Income Taxes |
3 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Disclosure Text Block [Abstract] | |
| Income Taxes | 8. INCOME TAXES Income tax benefit was $3.0 million during the three months ended August 31, 2026 compared to income tax expense of $7.5 million during the three months ended August 31, 2025. The net tax benefit for the current year period was primarily related to pre-tax losses due to acquisition amortization and interest expense. The income tax expense in the prior year period was primarily driven by pre-tax income due to the gain on the sale of our Cleaners and Disinfectants business. The Organization for Economic Cooperation and Development (“OECD”) Pillar Two global minimum tax rules, which generally provide for a minimum effective tax rate of 15%, are intended to apply for tax years beginning in 2024. We continue to closely monitor developments and evaluate the impact these new rules will have on our tax rate, including eligibility to qualify for certain safe harbors. Where no safe harbor is met, we have evaluated the need to include a “top-up” tax for our foreign subsidiaries as required under the applicable rules of the countries that have adopted the Pillar Two directives. For the three months ended August 31, 2026, no foreign subsidiary is forecasted to incur a material top-up tax under Pillar Two. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the United States. OBBBA contains significant domestic and international tax provisions, including changes to the taxation of foreign earnings, foreign tax credits, business interest expense limitations and research and experimental expenditures. The Company has evaluated the provisions currently effective for fiscal year 2027 and incorporated those changes into its quarterly tax provision and annual effective tax rate calculation. The total amounts of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of August 31, 2026 and May 31, 2026 were $5.3 million and $5.0 million, respectively. Increases in unrecognized tax benefits are primarily associated with positions for transfer pricing and research and development credits. |