Unrecognized Tax Benefits

3 Months Ended

Jul. 31, 2015

Income Tax Disclosure [Abstract]

Unrecognized Tax Benefits

Unrecognized Tax Benefits

The total amount of gross unrecognized tax benefits was $8,043 at April 30, 2015. At July 31, 2015, gross unrecognized tax benefits were $8,472. If this unrecognized tax benefit were ultimately recognized, $5,544 is the amount that would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $271 at July 31, 2015, and $152 at April 30, 2015. Net interest and penalties included in income tax expense for the three months ended July 31, 2015, was a net expense of $119 and a net benefit of $213 for the prior period.

A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. The State of Illinois is examining tax years 2011 and 2012. Additionally, the IRS is currently examining tax year 2012. The Company has no other ongoing federal or state income tax examinations. The Company does not have any outstanding litigation related to tax matters. At this time, management expects the aggregate amount of unrecognized tax benefits to decrease by approximately $2,993 within the next twelve months. The expected decrease is due to the expiration of the statute of limitations related to certain federal and state income tax filing positions.

The federal statute of limitation remains open for the tax years 2011 and forward. Tax years 2010 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.