XML 51 R36.htm IDEA: XBRL DOCUMENT
v3.20.2

Income Taxes (Tables) | 12 Months Ended
--- | ---
May 31, 2020
Income Tax Disclosure [Abstract] |
Components of Income Before Income Taxes | Income before income taxes for continuing operations consists of the following components for the fiscal years ended May 31:
(In thousands) | 2020 |  | 2019 |  | 2018
U.S. operations | $ | 1,035,902 |  |  | $ | 1,061,505 |  |  | $ | 798,215 |
Foreign operations | 22,389 |  |  | 40,894 |  |  | 42,786 |
| $ | 1,058,291 |  |  | $ | 1,102,399 |  |  | $ | 841,001 |
Components of Income Taxes | Income tax expense (benefit) for continuing operations consists of the following components for the fiscal years ended May 31:
(In thousands) | 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 153,736 |  |  | $ | 134,174 |  |  | $ | 124,861 |
State and local | 34,502 |  |  | 40,949 |  |  | 32,322 |
Foreign | 6,985 |  |  | 9,882 |  |  | 15,103 |
| 195,223 |  |  | 185,005 |  |  | 172,286 |
Deferred | (13,292) |  |  | 34,759 |  |  | (115,217) |
| $ | 181,931 |  |  | $ | 219,764 |  |  | $ | 57,069 |
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 for the fiscal years ended May 31:
(In thousands) | 2020 |  | 2019 |  | 2018
Income taxes at the U.S. federal statutory rate | $ | 222,258 |  |  | $ | 231,503 |  |  | $ | 245,322 |
Permanent differences (1) | (67,075) |  |  | (51,201) |  |  | (47,137) |
State and local income taxes, net of federal benefit | 25,294 |  |  | 31,687 |  |  | 24,783 |
Other (2) | 1,454 |  |  | 6,506 |  |  | (4,451) |
Impact of the Tax Cuts and Jobs Act: |  |  |  |  |
Deemed repatriation of non-U.S. earnings, net of foreign tax credits and other (collectively, transition tax) | — |  |  | 153 |  |  | 9,768 |
Non-U.S. withholding taxes related to certain non-U.S. earnings subject to repatriation | — |  |  | 690 |  |  | 4,363 |
Remeasurement of U.S. net deferred tax liabilities from 35% to 21% | — |  |  | 426 |  |  | (175,579) |
| $ | 181,931 |  |  | $ | 219,764 |  |  | $ | 57,069 |
(1) Primarily consists of the excess tax benefits related to stock-based compensation. (2) Primarily consists of adjustments for uncertain tax positions, tax credits and return to provision adjustments.
Components of Deferred Income Taxes | The components of deferred income taxes included on the consolidated balance sheets are as follows at May 31:
(In thousands) | 2020 |  | 2019
Deferred tax assets: |  |  |
Allowance for doubtful accounts | $ | 14,718 |  |  | $ | 9,495 |
Inventory obsolescence | 13,744 |  |  | 9,257 |
Insurance reserves | 45,197 |  |  | 45,339 |
Stock-based compensation | 78,802 |  |  | 77,697 |
Net operating loss and foreign related carry-forwards (1) | 7,657 |  |  | 9,109 |
Treasury locks | 39,046 |  |  | 5,806 |
Operating lease liabilities | 42,191 |  |  | — |
Deferred compensation and other | 73,562 |  |  | 48,922 |
| 314,917 |  |  | 205,625 |
Valuation allowance | (6,411) |  |  | (7,308) |
| 308,506 |  |  | 198,317 |
Deferred tax liabilities: |  |  |
Uniform and other rental items in service | 189,787 |  |  | 194,939 |
Property and equipment | 177,664 |  |  | 159,186 |
Service contracts and other intangible assets | 207,610 |  |  | 210,531 |
Capitalized contract costs | 77,741 |  |  | 70,228 |
Operating lease right-of-use assets | 42,191 |  |  | — |
State taxes and other | 2,092 |  |  | 1,612 |
| 697,085 |  |  | 636,496 |
Net deferred tax liability | $ | 388,579 |  |  | $ | 438,179 |
(1) The majority of these net operating losses and foreign related carryforwards have a five-year expiration period and generally expire in fiscal year 2021 to 2025
Summary of Valuation Allowance | The progression of the valuation allowance is as follows at May 31:
(In thousands) | 2020 |  | 2019
Balance at beginning of year | $ | (7,308) |  |  | $ | (11,302) |
Subtractions (1) | 897 |  |  | 3,994 |
Balance at end of year | $ | (6,411) |  |  | $ | (7,308) |
(1) Primarily related to expiration of net operating loss and foreign related carryforwards.
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, 2018 | $ | 36,647 |
Additions for tax positions of the current year | 3,641 |
Additions for tax positions of prior years | 10,239 |
Statute expirations | (1,812) |
Balance at May 31, 2019 | 48,715 |
Additions for tax positions of the current year | 3,976 |
Additions for tax positions of prior years | 4,325 |
Settlements | (5,473) |
Statute expirations | (6,873) |
Balance at May 31, 2020 | $ | 44,670 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -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
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=121610041&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration