Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

 v2.3.0.11
Income Taxes (Tables)
 12 Months Ended
May 31, 2011
Income Taxes (Tables) [Abstract]  
Components of deferred tax assets and liabilities
 
                 
    May 31,  
In millions   2011     2010  
 
Deferred tax assets:
               
Compensation and employee benefit liabilities
    16.3       14.7  
Other current liabilities
    9.4       8.3  
Tax credit carry forward
    27.4       22.5  
Depreciation
    6.7       12.0  
Stock-based compensation
    29.8       25.2  
Other
    18.2       7.6  
                 
Gross deferred tax assets
    107.8       90.3  
Deferred tax liabilities:
               
Capitalized software
    33.2       27.6  
Depreciation
    16.6       0.1  
Intangible assets
    32.5       27.7  
Revenue not subject to current taxes
    10.0       10.5  
Unrealized gains on available-for-sale securities
    21.7       24.1  
Other
    0.5       0.2  
                 
Gross deferred tax liabilities
    114.5       90.2  
                 
Net deferred tax (liability)/asset
  $ (6.7 )   $ 0.1  
                 
 
Components of the provision for income taxes
 
                         
    Year ended May 31,  
In millions   2011     2010     2009  
 
Current:
                       
Federal
  $ 234.0     $ 230.2     $ 256.1  
State
    29.3       26.0       24.4  
                         
Total current
    263.3       256.2       280.5  
                         
Deferred:
                       
Federal
    12.0       (3.9 )     (1.3 )
State
    1.6       —       (0.6 )
                         
Total deferred
    13.6       (3.9 )     (1.9 )
                         
Provision for income taxes
  $ 276.9     $ 252.3     $ 278.6  
                         
Reconciliation of the U.S. federal statutory tax rate
 
                         
    Year ended May 31,  
    2011     2010     2009  
 
Federal statutory tax rate
    35.0 %     35.0 %     35.0 %
Increase/(decrease) resulting from:
                       
State income taxes, net of federal tax benefit
    2.5       2.3       1.9  
Tax-exempt municipal bond interest
    (2.2 )     (2.7 )     (2.6 )
Other items
    (0.3 )     —       —  
                         
Effective income tax rate
    35.0 %     34.6 %     34.3 %
                         
Reconciliation of gross unrecognized tax benefits, not including interest or potential offsetting effects
 
                         
    Year ended May 31,  
In millions   2011     2010     2009  
 
Balance as of beginning of fiscal year
  $ 35.8     $ 35.8     $ 25.7  
Additions for tax positions of the current year
    6.0       0.5       10.7  
Additions for tax positions of prior years
    0.1       —       (0.2 )
Reductions for tax positions of prior years
    (0.1 )     —       —  
Settlements with tax authorities
    —       —       (0.1 )
Expiration of the statute of limitations
    (0.6 )     (0.5 )     (0.3 )
                         
Balance as of end of fiscal year
  $ 41.2     $ 35.8     $ 35.8