Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.2
Income Taxes (Tables)
12 Months Ended
Apr. 30, 2020
Income Tax Disclosure [Abstract]  
Domestic and Foreign Components of Income (Loss) from Continuing Operations before Domestic and Foreign Income and Other Taxes

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

 

 

Year Ended April 30,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(in thousands)

 

Domestic

 

$

40,736

 

 

$

(22,039

)

 

$

47,164

 

Foreign

 

 

110,226

 

 

 

156,379

 

 

 

158,866

 

Income before provision for income taxes

 

$

150,962

 

 

$

134,340

 

 

$

206,030

 

Provision (Benefit) for Domestic and Foreign Income Taxes

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

 

 

Year Ended April 30,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(in thousands)

 

Current income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

14,336

 

 

$

6,152

 

 

$

29,400

 

State

 

 

4,974

 

 

 

9,097

 

 

 

2,863

 

Foreign

 

 

33,965

 

 

 

42,091

 

 

 

44,434

 

Current provision for income taxes

 

 

53,275

 

 

 

57,340

 

 

 

76,697

 

Deferred income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(6,862

)

 

 

(16,211

)

 

 

(3,530

)

State

 

 

(784

)

 

 

(7,682

)

 

 

(317

)

Foreign

 

 

(1,684

)

 

 

(3,903

)

 

 

(2,717

)

Deferred benefit for income taxes

 

 

(9,330

)

 

 

(27,796

)

 

 

(6,564

)

Total provision for income taxes

 

$

43,945

 

 

$

29,544

 

 

$

70,133

 

 

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,

 

 

 

2020

 

 

2019

 

 

2018

 

U.S. federal statutory income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

30.4

%

State tax, net of federal effect

 

 

2.2

 

 

 

1.1

 

 

 

1.0

 

Foreign tax rates differential

 

 

4.5

 

 

 

5.0

 

 

 

(2.3

)

Transition tax

 

 

 

 

 

 

 

 

9.0

 

Deferred tax remeasurement

 

 

 

 

 

 

 

 

(2.4

)

Non-deductible officers compensation

 

 

0.5

 

 

 

1.1

 

 

 

 

Excess tax benefit on stock-based compensation

 

 

(1.0

)

 

 

(3.1

)

 

 

 

Change in valuation allowance

 

 

 

 

 

(2.0

)

 

 

(2.3

)

Other

 

 

1.9

 

 

 

(1.1

)

 

 

0.6

 

Effective income tax rate

 

 

29.1

%

 

 

22.0

%

 

 

34.0

%

Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities were as follows:

 

 

 

April 30,

 

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Deferred compensation

 

$

86,479

 

 

$

75,521

 

Operating lease liability

 

 

37,934

 

 

 

 

Loss carryforwards

 

 

27,845

 

 

 

22,467

 

Reserves and accruals

 

 

14,211

 

 

 

12,954

 

Deferred rent

 

 

 

 

 

7,652

 

Deferred revenue

 

 

1,187

 

 

 

1,090

 

Allowance for doubtful accounts

 

 

4,029

 

 

 

3,217

 

Other

 

 

1,516

 

 

 

 

Gross deferred tax assets

 

 

173,201

 

 

 

122,901

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Operating lease, right-of-use, assets

 

 

(29,998

)

 

 

 

Intangibles and Goodwill

 

 

(29,006

)

 

 

(28,958

)

Property and equipment

 

 

(22,332

)

 

 

(15,883

)

Prepaid expenses

 

 

(19,567

)

 

 

(20,152

)

Other

 

 

 

 

 

(1,759

)

Gross deferred tax liabilities

 

 

(100,903

)

 

 

(66,752

)

Valuation allowances

 

 

(17,875

)

 

 

(14,032

)

Net deferred tax asset

 

$

54,423

 

 

$

42,117

 

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,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(in thousands)

 

Unrecognized tax benefits, beginning of year

 

$

7,794

 

 

$

3,674

 

 

$

2,478

 

Settlement with tax authority

 

 

(1,767

)

 

 

(1,771

)

 

 

(708

)

Additions based on tax positions related to the current year

 

 

10

 

 

 

1,775

 

 

 

1,116

 

Additions based on tax positions related to prior years

 

 

 

 

 

4,116

 

 

 

788

 

Unrecognized tax benefits, end of year

 

$

6,037

 

 

$

7,794

 

 

$

3,674