6. Income Taxes

The provision for income tax (benefit) on pre-tax income includes the following components:

	For the Year Ended May 31,
	2016		2015			2014
Current:
Federal	$	9.8	$	22.2		$	11.4
State		0.4		0.4			0.4
Foreign		3.8		1.5			0.8

		14.0		24.1			12.6
Deferred		4.8		(52.6	)		19.0

	$	18.8	$	(28.5	)	$	31.6

The provision for income taxes on pre-tax income differs from the amount computed by applying the U.S. federal statutory income tax rate of 35% for fiscal 2016, 2015, and 2014 to income before taxes (benefit), due to the following:

	For the Year Ended May 31,
	2016			2015			2014
Provision for income tax (benefit) at the federal statutory rate	$	20.8		$	(29.0	)	$	34.6
State income taxes, net of federal benefit and refunds		0.2			0.2			0.2
Federal adjustments		0.3			0.5			(2.0	)
Prior period adjustments		(2.5	)		—			—
Domestic Production Activities Deduction		—			(0.2	)		(1.2	)

Provision for income tax (benefit)	$	18.8		$	(28.5	)	$	31.6

During the third quarter of fiscal 2016, we completed a reconciliation of our tax basis assets and liabilities and an analysis of our income tax payable which identified prior year immaterial errors netting to $0.2 million with $2.7 million recognized as income tax expense in discontinued operations and $2.5 million recognized as income tax benefit within income from continuing operations. Further, in connection with the reconciliation of our tax basis assets and liabilities, we corrected certain amounts within deferred tax assets and liabilities, accrued liabilities, and goodwill. We have concluded these errors were not material to any prior reporting periods.

During the third quarter of fiscal 2016, we recognized $2.8 million of income tax expense in discontinued operations related to changes in estimates associated with tax provision to federal income tax return filing differences.

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

	For the Year Ended May 31,
	2016		2015			2014
Domestic	$	46.1	$	(94.2	)	$	81.9
Foreign		13.2		11.2			16.9

	$	59.3	$	(83.0	)	$	98.8

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

	May 31,
	2016			2015
Deferred tax assets:
Inventory costs	$	16.9		$	35.4
Impairment of PSM assets		8.6			13.4
Advanced billings		11.0			14.3
Postretirement benefits		12.0			10.4
Employee benefits		9.8			12.0
Tax credits and incentives		2.3			—
Other		5.8			3.9

Total deferred tax assets		66.4			89.4
Valuation allowance		(4.7	)		(2.8	)

Total deferred tax assets net of valuation allowance		61.7			86.6

Deferred tax liabilities:
Tangible and intangible assets		(95.9	)		(132.4	)
Other		(0.1	)		(0.5	)

Total deferred tax liabilities		(96.0	)		(132.9	)

Net deferred tax liabilities	$	(34.3	)	$	(46.3	)

As of May 31, 2016, 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 deferred tax assets, net operating losses and credits. The change in the valuation allowance was primarily the result of net operating losses in a subsidiary that are not expected to be utilized. The net operating losses have a carry forward period that ranges from 5 to 20 years. 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 majority of the deferred tax assets.

Income tax payable at May 31, 2016 was $1.1 million and income tax receivable at May 31, 2015 was $2.1 million and is included in Accrued Liabilities and Deposits, prepaids and other, respectively, on the Consolidated Balance Sheets.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows:

	For the Year Ended May 31,
	2016		2015		2014
Balance, beginning of year	$	2.2	$	2.2	$	—
Additions for tax positions of prior years		10.7		—		2.2

Balance, end of year	$	12.9	$	2.2	$	2.2

All of our unrecognized tax benefits as of May 31, 2016 and 2015 would be recorded as a component of income tax expense, if recognized. We accrue interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Fiscal years 2014 and subsequent are open for examination. Various states and foreign jurisdictions also remain open subject to their applicable statute of limitations.