v3.26.3
INCOME TAXES (Tables)
 12 Months Ended
Aug. 31, 2026
Income Tax Disclosure [Abstract]  
Income from Continuing Operations Before Provision for Income Taxes and Loss of Unconsolidated Affiliates
Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates includes the following components (in thousands):
Years Ended August 31,
202620252024
United States$120,680 $99,516 $60,697 
Foreign107,018 106,982 140,730 
Income from continuing operations before provision for income taxes and income of unconsolidated affiliates$227,698 $206,498 $201,427 
Significant Components of Income Tax Provision
Significant components of the income tax provision are as follows (in thousands):
Year Ended August 31,
202620252024
Current:
U.S. Federal tax expense (benefit)$496 $(1,438)$(442)
U.S. State tax expense1,460 1,041 766 
Foreign tax expense68,536 63,197 66,377 
Total$70,492 $62,800 $66,701 
Deferred:
U.S. Federal tax benefit$(12,868)$(7,605)$(15,362)
U.S. State tax benefit(220)(281)(27)
U.S. valuation allowance change10,779 6,966 12,532 
Foreign tax benefit(7,197)(3,556)(1,904)
Foreign valuation allowance change126 293 678 
Total$(9,380)$(4,183)$(4,083)
Provision for income taxes$61,112 $58,617 $62,618 
Schedule of Reconciliation of Effective Tax Rate
Significant components of the Company’s effective tax rate as of August 31, 2026, 2025 and 2024 are shown below (in thousands):
Years Ended August 31,
202620252024
AmountPercentAmountPercentAmountPercent
US Federal Statutory Rate$47,816 21.0 %$43,365 21.0 %$42,300 21.0 %
State and Local Taxes Net of Federal (1)
1,240 0.5 %760 0.4 %739 0.4 %
Foreign Tax Effects
Costa Rica
Statutory tax rate difference vs U.S.3,710 1.6 %3,935 1.9 %3,997 2.0 %
Withholding taxes4,963 2.2 %3,894 1.9 %3,234 1.6 %
Other (2)
(1,205)(0.5)%(753)(0.4)%(968)(0.5)%
Guatemala
Withholding taxes5,682 2.5 %3,961 1.9 %4,363 2.2 %
Other (2)
409 0.2 %555 0.3 %436 0.2 %
Colombia
Withholding taxes3,780 1.7 %739 0.4 %1,676 0.8 %
Other (2)
1,785 0.8 %2,195 1.1 %1,471 0.7 %
Dominican Republic
Withholding taxes5,026 2.2 %4,021 1.9 %5,184 2.6 %
Other (2)
(425)(0.2)%871 0.4 %(487)(0.2)%
El Salvador
Withholding taxes2,395 1.1 %2,300 1.1 %2,585 1.3 %
Other (2)
1,447 0.6 %1,420 0.7 %1,499 0.7 %
Honduras
Withholding taxes1,923 0.8 %2,016 1.0 %2,252 1.1 %
Other (2)
1,910 0.8 %2,054 1.0 %1,475 0.7 %
Trinidad
Withholding taxes923 0.4 %827 0.4 %625 0.3 %
Other (2)
2,504 1.1 %1,414 0.7 %2,715 1.4 %
Nicaragua
Withholding taxes1,722 0.8 %1,597 0.8 %1,558 0.8 %
Other (2)
1,181 0.5 %1,175 0.5 %1,573 0.8 %
Panama
Withholding taxes2,328 1.0 %2,249 1.1 %2,616 1.3 %
Other (2)
175 0.1 %867 0.4 %627 0.3 %
Other Foreign Jurisdictions480 0.2 %1,051 0.5 %70 — %
Effects of Cross-Border Tax Laws (3)
Foreign-derived intangible income deduction (4)
(8,933)(3.9)%(9,083)(4.4)%(4,653)(2.3)%
Other1,729 0.8 %1,406 0.7 %— — %
Tax Credits
Foreign Tax Credits (5)
(27,665)(12.2)%(20,850)(10.1)%(23,668)(11.8)%
Other(444)(0.2)%(541)(0.3)%(242)(0.1)%
Changes in Valuation Allowances (6)
8,220 3.6 %6,183 3.0 %11,935 5.9 %
Nontaxable or Nondeductible Items(520)(0.2)%1,468 0.7 %114 0.1 %
Changes in Unrecognized Tax Benefits(607)(0.3)%(242)(0.1)%(314)(0.2)%
Other Adjustments(437)(0.2)%(237)(0.1)%(94)— %
Effective Tax Rate$61,112 26.8 %$58,617 28.4 %$62,618 31.1 %
(1)State taxes in Florida made up the majority (greater than 50 percent) of the tax effect in this category.
