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Income Taxes (Tables)

12 Months Ended

May 31, 2023

Disclosure Text Block [Abstract]

Income Before Income Taxes

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

		Year ended May 31
		2023				2022				2021
U.S.		$	(85,681	)		$	38,554			$	55,753
Foreign			63,639				21,653				19,515
		$	(22,042	)		$	60,207			$	75,268

Provision for Income Taxes

The provision for income taxes consists of the following:

		Year ended May 31
		2023				2022				2021
Current
Domestic
Federal		$	8,674			$	8,579			$	6,981
Change in tax-related uncertainties			278				3				(75	)
State			1,616				2,406				2,147
Foreign			9,490				5,140				4,875
Total Current			20,058				16,128				13,928
Deferred
Domestic
Federal			(17,406	)			(3,721	)			479
State			(1,865	)			(356	)			44
Foreign			41				(151	)			(65	)
Total Deferred			(19,230	)			(4,228	)			458
Provision for Income Taxes		$	828			$	11,900			$	14,386

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
		2023				2022				2021
Tax at U.S. statutory rate		$	(4,629	)		$	12,643			$	15,806
Permanent differences			325				179				292
Global intangible low-taxed income (GILTI)			6,482				1,501				2,064
Foreign derived intangible income deduction (FDII)			(643	)			(1,308	)			(1,210	)
Foreign rate differential			(3,742	)			215				669
Subpart F income			152				397				628
Tax-effect from stock-based compensation			1,946				(462	)			(2,651	)
Provision for state income taxes, net of federal benefit			18				1,517				1,601
Non-deductible acquisition expenses			7,187				—				—
Tax credits			(6,709	)			(2,527	)			(3,298	)
Impact of tax rate changes			—				583				(75	)
Change in tax-related uncertainties			278				3				55
Changes in valuation allowances			355				85				—
Research expenditures deduction			(365	)			(112	)			—
Other			173				(814	)			505
Income Tax Expense		$	828			$	11,900			$	14,386

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
		2023				2022
Deferred income tax liabilities
Indefinite and long-lived assets		$	(369,500	)		$	(22,709	)
Right of use asset			(1,834	)			(344	)
Prepaid expenses			(1,480	)			(884	)
			(372,814	)			(23,937	)
Deferred income tax assets
Interest expense not currently deductible			5,782				—
Research and experimentation capitalization			5,868				—
Stock options			2,192				2,085
Inventories and accounts receivable			3,219				2,044
Tax loss carryforwards			3,909				561
Lease liability			1,899				382
Accrued expenses and other			1,981				2,422
			24,850				7,494
Valuation allowance			(2,110	)			(568	)
Net deferred income tax liabilities		$	(350,074	)		$	(17,011	)
Net deferred income tax assets (jurisdictional)		$	3,353			$	575
Net deferred income tax liabilities (jurisdictional)			(353,427	)			(17,586	)
Net deferred income tax liabilities		$	(350,074	)		$	(17,011	)

Summary of net operating loss carryforwards

The Company has the following net operating loss carryforwards:

		As of May 31, 2023				Expiry
U.S.		$	218			2037
Foreign			13,362			2024 to Indefinite
		$	13,580

Sumary of reconciliation of our tax contingencies

The reconciliation of our unrecognized tax benefits is as follows:

		Year ended May 31
		2023				2022				2021
Beginning balance		$	741			$	764			$	762
Increase/(decrease) related to prior periods			2				(75	)			(182	)
Increase related to current period			479				147				184
Lapses of applicable statute of limitations			(276	)			(95	)			—
Ending balance		$	946			$	741			$	764

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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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