Income Taxes (Notes) |
9 Months Ended |
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Feb. 29, 2016 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes [Text Block] |
Income Taxes
The Company’s effective income tax rate was 36.0% for the three months ended February 29, 2016 and 33.9% for the nine months ended February 29, 2016, compared to 36.3% for the three and nine months ended February 28, 2015. The decrease in the effective income tax rate for the nine months of fiscal 2016 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 nine months ended February 29, 2016. Consistent with the disclosure in our fiscal 2015 Form 10-K, the difference between the 36.0% effective tax rate and the federal statutory rate of 35.0% is primarily due to state income taxes, net of federal benefit, partially offset by tax benefits related to tax-exempt municipal bond interest.
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