Income Taxes (Tables)

12 Months Ended

Aug. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of (Loss) Income before Income Tax, Domestic and Foreign

(Loss) income from continuing operations before income taxes was as follows for the years ended August 31 (in thousands):

	2023			2022		2021
United States	$	(32,541	)	$	204,150	$	195,037
Foreign		4,465			12,526		12,952
Total	$	(28,076	)	$	216,676	$	207,989

Schedule of Components of Income Tax (Benefit) Expense

Income tax (benefit) expense from continuing operations consisted of the following for the years ended August 31 (in thousands):

	2023			2022		2021
Current:
Federal	$	(377	)	$	18,114	$	27,244
State		974			1,392		3,811
Foreign		590			39		(4	)
Total current tax expense		1,187			19,545		31,051
Deferred:
Federal		(4,198	)		21,771		6,939
State		(686	)		780		(547	)
Foreign		950			2,501		492
Total deferred tax (benefit) expense		(3,934	)		25,052		6,884
Total income tax (benefit) expense	$	(2,747	)	$	44,597	$	37,935

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows:

	2023			2022			2021
Federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of credits		5.0			1.6			1.4
Foreign income taxed at different rates		(1.2	)		—			(0.5	)
Valuation allowance on deferred tax assets		(6.1	)		0.4			(1.0	)
Federal rate change		—			—			0.4
Non-deductible officers’ compensation		(7.8	)		2.5			1.2
Other non-deductible expenses		(1.6	)		0.3			0.4
Noncontrolling interests		0.3			(0.3	)		(0.5	)
Research and development credits		6.4			(0.9	)		(1.5	)
Tax return to provision adjustment		(1.2	)		(2.4	)		—
Unrecognized tax benefits		(8.5	)		1.2			0.9
Interest income		1.4			(0.1	)		(0.1	)
Excess tax benefit from stock-based compensation		3.2			(1.6	)		(0.2	)
Foreign derived intangible income		—			(1.0	)		(2.5	)
Other		(1.1	)		(0.1	)		(0.8	)
Effective tax rate		9.8	%		20.6	%		18.2	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities comprised the following as of August 31 (in thousands):

	2023			2022
Deferred tax assets:
Operating lease liabilities	$	17,605		$	17,901
Amortizable goodwill and other intangibles		13,488			9,914
Employee benefit accruals		8,772			12,241
Net operating loss carryforwards		20,280			7,499
Environmental liabilities		10,109			9,742
Other contingencies		5,579			5,199
State credit carryforwards		7,711			7,212
Inventory valuation methods		2,508			2,749
Other		7,193			3,687
Valuation allowances		(17,042	)		(15,342	)
Total deferred tax assets		76,203			60,802
Deferred tax liabilities:
Accelerated depreciation and other basis differences		61,938			60,539
Operating lease right-of-use assets		17,573			17,353
Investment in operating partnerships		25,769			15,553
Prepaid expense acceleration and other		6,827			6,087
Total deferred tax liabilities		112,107			99,532
Net deferred tax liabilities	$	(35,904	)	$	(38,730	)

Summary of Reserve for Unrecognized Tax Benefits, Excluding Interest and Penalties

The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands):

	2023		2022			2021
Unrecognized tax benefits, as of the beginning of the year	$	10,326	$	8,320		$	7,456
Additions (reductions) for tax positions of prior years		281		1,055			(574	)
Additions for tax positions of the current year		1,223		974			1,486
Reductions for lapse of statutes		—		(23	)		(48	)
Unrecognized tax benefits, as of the end of the year	$	11,830	$	10,326		$	8,320