Income Taxes

9 Months Ended

May 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 5 – Income Taxes

The Company recorded income tax expense of $6.2 million and income tax benefit of $0.2 million for the three months ended May 31, 2025 and 2024, respectively, and recorded income tax expense of $17.7 million and $10.3 million for the nine months ended May 31, 2025 and 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 22.3 percent and 25.7 percent for the nine months ended May 31, 2025 and 2024, respectively. The decrease in the estimated annual effective income tax rate relates primarily to the change in earnings mix among jurisdictions with differing tax rates.

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 negligible during the three months ended May 31, 2025, while the Company recorded a discrete benefit of $4.8 million during the three months ended May 31, 2024 related to the one-time recognition of an income tax credit in Brazil.