v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The components of income before income taxes for the years ended May 31 are as follows (in millions):
202620252024
Domestic $829 $1,735 $1,995 
Foreign 55 67 84 
Total income before income taxes $884 $1,802 $2,079 
Schedule of Components of Income Tax Expense (Benefit)
The components of the provision for income taxes for the years ended May 31 were as follows (in millions):
202620252024
Current provision
Domestic:
Federal $235 $363 $453 
State and local 66 89 106 
Foreign 18 21 22 
Total current provision319 473 581 
Deferred benefit:
Domestic:
Federal (75)(15)(65)
State and local (12)(1)(10)
Foreign (3)(1)(1)
Total deferred benefit(90)(17)(76)
Total provision for income taxes$229 $456 $505 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation between the effective income tax rate and the U.S. statutory rate (in accordance with the new guidance) for May 31, 2026 (in millions) is as follows:
2026
Taxes computed at federal statutory rate$186 21.0 %
State and local income taxes, net of federal benefit (1)
42 4.8 %
Foreign tax effects9 1.0 %
Tax credits(6)(0.7)%
Changes in valuation allowance4 0.5 %
Other, net(6)(0.7)%
Income Tax Expense$229 25.9 %
(1)State taxes in California, Florida, Georgia, Illinois, Indiana, Iowa, Michigan, New Jersey, and Pennsylvania made up the majority (greater than 50%) of the tax effect of this category.
A reconciliation between the effective income tax rate and the U.S. statutory rate (as previously reported in accordance with guidance prior to the adoption of the new accounting standard) for May 31, 2025, and 2024 (in millions) is as follows:
20252024
Taxes computed at federal statutory rate $378 $438 
Increases (decreases) in income tax from:
Prior period adjustments 3 (10)
State and local income taxes, net of federal benefit 69 75 
Foreign operations 7 6 
Tax credits (4)(6)
Valuation allowance 3 2 
Provision for income taxes $456 $505 
Effective income tax rate 25.3%24.3%
Schedule of Deferred Tax Assets and Liabilities
The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions):
20262025
Deferred tax
asset 		Deferred tax
liabilities 		Deferred
tax asset 		Deferred tax
liabilities
Property, equipment, leases and intangibles $503 $(825)$375 $(758)
Employee benefits 84 — 52 — 
Self-insurance accruals 16 — 111 — 
Other 30 (22)20 (33)
Net operating loss/credit carryforwards 12 — 8 — 
Valuation allowances (12)— (8)— 
$633 $(847)$558 $(791)
The net deferred tax liabilities as of May 31 have been classified in the balance sheet as follows (in millions):
20262025
Noncurrent deferred tax assets(1)
$6 $2 
Noncurrent deferred tax liabilities (220)(235)
$(214)$(233)
(1)Noncurrent deferred tax assets are included within “Other Assets” in the accompanying Consolidated Balance Sheets.
Schedule of Cash Flow, Supplemental Disclosures
Income taxes paid (net of refunds received) consisted of the following for year ended May 31 (in millions):
2026
U.S. federal$— 
Pennsylvania2 
Other U.S. state & local9 
Canada15 
Mexico2 
Other foreign1 
Total income taxes paid, net of refunds$29 
Cash paid for interest expense and income taxes for the years ended May 31 was as follows (in millions):
202620252024
Cash payments for:
Interest (net of capitalized interest)$7 $3 $3 
Income taxes29 36 37