INCOME TAX (Tables)

12 Months Ended

Aug. 31, 2026

Components of earnings from continuing operations before income taxes (benefit)

The components of earnings before income taxes were as follows:


	Year Ended August 31,
(in thousands)	2026		2025		2024
United States	$	682,285	$	61,897	$	631,592
Foreign	28,726		45,648		4,079
Total	$	711,011	$	107,545	$	635,671

Income taxes (benefit) included in the consolidated statements of operations

The income taxes included in the consolidated statements of earnings were as follows:


	Year Ended August 31,
(in thousands)	2026		2025		2024
Current:
United States	$	(131,787)	$	83,897	$	143,462
Foreign	5,623		8,371		163
State and local	21,295		20,669		18,035
Current taxes	(104,869)		112,937		161,660
Deferred:
United States	152,389		(76,005)		(8,075)
Foreign	3,666		1,126		(7,684)
State and local	3,976		(15,175)		4,279
Deferred taxes	160,031		(90,054)		(11,480)
Total income taxes	$	55,162	$	22,883	$	150,180

Reconciliation of the federal statutory rate to effective tax rate from continuing operations

A reconciliation of the federal statutory rate to the Company's effective income tax rate, including material items impacting the

effective income tax rate, is presented below:


	Year Ended August 31, 2026
(in thousands)	Amount		Percent
U.S. federal statutory income tax rate	$	149,312	21.0	%
State and local income tax, net of federal income tax(1)	19,964		2.8
Federal:
Tax credits
Energy tax credits - 48C advanced energy project credit	(145,355)		(20.4)
Other tax credits	(264)		—
Nontaxable or non-deductible items:
Non-deductible compensation	3,579		0.4
Nontaxable gain	(2,371)		(0.3)
Other non-deductible items	2,968		0.4
Effect of cross-border tax laws	1,842		0.3
Changes in unrecognized tax benefits	(10,914)		(1.5)
Foreign tax effects:
Other foreign jurisdictions	2,020		0.3
Other:
IRC Section 50(c)(1) - basis adjustment	30,525		4.3
Withholding tax	931		0.1
Other miscellaneous	2,925		0.4
Total	$	55,162	7.8	%

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(1) State and local taxes in California, Illinois, Florida, Texas, New Jersey, Alabama, and Louisiana made up the majority of the effect in this category (greater than 50 percent).


	Year Ended August 31,
(in thousands)	2025			2024
Income tax expense at statutory rate	$	22,584		$	133,491
State and local taxes(1)	4,341			17,629
Research and development credit(1)	(7,255)			(1,151)
Foreign rate differential	(1,344)			513
Interest expense related to uncertain tax positions	1,314			2,154
Non-deductible compensation	1,300			1,651
Nontaxable gain	(2,131)			(1,786)
TCJA - Toll charge and related foreign tax credits	(2,766)			—
Other	6,840			(2,321)
Income tax expense	$	22,883		$	150,180
Effective income tax rate	21.3		%	23.6		%

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(1) 2025 and 2024 include impacts of uncertain tax positions.

Tax effects of significant temporary differences giving rise to deferred tax assets and liabilities

The income tax effects of significant temporary differences giving rise to deferred tax assets and liabilities were as follows:


	August 31,
(in thousands)	2026		2025
Deferred tax assets:
Net operating losses and credits	$	268,647	$	273,140
Capitalized research and development	26,823		53,651
ROU operating lease liabilities	54,276		41,352
Deferred compensation and employee benefits	37,521		33,905
Reserves and other accrued expenses	8,811		11,924
Litigation-related reserve	91,718		88,756
Other	12,351		7,300
Total deferred tax assets	500,147		510,028
Valuation allowance for deferred tax assets	(251,640)		(253,196)
Deferred tax assets, net	248,507		256,832
Deferred tax liabilities:
Property, plant and equipment	(490,361)		(335,705)
Intangibles and goodwill	(44,901)		(44,696)
ROU operating lease assets	(53,491)		(40,922)
Derivatives	(10,913)		(11,889)
Other	(2,325)		(1,097)
Total deferred tax liabilities	(601,991)		(434,309)
Net deferred tax liabilities	$	(353,484)	$	(177,477)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amounts of unrecognized income tax benefits is presented below:


(in thousands)	2026		2025		2024
Balance at September 1,	$	44,235	$	45,721	$	44,165

Change for tax positions of current year	—		—		—
Change for tax positions of prior years	—		8,000		1,556
Reductions due to lapse of statute of limitations	(9,814)		(9,486)		—
Balance at August 31,(1)	$	34,421	$	44,235	$	45,721

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(1) The full balance of unrecognized income tax benefits in each year, if recognized, would have impacted the Company’s effective income tax rate at the end of each respective year.

Schedule of Cash Flow, Supplemental Disclosures

Cash paid for income taxes, net of refunds received, by jurisdiction for the year ended August 31, 2026 is as follows:


	Year Ended August 31,
(in thousands)	2026
Federal	$	8,937
State
California	5,063
Florida	2,231
Georgia	2,470
Illinois	2,320
New Jersey	2,780
Pennsylvania	2,998
Other States	11,209
Foreign
Poland	3,619
Other foreign jurisdictions	1,328
Cash paid for income taxes, net of refunds received	$	42,955