Provision (benefit) for income taxes consists of the following for the periods indicated:


Year Ended May 31,	2026		2025			2024
(In thousands)
Current:
U.S. federal	$	88,816	$	113,885		$	109,869
State and local		24,010		43,881			31,996
Foreign		62,199		49,174			62,168
Total Current		175,025		206,940			204,033
Deferred:
U.S. federal		17,525		25,656			(2,263	)
State and local		10,391		160			618
Foreign		4,916		(130,323	)		(3,993	)
Total Deferred		32,832		(104,507	)		(5,638	)
Provision for Income Taxes	$	207,857	$	102,433		$	198,395

Reconciliation of Income Tax Expense (Benefit)

The following table reconciles fiscal 2026 income tax expense and the effective tax rate by applying the U.S. statutory federal income tax rate against income before income taxes to the tax provision for income taxes in accordance with the adoption of ASU 2023-09:


Year Ended May 31,	2026
(In thousands, except percentages)	Amount			Percent
Federal statutory tax rate	$	182,771			21.0	%
State and local income taxes, net (1)		29,359			3.4	%
Foreign tax effects:
Canada
Withholding tax		19,856			2.3	%
Other adjustments		1,497			0.2	%
United Kingdom
Intragroup asset transfer		18,509			2.1	%
Other adjustments		(155	)		0.0	%
Other foreign jurisdictions		6,943			0.8	%
Effect of cross border tax laws		(2,107	)		(0.2	%)
Tax credits:
Foreign tax credit		(23,503	)		(2.7	%)
Other		(3,000	)		(0.4	%)
Changes in valuation allowances		18,981			2.2	%
Nontaxable or nondeductible items		4,858			0.5	%
Changes in unrecognized tax benefits		(13	)		0.0	%
Other adjustments:
Capital losses		(18,369	)		(2.1	%)
U.S. interest deduction carryforwards		(13,315	)		(1.5	%)
Intragroup asset transfer		(17,839	)		(2.1	%)
Other		3,384			0.4	%
Effective Income Tax Rate	$	207,857			23.9	%

(1)

State income taxes in California, Illinois, New Jersey, Pennsylvania, New York and Wisconsin account for the majority (greater than 50%) of the tax effect in this category.

The following table reconciles income tax expense for years prior to the adoption of ASU 2023-09:


Year Ended May 31,	2025			2024
(In thousands, except percentages)
Income tax expense at the U.S. statutory federal income tax rate	$	166,480		$	165,446
Foreign rate differential and other foreign tax adjustments		(32,497	)		9,632
Impact of foreign derived intangible income deduction		(38,174	)		(5,290	)
State and local income taxes, net		34,432			28,000
Impact of GILTI provisions		3,960			3,548
Nondeductible business expense		1,895			1,944
Valuation allowance		17,246			(754	)
Deferred tax liability for unremitted foreign earnings		-			3,658
Changes in unrecognized tax benefits		(3,771	)		2,209
Equity-based compensation		(1,963	)		(5,496	)
Nondeductible goodwill impairment		2,119			-
Deferred tax adjustment to U.S. foreign tax credit carryforwards		(43,922	)		-
Other		(3,372	)		(4,502	)
Provision for Income Tax Expense	$	102,433		$	198,395
Effective Income Tax Rate		12.9	%		25.2	%

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)	2026			2025			2024
Balance at June 1	$	1.6		$	4.4		$	2.9
Additions for tax positions of prior years		-			0.2			3.4
Reductions for tax positions of prior years		(0.1	)		(2.9	)		(1.4	)
Settlements		-			-			(0.5	)
Foreign currency translation		-			(0.1	)		-
Balance at May 31	$	1.5		$	1.6		$	4.4