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Income Taxes
9 Months Ended
May 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes

16. Income Taxes

The effective tax rate differed from the U.S. federal statutory rate of 35% during the three months and nine months ended May 31, 2014 and 2013 due to the mix of earnings from more income in high tax-rate jurisdictions and losses in tax jurisdictions with existing valuation allowances. The effective tax rate was driven higher during these periods primarily due to restructuring costs with minimal related tax benefit. The effective tax rate was driven lower during these periods primarily due to: (a) tax incentives granted to sites in Brazil, Malaysia, Poland, Singapore and Vietnam; (b) income in tax jurisdictions with lower statutory tax rates than the U.S.; (c) a tax benefit from revaluing deferred tax assets related to the enactment of the Mexico 2014 tax reform during the second quarter of fiscal year 2014; (d) a partial valuation allowance release related to the U.S. deferred tax assets during the first quarter of fiscal year 2014; and (e) the reversal of an existing valuation allowance during the third quarter of fiscal year 2013. The material tax incentives expire at various dates through 2020. Such tax incentives are subject to conditions with which we expect to continue to comply.

For the nine months ended May 31, 2014, the Company recorded out-of-period adjustments that increased net income from continuing operations by $18.1 million, which related to fiscal year 2013 income tax benefit adjustments occurring in fiscal year 2014, reducing income tax expense. The Company assessed and concluded that these adjustments are not material to either the consolidated quarterly or annual financial statements for all impacted periods.