INCOME TAX (Tables)

12 Months Ended

Aug. 31, 2015

Income Tax Disclosure [Abstract]

Components of earnings from continuing operations before income taxes (benefit)

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

	Year Ended August 31,
(in thousands)	2015		2014		2013
United States	$	217,008	$	108,882	$	147,204
Foreign	27,520		42,933		15,498
Total	$	244,528	$	151,815	$	162,702

Income taxes (benefit) included in the consolidated statements of operations

The income taxes (benefit) included in the consolidated statements of earnings are as follows:

	Year Ended August 31,
(in thousands)	2015			2014			2013
Current:
United States	$	53,258		$	11,798		$	849
Foreign	3,329			2,965			1,970
State and local	2,830			4,157			1,815
Current taxes	$	59,417		$	18,920		$	4,634
Deferred:
United States	$	19,269		$	30,427		$	45,908
Foreign	722			4,457			4,980
State and local	3,362			(2,536		)	3,767
Deferred taxes	$	23,353		$	32,348		$	54,655
Total income taxes on income	$	82,770		$	51,268		$	59,289
Income taxes (benefit) on discontinued operations	(436		)	8,544			1,310
Income taxes on continuing operations	$	83,206		$	42,724		$	57,979

Reconciliation of the federal statutory rate to effective tax rate from continuing operations

A reconciliation of the federal statutory rate to the Company's effective income tax rate from continuing operations is as follows:

	Year Ended August 31,
(in thousands)	2015			2014			2013
Income tax expense at statutory rate of 35%	$	85,585		$	53,135		$	56,946
State and local taxes	4,020			88			3,460
Section 199 manufacturing deduction	(4,017		)	(1,199		)	—
Foreign rate differential	(2,404		)	(6,290		)	(4,783		)
Change in valuation allowance	12,305			19,978			5,334
Deferred compensation	772			(4,164		)	(2,890		)
Nontaxable foreign interest	(16,712		)	(16,506		)	(5,445		)
Disposition of foreign subsidiaries	—			—			6,292
Australian reorganization	—			—			(7,245		)
Other	3,657			(2,318		)	6,310
Income tax expense on continuing operations	$	83,206		$	42,724		$	57,979
Effective income tax rates from continuing operations	34.0		%	28.1		%	35.6		%

Tax effects of significant temporary differences giving rise to deferred tax assets and liabilities

The income tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows:

	August 31,
(in thousands)	2015			2014
Deferred tax assets:
Deferred compensation and employee benefits	$	48,309		$	51,956
Net operating losses and credits	78,838			68,736
Reserves and other accrued expenses	21,380			45,246
Allowance for doubtful accounts	3,334			3,760
Intangibles	8,086			6,707
Other	9,562			8,766
Total deferred tax assets	169,509			185,171
Valuation allowance for deferred tax assets	(79,965		)	(69,762		)
Deferred tax assets, net	$	89,544		$	115,409
Deferred tax liabilities:
Fixed assets	$	102,144		$	99,016
Inventory	3,774			8,320
Other	3,981			4,066
Total deferred tax liabilities	$	109,899		$	111,402
Deferred tax assets, net of deferred tax liabilities	$	(20,355	)	$	4,007

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

A reconciliation of the beginning and ending amounts of unrecognized income tax benefits is as follows:

	August 31,
(in thousands)	2015		2014			2013
Balance at September 1	$	27,349	$	28,551		$	27,384
Change in tax positions of current year	—		—			1,255
Change for tax positions of prior years	—		(1,202		)	—
Reductions due to settlements with taxing authorities	—		—			(88		)
Balance at August 31	$	27,349	$	27,349		$	28,551