XML 41 R22.htm IDEA: XBRL DOCUMENT v3.23.2
Income Taxes
 3 Months Ended
Jul. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our effective tax rate fluctuates based on, among other factors, where income is earned and the level of income relative to tax attributes. The effective tax rate for the three months ended July 31, 2023, was 13.5%, compared with 23.7% for the three months ended July 31, 2022.
The effective tax rate for the three months ended July 31, 2023, was lower than the US statutory rate primarily due to the impairment of goodwill resulting from the segment realignment described in Note 12, "Goodwill and Intangible Assets," as well as the held-for-sale impairment described in Note 3, "Acquisitions and Divestitures", which resulted in a deferred tax benefit, the impact of US state taxes, and other discrete items offset by the mix of non-US income.
The effective tax rate for the three months ended July 31, 2023, was lower than the effective tax rate for the three months ended July 31, 2022, primarily due to the same factors described above. The impairment of goodwill resulting from the segment realignment described in Note 12, "Goodwill and Intangible Assets," results in a tax benefit of $2.7 million and the held-for-sale and impairment described in Note 3, "Acquisitions and Divestitures" results in a tax benefit of $10.7 million.
Each year we file many tax returns given the number of national, state, and local tax jurisdictions in which we operate. These tax returns are subject to examination by the tax authorities. As a result, there is an uncertainty in income taxes recognized in our financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. The ultimate resolution of such uncertainties is not expected to have a material impact on the results of our operations.