INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2023

Income Tax Disclosure [Abstract]

Income from Continuing Operations Before Provision for Income Taxes and Loss of Unconsolidated Affiliates

Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates includes the following components (in thousands):

	Years Ended August 31,
	2023		2022		2021
United States	$	57,941	$	55,667	$	33,818
Foreign	111,270		100,754		113,368
Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates	$	169,211	$	156,421	$	147,186

Significant Components of Income Tax Provision

Significant components of the income tax provision are as follows (in thousands):

	Years Ended August 31,
	2023		2022		2021
Current:
U.S. tax expense	$	21,604	$	20,824	$	16,904
Foreign tax expense	41,639		34,334		35,918
Total	$	63,243	$	55,158	$	52,822
Deferred:
U.S. tax benefit	$	(11,958)	$	(11,894)	$	(10,212)
U.S. valuation allowance change	12,598		11,823		9,777
Foreign tax benefit	(3,935)		(3,259)		(3,125)
Foreign valuation allowance change	3		30		(293)
Total	$	(3,292)	$	(3,300)	$	(3,853)
Provision for income taxes	$	59,951	$	51,858	$	48,969

Schedule of Reconciliation of Effective Tax Rate

The reconciliation of income tax computed at the Federal statutory tax rate to the provision for income taxes is as follows (in percentages):

	Years Ended August 31,
	2023		2022		2021
Federal tax provision at statutory rates	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	0.3		0.2		0.1
Differences in foreign tax rates	6.8		7.1		6.9
Permanent items and other adjustments	(0.1)		(2.6)		(2.2)
Increase in valuation allowance	7.4		7.5		7.5
Provision for income taxes	35.4	%	33.2	%	33.3	%

Significant Components of Deferred Tax Assets

Significant components of the Company’s deferred tax assets as of August 31, 2023 and 2022 are shown below (in thousands):

	August 31,
	2023		2022
Deferred tax assets:
Foreign tax credits	$	43,632	$	32,322
Deferred compensation	1,664		1,782
U.S. timing differences	6,845		7,746
Foreign net operating losses	4,911		5,026
Foreign timing differences:
Accrued expenses and other timing differences	9,365		9,937
Depreciation and amortization	15,160		13,019
Deferred income	7,338		7,749
Gross deferred tax assets	88,915		77,581
U.S. deferred tax liabilities (depreciation and other timing differences)	(3,035)		(2,273)
Foreign deferred tax liabilities netted against deferred tax assets	(5,552)		(8,697)
U.S. valuation allowance	(43,860)		(33,824)
Foreign valuation allowance	(4,430)		(4,432)
Net deferred tax assets	$	32,038	$	28,355

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Years Ended August 31,
	2023		2022		2021
Balance at beginning of fiscal year	$	5,041	$	3,911	$	4,573
Gross increase - tax positions in prior period	35		264		135
Gross decrease - tax positions in prior period	—		—		(306)
Additions based on tax positions related to the current year	143		1,356		333
Expiration of the statute of limitations for the assessment of taxes	(474)		(490)		(824)
Balance at end of fiscal year	$	4,745	$	5,041	$	3,911

Summary of Income Tax Examinations

The Company is generally no longer subject to income tax examinations by tax authorities in its major jurisdictions except for the fiscal years subject to audit as set forth in the table below:

Tax Jurisdiction	Fiscal Years Subject to Audit
U.S. federal	2005, 2007, 2014* to 2017*, 2018, 2020 to the present
California (U.S.) (state return)	2005 and 2019 to the present
Florida (U.S.) (state return)	2011* to 2018*, 2020 to the present
Aruba	2018 to the present
Barbados	2017 to the present
Costa Rica	2011 to 2012, 2015 to 2016, 2019 to the present
Colombia	2017 to the present
Dominican Republic	2011 to 2012, 2016, 2020 to the present
El Salvador	2019 to the present
Guatemala	2012 to 2013, 2019 to the present
Honduras	2018 to the present
Jamaica	2017 to the present
Mexico	2019 to the present
Nicaragua	2019 to the present
Panama	2018 to the present
Trinidad	2016 to the present
U.S. Virgin Islands	2001 to the present
Spain	2020 to the present
Chile	2020* to the present

*Aeropost only