Income Taxes (Tables)

12 Months Ended

Apr. 30, 2025

Income tax expense was comprised of the following:


	FISCAL YEARS ENDED APRIL 30,
(in thousands)	2025		2024		2023

CURRENT
Federal	$	25,153	$	34,525	$	39,180
State	9,836		9,828		12,937
Foreign	1,150		964		998
Total current expense	36,139		45,317		53,115

DEFERRED
Federal	(7,425)		(7,156)		(20,195)
State	(1,436)		(1,866)		(3,869)
Foreign	(196)		(543)		(88)
Total deferred benefit	(9,057)		(9,565)		(24,152)
Total expense	27,082		35,752		28,963
Tax benefit included in other comprehensive income	(2,303)		(1,020)		(50)
Total comprehensive income tax expense	$	24,779	$	34,732	$	28,913

The Company's effective income tax rate varied from the federal statutory rate as follows:


	FISCAL YEARS ENDED APRIL 30,
	2025		2024		2023
Federal statutory rate	21.0	%	21.0	%	21.0	%
Effect of:
Federal income tax credits	(3.4)		(3.1)		(2.7)
Stock compensation	(0.2)		(0.2)		0.2
Uncertain tax positions	(1.0)		—		(0.2)
Meals and entertainment	0.3		0.3		0.2

Foreign	0.1		0.1		0.3
Other	(0.4)		1.5		(0.4)
State income taxes, net of federal tax effect	5.0		3.9		5.2
Effective income tax rate	21.4	%	23.5	%	23.6	%

The significant components of deferred tax assets and liabilities were as follows:


	APRIL 30,
(in thousands)	2025		2024
Deferred tax assets:
Accounts receivable	$	1,326	$	1,737

Inventory	2,294		3,009
Product liability	1,044		1,395
Employee benefits	6,196		6,112
Tax credit carryforwards	6,371		6,087
Operating leases liabilities	34,201		33,454
Section 174 research and development	19,102		9,542

Other	4,630		4,038
Gross deferred tax assets, before valuation allowance	75,164		65,374
Valuation allowance	(6,289)		(5,878)
Gross deferred tax assets, after valuation allowance	68,875		59,496

Deferred tax liabilities:
Pension benefits	241		235

Depreciation	23,181		25,059

Operating leases right-of-use assets	31,715		30,981
Interest rate swaps	155		2,448
Other	2,097		647
Gross deferred tax liabilities	57,389		59,370

Net deferred tax (asset) liability	$	(11,486)	$	(126)

The following table summarizes the activity related to unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:


	APRIL 30,
(in thousands)	2025		2024
Balance at beginning of year	$	2,892	$	2,892



Reductions for tax positions of prior years' settlements	(1,286)		—

Balance at end of year	$	1,606	$	2,892

AMERICAN WOODMARK CORP 10-K