Income Taxes (Tables)

12 Months Ended

May 31, 2020

Components of income (loss) before income tax provision

The components of loss from continuing operations before income tax benefit are as follows:


	Year ended May 31,
(in thousands)	2020		2019		2018
Loss from continuing operations before tax expense:
U.S.	$	(166,984)	$	(15,593)	$	(18,454)
Non-U.S.	(1,151)		891		1,191
	$	(168,135)	$	(14,702)	$	(17,263)

Summary of Income tax (benefit) provision analyzed by category

Income tax benefit is comprised of the following:


	Year ended May 31,
(in thousands)	2020		2019		2018
Current
Federal	$	—	$	—	$	(148)
State and local	96		128		152
Non U.S.	124		289		73
	220		417		77
Deferred	(1,568)		(3,973)		(11,113)
Income tax benefit	$	(1,348)	$	(3,556)	$	(11,036)

Summary of deferred tax asset and liabilities

Temporary differences that give rise to deferred tax assets and liabilities are summarized as follows:


(in thousands)	May 31, 2020		May 31, 2019
Deferred tax assets
Net operating loss carryforward	$	26,697	$	18,955
Stock-based compensation	2,923		3,395
Federal and state R&D tax credit carryforward	5,412		4,259
Inventories	1,071		971
Expenses incurred not currently deductible	1,927		1,337
Accrued liabilities	95		139
Gross deferred tax asset	38,125		29,056
Deferred tax liabilities
Depreciation and amortization	49,023		31,878

	49,023		31,878
Valuation allowance	(13,114)		(11,688)
Net deferred tax liability	$	(24,012)	$	(14,510)

Summary of Income tax rate reconciliation

The Company's consolidated income tax expense has differed from the amount that would be provided by applying the U.S. Federal statutory income tax rate to the Company's income before income taxes for the following reasons:


	Year ended May 31,
(in thousands)	2020		2019		2018
Income tax benefit at federal statutory tax rate of 21.0%, 21.0% and 28.6%, respectively	$	(35,308)	$	(3,087)	$	(4,941)

State income taxes, net of Federal tax benefit	(40)		(177)		120
Impact of Non-U.S. operations	(81)		76		(288)
Research and development tax credit	(1,152)		(936)		(951)
Impact of tax reform	—		—		12,860
Meals and entertainment	171		190		242
Goodwill impairment	33,301		—		—
Non-deductible interest on contingent payments	99		—		—
Non-taxable gain on revaluation of contingent consideration liability	(118)		—		—
Change in valuation allowance	1,426		175		(18,526)
Effect of elimination of stock compensation APIC pool	162		—		—

Other	192		203		448
Income tax benefit	$	(1,348)	$	(3,556)	$	(11,036)

Summary of unrecognized tax benefits reconciliation

The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits:


	Year ended May 31,
(in thousands)	2020		2019		2018
Unrecognized tax benefits balance at June 1	$	464	$	464	$	899




Decrease in gross amounts of tax positions related to prior years due to U.S. tax reform	—		—		(287)
Decrease due to lapse in statute of limitations	—		—		(148)
Unrecognized tax benefits balance at May 31	$	464	$	464	$	464