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Income Taxes | 12 Months Ended
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Apr. 30, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Comprehensive tax legislation enacted through the Tax Act on December 22, 2017, significantly modified U.S. corporate income tax law. In addition to the law's corporate income tax rate reduction, several other provisions are pertinent to the Company's financial statements and related disclosures for the year ended April 30, 2019 and future years. The Company recognized the income tax effects of the 2017 Tax Act in accordance with Staff Accounting Bulletin No. 118 (“SAB 118”) which provides SEC guidance on the application of ASC 740, Income Taxes, in the reporting period in which the 2017 Tax Act was signed into law. Our analysis of the Tax Act and associated regulations was completed as of January 31, 2019. Income tax expense was comprised of the following:
| FISCAL YEARS ENDED APRIL 30
(in thousands) | 2019 |  | 2018 |  | 2017
CURRENT EXPENSE |  |  |  |  |
Federal | $ | 25,649 |  |  | $ | 8,668 |  |  | $ | 23,638 |
State | 8,231 |  |  | 1,290 |  |  | 4,189 |
Foreign | 1,125 |  |  | 257 |  |  | — |
Total current expense | 35,005 |  |  | 10,215 |  |  | 27,827 |
DEFERRED EXPENSE |  |  |  |  |
Federal | (4,498 | ) |  | 17,833 |  |  | 8,607 |
State | (3,266 | ) |  | 3,642 |  |  | 1,292 |
Foreign | (41 | ) |  | (71 | ) |  | — |
Total deferred expense | (7,805 | ) |  | 21,404 |  |  | 9,899 |
Total expense | 27,200 |  |  | 31,619 |  |  | 37,726 |
Other comprehensive income (loss) | 190 |  |  | 50 |  |  | 4,391 |
Total comprehensive income tax expense | $ | 27,390 |  |  | $ | 31,669 |  |  | $ | 42,117 |
The Company's effective income tax rate varied from the federal statutory rate as follows:
| FISCAL YEARS ENDED APRIL 30
| 2019 |  | 2018 |  | 2017
Federal statutory rate | 21.0 | % |  | 30.4 | % |  | 35.0 | %
Effect of: |  |  |  |  |
Federal income tax credits | (1.4 | )% |  | (0.5 | )% |  | (0.2 | )%
Acquisition and integration costs | — |  |  | 1.2 |  |  | — |
Stock compensation | (0.5 | ) |  | (2.4 | ) |  | (1.3 | )
Meals and entertainment | 0.3 |  |  | 0.3 |  |  | 0.3 |
Effect of Tax Act | (1.1 | ) |  | 1.2 |  |  | — |
Domestic production deduction | — |  |  | (0.8 | ) |  | (2.2 | )
Valuation allowance for deferred taxes | 0.6 |  |  | — |  |  | — |
Foreign | 0.8 |  |  | — |  |  | — |
Other | 1.2 |  |  | 0.4 |  |  | (0.3 | )
Total | (0.1 | )% |  | (0.6 | )% |  | (3.7 | )%
Effective federal income tax rate | 20.9 | % |  | 29.8 | % |  | 31.3 | %
State income taxes, net of federal tax effect | 3.6 |  |  | 3.6 |  |  | 3.3 |
Effective income tax rate | 24.5 | % |  | 33.4 | % |  | 34.6 | %
The significant components of deferred tax assets and liabilities were as follows:
| APRIL 30
(in thousands) | 2019 |  | 2018
Deferred tax assets: |  |  |
Accounts receivable | $ | 1,852 |  |  | $ | 4,772 |
Product liability | 2,133 |  |  | 2,180 |
Employee benefits | 6,192 |  |  | 6,513 |
Tax credit carryforwards | 4,439 |  |  | 3,937 |
Other | 3,272 |  |  | 2,865 |
Gross deferred tax assets, before valuation allowance | 17,888 |  |  | 20,267 |
Valuation allowance | (3,630 | ) |  | (2,467 | )
Gross deferred tax assets, after valuation allowance | 14,258 |  |  | 17,800 |
Deferred tax liabilities: |  |  |
Pension benefits | 119 |  |  | 1,035 |
Inventory | 76 |  |  | 240 |
Depreciation | 23,721 |  |  | 21,076 |
Intangibles | 53,259 |  |  | 65,294 |
Other | 1,059 |  |  | 986 |
Gross deferred tax liabilities | 78,234 |  |  | 88,631 |
Net deferred tax liability | $ | 63,976 |  |  | $ | 70,831 |
We have not recorded deferred income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. Undistributed earnings that are indefinitely reinvested in foreign operations are not significant as of April 30, 2019. The Company recorded a valuation allowance related to deferred tax assets for certain state investment tax credit ("ITC") carryforwards and foreign tax credit ("FTC") carryforwards. Deferred tax assets are reduced by a valuation allowance when, after considering all positive and negative evidence, it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In fiscal 2019, the Company determined that there will not be sufficient income in states for which an ITC deferred tax asset exists and that there will not be sufficient foreign source income to utilize the FTCs. Therefore, the Company has reassessed the valuation allowance and recorded an additional valuation allowance in the amount of $0.5 million and $0.7 million related to ITCs and FTCs, respectively. The gross amount of state tax credit carryforwards related to state ITCs as of April 30, 2019 and 2018 was $4.6 million and $5.2 million. These credits expire in various years beginning in fiscal 2020. Net of the federal impact and related valuation allowance, the Company recorded $0.8 million and $1.5 million of deferred tax assets related to these credits, as of April 30, 2019 and 2018. The Company accounts for ITCs under the deferral method, under which the tax benefit from the ITC is deferred and amortized into income tax expense over the book life of the related property. As of April 30, 2019 and 2018, a deferred credit balance of $1.0 million and $1.3 million, respectively, is included in other liabilities on the balance sheet. The gross amount of foreign tax credit carryforwards as of April 30, 2019 is $0.7 million, which expires in fiscal 2029.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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