Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.2
Income Taxes (Tables)
12 Months Ended
Apr. 30, 2022
Income Tax Disclosure [Abstract]  
Domestic and Foreign Components of Income (Loss) from Continuing Operations before Domestic and Foreign Income and Other Taxes

Income from continuing operations before provision for income taxes was as follows:

 

 

Year Ended April 30,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Domestic

 

$

184,877

 

 

$

34,661

 

 

$

40,736

 

Foreign

 

 

248,024

 

 

 

129,039

 

 

 

110,226

 

Income before provision for income taxes

 

$

432,901

 

 

$

163,700

 

 

$

150,962

 

Provision (Benefit) for Domestic and Foreign Income Taxes

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

 

 

Year Ended April 30,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Current income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

43,993

 

 

$

16,913

 

 

$

14,336

 

State

 

 

15,962

 

 

 

4,719

 

 

 

4,974

 

Foreign

 

 

59,064

 

 

 

40,646

 

 

 

33,965

 

Current provision for income taxes

 

 

119,019

 

 

 

62,278

 

 

 

53,275

 

Deferred income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(13,858

)

 

 

(5,809

)

 

 

(6,862

)

State

 

 

(3,936

)

 

 

(5,025

)

 

 

(784

)

Foreign

 

 

831

 

 

 

(3,306

)

 

 

(1,684

)

Deferred benefit for income taxes

 

 

(16,963

)

 

 

(14,140

)

 

 

(9,330

)

Total provision for income taxes

 

$

102,056

 

 

$

48,138

 

 

$

43,945

 

 

 

Reconciliation of Statutory Federal Income Tax Rate to 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,

 

 

 

2022

 

 

2021

 

 

2020

 

U.S. federal statutory income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State tax, net of federal effect

 

 

2.5

 

 

 

1.0

 

 

 

2.2

 

Foreign tax rates differential

 

 

2.5

 

 

 

4.5

 

 

 

4.5

 

Non-deductible officers compensation

 

 

0.7

 

 

 

2.3

 

 

 

0.5

 

Excess tax (benefit) expense on stock-based compensation

 

 

(0.6

)

 

 

0.8

 

 

 

(1.0

)

Change in valuation allowance

 

 

(0.7

)

 

 

0.3

 

 

 

 

COLI increase, net

 

 

(0.3

)

 

 

(1.7

)

 

 

(0.9

)

Change in uncertain tax positions

 

 

0.3

 

 

 

1.1

 

 

 

0.2

 

R&D tax credit

 

 

(1.3

)

 

 

(0.9

)

 

 

 

Other

 

 

(0.5

)

 

 

1.0

 

 

 

2.6

 

Effective income tax rate

 

 

23.6

%

 

 

29.4

%

 

 

29.1

%

Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities were as follows:

 

 

April 30,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Deferred compensation

 

$

111,133

 

 

$

107,834

 

Operating lease liability

 

 

35,158

 

 

 

34,183

 

Loss carryforwards

 

 

33,360

 

 

 

39,704

 

Reserves and accruals

 

 

20,887

 

 

 

16,393

 

Allowance for doubtful accounts

 

 

5,645

 

 

 

4,885

 

Deferred revenue

 

 

6,207

 

 

 

 

Gross deferred tax assets

 

 

212,390

 

 

 

202,999

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Operating lease, right-of-use, assets

 

 

(27,513

)

 

 

(27,777

)

Intangibles and goodwill

 

 

(28,388

)

 

 

(26,570

)

Property and equipment

 

 

(24,063

)

 

 

(20,590

)

Prepaid expenses

 

 

(24,453

)

 

 

(23,928

)

Marketable securities

 

 

(1,260

)

 

 

(7,003

)

Other

 

 

(691

)

 

 

(2,684

)

Gross deferred tax liabilities

 

 

(106,368

)

 

 

(108,552

)

Valuation allowances

 

 

(24,025

)

 

 

(25,173

)

Net deferred tax asset

 

$

81,997

 

 

$

69,274

 

 

Changes in Unrecognized Tax Benefits A reconciliation of the beginning and ending balances of the unrecognized tax benefits is as follows:

 

 

Year Ended April 30,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Unrecognized tax benefits, beginning of year

 

$

9,954

 

 

$

6,037

 

 

$

7,794

 

Settlement with tax authority

 

 

 

 

 

 

 

 

(1,767

)

Additions based on tax positions related to the current year

 

 

456

 

 

 

1,716

 

 

 

10

 

Additions based on tax positions related to prior years

 

 

272

 

 

 

2,201

 

 

 

 

Unrecognized tax benefits, end of year

 

$

10,682

 

 

$

9,954

 

 

$

6,037