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Income Taxes (Tables)
12 Months Ended
Aug. 31, 2020
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes is as follows:
(in thousands)Years ended August 31,
202020192018
U.S. operations$280,283 $288,860 $199,654 
Non-U.S. operations146,851 133,105 152,184 
Income before income taxes$427,134 $421,965 $351,838 
U.S. operations$31,926 $55,824 $65,778 
Non-U.S. operations22,270 13,351 18,975 
Total provision for income taxes$54,196 $69,175 $84,753 
Effective tax rate12.7 %16.4 %24.1 %
Components of the Provision for Income Taxes
The components of the provision for income taxes consist of the following:
(in thousands)Years ended August 31,
202020192018
Current
U.S. federal$9,332 $35,688 $58,835 
U.S. state and local8,034 18,389 5,159 
Non-U.S.27,640 17,376 22,669 
Total current taxes$45,006 $71,453 $86,663 
Deferred
U.S. federal$11,896 $1,813 $2,079 
U.S. state and local2,665 (217)(295)
Non-U.S.(5,371)(3,874)(3,694)
Total deferred taxes$9,190 $(2,278)$(1,910)
Total provision for income taxes$54,196 $69,175 $84,753 
Percentage of Income Before Income Taxes
The Company’s effective tax rate will vary based on, among other things, changes in levels of foreign income, as well as discrete and other nonrecurring events that may not be predictable. The provision for income taxes differs from the amount of income tax determined by applying the U.S. statutory federal income tax rate to income before income taxes as a result of the following recurring factors and nonrecurring events, including the taxation of foreign income:
 Years ended August 31, 
(expressed as a percentage of income before income taxes)202020192018
Tax at U.S. Federal statutory tax rate21.0 %21.0 %25.7 %
Increase (decrease) in taxes resulting from:
State and local taxes, net of U.S. federal income tax benefit3.1 4.0 2.9 
Foreign income at other than U.S. rates(1.4)(1.4)(3.2)

Foreign derived intangible income ("FDII") deduction(1.8)(1.7)— 
Domestic production activities deduction— — (1.6)
Income tax benefits from R&D tax credits(3.8)(3.5)(3.7)
Share-based payments(3.7)(3.2)(2.7)
One-time transition tax from TCJA— (0.4)
(1)
6.6 
(1)
Other, net(0.7)1.6 0.1 
Effective tax rate12.7 %16.4 %24.1 %
1.The enactment of the TCJA resulted in a one-time transition tax expense of $23.2 million during fiscal 2018 and a $3.4 million net benefit revision recorded during fiscal 2019 associated with finalizing the accounting for the tax effects of the TCJA during fiscal 2019.
Significant Components of Deferred Tax Assets and Liabilities
The significant components of deferred tax assets that recorded within the Consolidated Balance Sheets were as follows:
(in thousands)At August 31,
20202019
Deferred tax assets:
Depreciation on property, equipment and leasehold improvements$— $2,264 
Deferred rent— 9,479 
Lease liabilities56,280 — 
Stock-based compensation16,341 14,822 
Unrealized tax loss on investment4,172 — 
Other8,840 9,903 
Total deferred tax assets$85,633 $36,468 
The significant components of deferred tax liabilities recorded within the Consolidated Balance Sheets were as follows:
(in thousands)At August 31,
20202019
Deferred tax liabilities:
Depreciation on property, equipment and leasehold improvements$15,291 $— 
Purchased intangible assets, including acquired technology43,088 44,304 
Lease right-of-use assets45,344 — 
Other1,623 984 
Total deferred tax liabilities$105,346 $45,288 
Reconciliation of Unrecognized Tax Benefits
The following table summarizes the changes in the balance of gross unrecognized tax benefits:
(in thousands)
Unrecognized income tax benefits at August 31, 2017$11,484 
Additions based on tax positions related to the current year2,954 
Additions for tax positions of prior years531 
Statute of limitations lapse(3,146)
        Reductions from settlements with Taxing Authorities(2,600)
Unrecognized income tax benefits at August 31, 2018$9,223 
Additions based on tax positions related to the current year3,133 
Additions for tax positions of prior years507 
Statute of limitations lapse(1,979)
Unrecognized income tax benefits at August 31, 2019$10,884 
Additions based on tax positions related to the current year3,533 
Release for tax positions of prior years(2,086)
Unrecognized income tax benefits at August 31, 2020$12,331 
Major Tax Jurisdictions in Which the Company and Affiliates Operate and the Earliest Tax Year Subject to Examination
In the normal course of business, the Company’s tax filings are subject to audit by federal, state and foreign tax authorities. At August 31, 2020, the Company remained subject to examination in the following major tax jurisdictions for the tax years as indicated below:
Major Tax JurisdictionsOpen Tax Years
U.S.
Federal2017through2019
State (various)2017through2019
Europe
United Kingdom2018through2019
France2018through2019
Germany2017through2019