Income Taxes |
9 Months Ended |
|---|---|
May 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 10. Income Taxes We are subject to income taxes in the United States and various state jurisdictions. We compute our interim income tax provision by applying our estimated effective tax rate expected to be applicable for the fiscal year, adjusted for discrete items, if applicable, to our income before income taxes for the period. Our effective tax rate is dependent upon several factors, such as tax rates in state jurisdictions and the relative amount of income we earn in such jurisdictions. We exercise significant judgment in determining our income tax provision due to transactions, credits and calculations where the ultimate tax determination is uncertain. Our income tax expense for the three and nine months ended May 31, 2026 was $14.5 million and $30.9 million, or 27.1% and 32.3% of income before income taxes for the respective periods. For the three months ended May 31, 2026, the effective tax rate differed from the federal statutory rate of 21% primarily due to the impact of state income taxes and certain non-deductible executive compensation, partially offset by excess tax benefits from share-based compensation. For the nine months ended May 31, 2026, the effective tax rate differed from the federal statutory rate of 21% primarily due to state income taxes, as well as certain non-deductible executive compensation and transaction costs related to the IPO, partially offset by excess tax benefits from share-based compensation. Our income tax expense for the three and nine months ended May 31, 2025 was $18.6 million and $40.6 million, or 25.4% and 25.6% of income before income taxes for the respective periods. The effective tax rates differed from the federal statutory rate of 21% primarily due to state income taxes. Income Tax Audits Our U.S. federal income tax return for fiscal year 2023 is currently under review by the Internal Revenue Service and our U.S. federal income tax returns for fiscal years 2022, 2024 and 2025 are currently open for review. Additionally, tax years as early as fiscal year 2021 remain subject to examination by state or local tax authorities. |