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Income Taxes
6 Months Ended
Nov. 30, 2011
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAX

We have a deferred tax asset of $93.1 million at November 30, 2011 primarily associated with the purchase of the remaining 49% interest in HSBC Merchant Services LLP ("UK deferred tax asset").

Our effective tax rates were 27.5% and 29.6% for the three months ended November 30, 2011 and 2010, respectively. Our effective tax rates were 30.2% and 30.6% for the six months ended November 30, 2011 and 2010, respectively. The effective tax rates for November 30, 2011 and 2010 reflect adjustments to our UK deferred tax asset due to legislated enacted corporate tax rate reductions in the United Kingdom of 2% and 1%, respectively.

As of November 30, 2011 and May 31, 2011, other long-term liabilities included liabilities for unrecognized income tax benefits of $41.1 million and $37.2 million, respectively. During the three and six months ended November 30, 2011, we recognized additional liabilities of $1.5 million and $3.9 million, respectively, for unrecognized income tax benefits. During both the six months ended November 30, 2011 and 2010, amounts recorded for accrued interest and penalty expense related to the unrecognized income tax benefits were insignificant. We do not expect the amounts of unrecognized tax benefits to significantly change within the next twelve months.

We conduct business globally and file income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as the United States, United Kingdom and Canada. With few exceptions, we are no longer subject to income tax examinations for years ended May 31, 2005 and prior.