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Income Taxes (Tables) | 12 Months Ended
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May 31, 2018
Income Tax Disclosure [Abstract] |
Components of income (loss) before income tax provision | The components of income (loss) before income tax (benefit) expense for the years ended May 31 are as follows:
| 2018 |  | 2017 |  | 2016
(in thousands) |
Income (loss) before tax expense: |  |  |  |  |
U.S. | $ | 6,274 |  |  | $ | 8,825 |  |  | $ | (4,444 | )
Non-U.S. | 1,191 |  |  | 1,022 |  |  | 1,191 |
| $ | 7,465 |  |  | $ | 9,847 |  |  | $ | (3,253 | )
Summary of Income tax (benefit) provision analyzed by category | Income tax (benefit) expense is comprised of the following:
| 2018 |  | 2017 |  | 2016
(in thousands) |
Current |  |  |  |  |
Federal | $ | (148 | ) |  | $ | — |  |  | $ | 34 |
State and local | 152 |  |  | 141 |  |  | 103 |
Non U.S. | 73 |  |  | 270 |  |  | 217 |
| 77 |  |  | 411 |  |  | 354 |
Deferred | (8,947 | ) |  | 4,428 |  |  | 39,983 |
Income tax (benefit) expense | $ | (8,870 | ) |  | $ | 4,839 |  |  | $ | 40,337 |
Summary of deferred tax asset and liabilities | Temporary differences that give rise to deferred tax assets and liabilities are summarized as follows:
| May 31, 2018 |  | May 31, 2017
(in thousands) |
Deferred tax assets |  |  |
Net operating loss carryforward | $ | 33,880 |  |  | $ | 55,975 |
Stock-based compensation | 2,421 |  |  | 2,653 |
Federal and state R&D tax credit carryforward | 3,644 |  |  | 2,548 |
Inventories | 1,550 |  |  | 2,407 |
Expenses incurred not currently deductible | 1,714 |  |  | 6,522 |
Accrued liabilities | 277 |  |  | 1,289 |
Gross deferred tax asset | 43,486 |  |  | 71,394 |
Deferred tax liabilities |  |  |
Excess tax over book depreciation and amortization | 34,044 |  |  | 49,158 |
| 34,044 |  |  | 49,158 |
Valuation Allowance | (26,607 | ) |  | (48,348 | )
Net deferred tax liability (1) | $ | (17,165 | ) |  | $ | (26,112 | )
(1) Net deferred tax liability is inclusive of a non-U.S. $0.08 million deferred tax asset that is included in other assets on the Company's balance sheet for the year ended May 31, 2018.
Summary of Income tax rate reconciliation | The Company's consolidated income tax expense has differed from the amount that would be provided by applying the U.S. Federal statutory income tax rate to the Company's income before income taxes for the following reasons:
| Year ended May 31,
| 2018 |  | 2017 |  | 2016
(in thousands) |
Income tax (benefit) expense at statutory tax rate of 28.6%, 35.0% and 35.0%, respectively | $ | 2,136 |  |  | $ | 3,447 |  |  | $ | (1,139 | )
Effect of graduated tax rates | — |  |  | (98 | ) |  | 33 |
State income taxes, net of Federal tax benefit | 120 |  |  | (22 | ) |  | (215 | )
Impact of Non-U.S. operations | (288 | ) |  | 403 |  |  | (162 | )
Research and development tax credit | (951 | ) |  | (403 | ) |  | (499 | )
Impact of tax reform | 10,912 |  |  | — |  |  | — |
Meals and entertainment | 242 |  |  | 266 |  |  | 329 |
Non-deductible interest on contingent payments | — |  |  | 174 |  |  | 262 |
Non-taxable gain on revaluation of contingent consideration liability | — |  |  | (5,576 | ) |  | (170 | )
Change in valuation allowance | (21,741 | ) |  | 6,139 |  |  | 40,685 |
Effect of elimination of stock compensation APIC pool | — |  |  | 1,380 |  |  | 739 |
IPR&D intangible write-off | — |  |  | (1,224 | ) |  | — |
Other | 700 |  |  | 353 |  |  | 474 |
Income tax (benefit) expense | $ | (8,870 | ) |  | $ | 4,839 |  |  | $ | 40,337 |
Summary of unrecognized tax benefits reconciliation | The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits:
| Year ended May 31,
| 2018 |  | 2017 |  | 2016
(in thousands) |
Unrecognized tax benefits balance at June 1 | $ | 899 |  |  | $ | 899 |  |  | $ | — |
Increase in gross amounts of tax positions related to prior years | — |  |  | — |  |  | 899 |
Decrease in gross amounts of tax positions related to prior years due to U.S. tax reform | (287 | ) |  | — |  |  | — |
Decrease due to lapse in statute of limitations | (148 | ) |  | — |  |  | — |
Unrecognized tax benefits balance at May 31 | $ | 464 |  |  | $ | 899 |  |  | $ | 899 |

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