Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.2.0.727
Income Taxes (Tables)
12 Months Ended
May. 31, 2015
Income Tax Disclosure [Abstract]  
Components of deferred tax assets and liabilities
The components of deferred tax assets and liabilities are as follows:
 
 
May 31,
In millions
 
2015
 
2014
Deferred tax assets:
 
 
 
 
Compensation and employee benefit liabilities
 
$
20.9

 
$
18.7

Other current liabilities
 
6.9

 
6.9

Tax credit carry forward
 
40.1

 
38.3

Depreciation
 
11.9

 
8.3

Stock-based compensation
 
21.6

 
21.1

Other
 
24.9

 
28.7

Gross deferred tax assets
 
126.3

 
122.0

Deferred tax liabilities:
 
 
 
 
Capitalized software
 
53.6

 
50.1

Depreciation
 
3.8

 
12.2

Goodwill and Intangible assets
 
52.0

 
46.7

Revenue not subject to current taxes
 
13.1

 
12.6

Unrealized gains on available-for-sale securities
 
5.3

 
13.2

Other
 
0.3

 
0.4

Gross deferred tax liabilities
 
128.1

 
135.2

Net deferred tax liability
 
$
(1.8
)
 
$
(13.2
)
Components of provision for income taxes
The components of the provision for income taxes are as follows:
 
 
Year ended May 31,
In millions
 
2015
 
2014
 
2013
Current:
 
 
 
 
 
 
Federal
 
$
341.4

 
$
314.5

 
$
274.2

State
 
47.8

 
51.0

 
62.9

Total current
 
389.2

 
365.5

 
337.1

Deferred:
 
 
 
 
 
 
Federal
 
(5.1
)
 
(3.5
)
 
5.5

State
 
1.0

 
(1.4
)
 
(0.2
)
Total deferred
 
(4.1
)
 
(4.9
)
 
5.3

Income taxes
 
$
385.1

 
$
360.6

 
$
342.4

Reconciliation of U.S. federal statutory tax rate
A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:
 
 
Year ended May 31,
 
 
2015
 
2014
 
2013
Federal statutory tax rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
Increase/(decrease) resulting from:
 
 
 
 
 
 
State income taxes, net of federal tax benefit
 
3.0
 %
 
3.3
 %
 
3.0
 %
Tax settlement
 
 %
 
 %
 
1.5
 %
Tax-exempt municipal bond interest
 
(1.5
)%
 
(1.5
)%
 
(1.7
)%
Other items
 
(0.2
)%
 
(0.3
)%
 
(0.2
)%
Effective income tax rate
 
36.3
 %
 
36.5
 %
 
37.6
 %
Reconciliation of gross unrecognized tax benefits, not including interest or other potential offsetting effects
A reconciliation of the beginning and ending amounts of the Company’s gross unrecognized tax benefits, not including interest or other potential offsetting effects, is as follows:
 
 
Year ended May 31,
In millions
 
2015
 
2014
 
2013
Balance as of beginning of fiscal year
 
$
40.0

 
$
26.7

 
$
41.7

Additions for tax positions of the current year
 
6.7

 
11.2

 
28.5

Additions for tax positions of prior years
 
0.8

 
4.2

 
12.2

Reductions for tax positions of prior years
 
(0.4
)
 
(1.8
)
 
(0.5
)
Settlements with tax authorities
 
(1.2
)
 

 
(55.0
)
Expiration of the statute of limitations
 
(6.0
)
 
(0.3
)
 
(0.2
)
Balance as of end of fiscal year
 
$
39.9

 
$
40.0

 
$
26.7