Income Taxes

6 Months Ended

Nov. 30, 2023

Income Taxes

11. INCOME TAXES

Income tax benefit was $260 and $100 during the three and six months ended November 30, 2023. Income tax expense was $7,750 and $9,200 during the three and six months ended November 30, 2022. The net tax benefit during the three and six months ended November 30, 2023 is primarily related to pre-tax losses resulting from amortization expense, interest expense and continued integration efforts of the 3M FSD. In the prior comparable periods, the net tax expense, despite pre-tax losses, is primarily related to certain non-deductible acquisition and transaction costs related to the 3M FSD transaction.

The total amounts of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of November 30, 2023 and May 31, 2023 are $1,046 and $1,087, respectively. Changes in unrecognized tax benefits are primarily associated with the acquired 3M FSD, including positions for transfer pricing and research and development credits.