v3.26.1
Income Taxes (Tables)
 12 Months Ended
May 31, 2026
Disclosure Text Block [Abstract]  
Income Before Income Taxes

Income before income taxes by source consists of the following amounts:

 

 

Year Ended May 31,

 

 

 

2026

 

 

2025

 

 

2024

 

U.S.

 

$

(135.9

)

 

$

(1,026.6

)

 

$

(92.2

)

Foreign

 

 

126.9

 

 

 

(106.5

)

 

 

77.9

 

 

$

(9.0

)

 

$

(1,133.1

)

 

$

(14.3

)

 
Provision for Income Taxes

The provision for income taxes consists of the following:

 

 

Year Ended May 31,

 

 

 

2026

 

 

2025

 

 

2024

 

Current

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

Federal

 

$

1.0

 

 

$

(0.6

)

 

$

6.8

 

Change in tax-related uncertainties

 

 

1.5

 

 

 

1.2

 

 

 

1.9

 

State

 

 

1.0

 

 

 

1.0

 

 

 

1.5

 

Foreign

 

 

19.7

 

 

 

14.1

 

 

 

14.4

 

Total Current

 

 

23.2

 

 

 

15.7

 

 

 

24.6

 

Deferred

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

Federal

 

 

(22.6

)

 

 

(37.7

)

 

 

(22.4

)

State

 

 

(3.6

)

 

 

(3.4

)

 

 

(4.9

)

Foreign

 

 

1.9

 

 

 

(15.7

)

 

 

(2.2

)

Total Deferred

 

 

(24.3

)

 

 

(56.8

)

 

 

(29.5

)

Income tax (benefit) expense

 

$

(1.1

)

 

$

(41.1

)

 

$

(4.9

)
Reconciliation of Income Taxes Computed at U.S. Federal Statutory Tax Rate to Income Tax Expense

The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense, including the additional disclosure requirements as set forth in ASU 2023-09, which we adopted in fiscal year 2026 on a prospective basis is as follows:

 

 

 

Year Ended May 31, 2026

 

 

 

Amount

 

 

Percent

 

Federal statutory income tax expense and rate

 

$

(1.9

)

 

 

21.0

%

State and local income taxes, net of federal income tax effect (1)

 

 

(1.5

)

 

 

16.4

%

Non-U.S. tax effects

 

 

 

 

 

 

Brazil

 

 

 

 

 

 

Statutory tax rate difference

 

 

1.6

 

 

 

(17.7

%)

Other

 

 

0.4

 

 

 

(4.2

%)

Canada

 

 

 

 

 

 

Changes in valuation allowances

 

 

(0.5

)

 

 

5.0

%

Other

 

 

0.1

 

 

 

(0.4

%)

Ireland

 

 

 

 

 

 

Statutory tax rate difference

 

 

(2.0

)

 

 

22.0

%

Pillar Two

 

 

1.0

 

 

 

(10.5

%)

Other

 

 

(0.3

)

 

 

3.1

%

Mexico

 

 

 

 

 

 

Statutory tax rate difference

 

 

0.5

 

 

 

(5.6

%)

Switzerland

 

 

 

 

 

 

Statutory tax rate difference

 

 

(5.9

)

 

 

65.4

%

Cantonal Tax

 

 

3.4

 

 

 

(37.0

%)

Other

 

 

(0.5

)

 

 

5.3

%

United Kingdom

 

 

 

 

 

 

Non-taxable gain adjustment

 

 

(5.0

)

 

 

55.5

%

Other

 

 

0.3

 

 

 

(3.7

%)

Other foreign jurisdictions

 

 

2.0

 

 

 

(21.6

%)

Effect of cross-border tax laws

 

 

 

 

 

 

Global intangible low-taxed income (net of foreign tax credits)

 

 

(0.2

)

 

 

1.7

%

Subpart F (net of foreign tax credits)

 

 

2.4

 

 

 

(26.4

%)

Tax credits

 

 

 

 

 

 

R&D credits

 

 

(0.7

)

 

 

7.7

%

Equity- based compensation

 

 

2.7

 

 

 

(29.9

%)

Officer compensation

 

 

0.6

 

 

 

(7.0

%)

Changes in unrecognized tax benefits

 

 

1.5

 

 

 

(17.0

%)

Other

 

 

0.9

 

 

 

(9.8

%)

Income tax benefit

 

$

(1.1

)

 

 

12.4

%

 

1 State and local taxes in California, Pennsylvania, and City of Lansing, Michigan accounted for the majority (greater than 50 percent) of the tax impact in this category.

