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Income Taxes | 12 Months Ended
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May 31, 2014
Income Taxes |
6. | Income Taxes
Income before income taxes by source consists of the following amounts:
|  | Year ended May 31 |
(In thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
U.S. |  | $ | 37,568 |  |  | $ | 37,407 |  |  | $ | 31,775 |
Foreign |  |  | 5,463 |  |  |  | 3,734 |  |  |  | 2,064 |
|  | $ | 43,031 |  |  | $ | 41,141 |  |  | $ | 33,839 |
The provision for income taxes consisted of the following:
|  | Year ended May 31 |
(In thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Taxes |  | $ | 14,442 |  |  | $ | 12,959 |  |  | $ | 9,520 |
Foreign |  |  | 1,100 |  |  |  | 854 |  |  |  | 587 |
Deferred |  |  | (542 | ) |  |  | 287 |  |  |  | 1,343 |
|  | $ | 15,000 |  |  | $ | 14,100 |  |  | $ | 11,450 |
The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows:
|  | Year ended May 31 |
(In thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
Tax at U.S. statutory rates |  | $ | 15,061 |  |  | $ | 14,400 |  |  | $ | 11,900 |
Tax credits and other |  |  | (574 | ) |  |  | (980 | ) |  |  | (755 | )
Provisions for state income taxes, net of federal benefit |  |  | 513 |  |  |  | 680 |  |  |  | 305 |
|  | $ | 15,000 |  |  | $ | 14,100 |  |  | $ | 11,450 |
Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred income tax liabilities and assets are as follows:
|  | May 31 |
(In thousands) |  | 2014 |  |  | 2013 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Indefinite and long-lived assets |  | $ | (13,759 | ) |  | $ | (13,953 | )
Prepaids |  |  | (358 | ) |  |  | (333 | )
|  |  | (14,117 | ) |  |  | (14,286 | )
Deferred income tax assets |  |  |  |  |  |  |  |
Inventories and accounts receivable |  |  | 1,471 |  |  |  | 1,228 |
Accrued liabilities and other |  |  | 2,201 |  |  |  | 2,071 |
|  |  | 3,672 |  |  |  | 3,299 |
Net deferred income tax liabilities |  | $ | (10,445 | ) |  | $ | (10,987 | )
At the end of fiscal 2011, the Company was under audit by the Internal Revenue Service for its fiscal 2009 year; in fiscal 2012 this audit was expanded to include the fiscal 2010 year as well. The audit concluded in late fiscal 2012 with a slight favorable adjustment; thus, amounts totaling $550,000 which had been reserved as uncertain tax positions were reversed in the fourth quarter of fiscal 2012, resulting in an effective tax rate of 33.7% for the year. Absent this adjustment, the Company’s fiscal 2012 tax rate would have been 35.5%, compared to 34.3% in fiscal 2013 and 34.9% in fiscal 2014. The Company has no significant accrual for unrecognized tax benefits at May 31, 2014. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, such accruals will be reflected within income tax accounts. For the majority of tax jurisdictions, the Company is no longer subject to U.S. Federal, State and local or non U.S. income tax examinations by tax authorities for fiscal years before 2011.

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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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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 Reference 6: 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 + Details
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