Income Taxes (Tables)
|
12 Months Ended |
May 31, 2025 |
Income Tax Disclosure [Abstract] |
|
Income before Income Taxes |
Income before income taxes as shown in the Consolidated Statements of Income is summarized below for the periods indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May 31, |
|
2025 |
|
|
2024 |
|
|
2023 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
United States |
|
$ |
645,397 |
|
|
$ |
625,167 |
|
|
$ |
557,401 |
|
Foreign |
|
|
147,363 |
|
|
|
162,670 |
|
|
|
91,981 |
|
Income Before Income Taxes |
|
$ |
792,760 |
|
|
$ |
787,837 |
|
|
$ |
649,382 |
|
|
Provision (Benefit) for Income Tax |
Provision (benefit) for income taxes consists of the following for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May 31, |
|
2025 |
|
|
2024 |
|
|
2023 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
Current: |
|
|
|
|
|
|
|
|
|
U.S. federal |
|
$ |
113,885 |
|
|
$ |
109,869 |
|
|
$ |
91,749 |
|
State and local |
|
|
43,881 |
|
|
|
31,996 |
|
|
|
25,972 |
|
Foreign |
|
|
49,174 |
|
|
|
62,168 |
|
|
|
45,694 |
|
Total Current |
|
|
206,940 |
|
|
|
204,033 |
|
|
|
163,415 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
U.S. federal |
|
|
25,656 |
|
|
|
(2,263 |
) |
|
|
16,969 |
|
State and local |
|
|
160 |
|
|
|
618 |
|
|
|
4,359 |
|
Foreign |
|
|
(130,323 |
) |
|
|
(3,993 |
) |
|
|
(15,092 |
) |
Total Deferred |
|
|
(104,507 |
) |
|
|
(5,638 |
) |
|
|
6,236 |
|
Provision for Income Taxes |
|
$ |
102,433 |
|
|
$ |
198,395 |
|
|
$ |
169,651 |
|
|
Significant Components of Deferred Income Tax Assets and Liabilities |
The significant components of deferred income tax assets and liabilities as of May 31, 2025 and 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
(In thousands) |
|
|
|
|
|
|
Deferred income tax assets related to: |
|
|
|
|
|
|
Inventories |
|
$ |
17,348 |
|
|
$ |
17,772 |
|
Accrued compensation and benefits |
|
|
15,430 |
|
|
|
17,649 |
|
Other accrued and prepaid expenses, net |
|
|
21,294 |
|
|
|
19,058 |
|
Deferred income and other long-term liabilities |
|
|
24,880 |
|
|
|
31,204 |
|
Credit, net operating, interest and capital loss carryforwards |
|
|
60,457 |
|
|
|
87,590 |
|
Research and development |
|
|
42,258 |
|
|
|
33,076 |
|
Pension and other postretirement benefits |
|
|
5,069 |
|
|
|
- |
|
Total Deferred Income Tax Assets |
|
|
186,736 |
|
|
|
206,349 |
|
Less: valuation allowances |
|
|
(49,167 |
) |
|
|
(30,021 |
) |
Net Deferred Income Tax Assets |
|
|
137,569 |
|
|
|
176,328 |
|
Deferred income tax (liabilities) related to: |
|
|
|
|
|
|
Depreciation |
|
|
(136,966 |
) |
|
|
(132,007 |
) |
Amortization of intangibles |
|
|
(77,142 |
) |
|
|
(125,553 |
) |
Unremitted foreign earnings |
|
|
- |
|
|
|
(4,055 |
) |
Net unrealized gain on securities |
|
|
(372 |
) |
|
|
(1,305 |
) |
Pension and other postretirement benefits |
|
|
- |
|
|
|
(1,108 |
) |
Total Deferred Income Tax (Liabilities) |
|
|
(214,480 |
) |
|
|
(264,028 |
) |
Deferred Income Tax Assets (Liabilities), Net |
|
$ |
(76,911 |
) |
|
$ |
(87,700 |
) |
A
|
Reconciliation of Income Tax Expense (Benefit) Computed by Applying U.S. Statutory Federal Income Tax Rate against Income (Loss) before Income Taxes to Provision (Benefit) for Income Taxes |
The following table reconciles income tax expense (benefit) computed by applying the U.S. statutory federal income tax rate against income (loss) before income taxes to the provision (benefit) for income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May 31, |
|
2025 |
|
|
2024 |
|
|
2023 |
|
(In thousands, except percentages) |
|
|
|
|
|
|
|
|
|
Income tax expense at the U.S. statutory federal income tax rate |
|
$ |
166,480 |
|
|
$ |
165,446 |
|
|
$ |
136,370 |
|
Foreign rate differential and other foreign tax adjustments |
|
|
(32,497 |
) |
|
|
9,632 |
|
|
|
5,722 |
|
Impact of foreign derived intangible income deduction |
|
|
(38,174 |
) |
|
|
(5,290 |
) |
|
|
(4,187 |
) |
State and local income taxes, net |
|
|
34,432 |
|
|
|
28,000 |
|
|
|
22,017 |
|
Impact of GILTI provisions |
|
|
3,960 |
|
|
|
3,548 |
|
|
|
4,217 |
|
Nondeductible business expense |
|
|
1,895 |
|
|
|
1,944 |
|
|
|
1,257 |
|
Valuation allowance |
|
|
17,246 |
|
|
|
(754 |
) |
|
|
1,199 |
|
Deferred tax liability for unremitted foreign earnings |
|
|
- |
|
|
|
3,658 |
|
|
|
- |
|
Changes in unrecognized tax benefits |
|
|
(3,771 |
) |
|
|
2,209 |
|
|
|
(3,334 |
) |
Equity-based compensation |
|
|
(1,963 |
) |
|
|
(5,496 |
) |
|
|
(3,482 |
) |
Nondeductible goodwill impairment |
|
|
2,119 |
|
|
|
- |
|
|
|
7,264 |
|
Deferred tax adjustment to U.S. foreign tax credit carryforwards |
|
|
(43,922 |
) |
|
|
- |
|
|
|
- |
|
Other |
|
|
(3,372 |
) |
|
|
(4,502 |
) |
|
|
2,608 |
|
Provision for Income Tax Expense |
|
$ |
102,433 |
|
|
$ |
198,395 |
|
|
$ |
169,651 |
|
Effective Income Tax Rate |
|
|
12.9 |
% |
|
|
25.2 |
% |
|
|
26.1 |
% |
|
Activity Related to Unrecognized Tax Benefits |
Uncertain income tax positions are accounted for in accordance with ASC 740. The following table summarizes the activity related to unrecognized tax benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
Balance at June 1 |
|
$ |
4.4 |
|
|
$ |
2.9 |
|
|
$ |
5.7 |
|
Additions for tax positions of prior years |
|
|
0.2 |
|
|
|
3.4 |
|
|
|
0.1 |
|
Reductions for tax positions of prior years |
|
|
(2.9 |
) |
|
|
(1.4 |
) |
|
|
(2.8 |
) |
Settlements |
|
|
- |
|
|
|
(0.5 |
) |
|
|
- |
|
Foreign currency translation |
|
|
(0.1 |
) |
|
|
- |
|
|
|
(0.1 |
) |
Balance at May 31 |
|
$ |
1.6 |
|
|
$ |
4.4 |
|
|
$ |
2.9 |
|
|