v3.26.3
Income Taxes (Tables)
 12 Months Ended
Aug. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income From Continuing Operations Before Income Taxes

The components of income from continuing operations before income taxes were as follows:

 

 

For The Year Ended August 31,

 

(In millions)

 

2026

 

 

2025

 

 

2024

 

Domestic

 

$

33.8

 

 

$

255.3

 

 

$

111.4

 

Foreign

 

 

44.8

 

 

 

29.1

 

 

 

112.3

 

Earnings before income tax and earnings from unconsolidated affiliates

 

$

78.6

 

 

$

284.4

 

 

$

223.7

 

 

 

 

 

 

 

 

 

 

 
Components of Income Tax Expense of Continuing Operations

Components of income tax expense were as follows:

 

 

For the Year Ended August 31,

 

(In millions)

 

2026

 

 

2025

 

 

2024

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

(1.6

)

 

$

8.4

 

 

$

2.0

 

State

 

 

1.2

 

 

 

1.8

 

 

 

2.2

 

Foreign

 

 

6.4

 

 

 

35.2

 

 

 

38.8

 

 

 

6.0

 

 

 

45.4

 

 

 

43.0

 

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

2.2

 

 

 

47.5

 

 

 

14.6

 

State

 

 

1.5

 

 

 

8.2

 

 

 

0.1

 

Foreign

 

 

(1.4

)

 

 

(7.7

)

 

 

(2.0

)

 

 

2.3

 

 

 

48.0

 

 

 

12.7

 

Change in valuation allowance

 

 

9.1

 

 

 

(2.0

)

 

 

6.3

 

Income tax expense

 

$

17.4

 

 

$

91.4

 

 

$

62.0

 

 

 

 

 

 

 

 

 

 

 
Reconciliation Between Effective and Statutory Tax Rates on Operations

The reconciliation between effective and statutory tax rates on operations for the year ended August 31, 2026 is as follows:

 

 

For The Year Ended August 31, 2026

 

(In millions)

 

Amount

 

 

Percent

 

U.S. federal statutory tax rate

 

$

16.5

 

 

 

21.0

%

State and local income taxes, net of federal benefit 1

 

 

2.5

 

 

 

3.2

 

 

 

 

 

 

 

Foreign tax effects

 

 

 

 

 

 

Mexico:

 

 

 

 

 

 

Statutory tax rate difference

 

 

5.6

 

 

 

7.2

 

Nondeductible compensation

 

 

3.0

 

 

 

3.8

 

Foreign currency / inflationary effects

 

 

(11.4

)

 

 

(14.5

)

Change in valuation allowance

 

 

1.5

 

 

 

1.9

 

Other

 

 

0.4

 

 

 

0.6

 

Romania:

 

 

 

 

 

 

Minimum tax

 

 

2.1

 

 

 

2.7

 

Other

 

 

(1.5

)

 

 

(2.0

)

Canada:

 

 

 

 

 

 

Withholding tax

 

 

1.2

 

 

 

1.5

 

Other foreign jurisdictions:

 

 

0.8

 

 

 

1.0

 

 

 

 

 

 

 

Effects of cross-border tax laws

 

 

 

 

 

 

U.S. branch income

 

 

6.9

 

 

 

8.7

 

BEAT

 

 

(1.8

)

 

 

(2.2

)

Other

 

 

0.5

 

 

 

0.6

 

 

 

 

 

 

 

Tax credits

 

 

 

 

 

 

Foreign tax credits

 

 

(10.7

)

 

 

(13.6

)

Other

 

 

(0.7

)

 

 

(1.0

)

 

 

 

 

 

 

Changes in valuation allowances

 

 

4.6

 

 

 

5.9

 

 

 

 

 

 

 

Nontaxable or nondeductible items

 

 

 

 

 

 

Officer compensation

 

 

3.3

 

 

 

4.2

 

Stock based compensation

 

 

(2.0

)

 

 

(2.5

)

Other

 

 

(1.6

)

 

 

(2.0

)

 

 

 

 

 

 

Changes in unrecognized tax benefits

 

 

(0.4

)

 

 

(0.5

)

 

 

 

 

 

 

Other reconciling items

 

 

 

 

 

 

Interest on tax refunds

 

 

(3.0

)

 

 

(3.8

)

Other

 

 

1.6

 

 

 

1.9

 

Effective tax rate

 

$

17.4

 

 

 

22.1

%

 

 

 

 

 

 

 

1 State income taxes, net of federal benefit for the year ended August 31, 2026 are primarily attributable to state taxes in Texas, Oregon, California and Louisiana.

