v3.26.1
Income Taxes
 6 Months Ended
Feb. 28, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
Note 10. Income Taxes
The Company's global operations, acquisition activity (as applicable) and specific tax attributes provide opportunities for continuous global tax planning initiatives to maximize tax credits and deductions. Comparative earnings before income taxes, income tax expense and effective income tax rates are as follows (dollars in thousands):
 Three Months Ended February 28,Six Months Ended February 28,
 2026202520262025
Earnings before income tax expense$22,115 $27,699 $47,671 $55,575 
Income tax expense5,807 6,798 12,232 12,951 
Effective income tax rate26.3 %24.5 %25.7 %23.3 %
The Company’s earnings before income taxes include earnings from both U.S. and foreign jurisdictions. As several foreign tax rates are higher than the U.S. tax rate of 21%, the annual effective tax rate is impacted by foreign rate differentials, withholding taxes, losses in jurisdictions where no benefit can be realized, and key international provisions enacted from recent tax legislation, such as the Global Intangible Low-Taxed Income and Foreign-Derived Intangible Income provisions.
The effective tax rate for the three months ended February 28, 2026 was 26.3%, compared to 24.5% for the comparable prior-year period. The effective tax rate in each time period was impacted by year-to-date losses and deductions in jurisdictions where no tax benefit can be realized. The higher effective tax rate for the three months ended February 28, 2026 was primarily driven by the more favorable tax impac