XML 89 R20.htm IDEA: XBRL DOCUMENT

Note 14 - Income Taxes	9 Months Ended
Feb. 28, 2014
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	14. INCOME TAXES The effective tax rate for the nine months ended February 28, 2014 and February 28, 2013 was 42.4% and 37.3%, respectively. The difference between the United States (“U.S.”) federal statutory rate and the effective tax rate for the nine months ended February 28, 2014 was primarily due to the following: (1) the fact that the gain on the acquisition-related item is not taxable, (2) a portion of the Company’s income is subject to tax in various tax jurisdictions with rates that differ from than the U.S. statutory tax rate, (3) the impact of recording U.S. income taxes associated with current and future distributions of foreign earnings, and (4) changes in discrete tax items recognized during the period based on enacted tax laws and the expiration of the statute of limitations for the benefits associated with uncertain tax positions. The difference between the federal statutory rate and the effective tax rate for the nine months ended February 28, 2013 was primarily due to income subject to tax in the various tax jurisdictions with rates that differ from the U.S. statutory tax rate and discrete tax items recognized during the nine month period due to enacted tax laws and the expiration of the statute of limitations for benefits associated with uncertain tax positions. The Company does not consider itself to be permanently reinvested with respect to its accumulated and unrepatriated earnings as well as the future earnings of each foreign subsidiary. Accordingly, the Company has provided for deferred taxes on future earnings of its foreign subsidiaries. The Company continues to consider its investment in each foreign subsidiary in excess of its accumulated and unrepatriated earnings to be permanently reinvested and thus has not recorded a deferred tax liability on that amount.

Note 14 - Income Taxes

9 Months Ended

Feb. 28, 2014

14. INCOME TAXES

The effective tax rate for the nine months ended February 28, 2014 and February 28, 2013 was 42.4% and 37.3%, respectively. The difference between the United States (“U.S.”) federal statutory rate and the effective tax rate for the nine months ended February 28, 2014 was primarily due to the following: (1) the fact that the gain on the acquisition-related item is not taxable, (2) a portion of the Company’s income is subject to tax in various tax jurisdictions with rates that differ from than the U.S. statutory tax rate, (3) the impact of recording U.S. income taxes associated with current and future distributions of foreign earnings, and (4) changes in discrete tax items recognized during the period based on enacted tax laws and the expiration of the statute of limitations for the benefits associated with uncertain tax positions. The difference between the federal statutory rate and the effective tax rate for the nine months ended February 28, 2013 was primarily due to income subject to tax in the various tax jurisdictions with rates that differ from the U.S. statutory tax rate and discrete tax items recognized during the nine month period due to enacted tax laws and the expiration of the statute of limitations for benefits associated with uncertain tax positions.

The Company does not consider itself to be permanently reinvested with respect to its accumulated and unrepatriated earnings as well as the future earnings of each foreign subsidiary. Accordingly, the Company has provided for deferred taxes on future earnings of its foreign subsidiaries. The Company continues to consider its investment in each foreign subsidiary in excess of its accumulated and unrepatriated earnings to be permanently reinvested and thus has not recorded a deferred tax liability on that amount.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details