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INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2024

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,
	2024		2023		2022
United States	$	60,697	$	57,941	$	55,667
Foreign	140,730		111,270		100,754
Income from continuing operations before provision for income taxes and income (loss) of unconsolidated affiliates	$	201,427	$	169,211	$	156,421

Significant Components of Income Tax Provision

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


	Years Ended August 31,
	2024		2023		2022
Current:
U.S. tax expense	$	23,213	$	21,604	$	20,824
Foreign tax expense	43,488		41,639		34,334
Total	$	66,701	$	63,243	$	55,158
Deferred:
U.S. tax benefit	$	(15,389)	$	(11,958)	$	(11,894)
U.S. valuation allowance change	12,532		12,598		11,823
Foreign tax benefit	(1,904)		(3,935)		(3,259)
Foreign valuation allowance change	678		3		30
Total	$	(4,083)	$	(3,292)	$	(3,300)
Provision for income taxes	$	62,618	$	59,951	$	51,858

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,
	2024		2023		2022
Federal tax provision at statutory rates	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	0.2		0.3		0.2
Differences in foreign tax rates	2.1		6.8		7.1
Permanent items and other adjustments	0.6		(0.1)		(2.6)
Increase in valuation allowance	7.2		7.4		7.5
Provision for income taxes	31.1	%	35.4	%	33.2	%

Significant Components of Deferred Tax Assets

Significant components of the Company’s deferred tax assets as of August 31, 2024 and 2023 are shown below (in thousands):


	August 31,
	2024		2023
Deferred tax assets:
Foreign tax credits	54,451		43,632
Deferred compensation	2,819		1,664
U.S. timing differences	7,992		6,845
Foreign net operating losses	4,590		4,911
Foreign timing differences:
Accrued expenses and other timing differences	8,765		9,365
Depreciation and amortization	16,944		15,160
Deferred income	9,120		7,338
Gross deferred tax assets	104,680		88,915
U.S. deferred tax liabilities (depreciation and other timing differences)	(1,199)		(3,035)
Foreign deferred tax liabilities netted against deferred tax assets	(5,883)		(5,552)
U.S. valuation allowance	(55,871)		(43,860)
Foreign valuation allowance	(5,110)		(4,430)
Net deferred tax assets	$	36,618	$	32,038

Schedule of Unrecognized Tax Benefits Roll Forward

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


	Years Ended August 31,
	2024		2023		2022
Balance at beginning of fiscal year	$	4,745	$	5,041	$	3,911
Gross increase - tax positions in prior period	11		35		264
Gross decrease - tax positions in prior period	—		—		—
Additions based on tax positions related to the current year	7		143		1,356
Expiration of the statute of limitations for the assessment of taxes	(469)		(474)		(490)
Balance at end of fiscal year	$	4,294	$	4,745	$	5,041

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, 2015* to 2017*, 2018, 2021 to the present
California (U.S.) (state return)						2020 to the present
Florida (U.S.) (state return)						2011* to 2018*, 2021 to the present
Aruba						2019 to the present
Barbados						2018 to the present
Costa Rica						2011 to 2012, 2015 to 2016, 2019 to the present
Colombia						2018 to the present
Dominican Republic						2011 to 2012, 2016, 2021 to the present
El Salvador						2019, 2021 to the present
Guatemala						2012 to 2013, 2019 to the present
Honduras						2018 to the present
Jamaica						2017 to the present
Mexico						2020 to the present
Nicaragua						2020 to the present
Panama						2021 to the present
Trinidad						2016, 2018 to the present
U.S. Virgin Islands						2001 to the present
Spain						2021 to the present
Chile						2021*

*Aeropost only