Income Taxes |
3 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 11 – Income Taxes The Company’s effective income tax rate (“ETR”) was 100.7% and 26.6% for the first quarter of fiscal 2027 and fiscal 2026, respectively. The ETR for the first quarter of fiscal 2027 differed from the statutory rate primarily due to tax effects associated with the acquisition of Kloeckner. The ETR for the first quarter of fiscal 2026 differed from the statutory rate primarily due to non-deductible executive compensation, revaluation of a German net operating loss carryforward due to the Sitem Group transaction, and income from unconsolidated joint ventures outside the U.S. recognized net of tax. The provision for income taxes is based on the Company’s current estimate of its annual ETR, adjusted to reflect the impact of discrete items. Net earnings attributable to NCI primarily relate to the Company’s consolidated joint ventures. The income tax treatment of earnings attributable to noncontrolling interests depends on the tax classification of the underlying entity. Certain of the Company’s U.S. joint ventures are treated as partnerships for U.S. income tax purposes and generally are not themselves subject to U.S. federal income tax. Accordingly, the Company recognizes income tax expense on its share of the taxable income of these joint ventures, while the portion attributable to noncontrolling interests is generally taxable directly to the other joint venture investors. In contrast, consolidated entities that are subject to corporate income tax recognize income tax expense at the entity level. Accordingly, the income tax expense of these entities is fully reflected in the Company’s consolidated income tax provision, including tax expense associated with earnings ultimately attributable to noncontrolling interests. Management estimates the annual ETR based on its forecast of annual pre-tax income for domestic and foreign operations. The Company’s actual ETR for fiscal 2027 could differ materially from the estimated rate as of August 31, 2026. |