Income Taxes Income Taxes (Notes)
|3 Months Ended|
Aug. 31, 2015
|Income Tax Disclosure [Abstract]|
|Income Taxes [Text Block]||
The Company’s effective income tax rate was 29.7% for the three months ended August 31, 2015 compared to 36.3% for the three months ended August 31, 2014. The decrease in the effective income tax rate related primarily to a net tax benefit that was recorded for income derived in prior tax years from customer-facing software the Company produced. During the three months ended August 31, 2015, the Company engaged tax specialists to assess the qualification of such software for the federal “Qualified Production Activities Deduction.” Based on this assessment, the Company concluded that certain of our software offerings qualified for this tax deduction in prior tax years and, therefore, recognized the tax benefits and related tax reserves as a discrete item during this period. Excluding this net tax benefit, the effective income tax rate would have been approximately 36.0% for the three months ended August 31, 2015. The difference between the 36.0% effective tax rate and the federal statutory rate of 35.0% is due to state income taxes, net of federal benefit, partially offset by tax-exempt municipal bond interest, consistent with the disclosure in our fiscal 2015 Form 10-K.
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