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Income Taxes
9 Months Ended
Feb. 28, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes for the nine months ended February 28, 2021 and February 23, 2020, was a benefit of $7.2 million and $7.8 million, respectively. The effective tax rate for the nine months ended February 28, 2021 and February 23, 2020 was 19.5% and 25%, respectively. The effective tax rate for the nine months ended February 28, 2021, was lower than the statutory federal income tax rate of 21% due to the income tax benefit on the increased forecasted losses, the generation of federal & state R&D credits and impact of states taxes, partially offset by the movement of the valuation allowance recorded against certain deferred tax assets.
As of February 28, 2021 and May 31, 2020, the Company had unrecognized tax benefits of $0.9 million and $0.8 million, respectively. Included in the balance of unrecognized tax benefits as of February 28, 2021 and May 31, 2020, is $0.9 million and $0.7 million, respectively, of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly within the next twelve months.
The Company has elected to classify interest and penalties related to uncertain tax positions as a component of its provision for income taxes. The Company has accrued an insignificant amount of interest and penalties related to the income tax on the unrecognized tax benefits as of February 28, 2021 and May 31, 2020.
Due to tax attribute carryforwards, the Company is subject to examination for tax years 2017 forward for U.S. tax purposes. The Company is also subject to examination in various state jurisdictions for tax years 2015 forward, none of which were individually significant.