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Income Taxes
9 Months Ended
Jan. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) was signed into law. The 2017 Tax Act includes a broad range of tax reform provisions affecting businesses, including lower corporate tax rates, changes in business deductions, and international tax provisions. In response to the 2017 Tax Act, the Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations where a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act. SAB 118 provides that the measurement period is complete when a company’s accounting is complete and that the measurement period shall not extend beyond one year from the enactment date. SAB 118 provides guidance for registrants under three scenarios: (i) measurement of certain income tax effects is complete, (ii) measurement of certain income tax effects can be reasonably estimated, and (iii) measurement of certain income tax effects cannot be reasonably estimated.
The Company has completed its accounting for the enactment of the 2017 Tax Act in accordance with SAB 118 in the quarter ended January 31, 2019. No material adjustments to income tax expense were recorded in regards to the provisional amounts recorded at April 30, 2018.
During the nine months ended January 31, 2019, the Company finalized the accounting policy decision with respect to the new Global Intangible Low-Taxed Income ("GILTI") tax rules and has concluded that GILTI will be treated as a periodic charge in the year in which it arises. Therefore, the Company will not record deferred taxes for the basis associated with GILTI earnings. The Company has included estimated tax expense related to GILTI for current year operations in the forecasted effective tax rate.