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Income Taxes (Tables) | 12 Months Ended
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May 31, 2017
Income Tax Disclosure [Abstract] |
Components of Income Before Income Taxes | Income before income taxes for continuing operations consists of the following components:
(In thousands) | 2017 |  | 2016 |  | 2015
U.S. operations | $ | 673,055 |  |  | $ | 685,167 |  |  | $ | 622,502 |
Foreign operations | 14,349 |  |  | 20,148 |  |  | 18,054 |
| $ | 687,404 |  |  | $ | 705,315 |  |  | $ | 640,556 |
Components of Income Taxes | Income tax expense for continuing operations consists of the following components:
(In thousands) | 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |
Federal | $ | 194,130 |  |  | $ | 279,134 |  |  | $ | 199,360 |
State and local | 27,197 |  |  | 25,428 |  |  | 24,733 |
| 221,327 |  |  | 304,562 |  |  | 224,093 |
Deferred | 8,791 |  |  | (47,852 | ) |  | 13,910 |
| $ | 230,118 |  |  | $ | 256,710 |  |  | $ | 238,003 |
Reconciliation of Income Tax Expense Using the Statutory Rate and Actual Income Tax Expense | Reconciliation of income tax expense for continuing operations using the statutory rate and actual income tax expense is as follows:
(In thousands) | 2017 |  | 2016 |  | 2015
Income taxes at the U.S. federal statutory rate | $ | 240,677 |  |  | $ | 246,881 |  |  | $ | 224,360 |
State and local income taxes, net of federal benefit | 19,210 |  |  | 16,339 |  |  | 16,308 |
Other (1) | (29,769 | ) |  | (6,510 | ) |  | (2,665 | )
| $ | 230,118 |  |  | $ | 256,710 |  |  | $ | 238,003 |
(1) The Other category in fiscal 2017 is primarily associated with $29.4 million excess tax benefit for share based compensation under the adoption of ASU 2016-09.
Components of Deferred Income Taxes | The components of deferred income taxes included on the consolidated balance sheets are as follows:
(In thousands) | 2017 |  | 2016
Deferred tax assets: |  |  |
Allowance for doubtful accounts | $ | 7,707 |  |  | $ | 7,416 |
Inventory obsolescence | 16,096 |  |  | 13,702 |
Insurance and contingencies | 54,489 |  |  | 42,717 |
Stock-based compensation | 73,027 |  |  | 45,720 |
Net operating loss and foreign related carry-forwards (1) | 37,814 |  |  | 17,883 |
Treasury locks | — |  |  | 12,055 |
Other | 25,891 |  |  | 8,100 |
| 215,024 |  |  | 147,593 |
Valuation allowance | (18,088 | ) |  | (17,047 | )
| 196,936 |  |  | 130,546 |
Deferred tax liabilities: |  |  |
In service inventory | 210,766 |  |  | 172,704 |
Property | 126,872 |  |  | 93,784 |
Intangibles | 290,049 |  |  | 104,585 |
Treasury locks | 6,435 |  |  | — |
State taxes and other | 32,142 |  |  | 18,948 |
| 666,264 |  |  | 390,021 |
Net deferred tax liability | $ | 469,328 |  |  | $ | 259,475 |
(1) During fiscal 2017, the net operating loss increased primarily due to the G&K acquisition. The net operating loss related to the G&K acquisition is expected to be utilized by fiscal 2018 and w
Summary of Valuation Allowance | The progression of the valuation allowance is as follows:
(In thousands) | 2017 |  | 2016
Balance at beginning of year | $ | (17,047 | ) |  | $ | (14,690 | )
Additions | (1,667 | ) |  | (3,437 | )
Subtractions | 626 |  |  | 1,080 |
Balance at end of year | $ | (18,088 | ) |  | $ | (17,047 | )
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (exclusive of interest and penalties) is as follows:
(In thousands) |
Balance at June 1, 2014 | $ | 13,062 |
Additions for tax positions of prior years | 4,001 |
Settlements | (48 | )
Statute expirations | (1,603 | )
Balance at May 31, 2015 | $ | 15,412 |
Additions for tax positions of prior years | 3,259 |
Settlements | (48 | )
Statute expirations | (2,092 | )
Balance at May 31, 2016 | $ | 16,531 |
Additions from G&K acquisition (1) | 2,084 |
Additions for tax positions of prior years | 2,520 |
Settlements (2) | (1,044 | )
Statute expirations | (2,734 | )
Balance at May 31, 2017 | $ | 17,357 |
(1) Increase in unrecognized tax benefit associated with unrecognized benefits assumed in the G&K acquisition. (2) Decrease in unrecognized tax benefit associated with the settlement of a fiscal 2012 Internal Revenue Service audit.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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