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v3.25.2

Income Taxes (Tables) | 12 Months Ended
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May 31, 2025
Disclosure Text Block [Abstract] |
Income Before Income Taxes | Income before income taxes by source consists of the following amounts:
|  | Year Ended May 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
U.S. |  | $ | (1,026,641 | ) |  | $ | (92,161 | ) |  | $ | (85,681 | )
Foreign |  |  | (106,469 | ) |  |  | 77,856 |  |  |  | 63,639 |
|  | $ | (1,133,110 | ) |  | $ | (14,305 | ) |  | $ | (22,042 | )
Provision for Income Taxes | The provision for income taxes consists of the following:
|  | Year Ended May 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Current |  |  |  |  |  |  |  |  |
Domestic |  |  |  |  |  |  |  |  |
Federal |  | $ | (638 | ) |  | $ | 6,800 |  |  | $ | 8,674 |
Change in tax-related uncertainties |  |  | 1,251 |  |  |  | 1,896 |  |  |  | 278 |
State |  |  | 999 |  |  |  | 1,495 |  |  |  | 1,616 |
Foreign |  |  | 14,086 |  |  |  | 14,413 |  |  |  | 9,490 |
Total Current |  |  | 15,698 |  |  |  | 24,604 |  |  |  | 20,058 |
Deferred |  |  |  |  |  |  |  |  |
Domestic |  |  |  |  |  |  |  |  |
Federal |  |  | (37,705 | ) |  |  | (22,457 | ) |  |  | (17,406 | )
State |  |  | (3,368 | ) |  |  | (4,881 | ) |  |  | (1,865 | )
Foreign |  |  | (15,691 | ) |  |  | (2,150 | ) |  |  | 41 |
Total Deferred |  |  | (56,764 | ) |  |  | (29,488 | ) |  |  | (19,230 | )
Income tax (benefit) expense |  | $ | (41,066 | ) |  | $ | (4,884 | ) |  | $ | 828 |
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 , |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Tax at U.S. statutory rate |  | $ | (237,901 | ) |  | $ | (3,004 | ) |  | $ | (4,629 | )
Permanent differences |  |  | (1,488 | ) |  |  | 273 |  |  |  | 325 |
Global intangible low-taxed income (GILTI) |  |  | 8,153 |  |  |  | 7,082 |  |  |  | 6,482 |
Foreign derived intangible income deduction (FDII) |  |  | (567 | ) |  |  | (376 | ) |  |  | (643 | )
Foreign rate differential |  |  | (2,338 | ) |  |  | (3,951 | ) |  |  | (3,742 | )
Goodwill impairment |  |  | 202,763 |  |  |  | — |  |  |  | — |
Subpart F income |  |  | 2,139 |  |  |  | 1,178 |  |  |  | 152 |
Tax-effect from stock-based compensation |  |  | 2,558 |  |  |  | 2,256 |  |  |  | 1,946 |
Provision for state income taxes, net of federal benefit |  |  | (1,871 | ) |  |  | (2,693 | ) |  |  | 18 |
Non-deductible acquisition expenses |  |  | — |  |  |  | — |  |  |  | 7,187 |
Tax credits |  |  | (11,451 | ) |  |  | (7,739 | ) |  |  | (6,709 | )
Impact of tax rate changes |  |  | (1,016 | ) |  |  | — |  |  |  | — |
Change in tax-related uncertainties |  |  | 1,251 |  |  |  | 1,896 |  |  |  | 278 |
Changes in valuation allowances |  |  | (71 | ) |  |  | (534 | ) |  |  | 355 |
Research expenditures deduction |  |  | (370 | ) |  |  | (293 | ) |  |  | (365 | )
Other |  |  | (857 | ) |  |  | 1,021 |  |  |  | 173 |
Income tax (benefit) expense |  | $ | (41,066 | ) |  | $ | (4,884 | ) |  | $ | 828 |
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, |
|  | 2025 |  |  | 2024 |
Deferred income tax liabilities |  |  |  |  |  |
Indefinite and long-lived assets |  | $ | (316,391 | ) |  | $ | (356,971 | )
Right of use asset |  |  | (4,313 | ) |  |  | (3,673 | )
Prepaid expenses |  |  | (1,734 | ) |  |  | (1,401 | )
|  |  | (322,438 | ) |  |  | (362,045 | )
Deferred income tax assets |  |  |  |  |  |
Interest expense not currently deductible |  |  | 25,694 |  |  |  | 13,994 |
Research and experimentation capitalization |  |  | 9,705 |  |  |  | 7,230 |
Stock options |  |  | 2,465 |  |  |  | 2,228 |
Inventories and accounts receivable |  |  | 8,545 |  |  |  | 5,597 |
Tax loss carryforwards |  |  | 6,574 |  |  |  | 5,580 |
Lease liability |  |  | 4,467 |  |  |  | 3,841 |
Accrued expenses and other |  |  | 3,303 |  |  |  | 2,171 |
|  |  | 60,753 |  |  |  | 40,641 |
Valuation allowance |  |  | (1,440 | ) |  |  | (1,526 | )
Net deferred income tax liabilities |  | $ | (263,125 | ) |  | $ | (322,930 | )
Net deferred income tax assets (jurisdictional) - other non-current assets |  | $ | 17,782 |  |  | $ | 3,788 |
Net deferred income tax liabilities (jurisdictional) |  |  | (280,907 | ) |  |  | (326,718 | )
Net deferred income tax liabilities |  | $ | (263,125 | ) |  | $ | (322,930 | )
Summary of net operating loss carryforwards | The Company has the following net operating loss carryforwards:
|  | As of May 31, 2025 |  |  | Expiry
U.S. |  | $ | 91 |  |  | 2038
Foreign |  |  | 18,822 |  |  | 2026 to Indefinite
Total net operating loss carryforwards |  | $ | 18,913 |  |  |
Sumary of reconciliation of our tax contingencies | The reconciliation of our unrecognized tax benefits is as follows:
|  | Year Ended May 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Beginning balance |  | $ | 2,739 |  |  | $ | 946 |  |  | $ | 741 |
Increase/(decrease) related to prior periods |  |  | 136 |  |  |  | (47 | ) |  |  | 2 |
Increase related to current period |  |  | 1,128 |  |  |  | 2,004 |  |  |  | 479 |
Lapses of applicable statute of limitations |  |  | (154 | ) |  |  | (164 | ) |  |  | (276 | )
Ending balance |  | $ | 3,849 |  |  | $ | 2,739 |  |  | $ | 946 |

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