Income Taxes (Tables)

12 Months Ended

May 31, 2026

Income Tax Disclosure [Abstract]

Earnings before Income Taxes

Earnings before income taxes for the prior three fiscal years included the following components:


(In millions)		2026				2025				2024
U.S.-based operations		$	47.3			$	114.6			$	166.3
Non-U.S.-based operations			(40.2	)			33.5				49.9
Earnings before income taxes			7.1				148.1				216.2
Less: Net earnings (loss) attributable to noncontrolling interests			(21.4	)			8.6				15.4
Earnings before income taxes attributable to controlling interest		$	28.5			$	139.5			$	200.8

Components of Income Tax Expense (Benefit)

Significant components of income tax expense (benefit) for the prior three fiscal years were as follows:


(In millions)		2026				2025				2024
Current
Federal		$	21.2			$	24.6			$	25.3
State and local			7.3				3.3				6.3
Foreign			1.9				4.0				13.4
Subtotal			30.4				31.9				45.0
Deferred
Federal			(7.3	)			0.4				4.7
State and local			(0.9	)			0.2				(0.8	)
Foreign			(2.2	)			(3.7	)			(2.8	)
Subtotal			(10.4	)			(3.1	)			1.1
Total		$	20.0			$	28.8			$	46.1

Reconciliation of Federal Statutory Corporate Income Tax Rate to Total Tax Provision

A reconciliation of the federal statutory corporate income tax rate to total tax provision for the prior three fiscal years follows:


		2026
(In millions)		Amount				Percent
Income tax at U.S. federal statutory tax rate		$	1.5				21.0	%
State and local income taxes, net of federal (1)			3.0				42.4
Foreign tax effects:
Canada
Tax credits			(2.7	)			(37.9	)
Nondeductible goodwill impairment			0.9				13.4
Foreign currency translation and rate effects			0.7				9.5
Other			(0.1	)			(1.1	)
China
Nondeductible goodwill impairment			0.5				7.5
Other			-				(0.4	)
Germany
Changes in valuation allowances			7.7				108.3
Other			(0.4	)			(5.7	)
India
Nondeductible goodwill impairment			0.3				4.7
Other			0.2				1.8
Italy
Nondeductible goodwill impairment			3.0				42.3
Foreign currency translation and rate effects			(0.7	)			(9.2	)
Opening balance sheet adjustments			(0.6	)			(8.4	)
Other			-				0.7
Mexico
Foreign currency translation and rate effects			(6.7	)			(93.8	)
Nondeductible goodwill impairment			1.2				16.9
Nondeductible wages			0.5				7.2
Other			0.1				0.7
Switzerland
Foreign currency translation and rate effects			2.5				35.6
Changes in valuation allowances			(1.5	)			(21.0	)
Amended return net operating loss adjustment			1.4				19.3
Opening balance sheet adjustments			0.9				12.3
Nondeductible goodwill impairment			0.5				7.2
Other			-				0.2
Other			0.4				4.7
Effects of cross-borders tax laws
Global intangible low-taxed income			1.3				18.3
Foreign-derived intangible income			(1.0	)			(14.8	)
Tax credits			(0.2	)			(2.8	)
Nontaxable or nondeductible items:
Nondeductible goodwill impairment			4.1				58.5
Tax effect of income attributable to noncontrolling interests			(3.1	)			(43.6	)
Nondeductible executive compensation			2.8				39.0
Share-based compensation			(1.1	)			(14.9	)
Nondeductible transaction costs			0.7				10.3
Meals and entertainment costs			0.5				7.1
Nondeductible fringe benefit			0.4				4.9
Changes in unrecognized tax benefits			1.8				26.0
Other adjustments:
Interest and penalties related to unrecognized tax benefits			0.8				11.6
Tax on unremitted foreign earnings			0.3				4.3
Other			0.1				0.6
Effective tax rate		$	20.0				282.7	%

(1)

State and local taxes in Illinois, Michigan, and Kentucky make up the majority (greater than 50%) of the tax effect in this category.


		2025				2024
Federal statutory corporate income tax rate			21.0	%			21.0	%
Non-U.S. income taxes at other than federal statutory rate			(4.6	)			0.6
State and local income taxes, net of federal tax benefit			1.9				2.2
Nondeductible executive compensation			1.8				0.6
Other			0.5				(1.4	)
Effective tax rate attributable to controlling interest			20.6	%			23.0	%

Reconciliation of Unrecognized Tax Benefits

A tabular reconciliation of unrecognized tax benefits follows:


(In millions)		2026				2025				2024
Balance at beginning of year		$	-			$	0.2			$	1.2
Gross increases related to tax positions taken in prior years			2.3				-				-
Gross decreases related to tax positions taken in prior years			-				-				(1.0	)
Gross increases related to tax positions taken in current year			0.3				-				-
Reductions due to lapse of applicable statutes of limitations			-				(0.2	)			-
Balance at end of year		$	2.6			$	-			$	0.2

Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities as of May 31 were as follows:


(In millions)		2026				2025
Deferred tax assets
Accounts receivable		$	0.7			$	1.9
Inventories			3.3				2.8
Accrued expenses			10.6				7.1
Net operating loss carry forwards			21.6				4.5
Stock-based compensation			2.7				2.5
Operating lease liability			4.7				4.2
Tax credit carryforwards			2.2				-
Other			3.4				2.4
Deferred tax assets before valuation allowance			49.2				25.4
Less: Valuation allowance			(11.0	)			-
Total deferred tax assets			38.2				25.4

Deferred tax liabilities
Property, plant and equipment			(44.2	)			(28.2	)
Investment in affiliated company, principally due to undistributed earnings			(9.1	)			(8.7	)
Operating lease – ROU assets			(3.6	)			(3.8	)
Prepaid expenses			(0.7	)			(0.8	)
Derivative contracts			(0.6	)			(0.4	)
Other			(0.9	)			(0.7	)
Total deferred tax liability			(59.1	)			(42.6	)
Net deferred tax asset (liability)		$	(20.9	)		$	(17.2	)

Schedule of reconciliation of income taxes paid

As part of the Company’s adoption of ASU 2023-09 in fiscal 2026 on a prospective basis, a reconciliation of income taxes paid in fiscal 2026 is as follows:


(In millions)		2026
U.S. Federal		$	29.9
U.S. State			5.1
Non-U.S.
Canada			4.8
Other			2.8
Income Taxes paid, net of refunds received		$	42.6