Income taxes

6 Months Ended

Feb. 28, 2025

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The effective tax rate for the three months ended February 28, 2025 was a benefit of 5.0%, due to the impact of the goodwill impairment, which is primarily not deductible for tax purposes, valuation allowance recorded against U.S. federal and state deferred tax assets generated in the current year, and tax on non-U.S. earnings. The effective tax rate for the three months ended February 29, 2024 was a benefit of 6.0% due to the impact of the goodwill impairment, which is primarily not deductible for tax purposes, and U.S. tax on non-U.S. earnings, partially offset by tax benefits related to the initial recognition of deferred tax assets in foreign jurisdictions, net of valuation allowance.

The effective tax rate for the six months ended February 28, 2025 was a benefit of 3.1%, due to the impact of the goodwill impairment, which is primarily not deductible for tax purposes, valuation allowance recorded against U.S. federal and state deferred tax assets generated in the current year, and tax on non-U.S. earnings. The effective tax rate for the six months ended February 29, 2024 was a benefit of 6.4%, due to the impact of the goodwill impairment, which is primarily not deductible for tax purposes, and U.S. tax on non-U.S. earnings, partially offset by tax benefits related to the initial recognition of tax basis in assets in foreign jurisdictions, net of valuation allowance.

Income taxes paid, net of cash refunds received, for the six months ended February 28, 2025 and February 29, 2024 were $203 million and $216 million, respectively.