Income taxes

3 Months Ended

Nov. 30, 2023

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The effective tax rate for the three months ended November 30, 2023 and 2022 was a benefit of 20.7% and 27.5%, respectively. The decrease in the effective tax rate benefit for the three months ended November 30, 2023 was primarily driven by the increase to U.S. tax expense on non-U.S. earnings and discrete tax benefits recorded in the year-ago quarter for the reduction of a valuation allowance on net deferred tax assets related to the sale of shares in Cencora and forecasted capital gains, partially offset by the impact of certain nondeductible opioid-related claims and litigation.

Income taxes paid for the three months ended November 30, 2023 and 2022 were $25 million and $5 million, respectively.