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Income Taxes
3 Months Ended
May 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 5—Income Taxes

The effective tax rates for the three months ended May 31, 2017 and May 31, 2016 of 13.8% and 15.4%, respectively, differed from the U.S. federal statutory rate of 35% primarily due to excess tax benefits from share-based compensation, foreign income taxed at lower rates and research tax credits. Tax expense for the three months ended May 31, 2017 and May 31, 2016 included net discrete tax benefits of $11.6 million and $8.4 million, respectively, primarily related to net excess tax benefits from share-based compensation.

Excluding net discrete tax benefits, the Company’s effective tax rate for the three months ended May 31, 2017 increased by 0.5% as compared to the three months end May 31, 2016 primarily due to a higher percentage of income recognized in higher tax rate jurisdictions.

The Company files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. The Company is currently subject to examination by various taxing jurisdictions. The Company regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years, and has concluded that its provision for income taxes is adequate. The outcome of any one examination is not expected to have a material impact on the Company’s consolidated financial statements. The Company believes that some of these audits and negotiations may conclude during the next 12 months.

As of May 31, 2017, it is reasonably possible that total gross unrecognized tax benefits may be reduced by up to $1.1 million within the next 12 months as a result of statutes of limitations expirations in various tax jurisdictions, all of which would affect the Company’s effective tax rate.