Income Taxes

6 Months Ended

Aug. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

The following table outlines income or loss and the related tax expense (benefit) from discontinued operations for the three and six months ended August 31, 2022 and 2021 (in thousands):

	Three Months Ended August 31,				Six Months Ended August 31,
	2022		2021		2022		2021
Income from discontinued operations before income taxes	$	8,676	$	5,670	$	19,850	$	15,827
Income tax expense	(1,939)		(960)		(4,401)		(393)
Income from discontinued operations, net of tax	$	6,737	$	4,710	$	15,449	$	15,434
Estimated loss on disposal of discontinued operations	$	(114,900)	$	—	$	(114,900)	$	—
Income tax benefit	25,473		—		25,473		—
Estimated loss on disposal of discontinued operations, net of tax	$	(89,427)	$	—	$	(89,427)	$	—

The provision for income taxes from continuing operations reflects an effective tax rate of 30.1% for the three months ended August 31, 2022, compared to 21.5% for the three months ended August 31, 2021. The increase in the effective tax rate was primarily attributable to a decrease of available research and development tax credits, as well as the relative mix of earnings across the jurisdictions within which we operate.

The provision for income taxes from discontinued operations reflects an effective tax rate of 22.2% for the three months ended August 31, 2022, compared to 16.9% for the three months ended August 31, 2021. The increase is related to an unfavorable permanent adjustment for goodwill that, for tax purposes, is non-deductible.

For the six months ended August 31, 2022, the effective tax rate from continuing operations was 28.2%, compared to 31.9% for the prior year comparable period. The current year decrease in the effective tax rate is the result of unfavorable adjustments related to uncertain tax positions recorded in the prior year comparable period.The provision for income taxes from discontinued operations reflects an effective tax rate of 22.2% for the six months ended August 31, 2022, compared to 16.9% for the three months ended August 31, 2021. The increase is related to an unfavorable permanent adjustment for goodwill that, for tax purposes, is non-deductible.