Income Taxes (Tables)

12 Months Ended

Aug. 31, 2026

Schedule of Income before Income Tax, Domestic and Foreign

The following table presents income before income taxes for our domestic and foreign operations based on tax jurisdictions before intercompany eliminations for the periods presented (in millions):


	Year Ended August 31,
	2026		2025		2024
Domestic	$	499.8	$	414.8	$	472.4
International	180.9		85.4		76.2
Income before income taxes	$	680.7	$	500.2	$	548.6

Schedule of Provision for Income Taxes

The provision for income taxes consists of the following components during the periods presented (in millions):


	Year Ended August 31,
	2026		2025		2024
Current:
Federal	$	51.4	$	103.2	$	113.6
State	24.9		23.8		26.6
Foreign	39.7		21.6		19.4
Total current	116.0		148.6		159.6
Deferred:
Federal	36.4		(37.0)		(30.7)
State	1.1		(4.0)		(1.3)
Foreign	(4.1)		(4.0)		(1.6)
Total deferred	33.4		(45.0)		(33.6)
Total provision for income taxes	$	149.4	$	103.6	$	126.0

The following table reconciles the U.S. statutory rate to the effective income tax rate on a continuing basis for the year ended August 31, 2026, in accordance with ASU 2023-09, which was adopted prospectively (in millions):


	Year Ended August 31, 2026
	Tax Effect		Rate Impact
U.S. federal statutory rate provision	$	142.9	21.0	%

State and local income taxes, net of federal income tax effects(1)	20.7		3.0	%

Foreign tax effects:
Ireland	(9.3)		(1.3)	%
Other	0.1		–	%






Tax credits:
Research and development tax credits	(11.1)		(1.6)	%




Changes in unrecognized tax benefits	0.2		–	%
Other adjustments
Tax gain of sale of assets	10.4		1.5	%
Other	(4.5)		(0.7)	%
Effective income tax rate	$	149.4	21.9	%

____________________

(1) State taxes in California, Illinois, Pennsylvania, Texas, New Jersey, Florida, and Minnesota made up the majority of the tax effects in this category.

The following table reconciles the provision at the federal statutory rate to the total provision for income taxes prior to the adoption of ASU 2023-09 during the periods presented (in millions):


	Year Ended August 31,
		2025		2024
Federal income tax computed at statutory rate		$	105.0	$	115.2
State income tax, net of federal income tax benefit		14.8		19.7
Federal permanent differences		(2.2)		2.1
Foreign permanent differences and rate differential		4.2		2.3
Research and development tax credits		(13.7)		(10.1)
Unrecognized tax benefits		(4.8)		2.0
Other, net		0.3		(5.2)
Total provision for income taxes		$	103.6	$	126.0

Schedule of Reconciliation of Federal Statutory Rate to Total Provision for Income Taxes


	Year Ended August 31, 2026
	Tax Effect		Rate Impact
U.S. federal statutory rate provision	$	142.9	21.0	%

State and local income taxes, net of federal income tax effects(1)	20.7		3.0	%

Foreign tax effects:
Ireland	(9.3)		(1.3)	%
Other	0.1		–	%






Tax credits:
Research and development tax credits	(11.1)		(1.6)	%




Changes in unrecognized tax benefits	0.2		–	%
Other adjustments
Tax gain of sale of assets	10.4		1.5	%
Other	(4.5)		(0.7)	%
Effective income tax rate	$	149.4	21.9	%

____________________

(1) State taxes in California, Illinois, Pennsylvania, Texas, New Jersey, Florida, and Minnesota made up the majority of the tax effects in this category.

Schedule of Components of Net Deferred Income Taxes

Components of the net deferred income tax liabilities as of the dates presented include (in millions):


	August 31,
	2026		2025
Deferred income tax liabilities:
Depreciation	$	(24.8)	$	(24.7)
Goodwill and intangibles	(150.8)		(155.1)
Operating lease right of use assets	(19.7)		(24.0)
Other liabilities	(3.5)		(3.2)
Total deferred income tax liabilities	(198.8)		(207.0)
Deferred income tax assets:
Self-insurance	2.2		1.8
Pension	7.1		7.1
Deferred compensation	25.4		25.1
Net operating losses	7.7		6.8
Other accruals not yet deductible	37.4		37.0
Operating lease liabilities	22.4		26.4
Capitalized research and development	57.3		98.1
Other assets	26.0		22.7
Total deferred income tax assets	185.5		225.0
Valuation allowance	(21.2)		(19.5)
Net deferred income tax liabilities	$	(34.5)	$	(1.5)

Schedule of Income Taxes Paid, Net of Refunds

Income taxes paid, net of refunds by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended August 31, 2026 are as follows (in millions):


	Year Ended August 31, 2026
Federal	$	52.3
State	22.9
Non-US:
Canada	16.6
Mexico	7.5
Other non-US	8.3
Income taxes paid	$	107.6

Schedule of Unrecognized Tax Benefits Roll Forward

The following table reconciles the change in the unrecognized income tax benefit (reported in Other long-term liabilities on the Consolidated Balance Sheets) during the periods presented (in millions):


	Year Ended August 31,
	2026		2025		2024
Unrecognized tax benefits balance at beginning of year	$	18.5	$	21.1	$	20.1
Additions based on tax positions related to the current year	4.5		5.8		4.2

Reductions for tax positions of prior years	—		(0.1)		(0.1)

Reductions due to lapse of statute of limitations	(4.3)		(8.3)		(3.1)
Unrecognized tax benefits balance at end of year	$	18.7	$	18.5	$	21.1