|6 Months Ended|
Nov. 30, 2016
|Income Taxes [Abstract]|
Note K: Income Taxes
The Company’s effective income tax rate was 35.2% and 36.0% for the three months ended November 30, 2016 and 2015, respectively, and 34.1% and 32.9% for the six months ended November 30, 2016 and 2015, respectively. The effective income tax rates have been impacted by discrete items recognized in the respective periods. Effective June 1, 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. The discrete tax benefit was immaterial for the three months ended November 30, 2016, but impacted the six months ended November 30, 2016 by approximately $0.04 per share. During the six months ended November 30, 2015, the Company recognized a net tax benefit on income derived in prior tax years related to customer-facing software that the Company produced.
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