 

The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense based on the applicable guidance prior to the adoption of ASU 2023-09 is as follows:

 

 

 

 

Year Ended May 31 ,

 

 

 

 

2025

 

 

2024

 

Tax at U.S. statutory rate

 

 

$

(237.9

)

 

$

(3.0

)

Permanent differences

 

 

 

(1.5

)

 

 

0.3

 

Global intangible low-taxed income (GILTI)

 

 

 

8.2

 

 

 

7.1

 

Foreign derived intangible income deduction (FDII)

 

 

 

(0.6

)

 

 

(0.4

)

Foreign rate differential

 

 

 

(2.3

)

 

 

(4.0

)

Goodwill impairment

 

 

 

202.8

 

 

 

—

 

Subpart F income

 

 

 

2.1

 

 

 

1.2

 

Tax-effect from stock-based compensation

 

 

 

2.6

 

 

 

2.2

 

Provision for state income taxes, net of federal benefit

 

 

 

(1.9

)

 

 

(2.7

)

Tax credits

 

 

 

(11.5

)

 

 

(7.7

)

Impact of tax rate changes

 

 

 

(1.0

)

 

 

—

 

Change in tax-related uncertainties

 

 

 

1.3

 

 

 

1.9

 

Changes in valuation allowances

 

 

 

(0.1

)

 

 

(0.5

)

Research expenditures deduction

 

 

 

(0.4

)

 

 

(0.3

)

Other

 

 

 

(0.9

)

 

 

1.0

 

Income tax (benefit) expense

 

 

$

(41.1

)

 

$

(4.9

)
Significant Components of Deferred Income Tax Liabilities and Assets Significant components of our deferred income tax liabilities and assets are as follows:

 

 

Year Ended May 31,

 

 

 

2026

 

 

2025

 

Deferred income tax liabilities

 

 

 

 

 

 

Indefinite and long-lived assets

 

$

(299.7

)

 

$

(316.4

)

Right of use asset

 

 

(4.1

)

 

 

(4.3

)

Prepaid expenses

 

 

(1.6

)

 

 

(1.7

)

 

 

(305.4

)

 

 

(322.4

)

Deferred income tax assets

 

 

 

 

 

 

Interest expense not currently deductible

 

 

30.4

 

 

 

25.7

 

Research and experimentation capitalization

 

 

9.5

 

 

 

9.7

 

Stock options

 

 

1.9

 

 

 

2.5

 

Inventories and accounts receivable

 

 

8.1

 

 

 

8.5

 

Tax loss carryforwards

 

 

5.5

 

 

 

6.6

 

Lease liability

 

 

4.5

 

 

 

4.4

 

Accrued expenses and other

 

 

8.5

 

 

 

3.3

 

Tax Credits

 

 

0.9

 

 

 

—

 

 

 

69.3

 

 

 

60.7

 

Valuation allowance

 

 

(5.6

)

 

 

(1.4

)

Net deferred income tax liabilities

 

$

(241.7

)

 

$

(263.1

)

 

 

 

 

 

 

Net deferred income tax assets (jurisdictional) - other non-current assets

 

$

15.9

 

 

$

17.8

 

Net deferred income tax liabilities (jurisdictional)

 

 

(257.6

)

 

 

(280.9

)

Net deferred income tax liabilities

 

$

(241.7

)

 

$

(263.1

)
Summary of net operating loss carryforwards

The Company has the following net operating loss carryforwards:

 

 

 

As of May 31, 2026

 

 

Expiry

U.S - Federal

 

$

0.1

 

 

2038

U.S - State

 

 

32.3

 

 

2035 to indefinite

Foreign

 

 

15.7

 

 

2028 to indefinite

Total net operating loss carryforwards

 

$

48.1

 

 

 
Schedule of income taxes paid

The following table provides additional detail on our income taxes paid, net of refunds, in 2026. Income taxes paid by jurisdiction include all jurisdictions that individually exceed 5% of our total income taxes paid, net of refunds received:

 

 

Year Ended May 31, 2026

 

Income Taxes Paid by Taxing Authority

 

 

 

U.S. federal

 

$

(0.6

)

U.S. state and local

 

 

0.4

 

Non - U.S

 

 

17.9

 

Total

 

$

17.7

 

 

 

 

 

Income Taxes Paid by Jurisdiction

 

 

 

Brazil

 

$

4.7

 

Ireland

 

 

3.7

 

Switzerland

 

 

3.1

 

United Kingdom

 

 

2.2

 

Colombia

 

 

1.4

 

Other International

 

 

2.6

 

Total

 

$

17.7

 
Sumary of reconciliation of our tax contingencies

The reconciliation of our unrecognized tax benefits is as follows:

 

 

Year Ended May 31,

 

 

 

2026

 

 

2025

 

 

2024

 

Beginning balance

 

$

3.8

 

 

$

2.7

 

 

$

0.9

 

Increase/(decrease) related to prior periods

 

 

(0.1

)

 

 

0.1

 

 

 

—

 

Increase related to current period

 

 

1.5

 

 

 

1.1

 

 

 

2.0

 

Lapses of applicable statute of limitations

 

 

(0.2

)

 

 

(0.1

)

 

 

(0.2

)

Ending balance

 

$

5.0

 

 

$

3.8

 

 

$

2.7