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Income Taxes (Tables)

12 Months Ended

May 31, 2020

Disclosure Text Block [Abstract]

Income Before Income Taxes

Income before income taxes by source consists of the following amounts:

		Year ended May 31
(in thousands)		2020				2019				2018
U.S.		$	62,329			$	58,479			$	62,310
Foreign			9,976				14,480				11,155
		$	72,305			$	72,959			$	73,465

Provision for Income Taxes

The provision for income taxes consists of the following:

		Year ended May 31
(in thousands)		2020				2019				2018
Current
Domestic
Federal		$	6,886			$	7,173			$	9,715
Uncertain tax provision			269				13				(963	)
State			1,262				1,265				1,377
Foreign			2,475				3,758				3,066
Deferred
Domestic
Federal			1,964				1,031				(1,981	)
State			195				98				(355	)
Foreign			(221	)			(555	)			(609	)
Provision for Income Taxes		$	12,830			$	12,783			$	10,250

Reconciliation of Income Taxes Computed at U.S. Federal Statutory Tax Rate to Income Tax Expense

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)		2020				2019				2018
Tax at U.S. statutory rate		$	15,184			$	15,321			$	21,459
Permanent differences			360				(56	)
Section 199 domestic production deduction			—				—				(1,167	)
Global intangible low-taxed income (GILTI)			438				840				—
Foreign derived intangible income deduction (FDII)			(1,120	)			(1,531	)			—
Foreign rate differential			(182	)			495				(461	)
Subpart F income			634				842				816
Tax benefits on stock-based compensation			(1,998	)			(2,586	)			(4,816	)
Changes in tax contingencies - Increase/(Release)			269				13				(1,035	)
Provision for state income taxes, net of federal benefit			1,412				1,251				975
Remeasurement of deferred taxes			—				—				(6,022	)
Transition tax on foreign earnings and profits			—				—				1,223
Tax credits			(1,417	)			(1,726	)			(1,151	)
Other			(750	)			(80	)			429
Tax Expense		$	12,830			$	12,783			$	10,250

Significant Components of Deferred Income Tax Liabilities and Assets

Significant components of our deferred income tax liabilities and assets are as follows:

		Year ended May 31
(in thousands)		2020				2019
Deferred income tax liabilities
Indefinite and long-lived assets		$	(20,867	)		$	(18,963	)
Prepaid expenses			(795	)			(586	)
			(21,662	)			(19,549	)
Deferred income tax assets
Stock options			1,479				1,497
Inventories and accounts receivable			1,336				1,315
Tax loss carryforwards			484				417
Accrued expenses and other			657				1,109
Less: Valuation allowance			(419	)			(407	)
			3,537				3,931
Net deferred income tax liabilities		$	(18,125	)		$	(15,618	)

Summary of net operating loss carryforwards

The Company has the following net operating loss carryforwards:

		As of
Jurisdiction		May 31, 2020				Expiry
U.S.		$	408				2037 to indefinite
Foreign			1,354				2024 to 2039
		$	1,762

Sumary of reconciliation of our tax contingencies

The reconciliation of our tax uncertainties is as follows:

		Year ended May 31
(in thousands)		2020				2019				2018
Beginning balance		$	611			$	598			$	1,633
Increase/(decrease) related to prior periods			56				(106	)			(1,157	)
Increase to current period			213				119				122
Ending balance		$	880			$	611			$	598

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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.

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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.

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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.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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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.

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