INCOME TAX (Tables)

12 Months Ended

Aug. 31, 2016

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)	2016		2015		2014
United States	$	49,279	$	118,455	$	122,024
Foreign	35,911		27,520		42,933
Total	$	85,190	$	145,975	$	164,957

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)	2016			2015			2014
Current:
United States	$	5,224		$	53,258		$	11,799
Foreign	6,991			3,329			2,965
State and local	4,130			2,830			4,157
Current taxes	$	16,345		$	59,417		$	18,921
Deferred:
United States	$	(4,423	)	$	(14,219	)	$	29,184
Foreign	254			722			4,457
State and local	303			488			(3,499		)
Deferred taxes	$	(3,866	)	$	(13,009	)	$	30,142
Total income taxes on income	$	12,479		$	46,408		$	49,063
Income taxes (benefit) on discontinued operations	(168		)	(436		)	1,712
Income taxes on continuing operations	$	12,647		$	46,844		$	47,351

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)	2016			2015			2014
Income tax expense at statutory rate of 35%	$	29,818		$	51,091		$	57,735
State and local taxes	2,095			2,152			116
Section 199 manufacturing deduction	(4,694		)	(4,017		)	(1,199		)
Foreign rate differential	(2,015		)	(2,404		)	(6,290		)
Foreign tax impairment on valuation of subsidiaries	(60,204		)	—			—
Change in valuation allowance	70,784			12,305			19,978
Deferred compensation	(1,375		)	772			(4,164		)
Nontaxable foreign interest	(16,063		)	(16,712		)	(16,506		)
Audit settlement	(10,264		)	—			—
Other	4,565			3,657			(2,319		)
Income tax expense on continuing operations	$	12,647		$	46,844		$	47,351
Effective income tax rates from continuing operations	14.8		%	32.1		%	28.7		%

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)	2016			2015
Deferred tax assets:
Deferred compensation and employee benefits	$	45,496		$	48,309
Net operating losses and credits	154,606			78,838
Reserves and other accrued expenses	18,831			21,381
Allowance for doubtful accounts	2,438			3,334
Intangibles	6,214			8,084
Other	768			9,562
Total deferred tax assets	228,353			169,508
Valuation allowance for deferred tax assets	(153,011		)	(79,965		)
Deferred tax assets, net	$	75,342		$	89,543
Deferred tax liabilities:
Fixed assets	$	96,100		$	102,143
Inventory	30,822			40,859
Other	2,799			3,981
Total deferred tax liabilities	$	129,721		$	146,983
Net deferred tax liabilities	$	(54,379	)	$	(57,440	)

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)	2016			2015		2014
Balance at September 1	$	27,349		$	27,349	$	28,551
Change in tax positions of current year	—			—		—
Change for tax positions of prior years	—			—		(1,202		)
Reductions due to settlements with taxing authorities	(17,827		)	—		—
Balance at August 31	$	9,522		$	27,349	$	27,349