Income Taxes (Tables)

12 Months Ended

Aug. 31, 2025

Income Tax Disclosure [Abstract]

Income Tax Expense from Continuing Operations

Income tax expense from continuing operations is summarized as follows (in thousands):

	Year ended August 31,
	2025		2024		2023
Currently payable:
Federal	$	14,993	$	10,106	$	5,181
Foreign	12,341		11,599		9,240
State	832		1,172		319
	28,166		22,877		14,740
Deferred:
Federal	16		(1,086)		(2,935)
Foreign	(634)		2,630		3,806
State	432		(1,109)		(362)
	(186)		435		509
Income tax expense	$	27,980	$	23,312	$	15,249

Reconciliation of Income Taxes at Federal Statutory Rate to Effective Tax Rate

A reconciliation of income taxes at the federal statutory rate to the effective tax rate is summarized in the following table:

	Year ended August 31,
	2025		2024		2023
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of Federal effect	0.2		1.3		0.7
Tax on foreign earnings (1)	3.3		4.2		6.0
Foreign derived intangible income deduction	(1.9)		(2.3)		(3.1)
Compensation adjustment	0.7		2.0		1.5
Valuation allowance additions and releases	—		(4.1)		(0.8)
Changes in liability for unrecognized tax benefits	0.2		(1.3)		(0.1)
Repatriation of foreign earnings	(0.7)		1.6		—
Taxable liquidation of subsidiaries	—		—		0.1
Foreign non-deductible expenses	—		0.3		1.7
Changes in tax rates	—		—		(2.0)
Audits and adjustments (2)	0.3		0.4		(2.9)
Research and development tax credit	(0.4)		(0.6)		(0.7)
Other items	0.5		(0.4)		0.7
Effective income tax rate	23.2	%	22.1	%	22.1	%

(1) The Company generated $3.0 million, $3.4 million and $2.6 million of withholding tax and U.S. tax on non-U.S. earnings, net of foreign tax credits for fiscal 2025, 2024 and 2023, respectively.

(2) During both fiscal 2025 and fiscal 2024, the Company generated a $0.4 million tax expense related to audits and adjustments as compared to a tax benefit of $2.0 million for fiscal 2023.

Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities

Temporary differences and carryforwards that gave rise to deferred tax assets and liabilities include the following items (in thousands):

	August 31,
	2025		2024
Deferred income tax assets:
Operating loss and tax credit carryforwards	$	37,504	$	73,406
Compensation related liabilities	4,855		4,440
Postretirement benefits	3,204		4,628
Inventory	768		977
Lease liabilities	9,451		8,063
Research and development capitalization	10,563		8,683
Book reserves and other items	6,785		5,096
Total deferred income tax assets	73,130		105,293
Valuation allowance	(27,734)		(57,743)
Net deferred income tax assets	45,396		47,550
Deferred income tax liabilities:
Depreciation and amortization	(26,847)		(25,920)
Lease assets	(9,021)		(7,918)
Other items	(2,065)		(2,716)
Deferred income tax liabilities	(37,933)		(36,554)
Net deferred income tax asset (1)	$	7,463	$	10,996

(1) The net deferred income tax asset is reflected on the balance sheet in two categories: an asset of $13.7 million and $14.7 million for fiscal 2025 and 2024, respectively, is included in "Other long-term assets" and a liability of $6.2 million and $3.7 million for fiscal 2025 and 2024, respectively, is included in "Deferred income taxes".

Changes in Gross Liability for Unrecognized Tax benefits, Excluding Interest and Penalties

Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, are as follows (in thousands):

	2025		2024		2023
Beginning balance	$	13,713	$	14,754	$	15,380
Increases based on tax positions related to the current year	621		1,771		279
Increase for tax positions taken in a prior period	748		201		—
Decrease for tax positions taken in a prior period	(1,060)		—		(56)
Decrease due to lapse of statute of limitations	(620)		(3,054)		(951)
Decrease due to settlements	(69)		—		—
Changes in foreign currency exchange rates	107		41		102
Ending balance	$	13,440	$	13,713	$	14,754