As previously disclosed and prior to the adoption of ASU 2023-09, the reconciliation between effective and statutory tax rates on operations for the years ended August 31, 2025 and 2024 are as follows:

 

 

For the Year Ended August 31,

 

 

 

2025

 

 

2024

 

Federal statutory rate

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal benefit

 

 

2.0

 

 

 

1.4

 

Foreign operations

 

 

2.0

 

 

 

4.6

 

U.S. tax on foreign earnings

 

 

0.7

 

 

 

2.3

 

U.S. impact of foreign branch

 

 

2.3

 

 

 

(1.9

)

Permanent differences

 

 

1.2

 

 

 

4.0

 

BEAT and minimum taxes

 

 

4.4

 

 

 

0.5

 

Change in valuation allowance

 

 

(0.8

)

 

 

2.8

 

Unrecognized tax benefits

 

 

0.3

 

 

 

0.7

 

Noncontrolling interest in flow-through entity

 

 

(0.3

)

 

 

(0.3

)

Credits

 

 

(0.8

)

 

 

(4.7

)

Other

 

 

0.1

 

 

 

(2.7

)

Effective tax rate

 

 

32.1

%

 

 

27.7

%

 

 

 

 

 

 

 
Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities were as follows:

 

 

As of August 31,

 

(In millions)

 

2026

 

 

2025

 

Deferred tax assets:

 

 

 

 

 

 

Accrued payroll and related liabilities

 

$

36.7

 

 

$

32.7

 

Accrued liabilities

 

 

5.6

 

 

 

5.2

 

Deferred revenue

 

 

5.3

 

 

 

11.2

 

Inventories and other

 

 

9.0

 

 

 

15.8

 

Maintenance and warranty accruals

 

 

4.4

 

 

 

4.8

 

Lease liability

 

 

17.8

 

 

 

18.8

 

Interest expense

 

 

15.8

 

 

 

15.5

 

Net operating losses

 

 

43.5

 

 

 

21.2

 

Investment, asset tax credits and other

 

 

30.4

 

 

 

16.3

 

 

 

168.5

 

 

 

141.5

 

Valuation allowance

 

 

(23.0

)

 

 

(13.9

)

Deferred tax liabilities:

 

 

 

 

 

 

Fixed assets

 

 

(260.4

)

 

 

(234.3

)

Intangibles

 

 

(5.8

)

 

 

(3.6

)

Right-of-use asset

 

 

(17.8

)

 

 

(18.5

)

Other

 

 

(12.2

)

 

 

(9.5

)

 

 

(296.2

)

 

 

(265.9

)

Net deferred tax liability

 

$

(150.7

)

 

$

(138.3

)

 

 

 

 

 

 

 

 
Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

 

 

For the Year Ended August 31,

 

(In millions)

 

2026

 

 

2025

 

 

2024

 

Unrecognized Tax Benefit – Opening Balance

 

$

3.6

 

 

$

3.1

 

 

$

1.7

 

Gross increases – tax positions in prior period

 

 

1.4

 

 

 

0.5

 

 

 

1.8

 

Settlements

 

 

(1.3

)

 

 

—

 

 

 

—

 

Lapse of statute of limitations

 

 

—

 

 

 

—

 

 

 

(0.4

)

Unrecognized Tax Benefit – Ending Balance

 

$

3.7

 

 

$

3.6

 

 

$

3.1

 

 

 

 

 

 

 

 

 

 

 
Schedule of Components of Income Taxes Refunded, Net of Payments

The components of income taxes refunded, net of payments, are as follows:

 

 

For The Year Ended August 31,

 

(In millions)

 

2026

 

Federal

 

$

(27.3

)

State

 

 

 

Texas

 

 

0.5

 

California

 

 

0.2

 

Other

 

 

0.5

 

Foreign

 

 

 

Mexico

 

 

16.6

 

Romania

 

 

3.3

 

Canada

 

 

1.2

 

Brazil

 

 

0.6

 

Netherlands

 

 

0.3

 

Poland

 

 

(0.3

)

Other

 

 

0.3

 

Income taxes refunded, net of payments

 

$

(4.1

)