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Income Tax
6 Months Ended
Feb. 28, 2014
Income Tax Disclosure [Abstract]  
Income tax
NOTE 10. INCOME TAX

The Company's effective income tax rate from continuing operations for the three and six months ended February 28, 2014 was 25.9% and 30.6%, respectively, compared with 52.3% and 33.4% for the three and six months ended February 28, 2013, respectively. The decrease in our effective income tax rate from continuing operations was attributed to the improvement in our International Mill segment's operating results for the three and six months ended February 28, 2014. The Company's effective income tax rate from discontinued operations for the three and six months ended February 28, 2014 was 15.8% and 38.8%, respectively, compared with 37.9% and 37.4% for the three and six months ended February 28, 2013, respectively.

The Company made net payments of $8.7 million and received net refunds of $2.2 million for income taxes during the six months ended February 28, 2014 and 2013, respectively.

The reserve for unrecognized income tax benefits related to the accounting for uncertainty in income taxes was $28.6 million and $27.4 million, exclusive of interest and penalties, as of February 28, 2014 and 2013, respectively.

The Company's policy classifies interest recognized on an underpayment of income taxes and any statutory penalties recognized on a tax position as income tax expense, and the balances at the end of a reporting period are recorded as part of the current or noncurrent reserve for uncertain income tax positions. For the three and six months ended February 28, 2014, before any income tax benefits, the Company recorded immaterial amounts of accrued interest and penalties on unrecognized income tax benefits.

During the twelve months ending February 28, 2015, it is reasonably possible that the statute of limitations pertaining to positions taken by the Company in prior year income tax returns may lapse or that income tax audits in various taxing jurisdictions could be finalized. As a result, the total amount of unrecognized income tax benefits may decrease by approximately $17.9 million, which would reduce the provision for income taxes on earnings by an immaterial amount.

The Company files income tax returns in the United States and multiple foreign jurisdictions with varying statutes of limitations. In the normal course of business, the Company and its subsidiaries are subject to examination by various taxing authorities. The following is a summary of tax years subject to examination:

US Federal — 2009 and forward
US States — 2009 and forward
Foreign — 2006 and forward

The Company is currently under examination by the Internal Revenue Service and state revenue authorities from 2009 to 2011. Management believes the Company's recorded tax liabilities as of February 28, 2014 sufficiently reflect the anticipated outcome of these examinations.