|3 Months Ended|
Aug. 31, 2016
|Income Taxes [Abstract]|
Note K: Income Taxes
The Company’s effective income tax rate was 33.0% for the three months ended August 31, 2016 compared to 29.7% for the three months ended August 31, 2015. The effective income tax rates have been impacted by discrete items recognized in the respective periods. During the three months ended August 31, 2016, the Company early-adopted new accounting guidance related to employee share-based payments. Under this new guidance, tax benefits or shortfalls related to employee share-based payments are recognized in income taxes, whereas they previously were recorded as additional paid-in capital on the Consolidated Balance Sheets. Partially offsetting this impact was the recognition of an additional provision related to a state tax matter. The net impact of these discrete items was an increase in diluted earnings per share of approximately two and one-half cents per share for the three months ended August 31, 2016. During the three months ended August 31, 2015, the Company recognized a net tax benefit on income derived in prior tax years which resulted in an increase in diluted earnings per share of approximately six cents per share.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef