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v3.26.1

Taxes (Tables) | 12 Months Ended
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May 31, 2026
Income Tax Disclosure [Abstract] |
Schedule of income from continuing operations | The components of Earnings (loss) before income taxes for the fiscal years ended May 31 were:
| 2026 |  | 2025 |  | 2024
United States | $ | 81.6 |  |  | $ | 1.0 |  |  | $ | 17.3 |
Non-United States |  | 3.6 |  |  |  | (2.3) |  |  |  | (1.1) |
Total | $ | 85.2 |  |  | $ | (1.3) |  |  | $ | 16.2 |
Schedule of income tax expense (benefit) | The provision (benefit) for income taxes for the fiscal years ended May 31 consisted of the following components:
| 2026 |  | 2025 |  | 2024
Current |  |  |  |  |  |  |  |
Federal | $ | 10.9 |  |  | $ | 6.3 |  |  | $ | 3.4 |
State and local |  | 11.2 |  |  |  | 1.3 |  |  |  | 1.2 |
Non-United States |  | 4.4 |  |  |  | 2.7 |  |  |  | 1.5 |
Total Current | $ | 26.5 |  |  | $ | 10.3 |  |  | $ | 6.1 |
Deferred |  |  |  |  |  |  |  |
Federal | $ | 2.8 |  |  | $ | (9.1) |  |  | $ | 0.5 |
State and local |  | (3.3) |  |  |  | (0.4) |  |  |  | (1.3) |
Non-United States |  | 2.5 |  |  |  | (0.2) |  |  |  | (1.2) |
Total Deferred | $ | 2.0 |  |  | $ | (9.7) |  |  | $ | (2.0) |
Total Current and Deferred | $ | 28.5 |  |  | $ | 0.6 |  |  | $ | 4.1 |
Schedule of effective income tax rate reconciliation | In accordance with the prospective adoption of ASU 2023-09, the following table presents a reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate for the fiscal year ended May 31, 2026, including both rate and dollar amount information:
| Amount |  | Rate
U.S. federal statutory income tax rate | $ | 17.9 |  |  | 21.0 | %
State and local income tax, net of federal income tax benefit (1) |  | 6.6 |  |  | 7.8 |
Foreign tax effects |  |  |  |
Australia |  |  |  |
Sale of equity method investment |  | 4.1 |  |  | 4.8 |
Permanent differences |  | (1.3) |  |  | (1.5) |
Other |  | (0.7) |  |  | (0.8) |
Canada |  |  |  |
Foreign tax rate differential |  | 1.0 |  |  | 1.2 |
Other |  | 1.0 |  |  | 1.2 |
Other foreign jurisdictions |  | 1.8 |  |  | 2.1 |
Tax credits |  |  |  |
Research and development tax credit |  | (1.2) |  |  | (1.4) |
Foreign tax credit |  | (1.2) |  |  | (1.4) |
Changes in unrecognized tax benefits |  | 1.4 |  |  | 1.6 |
Effect of cross-border tax laws |  | 0.0 |  |  | 0.0 |
Global intangible low-taxed income |  | 2.8 |  |  | 3.3 |
FDII |  | (2.8) |  |  | (3.3) |
Nontaxable or nondeductible items |  |  |  |
Charitable contributions |  | (0.9) |  |  | (1.1) |
Equity and other compensation |  | (1.0) |  |  | (1.1) |
Section 162(m) limitation |  | 2.1 |  |  | 2.5 |
Sale of equity method investment |  | (1.1) |  |  | (1.3) |
Other federal tax adjustments |  | (1.0) |  |  | (1.1) |
Other nontaxable or nondeductible items |  | 1.0 |  |  | 0.9 |
Effective income tax rate | $ | 28.5 |  |  | 33.4 | %
(1) State and local taxes in New York, New York City, and California represented the majority (greater than 50 percent) of the tax effect in this category.
