Income taxes

6 Months Ended

Feb. 28, 2022

Income Tax Disclosure [Abstract]

Income taxes

Note 12. Income taxes

The effective tax rate from continuing operations for the three months ended February 28, 2022 was 18.2%, compared to 4.4% for the three months ended February 28, 2021. The increase in the effective tax rate was primarily due to prior year discrete tax benefits recorded for the reduction of a valuation allowance on net deferred tax assets and tax benefits from internal restructuring.

The effective tax rate for the six months ended February 28, 2022 was an expense of 9.4%, primarily due to lower tax expense on gains from consolidation of the Company's investment in VillageMD and Shields. See Note 3. Acquisitions and other investments for further information. The effective tax rate for the six months ended February 28, 2021 was a benefit of 48.6% due to the discrete tax effect of equity losses in AmerisourceBergen. See Note 6. Equity method investments for further information.

Income taxes paid for the six months ended February 28, 2022 and 2021 were $201 million and $175 million, respectively.