(2)Represents the combined tax effect of foreign exchange adjustments, changes in uncertain tax positions, return-to-provision true-ups, and other individually insignificant permanent items within each jurisdiction.
(3)The Company is subject to the Global Intangible Low-Taxed Income ("GILTI") tax rules. For fiscal years 2026, 2025, and 2024 the Company utilized foreign tax credits to offset GILTI tax liability.
(4)The Company claims a deduction on income earned by the U.S. parent from intangible assets and services utilized in its foreign operations, resulting in a preferential U.S. effective tax rate of approximately 13.1% on qualifying income versus the 21.0% statutory rate.
(5)The Company recognizes credits against its U.S. federal income tax liability for taxes paid to foreign jurisdictions on income earned by its international operations.
(6)The Company records a valuation allowance as the foreign tax credits generated exceed the U.S. income tax liability.
Cash paid for income taxes (net of refunds) is shown below (in thousands):
Years Ended August 31,
202620252024
Federal$2,629 $— $— 
State & local
Florida1,4251,350766 
Other231 
Foreign
Costa Rica26,12821,66019,236 
Colombia22,61313,29911,483 
Guatemala11,5979,1638,454 
Nicaragua8,3566,58711,931 
Honduras7,8825,9894,860 
El Salvador7,5897,3279,924 
Dominican Republic 6,6077,2869,034 
Trinidad4,7494,3957,722 
Panama4,6664,8186,264 
Other Foreign Jurisdictions1,6221,836965 
Total income taxes paid (net of refunds) (1)
$105,865 $83,713 $90,640 
(1)Cash paid for income taxes includes withholding taxes paid on intercompany transactions in foreign jurisdictions and in the United States.
Significant Components of Deferred Tax Assets
Significant components of the Company’s deferred tax assets as of August 31, 2026 and 2025 are shown below (in thousands):
August 31,
20262025
Deferred tax assets:
Foreign tax credits$68,164 $59,286 
Accrued bonus3,610 2,872 
Deferred compensation3,495 2,826 
U.S. lease obligations2,882 3,022 
U.S. timing differences 8,464 7,302 
Foreign net operating losses6,211 4,693 
Foreign timing differences:
Lease obligations20,276 16,764 
Accrued expenses and other timing differences16,836 8,646 
Depreciation and amortization22,903 18,059 
Deferred income16,686 8,498 
Gross deferred tax assets169,527 131,968 
U.S. deferred tax liabilities (depreciation and other timing differences)(609)(877)
U.S. deferred tax liabilities (lease right-of-use assets)(2,693)(2,561)
Foreign deferred tax liabilities netted against deferred tax assets(13,535)(6,629)
Foreign deferred tax liabilities (lease right-of-use assets)(16,840)(13,940)
U.S. valuation allowance(70,515)(61,478)
Foreign valuation allowance(5,488)(5,254)
Net deferred tax assets$59,847 $41,229 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
Years Ended August 31,
202620252024
Balance at beginning of fiscal year$2,668 $4,294 $4,745 
Gross increase - tax positions in prior period— — 11 
Gross decrease - tax positions in prior period(285)(3)— 
Additions based on tax positions related to the current year1,374 — 7 
Expiration of the statute of limitations for the assessment of taxes(2,464)(1,623)(469)
Balance at end of fiscal year$1,293 $2,668 $4,294 
Summary of Income Tax Examinations The Company is generally no longer subject to income tax examinations by tax authorities in its major jurisdictions except for the fiscal years subject to audit as set forth in the table below:
Tax JurisdictionFiscal Years Subject to Audit
U.S. federal
2007, 2016* to 2018*, 2022*, 2023 to the present
California (U.S.) (state return)
 2022 to the present
Florida (U.S.) (state return)
2013* to 2018*, 2023 to the present
Aruba
2021 to the present
Barbados
2019 to the present
Costa Rica
2011 to 2012, 2015 to 2016, 2019 to 2020, 2022 to the present
Colombia
2019 to the present
Dominican Republic
2011 to 2012, 2016, 2021 to the present
El Salvador
2019, 2022 to the present
Guatemala
2012 to 2013, 2019, 2021 to the present
Honduras
 2021 to the present
Jamaica
2021 to the present
Mexico
2021 to the present
Nicaragua
2020 to the present
Panama
2023 to the present
Trinidad
 2016, 2020 to the present
U.S. Virgin Islands
2001 to the present
Spain
2022 to the present
*Aeropost only