Income Taxes

3 Months Ended

Nov. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 – Income Taxes

The Company recorded income tax expense of $1.6 million and an income tax benefit of $0.2 million for the three months ended November 30, 2021 and 2020, respectively.

It is the Company’s policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 24.2 percent and 23.8 percent for the three months ended November 30, 2021 and 2020, respectively.

The tax effects of significant or unusual items are not considered in the estimated annual effective income tax rate. The tax effects of such discrete events are recognized in the interim period in which the events occur. The Company recorded discrete items resulting in an income tax benefit of $0.7 million and $1.8 million for the three months ended November 30, 2021 and 2020, respectively. The discrete items recorded in the three months ended November 30, 2021 include a benefit of $0.7 million related to the vesting of share-based compensation awards, and the discrete items recorded in the three months ended November 30, 2020 include a benefit of $1.7 million related to the release of a valuation allowance related to net operating loss carryforwards in a foreign jurisdiction.