6. Income Taxes

The provision for income tax (benefit) on income from continuing operations includes the following components:

	For the Year Ended May 31,
	2015			2014		2013
Current:
Federal	$	22.2		$	11.4	$	(3.7	)
State		0.4			0.4		(0.7	)
Foreign		1.5			0.8		1.5

		24.1			12.6		(2.9	)
Deferred		(52.6	)		19.0		28.3

	$	(28.5	)	$	31.6	$	25.4

The provision for income taxes on income from continuing operations differs from the amount computed by applying the U.S. federal statutory income tax rate of 35% for fiscal 2015, 2014, and 2013 to income before taxes (benefit), due to the following:

	For the Year Ended May 31,
	2015			2014			2013
Provision for income tax (benefit) at the federal statutory rate	$	(29.0	)	$	34.6		$	26.0
State income taxes, net of federal benefit and refunds		0.2			0.2			0.4
Federal adjustments		0.5			(2.0	)		0.3
Domestic Production Activities Deduction		(0.2	)		(1.2	)		—
State adjustments		—			—			(1.3	)

Provision for income tax (benefit)	$	(28.5	)	$	31.6		$	25.4

Income (Loss) before provision for income tax (benefit) includes the following components:

	For the Year Ended May 31,
	2015			2014		2013
Domestic	$	(94.2	)	$	81.9	$	58.4
Foreign		11.2			16.9		15.8

	$	(83.0	)	$	98.8	$	74.2

Deferred tax liabilities and assets result primarily from the differences in the timing of the recognition of transactions for financial reporting and income tax purposes. During the fourth quarter of fiscal 2015, we identified certain classification errors within our deferred tax asset and liability accounts as of May 31, 2014. These errors did not impact the net deferred tax liability at May 31, 2014 of $132.1 million. We have revised the components of our deferred tax assets and liabilities in the following table and our Consolidated Balance Sheet as of May 31, 2014 to reflect a decrease of $5.5 million in both Deferred tax assets—current and Deferred tax liabilities—noncurrent. We have concluded these errors were not material to any prior reporting periods.

Our deferred tax liabilities and assets consist of the following components:

	May 31,
	2015			2014
Deferred tax assets-current attributable to:
Inventory costs	$	35.4		$	14.4
Impairment of PSM assets		13.4			—
Advanced billings		6.0			2.0
Employee benefits		3.5			7.9
Other		—			0.3

Total net deferred tax assets-current		58.3			24.6

Deferred tax assets-noncurrent attributable to:
Postretirement benefits		18.9			17.6
Advanced billings		8.3			16.2
Foreign intangible assets		—			44.2
Other		3.9			6.7

Total deferred tax assets-noncurrent		31.1			84.7

Total deferred tax assets		89.4			109.3
Valuation allowance		(2.8	)		(2.8	)

Total deferred tax assets net of valuation allowance	$	86.6		$	106.5


Deferred tax liabilities attributable to:
Depreciation	$	(132.4	)	$	(158.4	)
Capitalized program development costs		—			(34.1	)
Foreign intangible assets		—			(42.9	)
Other		(0.5	)		(3.2	)

Total deferred tax liabilities	$	(132.9	)	$	(238.6	)


Net deferred tax liabilities	$	(46.3	)	$	(132.1	)

As of May 31, 2015, we have determined that the realization of our deferred tax assets is more likely than not and that a valuation allowance is not required except for certain state net operating losses and credits. Our history of operating earnings, our expectations for continued future earnings, the nature of certain of our deferred tax assets and the scheduled reversal of deferred tax liabilities, primarily related to depreciation, support the recoverability of the deferred tax assets.

Income tax receivable at May 31, 2015 and 2014 was $2.1 million and $14.8 million, respectively, and is included in Deposits, prepaids and other on the Consolidated Balance Sheet.

Our fiscal 2015 effective income tax rate was 34.3% compared to 32.0% in fiscal 2014 which included a $2.0 million reduction in income tax expense related to changes in estimates originally used in the tax provision which were adjusted to actual on the federal income tax return. In addition, our higher taxable income in fiscal 2014 provided a greater tax benefit related to the Domestic Production Activities Deduction in accordance with Internal Revenue Code Section 199. Our fiscal 2013 effective income tax rate was 34.2%, which included a $1.3 million reduction in income tax expense related to the reduction of our state income tax rate from continued implementation of state tax planning strategies. Our state tax planning strategies included new corporate entities, including the restructure of one of our significant business units.

Fiscal years 2013 and subsequent are open for examination. Various states and foreign jurisdictions also remain open subject to their applicable statute of limitations.