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Income Taxes | 12 Months Ended
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Apr. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law, which contains several income tax provisions, as well as other measures, aimed at assisting businesses impacted by the economic effects of the COVID-19 pandemic. The CARES Act includes a broad range of tax reform provisions affecting businesses, including permissible net operating losses ("NOLs") carrybacks up to five years, changes in business deductions limitations, and deferral of Social Security withholdings. The Company expects that it will apply the NOL carryback provision of the CARES Act with respect to its estimated NOL for fiscal year 2021 to years that had higher enacted tax rates, and applied this provision to the NOL for fiscal year 2020, resulting in a tax benefit. The Company also applied the deferral of Social Security withholdings in accordance with the CARES Act; these deferred withholdings are due in future periods. Effective August 1, 2019, as previously stated, the Company elected to revoke the indefinite reinvestment of foreign unremitted earnings position set forth by ASC 740-30-25-17 for multiple foreign subsidiaries. The Company recorded a tax withholding expense imposed by the India Income Tax Department of $226,000 and $1,964,000 for the years ended April 30, 2021 and 2020, respectively. The Company's accounting policy with respect to the Global Intangible Low-Taxed Income ("GILTI") tax rules is that GILTI will be treated as a periodic charge in the year in which it arises. The Company had no tax expense related to GILTI for the year ended April 30, 2021. Income tax expense consisted of the following:
$ in thousands |  | 2021 |  | 2020
Current tax expense (benefit): |  |  |  |
Federal |  | $ | (396) |  |  | $ | (2,289) |
State and local |  | 8 |  |  | 49 |
Foreign |  | 1,136 |  |  | 1,567 |
Total current tax expense (benefit) |  | 748 |  |  | (673) |
Deferred tax expense (benefit): |  |  |  |
Federal |  | 449 |  |  | 1,233 |
State and local |  | (135) |  |  | 438 |
Foreign |  | (72) |  |  | 760 |
Total deferred tax expense |  | 242 |  |  | 2,431 |
Net income tax expense |  | $ | 990 |  |  | $ | 1,758 |
The reasons for the differences between the above net income tax expense and the amounts computed by applying the statutory federal income tax rate to earnings before income taxes are as follows:
$ in thousands |  | 2021 |  | 2020
Income tax benefit at statutory rate |  | $ | (470) |  |  | $ | (567) |
State and local taxes, net of federal income tax benefit |  | (129) |  |  | (115) |
Tax credits (state, net of federal benefit) |  | (415) |  |  | (477) |
Effects of differing US and foreign tax rates |  | 17 |  |  | 3 |
Rate reduction impact on deferred tax assets |  | — |  |  | (47) |
Tax on unrepatriated and repatriated foreign earnings |  | 226 |  |  | 1,964 |
Net operating loss carryback |  | 118 |  |  | (939) |
Effect of prior year true ups |  | (42) |  |  | 38 |
Impact of foreign subsidiary income (loss) to parent |  | 67 |  |  | (5) |
Increase in valuation allowance |  | 1,538 |  |  | 1,707 |
Other items, net |  | 80 |  |  | 196 |
Net income tax expense |  | $ | 990 |  |  | $ | 1,758 |
Significant items comprising deferred tax assets and liabilities as of April 30 were as follows:
$ in thousands |  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Accrued employee benefit expenses |  | $ | 296 |  |  | $ | 402 |
Allowance for doubtful accounts |  | 154 |  |  | 150 |
Deferred compensation |  | 1,283 |  |  | 890 |
Tax credits (state, net of federal benefits) |  | 978 |  |  | 532 |
Foreign tax credit carryforwards |  | 638 |  |  | 638 |
Unrecognized actuarial loss, defined benefit plans |  | 1,196 |  |  | 2,616 |
Inventory reserves |  | 69 |  |  | 102 |
Net operating loss carryforwards |  | 572 |  |  | 457 |
Other |  | 568 |  |  | 506 |
Total deferred tax assets |  | 5,754 |  |  | 6,293 |
Deferred tax liabilities: |  |  |  |
Book basis in excess of tax basis of property, plant and equipment |  | (1,596) |  |  | (1,545) |
Prepaid pension |  | (847) |  |  | (1,111) |
APB 23 Assertion |  | (765) |  |  | (786) |
Other |  | (122) |  |  | (304) |
Total deferred tax liabilities |  | (3,330) |  |  | (3,746) |
Valuation allowance |  | (2,731) |  |  | (2,612) |
Net deferred tax liabilities |  | $ | (307) |  |  | $ | (65) |
Deferred tax assets (liabilities) classified in the balance sheet: |  |  |  |
Current |  | $ | — |  |  | $ | 336 |
Non-current |  | (307) |  |  | (401) |
Net deferred tax liabilities |  | $ | (307) |  |  | $ | (65) |
At April 30, 2021, the Company had deferred tax assets related to various federal, state and foreign deferred tax items, net operating loss carryforwards, and tax credit carryforwards in the amount of $5,754,000. The Company is required to evaluate the realization of the deferred tax asset and any requirement for a valuation allowance in accordance with ASC 740-10-30-2(b). The Company evaluates all available evidence, both positive and negative, to determine the amount of any required valuation allowance. A deferred tax asset valuation allowance of $2,731,000 was recorded in the period ended April 30, 2021 based on ASC 740-10-30-18. This guidance provides that the future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. At April 30, 2021, the Company had federal research and development tax credit carryforwards in the amount of $808,000 expiring beginning in 2041. At April 30, 2021, the Company had foreign tax credit carryforwards in the amount of $638,000, which are subject to a full valuation allowance, beginning to expire in 2028. At April 30, 2021, the Company had $1,136,000 gross net operating losses in jurisdictions outside of the United States, of which $482,000 is set to expire in years 2022 to 2025. The Company files federal, state and local tax returns with statutes of limitation generally ranging from 3 to 4 years. The Company is generally no longer subject to federal tax examinations for years prior to fiscal year 2017 or state and local tax examinations for years prior to fiscal year 2016. Tax returns filed by the Company's significant foreign subsidiaries are generally subject to statutes of limitations of 3 to 7 years and are generally no longer subject to examination for years prior to fiscal year 2015. The Company has no unrecognized tax benefits.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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