Income Taxes (Tables)

12 Months Ended

May 31, 2024

Income Tax Disclosure [Abstract]

Earnings before Income Taxes

Earnings before income taxes for the prior three fiscal years included the following components:

(In millions)	2024		2023		2022
U.S. based operations	$	166.3	$	102.7	$	208.0
Non – U.S. based operations		49.9		26.0		46.3
Earnings before income taxes		216.2		128.7		254.3
Less: Net earnings attributable to noncontrolling interests (1)		15.4		12.6		19.9
Earnings before income taxes attributable to controlling interest	$	200.8	$	116.1	$	234.4

(1)Net earnings attributable to noncontrolling interests are not taxable to the Company.

Components of Income Tax Expense (Benefit)

Significant components of income tax expense (benefit) for the prior three fiscal years were as follows:

(In millions)	2024			2023			2022
Current
Federal	$	25.3		$	26.9		$	30.2
State and local		6.3			4.2			5.1
Foreign		13.4			7.6			5.1
Subtotal		45.0			38.7			40.4
Deferred
Federal		4.7			(8.6	)		12.2
State and local		(0.8	)		(0.6	)		1.1
Foreign		(2.8	)		(0.5	)		0.3
Subtotal		1.1			(9.7	)		13.6
Total	$	46.1		$	29.0		$	54.0

Reconciliation of Federal Statutory Corporate Income Tax Rate to Total Tax Provision

A reconciliation of the federal statutory corporate income tax rate to total tax provision for the prior three fiscal years follows:

	2024			2023			2022
Federal statutory corporate income tax rate		21.0	%		21.0	%		21.0	%
State and local income taxes, net of federal tax benefit		2.2			2.2			2.1
Non-U.S. income taxes at other than federal statutory rate		0.6			1.7			(1.6	)
Nondeductible executive compensation		0.6			1.7			1.1
Other		(1.4	)		(1.6	)		0.5
Effective tax rate attributable to controlling interest		23.0	%		25.0	%		23.1	%

Reconciliation of Unrecognized Tax Benefits

A tabular reconciliation of unrecognized tax benefits follows:

(In millions)	2024			2023		2022
Balance at beginning of the year	$	1.2		$	1.2	$	0.1
Decreases - tax positions taken in prior years		(1.0	)		-		-
Increases - current tax positions		-			-		1.2
Settlements		-			-		-
Lapse of statutes of limitations		-			-		(0.1	)
Balance at the end of the year	$	0.2		$	1.2	$	1.2

Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities as of May 31 were as follows:

(In millions)	2024			2023
Deferred tax assets
Accounts receivable	$	1.8		$	1.3
Inventories		2.8			3.4
Accrued expenses		9.2			14.1
Net operating loss carry forwards		2.8			3.2
Stock-based compensation		1.9			3.4
Operating lease - liability		4.4			2.3
Derivative contracts		0.2			1.5
Other		1.5			0.1
Deferred tax assets before valuation allowance		24.6			29.3
Less: Valuation allowance		-			-
Total deferred tax assets		24.6			29.3
Deferred tax liabilities
Property, plant and equipment		(28.7	)		(33.0	)
Investment in affiliated companies, principally due to undistributed earnings		(10.5	)		(12.1	)
Operating lease - ROU assets		(4.2	)		(2.1	)
Other		(0.6	)		(1.9	)
Total deferred tax liability		(44.0	)		(49.1	)
Net deferred tax asset (liability)	$	(19.4	)	$	(19.8	)