Income Taxes |
9 Months Ended |
|---|---|
May 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 9 - Income Taxes Effective Tax Rate The Company’s effective tax rate from continuing operations for the third quarter and the first nine months of fiscal 2025 was a benefit on pre-tax loss of 2.0% and 0.9%, respectively, compared to 18.3% and 17.6%, respectively, for the comparable prior year periods. The Company’s effective tax rate from continuing operations for the third quarter and first nine months of fiscal 2025 was lower than the U.S. federal statutory rate of 21% primarily due to the aggregate effect of the Company’s financial performance including an increase in the Company’s valuation allowance against deferred tax assets in the U.S. tax jurisdiction. For the third quarter and first nine months of fiscal 2024, the Company’s effective tax rate from continuing operations was lower than the U.S. federal statutory rate of 21% primarily due to the effect of permanent differences from non-deductible expenses and the recognition of a valuation allowance against deferred tax assets in the Company’s U.S. federal, state and Canadian tax jurisdictions. Valuation Allowances The Company assesses the realizability of its deferred tax assets on a quarterly basis through an analysis of potential sources of future taxable income, including prior year taxable income available to absorb a carryback of tax losses, reversals of existing taxable temporary differences, tax planning strategies, and forecasts of taxable income. The Company considers and weighs all positive and negative evidence to determine if valuation allowances against deferred tax assets are required. The Company continues to maintain a valuation allowance against its deferred tax assets in the Company’s U.S. federal, state and foreign tax jurisdictions. The Company files federal and state income tax returns in the U.S. and foreign tax returns in Puerto Rico and Canada. For U.S. federal income tax returns, fiscal years 2022 to 2024 remain subject to examination under the statute of limitations. |