Prior to the adoption of ASU 2023-09, the following table presents a reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate for the fiscal years ended May 31:
|  |  | 2025 |  | 2024
Computed federal statutory provision |  |  |  |  | 21.0 | % |  |  | 21.0 | %
State income tax provision, net of federal income tax benefit |  |  |  |  | (66.5) |  |  |  | (3.0) |
Difference in effective tax rates on earnings of foreign subsidiaries |  |  |  |  | (61.4) |  |  |  | (0.1) |
GILTI inclusion |  |  |  |  | — |  |  |  | 0.1 |
Various tax credits |  |  |  |  | 62.1 |  |  |  | (6.6) |
Valuation allowances, excluding state |  |  |  |  | 93.8 |  |  |  | 2.9 |
Uncertain positions |  |  |  |  | 40.7 |  |  |  | 0.4 |
Transaction costs |  |  |  |  | — |  |  |  | 12.0 |
Equity and other compensation |  |  |  |  | 51.6 |  |  |  | (3.7) |
Section 162(m) limitation |  |  |  |  | (83.5) |  |  |  | 6.0 |
Return to provision and other adjustments |  |  |  |  | (132.8) |  |  |  | (5.1) |
Permanent differences |  |  |  |  | 29.0 |  |  |  | 1.3 |
Other, net |  |  |  |  | (0.2) |  |  |  | 0.1 |
Effective tax rates |  |  |  |  | (46.2) | % |  |  | 25.3 | %
Total provision (benefit) for income taxes |  |  |  | $ | 0.6 |  |  | $ | 4.1 |
Schedule of deferred tax assets and liabilities | The significant components for deferred income taxes for the fiscal years ended May 31 were as follows:
| 2026 |  | 2025
Deferred tax assets: |  |  |  |  |
Tax uniform capitalization | $ | 12.8 |  |  | $ | 12.2 |
Prepublication expenses |  | 3.9 |  |  |  | 3.0 |
Inventory reserves |  | 19.2 |  |  |  | 21.8 |
Allowance for credit losses |  | 2.0 |  |  |  | 1.8 |
Deferred revenue |  | 6.1 |  |  |  | 6.2 |
Stock based compensation |  | 4.6 |  |  |  | 5.9 |
Other reserves |  | 5.2 |  |  |  | 4.4 |
Postretirement, post employment and pension obligations |  | 1.6 |  |  |  | 1.6 |
Tax carryforwards |  | 30.5 |  |  |  | 32.4 |
Lease liabilities |  | 76.5 |  |  |  | 27.7 |
Other |  | 13.5 |  |  |  | 15.0 |
Gross deferred tax assets | $ | 175.9 |  |  | $ | 132.0 |
Valuation allowance |  | (21.6) |  |  |  | (17.1) |
Total deferred tax assets | $ | 154.3 |  |  | $ | 114.9 |
Deferred tax liabilities: |  |  |  |  |
Depreciation and amortization |  | (35.4) |  |  |  | (53.9) |
Lease right-of-use assets |  | (73.0) |  |  |  | (24.4) |
Research and development costs capitalized |  | (20.6) |  |  |  | (8.3) |
Other |  | (2.0) |  |  |  | (3.7) |
Total deferred tax liabilities | $ | (131.0) |  |  | $ | (90.3) |
Total net deferred tax assets (1) | $ | 23.3 |  |  | $ | 24.6 |
(1) Total net deferred tax assets include $8.5 and $10.1 as of May 31, 2026 and May 31, 2025, respectively, of deferred tax liabilities that were recorded in Other noncurrent liabilities on the Company's Consolidated Balance Sheet primarily due to foreign jurisdictions that cannot be netted.
Schedule of unrecognized tax benefits rollforward | The table below presents a reconciliation of the unrecognized tax benefits for the fiscal years indicated:
Gross unrecognized benefits at May 31, 2023 | $ | 2.0 |  |
Decreases related to prior year tax positions |  | (0.8) |  |
Increase related to prior year tax positions |  | 0.7 |  |
Increases related to current year tax positions |  | 0.1 |  |
Settlements during the period |  | (0.2) |  |
Lapse of statute of limitation |  | — |  |
Gross unrecognized benefits at May 31, 2024 | $ | 1.8 |  |
Decreases related to prior year tax positions |  | — |  |
Increase related to prior year tax positions |  | 0.1 |  |
Increases related to current year tax positions |  | 0.1 |  |
Settlements during the period |  | — |  |
Lapse of statute of limitation |  | (0.8) |  |
Gross unrecognized benefits at May 31, 2025 | $ | 1.2 |  |
Decreases related to prior year tax positions |  | — |  |
Increase related to prior year tax positions |  | 1.9 |  |
Increases related to current year tax positions |  | 0.1 |  |
Settlements during the period |  | — |  |
Lapse of statute of limitation |  | (0.6) |  |
Gross unrecognized benefits at May 31, 2026 | $ | 2.6 |  |
Schedule of Cash Flow, Supplemental Disclosures | The following table presents cash paid for income taxes, net of refunds received, by jurisdiction for the fiscal year ended May 31, 2026:
Federal | $ | 30.7
State |  |
New York |  | 2.5
Other |  | 7.5
Other foreign jurisdictions |  | 2.7
Total cash paid for income taxes, net of refunds received | $ | 43.4

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- Definition 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. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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