INCOME TAX (Tables)

12 Months Ended

Aug. 31, 2021

Income Tax Disclosure [Abstract]

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

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

	Year Ended August 31,
(in thousands)	2021		2020		2019
United States	$	413,616	$	334,170	$	194,986
Foreign	120,402		36,608		73,474
Total	$	534,018	$	370,778	$	268,460

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

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

	Year Ended August 31,
(in thousands)	2021		2020		2019
Current:
United States	$	113,696	$	26,901	$	621
Foreign	25,642		7,588		14,006
State and local	19,458		7,133		2,892
Current taxes	158,796		41,622		17,519
Deferred:
United States	(10,563)		45,771		46,922
Foreign	(2,512)		(43)		490
State and local	(24,568)		5,832		4,908
Deferred taxes	(37,643)		51,560		52,320
Total income taxes on income	121,153		93,182		69,839
Income taxes on discontinued operations	—		706		158
Income taxes on continuing operations	$	121,153	$	92,476	$	69,681

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, including material items impacting the effective income tax rate, is as follows:

	Year Ended August 31,
(in thousands)	2021			2020			2019
Income tax expense at statutory rate	$	112,144		$	77,863		$	56,377
Change in valuation allowance	37,092			968			36,167
Foreign tax impairment on valuation of subsidiaries (1)	(29,866)			5,084			(29,697)
Global intangible low-taxed income (2)	17,263			1,252			1,541
Nontaxable foreign interest (1)	(14,617)			8			(9,799)
State and local taxes (3)	(3,838)			9,895			6,085
TCJA - Toll charge and related foreign tax credits	—			—			7,410
Other	2,975			(2,594)			1,597
Income tax expense on continuing operations	$	121,153		$	92,476		$	69,681
Effective income tax rate from continuing operations	22.7		%	24.9		%	26.0		%

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(1) Fully offset by a valuation allowance.

(2) 2021 includes the tax effect of a gain recognized in connection with a global tax restructuring.

(3) State and local taxes in 2021 includes a $19.9 million benefit related to the release of certain state valuation allowances.

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 were as follows:

	August 31,
(in thousands)	2021		2020
Deferred tax assets:
Net operating losses and credits	$	291,145	$	283,416
Deferred compensation and employee benefits	64,693		32,293
ROU operating lease liabilities	28,915		29,619
Reserves and other accrued expenses	13,846		30,371
Other	3,817		3,315
Total deferred tax assets	402,416		379,014
Valuation allowance for deferred tax assets	(278,099)		(281,849)
Deferred tax assets, net	124,317		97,165
Deferred tax liabilities:
Property, plant and equipment	(180,925)		(185,595)
ROU operating lease assets	(26,950)		(28,201)
Other	(8,940)		(2,420)
Total deferred tax liabilities	(216,815)		(216,216)
Net deferred tax liabilities	$	(92,498)	$	(119,051)

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:

(in thousands)	2021		2020		2019
Balance at September 1,	$	8,652	$	8,652	$	3,121
Change for tax positions of prior years	—		—		5,531
Reductions due to lapse of statute of limitations	(3,121)		—		—
Balance at August 31, (1)	$	5,531	$	8,652	$	8,652

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(1)The full balance of unrecognized income tax benefits in each year, if recognized, would have impacted the Company’s effective income tax rate at the end of each respective year.