Income Taxes

9 Months Ended

Aug. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company’s effective income tax rate was 21.9% for the three months ended August 31, 2025, compared to (1.9)% for the same prior-year period. The increase in the effective tax rate in the current quarter is primarily due to lower earnings before tax in the prior year.

The Company’s effective income tax rate was 21.5% for the nine months ended August 31, 2025, compared to (39.3)% for the same prior-year period. The increase in the effective tax rate is primarily due to lower earnings before tax in the prior year, and a $10.1 million tax benefit related to favorable resolutions of state audits.

The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two. Many countries continue to announce changes in their tax laws and regulations based on the Pillar Two framework. The Company determined that Pillar Two did not have a material impact to our tax provision for the three and nine months ended August 31, 2025. We will continue to evaluate the impact of legislative changes as additional guidance becomes available.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company has evaluated the OBBBA enacted during the quarter and estimated its impact on the consolidated financial statements to be immaterial.