Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
May 31, 2018
Income Taxes [Abstract]  
Components of Deferred Tax Assets and Liabilities



 

 

 

 

 

 



 

 

 

 

 

 



 

May 31,

In millions

 

2018

 

2017

Deferred tax assets:

 

 

 

 

 

 

Compensation and employee benefit liabilities

 

$

15.0 

 

$

23.1 

Other current liabilities

 

 

6.5 

 

 

9.1 

Tax credit carry forward

 

 

0.2 

 

 

39.3 

Depreciation

 

 

3.6 

 

 

7.3 

Stock-based compensation

 

 

11.6 

 

 

21.8 

Unrealized losses on available-for-sale securities

 

 

9.2 

 

 

 —

Net operating loss ("NOL") carry forward

 

 

5.9 

 

 

2.9 

Tax benefit of uncertain tax positions

 

 

3.7 

 

 

6.4 

Other

 

 

2.3 

 

 

4.7 

Gross deferred tax assets

 

 

58.0 

 

 

114.6 

Deferred tax liabilities:

 

 

 

 

 

 

Capitalized software

 

 

39.4 

 

 

54.8 

Depreciation

 

 

 —

 

 

1.6 

Goodwill and intangible assets

 

 

49.0 

 

 

66.8 

Revenue not subject to current taxes

 

 

18.4 

 

 

13.6 

Unrealized gains on available-for-sale securities

 

 

 —

 

 

11.7 

Gross deferred tax liabilities

 

 

106.8 

 

 

148.5 

Net deferred tax liability

 

$

(48.8)

 

$

(33.9)



Components of Provision for Income Taxes



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Year ended May 31,

In millions

 

2018

 

2017

 

2016

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

289.1 

 

$

362.0 

 

$

336.4 

State

 

 

54.1 

 

 

48.1 

 

 

50.8 

Total current

 

 

343.2 

 

 

410.1 

 

 

387.2 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

18.4 

 

 

15.9 

 

 

5.5 

State

 

 

0.8 

 

 

1.5 

 

 

1.6 

Total deferred

 

 

19.2 

 

 

17.4 

 

 

7.1 

Income taxes

 

$

362.4 

 

$

427.5 

 

$

394.3 



Reconciliation of U.S. Federal Statutory Tax Rate



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Year ended May 31,



 

2018

 

2017

 

2016

Federal statutory tax rate

 

29.2 

%

 

35.0 

%

 

35.0 

%

Increase/(decrease) resulting from:

 

 

 

 

 

 

 

 

 

Statutory tax rate reduction resulting from the Tax Act

 

(2.0)

%

 

 —

%

 

 —

%

State income taxes, net of federal tax benefit

 

3.0 

%

 

2.8 

%

 

3.0 

%

Section 199 - Qualified production activities

 

(0.3)

%

 

(0.5)

%

 

(2.4)

%

Tax-exempt municipal bond interest

 

(1.1)

%

 

(1.3)

%

 

(1.4)

%

Stock option windfall benefit

 

(0.8)

%

 

(1.5)

%

 

 —

%

Other items

 

 —

%

 

(0.2)

%

 

0.1 

%

Effective income tax rate

 

28.0 

%

 

34.3 

%

 

34.3 

%



Reconciliation of Gross Unrecognized Tax Benefits, Not Including Interest or Other Potential Offsetting Effects



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Year ended May 31,

In millions

 

2018

 

2017

 

2016

Balance as of beginning of fiscal year

 

$

43.7 

 

$

64.7 

 

$

39.9 

Additions for tax positions of the current year

 

 

2.3 

 

 

8.2 

 

 

7.3 

Additions for tax positions of prior years

 

 

0.1 

 

 

4.8 

 

 

20.7 

Reductions for tax positions of prior years

 

 

(1.2)

 

 

(2.5)

 

 

(0.1)

Settlements with tax authorities

 

 

(28.6)

 

 

(29.5)

 

 

(2.2)

Expiration of the statute of limitations

 

 

(1.4)

 

 

(2.0)

 

 

(0.9)

Balance as of end of fiscal year

 

$

14.9 

 

$

43.7 

 

$

64.7