Note 14 - Income Taxes

6 Months Ended

Nov. 30, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

14. INCOME TAXES

The effective tax rate for the

six

months ended

November

30,

2016

and

November

30,

2015

was

37.1%

and

21.4%,

respectively.   The difference between the federal statutory rate and the effective tax rate for the

six

months ended

November

30,

2016

was primarily due to income subject to tax in the various tax jurisdictions with rates that differ from the U.S. statutory tax rate, the impact of recording U.S. income taxes associated with current and future distributions of foreign earnings, and the reversal of uncertain tax positions (net of the corresponding reduction in competent authority assets) resulting from the completion of a foreign income tax examination during the

second

quarter of fiscal year

2017.

The difference between the federal statutory rate and the effective tax rate for the

six

months ended

November

30,

2015,

was primarily due to the income subject to tax in the various tax jurisdictions with rates that differ from the U.S. statutory tax rate and the impact of recording U.S. income taxes associated with current and future distributions of foreign earnings.   The difference between the effective tax rate of

37.1%

for the

six

months ended

November

30,

2016

and

21.4%

for the

six

months ended

November

30,

2015

is primarily due to variations in the ratio of foreign income to domestic income for each period.

The Company does not consider itself to be permanently reinvested with respect to its accumulated and un - repatriated earnings as well as the future earnings of each foreign subsidiary. Accordingly, the Company recorded a deferred tax liability associated with unremitted future earnings of its foreign subsidiaries. The Company continues to consider its investment in each foreign subsidiary to be permanently reinvested and thus has not recorded a deferred tax liability on such amounts.