Income Taxes

9 Months Ended

Nov. 30, 2023

Income Tax Disclosure [Abstract]

Income taxes

14. Income Taxes

Continuing Operations

The provision for income taxes from continuing operations reflects an effective tax rate of 24.6% for the three months ended November 30, 2023, compared to 11.7% for the three months ended November 30, 2022. The increase in the effective tax rate is attributable to a favorable adjustment in the prior year period due to the recognition of an outside basis difference related to the AVAIL JV.

The provision for income taxes from continuing operations reflects an effective tax rate of 22.6% for the nine months ended November 30, 2023, compared to 23.8% for the prior year comparable period. The decrease in the effective tax rate is attributable to 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 nine months ended November 30, 2022 (in thousands):

	Three Months Ended		Nine Months Ended
	November 30, 2022		November 30, 2022
Income from discontinued operations before income taxes	$	1,202	$	21,053
Income tax (expense) benefit	463		(3,927)
Income from discontinued operations, net of tax	$	1,665	$	17,126
Loss on disposal of discontinued operations	$	(45,010)	$	(159,910)
Income tax benefit	4,364		29,837
Loss on disposal of discontinued operations, net of tax	$	(40,646)	$	(130,073)

The provision for income taxes from discontinued operations reflects an effective tax rate of 11.0% and 18.7% for the three and nine months ended November 30, 2022.