Income Taxes

9 Months Ended

May 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 5 – Income Taxes

The Company recorded an income tax benefit of $0.2 million and income tax expense of $8.9 million for the three months ended May 31, 2024 and 2023, respectively, and recorded income tax expense of $10.3 million and $22.3 million for the nine months ended May 31, 2024 and 2023, 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 25.7 percent and 30.7 percent for the nine months ended May 31, 2024 and 2023, respectively. The decrease in the estimated annual effective income tax rate relates primarily to the change in earnings mix among domestic and foreign operations.

During the three months ended May 31, 2024, the Company recorded a discrete tax benefit of $4.8 million related to the recognition of an income tax credit in Brazil. This discrete benefit is not expected to repeat in future periods. The impact of discrete items in the same prior year period was not significant.