Income Taxes (Tables)

12 Months Ended

May 31, 2012



(In thousands)	2012		2011		2010

Income before income taxes consist of the following components:
U.S. operations	$	454,811	$	377,922	$	315,717
Foreign operations	16,133		14,747		28,175
	$	470,944	$	392,669	$	343,892



(In thousands)	2012		2011		2010

Income tax expense consists of the following components:
Current:
Federal	$	139,251	$	70,811	$	106,389
State and local	17,780		15,063		12,909
	157,031		85,874		119,298
Deferred	16,276		59,806		8,974
	$	173,307	$	145,680	$	128,272



(In thousands)	2012			2011			2010

Reconciliation of income tax expense using the statutory rate and actual income tax expense is as follows:
Income taxes at the U.S. federal statutory rate	$	164,830		$	137,434		$	120,362
State and local income taxes, net of federal benefit	11,876			11,984			8,631
Other	(3,399		)	(3,738		)	(721		)
	$	173,307		$	145,680		$	128,272

The components of deferred income taxes included on the consolidated balance sheets are as follows:



(In thousands)	2012			2011

Deferred tax assets:
Allowance for doubtful accounts	$	5,577		$	5,630
Inventory obsolescence	11,507			11,204
Insurance and contingencies	28,708			19,121
Stock-based compensation	16,017			12,585
Foreign tax credit carry-forward	9,054			—
Other	18,453			15,065
	89,316			63,605
Valuation allowance	(9,054		)	—
	80,262			63,605
Deferred tax liabilities:
In service inventory	64,061			10,108
Property	122,675			118,413
Intangibles	88,696			77,910
State taxes and other	11,970			7,682
	287,402			214,113
Net deferred tax liability	$	207,140		$	150,508

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



(In thousands)

Balance at June 1, 2010	$	95,857
Additions for tax positions of prior years	10,529
Settlements	(2,194		)
Statute expirations	(1,093		)
Balance at May 31, 2011	$	103,099
Additions for tax positions of prior years	5,660
Settlements	(5,048		)
Change in tax regulations	(57,182		)
Statute expirations	(1,998		)
Balance at May 31, 2012	$	44,531