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Income Taxes (Tables) | 12 Months Ended
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May 31, 2023
Income Tax Disclosure [Abstract] |
Earnings before Income Taxes | Earnings before income taxes for the prior three fiscal years included the following components:
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
U.S. based operations |  | $ | 308,719 |  |  | $ | 470,248 |  |  | $ | 897,601 |
Non – U.S. based operations |  |  | 36,649 |  |  |  | 44,038 |  |  |  | 20,116 |
Earnings before income taxes |  |  | 345,368 |  |  |  | 514,286 |  |  |  | 917,717 |
Less: Net earnings attributable to noncontrolling interests (1) |  |  | 12,642 |  |  |  | 19,878 |  |  |  | 17,655 |
Earnings before income taxes attributable to controlling interest |  | $ | 332,726 |  |  | $ | 494,408 |  |  | $ | 900,062 |
Components of Income Tax Expense (Benefit) | Significant components of income tax expense (benefit) for the prior three fiscal years were as follows:
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | 69,919 |  |  | $ | 79,674 |  |  | $ | 160,903 |
State and local |  |  | 7,774 |  |  |  | 8,704 |  |  |  | 6,018 |
Foreign |  |  | 14,033 |  |  |  | 7,469 |  |  |  | 4,524 |
Subtotal |  |  | 91,726 |  |  |  | 95,847 |  |  |  | 171,445 |
Deferred |  |  |  |  |  |  |  |  |
Federal |  |  | (9,682 | ) |  |  | 19,398 |  |  |  | 6,668 |
State and local |  |  | (2,122 | ) |  |  | 2,576 |  |  |  | (391 | )
Foreign |  |  | (3,724 | ) |  |  | (2,799 | ) |  |  | (1,455 | )
Subtotal |  |  | (15,528 | ) |  |  | 19,175 |  |  |  | 4,822 |
Total |  | $ | 76,198 |  |  | $ | 115,022 |  |  | $ | 176,267 |
Reconciliation of Federal Statutory Corporate Income Tax Rate to Total Tax Provision | A reconciliation of the federal statutory corporate income tax rate to total tax provision for the prior three fiscal years follows:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Federal statutory corporate income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State and local income taxes, net of federal tax benefit |  |  | 1.7 |  |  |  | 2.3 |  |  |  | 0.8 |
Non-U.S. income taxes at other than federal statutory rate |  |  | 0.9 |  |  |  | (0.9 | ) |  |  | (0.3 | )
Excess benefit related to share-based payment awards |  |  | (0.2 | ) |  |  | (0.2 | ) |  |  | (0.5 | )
Nondeductible executive compensation |  |  | 1.1 |  |  |  | 0.9 |  |  |  | 0.6 |
Oil & Gas capital stock loss |  |  | - |  |  |  | - |  |  |  | (1.5 | )
Other |  |  | (1.6 | ) |  |  | 0.2 |  |  |  | (0.5 | )
Effective tax rate attributable to controlling interest |  |  | 22.9 | % |  |  | 23.3 | % |  |  | 19.6 | %
Reconciliation of Unrecognized Tax Benefits | A tabular reconciliation of unrecognized tax benefits follows:
(In thousands) |  |  |
Balance at May 31, 2022 |  | $ | 4,706 |
Increases - tax positions taken in prior years |  |  | - |
Decreases - tax positions taken in prior years |  |  | - |
Increases - tax positions taken in prior years |  |  | - |
Increases - current tax positions |  |  | - |
Settlements |  |  | - |
Lapse of statutes of limitations |  |  | (43 | )
Balance at May 31, 2023 |  | $ | 4,663 |
Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities as of May 31 were as follows:
(In thousands) |  | 2023 |  |  | 2022 |
Deferred tax assets |  |  |  |  |  |
Accounts receivable |  | $ | 1,929 |  |  | $ | 1,695 |
Inventories |  |  | 6,195 |  |  |  | 6,291 |
Accrued expenses |  |  | 30,157 |  |  |  | 28,981 |
Net operating loss carry forwards |  |  | 10,700 |  |  |  | 8,178 |
Stock-based compensation |  |  | 6,226 |  |  |  | 5,432 |
Derivative contracts |  |  | 2,242 |  |  |  | - |
Operating lease - ROU liability |  |  | 8,390 |  |  |  | 10,443 |
Other |  |  | 2,523 |  |  |  | 1,588 |
Total deferred tax assets |  |  | 68,362 |  |  |  | 62,608 |
Valuation allowance for deferred tax assets |  |  | (5,480 | ) |  |  | (5,878 | )
Net deferred tax assets |  |  | 62,882 |  |  |  | 56,730 |
Deferred tax liabilities |  |  |  |  |  |
Property, plant and equipment |  |  | (60,771 | ) |  |  | (58,433 | )
Intangibles |  |  | (69,175 | ) |  |  | (69,426 | )
Investment in affiliated companies, principally due to undistributed earnings |  |  | (23,073 | ) |  |  | (28,274 | )
Operating lease - ROU asset |  |  | (8,091 | ) |  |  | (10,354 | )
Derivative contracts |  |  | - |  |  |  | (412 | )
Other |  |  | (3,221 | ) |  |  | (4,963 | )
Total deferred tax liability |  |  | (164,331 | ) |  |  | (171,862 | )
Net deferred tax liability |  | $ | (101,449 | ) |  | $ | (115,132 | )

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- 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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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