Unrecognized Tax Benefits

9 Months Ended

Jan. 31, 2016

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 January 31, 2016, gross unrecognized tax benefits were $9,055. If this unrecognized tax benefit were ultimately recognized, $5,923 is the amount that would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $338 at January 31, 2016, and $152 at April 30, 2015. Net interest and penalties included in income tax expense for the nine months ended January 31, 2016, was an expense of $186 and a net benefit of $176 for the same period of the prior year.

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 $2,942 within the next twelve months. The expected decrease is due to the expiration of the statute of limitations related to certain state income tax filing positions.

The federal statute of limitation remains open for the tax years 2012 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.