PRE-TAX INCOME AND INCOME TAXES (Tables)

12 Months Ended

May 31, 2020

Schedule of Pre-Tax Income from Continuing Operations

Pre-tax income from continuing operations (including equity method investment earnings) consisted of the following:

	2020		2019		2018
United States	$	978.3	$	826.6	$	902.5
Foreign		64.8		72.5		69.6
	$	1,043.1	$	899.1	$	972.1

Schedule of the Provision for Income Taxes

The provision for income taxes included the following:

	2020			2019			2018
Current
Federal	$	188.2		$	125.4		$	153.1
State		25.5			22.6			17.8
Foreign		9.5			21.6			32.5
		223.2			169.6			203.4
Deferred
Federal		37.6			40.1			(43.7	)
State		(62.3	)		19.0			17.4
Foreign		2.8			(9.9	)		(2.5	)
		(21.9	)		49.2			(28.8	)
	$	201.3		$	218.8		$	174.6

Reconciliation of Income Taxes to the Provision for Income Taxes

Income taxes computed by applying the U.S. Federal statutory rates to income from continuing operations before income taxes are reconciled to the provision for income taxes set forth in the Consolidated Statements of Earnings as follows:

	2020			2019			2018
Computed U.S. Federal income taxes	$	219.0		$	188.8		$	285.3
State income taxes, net of U.S. Federal tax impact		29.6			34.1			18.0
Remeasurement of deferred taxes due to U.S. tax legislation		—			—			(241.6	)
Transition tax on foreign earnings		—			(4.6	)		19.8
Tax credits and domestic manufacturing deduction		(9.7	)		(5.6	)		(20.6	)
Federal rate differential on legal reserve		—			—			12.6
Goodwill and intangible impairments		11.2			12.5			—
Remeasurement of deferred taxes due to legal entity reorganization		(40.9	)		16.9			—
State tax impact of combining Pinnacle business		—			(12.0	)		—
Change of valuation allowance on capital loss carryforward		—			(32.2	)		78.6
Other		(7.9	)		20.9			22.5
	$	201.3		$	218.8		$	174.6

Schedule of the Tax Effect of Temporary Differences and Carryforwards

The tax effect of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities consisted of the following:

	May 31, 2020					May 26, 2019
	Assets			Liabilities		Assets			Liabilities
Property, plant and equipment	$	—		$	258.4	$	—		$	240.7
Inventory		19.5			—		15.2			—
Goodwill, trademarks and other intangible assets		—			1,108.4		—			1,187.0
Right-of-use assets		—			51.0		—			—
Accrued expenses		13.4			—		11.8			—
Compensation related liabilities		36.3			—		35.9			—
Pension and other postretirement benefits		35.2			—		54.6			—
Investment in unconsolidated subsidiaries		—			196.2		—			185.4
Lease liabilities		61.3			—		—			—
Other liabilities that will give rise to future tax deductions		88.1			—		123.5			—
Net capital and operating loss carryforwards		753.4			—		766.5			—
Federal credits		17.5			—		18.0			—
Other		52.7			31.8		37.6			24.0
		1,077.4			1,645.8		1,063.1			1,637.1
Less: Valuation allowance		(728.3	)		—		(738.1	)		—
Net deferred taxes	$	349.1		$	1,645.8	$	325.0		$	1,637.1

Schedule of Change in Unrecognized Tax Benefits

The change in the unrecognized tax benefits for the year ended May 31, 2020 was:

Beginning balance on May 26, 2019	$	44.1
Increases from positions established during prior periods		2.7
Decreases from positions established during prior periods		(0.3	)
Increases from positions established during the current period		3.7
Decreases relating to settlements with taxing authorities		(6.4	)
Reductions resulting from lapse of applicable statute of limitation		(7.7	)
Other adjustments to liability		(0.3	)
Ending balance on May 31, 2020	$	35.8