v3.26.3
INCOME TAXES (Tables)
 12 Months Ended
Aug. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes and Effective Tax Rate
The components of Income before income taxes were as follows:
(in thousands)Years ended August 31,
202620252024
U.S. operations$400,450 $479,288 $416,093 
Non-U.S. operations249,266 241,670 235,410 
Income before income taxes$649,716 $720,958 $651,503 
The components of the provision for income taxes consist of the following:
(in thousands)Years ended August 31,
202620252024
Current
U.S. federal$38,586 $16,255 $46,903 
U.S. state and local29,729 27,594 40,926 
Non-U.S.62,204 83,614 58,568 
Total current taxes$130,519 $127,463 $146,397 
Deferred
U.S. federal$(16,056)$(1,132)$(26,962)
U.S. state and local457 2,875 (5,648)
Non-U.S.1,315 (5,288)590 
Total deferred taxes$(14,284)$(3,545)$(32,020)
Total provision for income taxes
U.S. federal$22,530 $15,123 $19,941 
U.S. state and local30,186 30,469 35,278 
Non-U.S.63,519 78,326 59,158 
Provision for income taxes
$116,235 $123,918 $114,377 
Schedule of Reconciliation of Effective Tax Rate For the year ended August 31, 2026, after the adoption of ASU 2023-09, the following table presents a reconciliation between the U.S. corporate income tax rate and our effective tax rate:
(expressed as a percentage of income before income taxes)
Year ended August 31, 2026
Tax at U.S. federal statutory tax rate$136,440 21.0 %
Increase (decrease) in taxes resulting from:
State and local taxes, net of U.S. federal income tax benefit(1)
24,351 3.7 %
Foreign tax effects
United Kingdom ("UK")
Statutory tax differences between the UK and the U.S.8,447 1.3 %
Other453 0.1 %
Other foreign jurisdictions3,169 0.5 %
Effect of cross-border tax laws
Foreign derived intangible income(17,167)(2.6)%
Other2,711 0.4 %
Tax credits
Research & development ("R&D") tax credit(18,500)(2.8)%
Foreign tax credit(26,553)(4.1)%
Other (1,120)(0.2)%
Changes in valuation allowances51 — %
Nontaxable or nondeductible items9,233 1.4 %
Changes in unrecognized tax benefits(8,933)(1.4)%
Other3,653 0.6 %
Provision for income taxes and effective tax rate$116,235 17.9 %
(1) New York and New York City make up the majority (greater than 50%) of the tax effect in this category.
Prior to the adoption of ASU 2023-09, the following table presents a reconciliation between the U.S. corporate income tax rate and our effective tax rate:
Years ended August 31,
(expressed as a percentage of income before income taxes)20252024
Tax at U.S. Federal statutory tax rate21.0 %21.0 %
Increase (decrease) in taxes resulting from:
State and local taxes, net of U.S. federal income tax benefit3.1 2.2 
Foreign income at other than U.S. rates1.7 1.5 
Foreign derived intangible income ("FDII") tax deduction(2.0)(2.3)
Income tax benefits from R&D tax credits(3.1)(2.8)
Stock-based payments(1.4)(2.1)
U.S. impact of foreign income(3.1)(2.5)
Uncertain tax positions1.4 2.3 
Other, net(0.4)0.3 
Effective tax rate17.2 %17.6 %
Schedule of Significant Components of Deferred Tax Assets and Liabilities
We recognize deferred income taxes to reflect the temporary differences between the financial statement carrying amounts of assets and liabilities and their corresponding tax basis. The tax effects of these differences are as follows:
(in thousands)As of August 31,
20262025
Deferred tax assets:
Lease liabilities$34,170 $35,352 
Stock-based compensation44,355 36,675 
Capitalization of R&D costs188,556 143,829 
NOL carryforward(1)
27,602 7,930 
Foreign tax credit carryforward(1)
22,543 8,251 
Other(1)
26,189 23,612 
Total deferred tax assets$343,415 $255,649 
Deferred tax liabilities:
Depreciation on PPE$(43,968)$(41,432)
Purchased intangible assets, including acquired technology(165,952)(141,566)
Lease ROU assets(19,686)(18,184)
Investment in subsidiary(16,734)— 
Section 481(a) adjustment(19,321)— 
Other(8,038)(5,393)
Total deferred tax liabilities$(273,699)$(206,575)
Deferred tax assets (liabilities), net$69,716 $49,074 
Valuation allowance
(6,445)(2,750)
Total deferred tax assets (liabilities), net$63,271 $46,324 
(1) Net operating loss carryforward and Foreign tax credit carryforward were presented separately from Other as part of the deferred tax assets in fiscal 2026. Comparative figures for fiscal 2025 have been conformed.
Total deferred tax assets and liabilities recorded within the Consolidated Balance Sheets were as follows:
(in thousands)As of August 31,
20262025
Deferred tax assets$74,550 $61,226 
Deferred tax liabilities(11,279)(14,902)
Total deferred tax assets (liabilities), net$63,271 $46,324 
Schedule of Reconciliation of Unrecognized Tax Benefits
The following table summarizes the changes in the balance of gross unrecognized tax benefits:
(in thousands)
Unrecognized tax benefits as of August 31, 2023
$21,053 
Additions based on tax positions related to the current year6,068
     Additions for tax positions related to prior years11,726 
Release for tax positions of prior years(3,557)
Unrecognized tax benefits as of August 31, 2024
$35,290 
Additions based on tax positions related to the current year5,344 
     Additions for tax positions related to prior years2,368 
Release for tax positions of prior years(3,568)
Unrecognized tax benefits as of August 31, 2025
$39,434 
Additions based on tax positions related to the current year3,318 
Additions for tax positions related to prior years176 
Release for tax positions of prior years(21,675)
Unrecognized tax benefits as of August 31, 2026
$21,253 
Schedule of Cash Paid For Income
After the adoption of ASU 2023-09, the following table summarizes our cash paid for income taxes, net of refunds, for the year ended August 31, 2026:
(in thousands)
As of August 31, 2026
U.S. federal$20,816 
U.S. state and local:
New York City$10,397 
All other U.S. state and local21,283 
Total U.S. state and local$31,680 
Non-U.S.:
United Kingdom$56,399 
All other Non-U.S.13,836 
Total Non-U.S.$70,235 
Total cash paid for income taxes, net of refunds
$122,731 
Schedule of Significant Tax Jurisdictions As of August 31, 2026, we remained subject to examination in the following significant tax jurisdictions for the fiscal years as indicated below:
Significant Tax JurisdictionOpen Tax Fiscal Years
U.S.
Federal2023through2025
State (various)2019through2025
Non-U.S.
United Kingdom2021through2025
India
2023
through
2025