Income Taxes

6 Months Ended

Aug. 31, 2023

Income Tax Disclosure [Abstract]

Income taxes

13. Income Taxes

Continuing Operations

The provision for income taxes from continuing operations reflects an effective tax rate of 17.4% for the three months ended August 31, 2023, compared to 30.1% for the three months ended August 31, 2022. The decrease in the effective tax rate is attributable to favorable adjustments for the current period related to uncertain tax positions, as well as an unfavorable adjustment in the prior year comparable period related to management fees recorded as a result of continuing operations versus discontinued operations reporting.

The provision for income taxes from continuing operations reflects an effective tax rate of 21.5% for the six months ended August 31, 2023, compared to 28.2% for the prior year comparable period. The decrease in the effective tax rate is attributable to favorable adjustments in the current year related to uncertain state tax positions, as well as an unfavorable adjustment in the prior year related to management fees recorded as a result of continuing operations versus discontinued operations reporting.

Discontinued Operations

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 (in thousands):

	Three Months Ended		Six Months Ended
	August 31, 2022		August 31, 2022
Income from discontinued operations before income taxes	$	8,676	$	19,850
Income tax (expense) benefit	(1,939)		(4,401)
Income from discontinued operations, net of tax	$	6,737	$	15,449
Loss on disposal of discontinued operations	$	(114,900)	$	(114,900)
Income tax benefit	25,473		25,473
Loss on disposal of discontinued operations, net of tax	$	(89,427)	$	(89,427)

The provision for income taxes from discontinued operations reflects an effective tax rate of 22.2% for both the three and six months ended August 31, 2022.