Income taxes

9 Months Ended

May 31, 2025

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The Company recognized a tax expense for the three months ended May 31, 2025. The effective tax rate for the three months ended May 31, 2025 was not meaningful. The tax expense is primarily driven by the 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 May 31, 2024 was an expense of 8.0% primarily due to tax benefits related to valuation allowance releases in foreign jurisdictions.

The effective tax rate for the nine months ended May 31, 2025 was a benefit of 0.4%, 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 nine months ended May 31, 2024 was a benefit of 6.3%, 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 nine months ended May 31, 2025 and May 31, 2024 were $162 million and $238 million, respectively.