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Income Taxes | 9 Months Ended
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Feb. 29, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 8 — INCOME TAXES The income tax provision was $2.6 million for the three months ended February 29, 2016 compared to an income tax provision of $99.4 million for the three months ended February 28, 2015. The income tax provision was $80.6 million for the nine months ended February 29, 2016 compared to an income tax provision of $174.5 million for the nine months ended February 28, 2015. The income tax provision for the three and nine months ended February 29, 2016 reflects variances from the 35% federal statutory rate primarily due to lower effective tax rate of certain of our foreign subsidiaries, the benefit of the domestic manufacturing deduction and the unfavorable impact of state and local taxes. Additionally, during the three month period ended February 29, 2016, we recorded net discrete tax benefits of $3.9 million that were primarily due to the reversal of tax contingency reserves and tax benefits associated with foreign currency losses on the distribution of foreign earnings that were previously subject to U.S. tax. The income tax provision for the three and nine month periods ended February 28, 2015 reflects variances from the 35% federal statutory rate primarily due to the lower effective income tax rate of certain of our foreign subsidiaries and foreign tax credits generated during the period. These favorable variances from the statutory rate were offset by state and local income taxes and the impact of non-deductible business expenses. Additionally, during the three month period ended February 28, 2015 we recorded net discrete tax benefits of $13.1 million that are primarily comprised of the reversal of deferred tax asset valuation allowances and adjustments to tax contingency reserves, partially offset by the impact of certain foreign losses not benefitted and the effect of changes year to date in the forecasted annual effective tax rate. Further, during the quarter ended February 28, 2015, we reviewed our permanent investment assertion under ASC 740-30 regarding a portion of our undistributed foreign earnings, which were previously considered to be indefinitely reinvested outside the U.S. As previously disclosed, a provision for deferred income taxes of $106.2 million was recorded, which represents our estimate of the future tax cost, net of related foreign tax credits, associated with remitting approximately $347.5 million of earnings back to the U.S. At May 31, 2015, we determined that it was possible that we could repatriate approximately $419.1 million of unremitted foreign earnings in the foreseeable future. Accordingly, as of May 31, 2015, we recorded a deferred income tax liability of $108.5 million, which represented our estimate of the U.S income and foreign withholding tax associated with the $419.1 million of undistributed foreign earnings not considered permanently reinvested. As of February 29, 2016, the amount of undistributed earnings that may be repatriated is $356.5 million and the corresponding deferred tax liability has been reduced to $91.6 million. This reduction in the amount of unremitted foreign earnings that are not considered permanently reinvested is predominantly due to foreign currency revaluations and, to a lesser extent, actual distributions of foreign earnings during the third quarter. The reduction to the deferred tax liability is primarily related to foreign currency revaluation, which was recorded in accumulated other comprehensive income (loss). We have not provided for U.S. income and foreign withholding taxes on the remaining foreign undistributed earnings because such earnings have been retained and reinvested by the foreign subsidiaries as of February 29, 2016. Accordingly, no provision has been made for U.S. income taxes or foreign withholding taxes, which may become payable if the remaining undistributed earnings of foreign subsidiaries were distributed to the U.S.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: 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=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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