.5)		(31.2)
Total income tax expense	$	184.0	$	252.4	$	82.1

The income tax expense of $184.0 for 2025 includes unfavorable permanent impacts associated with the goodwill impairment charges for the Sweet Baked Snacks reporting unit and the sale of the Voortman business, partially offset by the favorable noncash deferred tax benefits associated with the integration of Hostess Brands into our Company and certain state legislative changes enacted during the year. The income tax expense of $252.4 for 2024 includes unfavorable permanent and deferred tax impacts associated with the acquisition of Hostess Brands. The income tax expense of $82.1 for 2023 includes unfavorable permanent tax impacts associated with the sale of certain pet food brands.

The following table sets forth a reconciliation of the statutory federal income tax rate and the effective income tax rate.

	Year Ended April 30,
(Percent of pre-tax income or loss)	2025			2024			2023
Statutory federal income tax rate	21.0		%	21.0		%	21.0		%
Acquisition of Hostess Brands	—			1.3			—
Deferred tax benefit from Hostess integration	1.8			—			—
Sale of certain pet food brands	—			—			(776.4)
Sale of Voortman business	(6.6)			—			—
State and local income taxes	4.2			2.9			(157.7)
Deferred tax benefit from state legislative changes	1.9			—			—
Goodwill impairment charges	(39.2)			—			—
Other items – net	(0.7)			0.1			20.7
Effective income tax rate	(17.6)		%	25.3		%	(892.4)		%
Income taxes paid	$	332.1		$	316.5		$	254.8

We are a voluntary participant in the Compliance Assurance Process (“CAP”) program offered by the IRS and are currently under a CAP examination for the tax years ended April 30, 2025, and April 30, 2026. During 2025, the IRS concluded the CAP examinations for the 2023 and 2024 tax years. The fiscal years prior to 2022 are no longer subject to U.S. federal tax examination under the statute of limitations. With limited exceptions, we are no longer subject to examination for state, local, and foreign jurisdictions for the tax years prior to 2021.

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. The following table summarizes significant components of our deferred tax assets and liabilities.

	April 30,
	2025		2024
Deferred tax liabilities:
Intangible assets	$	1,454.4	$	1,683.9
Property, plant, and equipment	275.5		276.9
Leases	24.3		33.8
Other	25.9		22.6
Total deferred tax liabilities	$	1,780.1	$	2,017.2
Deferred tax assets:
Post-employment and other employee benefits	$	62.1	$	69.1
Tax credit and loss carryforwards	35.5		27.7
Intangible assets	34.4		40.7
Hedging transactions	11.6		49.9
Leases	26.0		36.3
Other	95.5		82.3
Total deferred tax assets	$	265.1	$	306.0
Valuation allowance	(33.6)		(26.2)
Total deferred tax assets, less allowance	$	231.5	$	279.8
Net deferred tax liability	$	1,548.6	$	1,737.4

We evaluate the realizability of deferred tax assets for each of the jurisdictions in which we operate. The total valuation allowance increased by $7.4 during the year, primarily as a result of the sale of the Voortman business.

As of April 30, 2025, we have determined that a portion of our undistributed earnings, in Canada, is not permanently reinvested, resulting in the recognition of an immaterial deferred tax liability. Deferred income taxes have not been provided on approximately $18.1 of the unremitted earnings of our foreign subsidiaries, primarily Canada, that are determined to be permanently reinvested, the tax effects of which are immaterial.

Our unrecognized tax benefits were $2.5, $4.6, and $5.3, of which $2.0, $3.7, and $4.2 would affect the effective income tax rate, if recognized, as of April 30, 2025, 2024, and 2023, respectively.

Within the next 12 months, it is reasonably possible that we could decrease our unrecognized tax benefits by an estimated $1.1, primarily as a result of the expiration of statute of limitation periods.

The following table sets forth a reconciliation of our unrecognized tax benefits.

	2025		2024		2023
Balance at May 1,	$	4.6	$	5.3	$	6.5
Increases:
Acquired business	—		1.3		—
Decreases:
Expiration of statute of limitations periods	1.3		2.0		1.2
Disposed business	0.8		—		—
Balance at April 30,	$	2.5	$	4.6	$	5.3