Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
12 Months Ended
Apr. 30, 2013
Provision (Benefit) For Domestic And Foreign Income Taxes

The provision (benefit) for domestic and foreign income taxes was as follows:

 

     Year Ended April 30,  
     2013     2012     2011  
     (in thousands)  

Current income taxes:

      

Federal

   $ 4,100      $ 4,173      $ 7,606   

State

     1,237        1,609        5,714   

Foreign

     8,759        12,670        11,826   
  

 

 

   

 

 

   

 

 

 

Current provision for income taxes

     14,096        18,452        25,146   
Deferred income taxes:       

Federal

     (423     7,281        (2,442

State

     1,895        3,508        830   

Foreign

     1,069        (890     9,158   
  

 

 

   

 

 

   

 

 

 

Deferred provision for income taxes

     2,541        9,899        7,546   
  

 

 

   

 

 

   

 

 

 

Total provision for income taxes

   $ 16,637      $ 28,351      $ 32,692   
  

 

 

   

 

 

   

 

 

 
Domestic And Foreign Components Of Income (Loss) From Continuing Operations Before Domestic And Foreign Income And Other Taxes And Equity In Earnings

The domestic and foreign components of income from continuing operations before domestic and foreign income and other taxes and equity in earnings of unconsolidated subsidiaries were as follows:

 

     Year Ended April 30,  
     2013      2012      2011  
     (in thousands)  

Domestic

   $ 15,915       $ 42,375       $ 56,741   

Foreign

     31,905         38,429         32,963   
  

 

 

    

 

 

    

 

 

 

Income before provision for income taxes and
equity in earnings of unconsolidated subsidiaries

   $ 47,820       $ 80,804       $ 89,704   
  

 

 

    

 

 

    

 

 

 

Reconciliation Of The Statutory Federal Income Tax Rate To The Effective Consolidated Tax Rate

The reconciliation of the statutory federal income tax rate to the effective consolidated tax rate is as follows:

 

     Year Ended April 30,  
     2013     2012     2011  

U.S. federal statutory income tax rate

     35.0     35.0     35.0

Foreign source income, net of credits generated

     0.6        3.0        1.9   

Foreign tax rates differential

     (3.7     (2.9     (3.8

COLI increase, net

     (4.8     (2.7     (2.8

Repatriation of foreign earnings

     (3.2     (1.7     0.1   

State income taxes, net of federal benefit

     5.7        4.0        4.6   

Adjustments for valuation allowance

     (0.4     (0.7     4.8   

Non-deductible business acquisition transaction costs

     1.3        —          —     

Expense disallowances

     1.1        0.8        0.5   

Change in uncertain tax positions

     1.9        —          (2.3

Other

     1.3        0.3        (1.6
  

 

 

   

 

 

   

 

 

 

Effective income tax rate

     34.8     35.1     36.4
  

 

 

   

 

 

   

 

 

 
Components Of Deferred Tax Assets And Liabilities

Components of deferred tax assets and liabilities are as follows:

 

     April 30,  
     2013     2012  
     (in thousands)  

Deferred tax assets:

  

Deferred compensation

   $ 64,791      $ 63,133   

Loss and credit carryforwards

     42,984        33,355   

Allowance for doubtful accounts

     1,804        1,388   

Deferred rent

     6,366        6,901   

Deferred revenue

     1,646        —     

Reserves and accruals

     7,613        3,773   

Other

     4,556        4,284   
  

 

 

   

 

 

 

Gross deferred tax assets

     129,760        112,834   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Intangibles

     (21,560     (11,103

Property and equipment

     (6,747     (4,527

Prepaid expenses

     (4,184     —     

Other

     (2,824     (3,995
  

 

 

   

 

 

 

Gross deferred tax liabilities

     (35,315     (19,625
  

 

 

   

 

 

 

Valuation allowances

     (27,731     (25,089
  

 

 

   

 

 

 

Net deferred tax asset

   $ 66,714      $ 68,120   
  

 

 

   

 

 

 
Deferred Tax Amounts

The deferred tax amounts have been classified in the consolidated balance sheets as follows:

 

     April 30,  
     2013     2012  
     (in thousands)  

Current:

  

Deferred tax assets

   $ 12,561      $ 15,868   

Deferred tax liabilities

     (9,050     (5,038
  

 

 

   

 

 

 

Current deferred tax asset

     3,511        10,830   
  

 

 

   

 

 

 

Non-current:

    

Deferred tax asset

     117,199        96,966   

Deferred tax liabilities

     (26,265     (14,587
  

 

 

   

 

 

 

Valuation allowance

     (27,731     (25,089
  

 

 

   

 

 

 

Non-current deferred tax asset, net

     63,203        57,290   
  

 

 

   

 

 

 

Net deferred tax assets

   $ 66,714      $ 68,120   
  

 

 

   

 

 

 
Changes In Unrecognized Tax Benefits

Company had a liability of $2.0 million for unrecognized tax benefits. A reconciliation of the beginning and ending balances of the gross unrecognized tax benefits is as follows:

 

     Year Ended April 30,  
     2013      2012      2011  
     (in thousands)  

Unrecognized tax benefits, beginning of year

   $       $  —       $ 3,532   

Settlement with tax authority

                     (1,473

Additions based on tax positions related to the current year

     1,454                   

Additions based on tax positions related to prior years

     569                 72   

Reductions due to lapse of statute of limitations

                     (2,131
  

 

 

    

 

 

    

 

 

 

Unrecognized tax benefits, end of year

   $ 2,023       $       $