v3.26.1
Income Taxes (Tables)
 12 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before Income Taxes
Income before income taxes consists of the following components for the fiscal years ended May 31:
(In thousands)202620252024
U.S. operations$2,336,940 $2,117,251 $1,860,859 
Foreign operations168,394 146,951 112,776 
$2,505,334 $2,264,202 $1,973,635 
Schedule of Components of Income Taxes
Income tax expense consists of the following components for the fiscal years ended May 31:
(In thousands)202620252024
Current:  
Federal$334,423 $352,652 $327,616 
State and local81,235 96,808 79,583 
Foreign30,118 10,580 25,344 
445,776 460,040 432,543 
Deferred59,590 (8,119)(30,500)
$505,366 $451,921 $402,043 
Schedule of Reconciliation of Income Tax Expense Using the Statutory Rate and Actual Income Tax Expense
Reconciliation of income tax expense using the statutory rate and actual income tax expense is as follows for the fiscal year ended May 31, 2026:
(In thousands)
Income taxes at the U.S. federal statutory rate$526,120 21.0%
State and local income taxes, net of federal benefit (1)
63,394 2.5%
Foreign tax effects(4,835)(0.2)%
Effect of cross-border tax laws(3,219)(0.1)%
Tax credits(13,325)(0.5)%
Nontaxable or nondeductible items:
Stock-based compensation(52,953)(2.1)%
Other nontaxable and nondeductible items, net(15,857)(0.6)%
Changes in unrecognized tax benefits5,719 0.2%
Other322 0.0%
$505,366 20.2%
(1)State taxes in California, Illinois, New York, New Jersey and Wisconsin make up the majority (greater than 50%) of the tax effect in the state and local income tax category.

Reconciliation of income tax expense using the statutory rate and actual income tax expense is as follows for the fiscal years ended May 31:
(In thousands)20252024
Income taxes at the U.S. federal statutory rate$475,482 $414,463 
Permanent differences (1)
(75,966)(67,310)
State and local income taxes, net of federal benefit64,052 49,560 
Other(11,647)5,330 
$451,921 $402,043 
(1)    Primarily consists of the excess tax benefits related to stock-based compensation.
Schedule of Components of Deferred Income Taxes
The components of deferred income taxes included on the consolidated balance sheets are as follows at May 31:
(In thousands)20262025
Deferred tax assets:  
Allowance for credit losses$20,720 $17,352 
Inventory reserves16,727 17,734 
Insurance reserves44,792 45,029 
Stock-based compensation75,023 66,260 
Net operating loss and foreign related carry-forwards2,428 1,630 
Operating lease liabilities69,972 58,219 
Deferred compensation and other132,104 132,210 
361,766 338,434 
Valuation allowance(2,391)(1,556)
359,375 336,878 
Deferred tax liabilities:  
Uniform and other rental items in service306,612 274,781 
Property and equipment197,787 163,247 
Intangibles and other amortizable assets179,915 173,362 
Treasury locks36,686 37,014 
Capitalized contract costs101,190 95,069 
Operating lease right-of-use assets69,972 58,219 
State taxes and other5,132 6,926 
897,294 808,618 
Net deferred tax liability$537,919 $471,740 
Schedule of Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (exclusive of interest and penalties) is as follows:
(In thousands) 
Balance at June 1, 2024$41,746 
Additions for tax positions of the current year14,001 
Additions for tax positions of prior years3,791 
Statute expirations(1,530)
Balance at May 31, 202558,008 
Additions for tax positions of the current year14,428 
Settlements(4,180)
Statute expirations(5,536)
Balance at May 31, 2026$62,720