Income Taxes

6 Months Ended

Feb. 28, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 5 – Income Taxes

The Company recorded income tax expense of $6.6 million and $4.6 million for the three months ended February 28, 2025 and February 29, 2024, respectively, and recorded income tax expense of $11.5 million and $10.6 million for the six months ended February 28, 2025 and February 29, 2024, 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 20.9 percent and 26.4 percent for the six months ended February 28, 2025 and February 29, 2024, respectively. The decrease in the estimated annual effective income tax rate relates primarily to the change in earnings mix among domestic and foreign operations.

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 impact of discrete items was not significant for the six months ended February 28, 2025 and amounted to an income tax benefit of $1.0 million for the six months ended February 29, 2024.