Income Taxes

12 Months Ended

Aug. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Note 13.    Income Taxes

Earnings before income taxes from continuing operations, are summarized as follows:

(in millions)	Year Ended August 31,
	2026		2025		2024
Domestic	$	79.3	$	70.7	$	59.7
Foreign	38.2		50.0		45.8
	$	117.5	$	120.7	$	105.5

Income tax expense from continuing operations is summarized as follows:

(in millions)	Year Ended August 31,
	2026		2025		2024
Currently payable:
Federal	$	10.4	$	15.0	$	10.1
Foreign	10.6		12.2		11.6
State	1.3		0.8		1.2
	22.3		28.0		22.9
Deferred:
Federal	5.2		0.1		(1.1)
Foreign	1.1		(0.5)		2.6
State	(0.8)		0.4		(1.1)
	5.5		—		0.4
Income tax expense	$	27.8	$	28.0	$	23.3

Income tax expense from continuing operations recognized in the accompanying consolidated statements of earnings differs from the amounts computed by applying the federal income tax rate to earnings from continuing operations before income tax expense. A reconciliation of income taxes at the federal statutory rate to the effective tax rate is summarized in the following table in accordance with the guidance in ASU 2023-09:

	Year Ended August 31, 2026
		Amount		Percent
Federal statutory rate		$	24.7	21.0	%
State income taxes, net of federal tax benefit (1)		0.4		0.3
Foreign tax effects
Netherlands
Statutory tax rate difference		2.1		1.8
Other		0.5		0.4
United Kingdom
Statutory tax rate difference		(1.3)		(1.1)
Other		1.1		0.9
Other foreign jurisdictions		1.3		1.1
Effect of cross-border tax laws
Foreign-derived intangible income		(3.7)		(3.1)
Unremitted earnings		1.6		1.4
Other		0.7		0.6
Tax credits		(0.3)		(0.3)
Nontaxable or nondeductible items
Disallowed executive compensation		2.4		2.1
Other		(1.6)		(1.3)
Changes in unrecognized tax benefits		(0.3)		(0.3)
Other adjustments		0.2		0.2
Effective Tax Rate		$	27.8	23.7	%

(1) State income taxes in Wisconsin and California comprised greater than 50% of the tax effect in this category.

A reconciliation of income taxes at the federal statutory rate to the effective tax rate prior to the adoption of ASU 2023-09 is summarized in the table below:

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

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

(2) The Company generated a tax expense related to audits and adjustments of $0.4 million for both fiscal 2025 and fiscal 2024.

The amounts of cash income taxes paid by the Company were as follows:        

(in millions)	Year Ended August 31, 2026
Federal	$	9.1
State and Local	1.1
Foreign
Netherlands	2.0
China	1.4
Brazil	1.2
All other foreign	3.7
Cash paid for income taxes, net of refunds	$	18.5

The amount of cash income taxes paid by the Company during the years ended August 31, 2025 and 2024 was $26.6 million and $23.8 million, respectively.

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

(in millions)	August 31,
	2026		2025
Deferred income tax assets:
Operating loss and tax credit carryforwards	$	31.2	$	37.5
Compensation related liabilities	5.6		4.8
Postretirement benefits	2.1		3.2
Inventory	0.6		0.8
Lease liabilities	9.6		9.4
Research and development capitalization	7.9		10.6
Book reserves and other items	7.5		6.8
Total deferred income tax assets	64.5		73.1
Valuation allowance	(23.4)		(27.7)
Net deferred income tax assets	41.1		45.4
Deferred income tax liabilities:
Depreciation and amortization	(27.3)		(26.8)
Lease assets	(9.0)		(9.0)
Other items	(3.6)		(2.1)
Deferred income tax liabilities	(39.9)		(37.9)
Net deferred income tax asset (1)	$	1.2	$	7.5

(1) The net deferred income tax asset is reflected on the balance sheet in two categories: an asset of $12.1 million and $13.7 million for fiscal 2026 and 2025, respectively, is included in “Other long-term assets” and a liability of $10.9 million and $6.2 million for fiscal 2026 and 2025, respectively, is included in “Deferred income taxes”.

The Company has $46.9 million and $2.4 million of gross state net operating loss and credit carryforwards, respectively, which are available to reduce future state tax liabilities. These state net operating loss carryforwards expire at various times through 2076. The Company also has $69.0 million and $8.2 million of foreign loss and credit carryforwards, respectively, which are available to reduce certain future foreign tax liabilities. The majority of the foreign loss carryforwards are not subject to any expiration dates, while the other balances expire at various times through 2036. The valuation allowance represents a reserve for deferred tax assets, including loss carryforwards and foreign tax credits, for which utilization is uncertain.

In general, the Company’s practice is to reinvest the earnings of its non-U.S. subsidiaries within those operations. Routinely, the Company analyzes the factors surrounding global cash needs and future cash utilization and determines if there are any exceptions. As of August 31, 2026, certain jurisdictions met this exception. On the undistributed foreign earnings that are no longer permanently reinvested outside of the United States, the Company recorded a deferred tax liability of $2.7 million.

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

(in millions)	2026		2025		2024
Beginning balance	$	13.4	$	13.7	$	14.8
Increases based on tax positions related to the current year	0.7		0.6		1.8
Increase for tax positions taken in a prior period	2.2		0.8		0.2
Decrease for tax positions taken in a prior period	—		(1.1)		—
Decrease due to lapse of statute of limitations	(2.1)		(0.6)		(3.1)
Decrease due to settlements	(0.1)		(0.1)		—
Changes in foreign currency exchange rates	—		0.1		—
Ending balance	$	14.1	$	13.4	$	13.7

Substantially all of these unrecognized tax benefits, if recognized, would impact the effective income tax rate. As of August 31, 2026, 2025 and 2024, the Company recognized $5.8 million, $5.7 million and $5.0 million, respectively, for interest and penalties related to unrecognized tax benefits. The Company recognizes interest and penalties related to underpayment of

income taxes as a component of income tax expense. With few exceptions, the Company is no longer subject to U.S. federal, state and foreign income tax examinations by tax authorities in major tax jurisdictions for years prior to fiscal 2014.