INCOME TAX	6 Months Ended
Feb. 29, 2016
Income Tax Disclosure [Abstract]
Income tax	NOTE 11. INCOME TAX The Company's effective income tax rate from continuing operations for the three and six months ended February 29, 2016 was 16.0% and 27.5%, respectively, compared with 26.1% and 27.4% for the three and six months ended February 28, 2015, respectively. The effective tax rate is determined by computing the estimated annual effective tax rate, adjusted for discrete items, if any, which are taken into account in the appropriate period. Several factors determine the Company’s effective tax rate, including the mix and amount of global earnings, the impact of loss companies for which no tax benefit is available due to valuation allowances, audit related adjustments, and the impact of permanent tax adjustments. For the three months ended February 29, 2016, the tax rate was less than the statutory income tax rate of 35% primarily due to discrete favorable adjustments related to our current IRS exam. For the six months ended February 29, 2016, the tax rate was lower than the statutory income tax rate of 35% due to the previously mentioned favorable audit adjustment, the favorable impact of income from operations in lower tax jurisdictions, and a permanent tax benefit under Section 199 of the Internal Revenue Code related to domestic production activity. The Company's effective income tax rate from discontinued operations for the three and six months ended February 29, 2016 was 22.2% and 9.9%, respectively, compared with 0.0% and 0.2% for the three and six months ended February 28, 2015, respectively. The Company's effective income tax rate from discontinued operations for the three and six months ended February 29, 2016 reflected the fact that the majority of the pre-tax loss was from discontinued operations in Australia, a jurisdiction in which all tax losses created a deferred tax asset that was subject to a full valuation allowance, and thus no tax benefit. The tax benefit related to discontinued operations was the result of nominal pre-tax losses from discontinued operations which are subject to U.S. tax. The Company made net payments of $23.5 million and $28.7 million for income taxes during the six months ended February 29, 2016 and February 28, 2015, respectively. As of both February 29, 2016 and August 31, 2015, the reserve for unrecognized income tax benefits related to the accounting for uncertainty in income taxes was $27.3 million, exclusive of interest and penalties. 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 29, 2016, 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, 2017, 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 $17.8 million, which would reduce the provision for income taxes by $2.5 million. 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, CMC and its subsidiaries are subject to examination by various taxing authorities. The following is a summary of tax years subject to examination: U.S. Federal — 2009 and forward U.S. States — 2009 and forward Foreign — 2009 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 29, 2016 sufficiently reflect the anticipated outcome of these examinations.

NOTE 11. INCOME TAX

The Company's effective income tax rate from continuing operations for the three and six months ended February 29, 2016 was 16.0% and 27.5%, respectively, compared with 26.1% and 27.4% for the three and six months ended February 28, 2015, respectively. The effective tax rate is determined by computing the estimated annual effective tax rate, adjusted for discrete items, if any, which are taken into account in the appropriate period. Several factors determine the Company’s effective tax rate, including the mix and amount of global earnings, the impact of loss companies for which no tax benefit is available due to valuation allowances, audit related adjustments, and the impact of permanent tax adjustments. For the three months ended February 29, 2016, the tax rate was less than the statutory income tax rate of 35% primarily due to discrete favorable adjustments related to our current IRS exam. For the six months ended February 29, 2016, the tax rate was lower than the statutory income tax rate of 35% due to the previously mentioned favorable audit adjustment, the favorable impact of income from operations in lower tax jurisdictions, and a permanent tax benefit under Section 199 of the Internal Revenue Code related to domestic production activity. The Company's effective income tax rate from discontinued operations for the three and six months ended February 29, 2016 was 22.2% and 9.9%, respectively, compared with 0.0% and 0.2% for the three and six months ended February 28, 2015, respectively. The Company's effective income tax rate from discontinued operations for the three and six months ended February 29, 2016 reflected the fact that the majority of the pre-tax loss was from discontinued operations in Australia, a jurisdiction in which all tax losses created a deferred tax asset that was subject to a full valuation allowance, and thus no tax benefit. The tax benefit related to discontinued operations was the result of nominal pre-tax losses from discontinued operations which are subject to U.S. tax.

The Company made net payments of $23.5 million and $28.7 million for income taxes during the six months ended February 29, 2016 and February 28, 2015, respectively.

As of both February 29, 2016 and August 31, 2015, the reserve for unrecognized income tax benefits related to the accounting for uncertainty in income taxes was $27.3 million, exclusive of interest and penalties.

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 29, 2016, 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, 2017, 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 $17.8 million, which would reduce the provision for income taxes by $2.5 million.

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, CMC and its subsidiaries are subject to examination by various taxing authorities. The following is a summary of tax years subject to examination:

U.S. Federal — 2009 and forward

U.S. States — 2009 and forward

Foreign — 2009 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 29, 2016 sufficiently reflect the anticipated outcome of these examinations.