Income Taxes (Tables)

12 Months Ended

May 31, 2014

Income Tax Disclosure [Abstract]

Components of income before income taxes

(In thousands)	2014		2013		2012
Income before income taxes consist of the following components:
U.S. operations	$	595,221	$	485,046	$	454,811
Foreign operations	12,637		14,862		16,133
	$	607,858	$	499,908	$	470,944

Components of income taxes

(In thousands)	2014		2013		2012
Income tax expense consists of the following components:
Current:
Federal	$	163,140	$	109,964	$	139,251
State and local	21,328		12,478		17,780
	184,468		122,442		157,031
Deferred	48,948		62,024		16,276
	$	233,416	$	184,466	$	173,307

Reconciliation of income tax expense using the statutory rate and actual income tax expense

(In thousands)	2014		2013			2012
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	$	212,750	$	174,968		$	164,830
State and local income taxes, net of federal benefit	20,279		12,192			11,876
Other	387		(2,694		)	(3,399		)
	$	233,416	$	184,466		$	173,307

The components of deferred income taxes included on the consolidated balance sheets

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

(In thousands)	2014			2013
Deferred tax assets:
Allowance for doubtful accounts	$	4,835		$	5,322
Inventory obsolescence	11,682			12,220
Insurance and contingencies	36,032			33,984
Stock-based compensation	23,890			17,513
Foreign tax credit carry-forward	4,266			5,397
Treasury locks	6,924			8,020
Other	30,526			20,030
	118,155			102,486
Valuation allowance	(13,358		)	(12,789		)
	104,797			89,697
Deferred tax liabilities:
In service inventory	150,439			131,334
Property	90,155			123,904
Intangibles	81,215			99,267
Investment in partnerships	93,227			4,025
State taxes and other	24,650			18,819
	439,686			377,349
Net deferred tax liability	$	334,889		$	287,652

Summary of valuation allowance

The progression of the valuation allowance is as follows:

(In thousands)	2014			2013
Balance at beginning of year	$	(12,789	)	$	(9,054	)
Additions	(1,701		)	(7,391		)
Subtractions	1,132			3,656
Balance at end of year	$	(13,358	)	$	(12,789	)

A reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (exclusive of interest and penalties) is as follows:

(In thousands)
Balance at June 1, 2011	$	103,099
Additions for tax positions pf prior years	5,660
Settlements	(5,048		)
Change in tax regulations	(57,182		)
Statute expirations	(1,998		)
Balance at May 31, 2012	$	44,531
Additions based on tax positions related to the current year	1,843
Additions for tax positions of prior years	2,960
Change in tax regulations	(33,600		)
Statute expirations	(2,025		)
Balance at May 31, 2013	$	13,709
Additions for tax positions of prior years	2,586
Statute expirations	(1,963		)
Settlements	(1,270		)
Balance at May 31, 2014	$	13,062