Income Taxes

9 Months Ended

May 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 – Income Taxes

The Company recorded income tax expense of $8.9 million and $10.5 million for the three months ended May 31, 2023 and 2022, respectively, and recorded income tax expense of $22.3 million and $16.7 million for the nine months ended May 31, 2023 and 2022, 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 30.7 percent and 28.2 percent for the nine months ended May 31, 2023 and 2022, respectively. The increase in the estimated annual effective income tax rate relates primarily to the change in earnings mix among foreign operations and the finalization of U.S. tax regulations related to foreign tax credits in calendar 2022.

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 $0.8 million and $1.4 million for the nine months ended May 31, 2023 and 2022, respectively. The discrete items recorded primarily relate to the vesting of share-based compensation awards.