Income Taxes

6 Months Ended

Feb. 28, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 – Income Taxes

The Company recorded income tax expense of $4.6 million and $2.7 million for the three months ended February 28, 2022 and 2021, respectively, and recorded income tax expense of $6.2 million and $2.5 million for the six months ended February 28, 2022 and 2021, 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 25.5 percent and 23.7 percent for the six months ended February 28, 2022 and 2021, 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 $1.1 million and $2.6 million for the six months ended February 28, 2022 and 2021, respectively. The discrete items recorded in the six months ended February 28, 2022 include a benefit of $0.7 million related to the vesting of share-based compensation awards, and the discrete items recorded in the six months ended February 28, 2021 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.