INCOME TAX (Tables)

12 Months Ended

Aug. 31, 2022

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)	2022		2021		2020
United States	$	1,197,769	$	413,616	$	334,170
Foreign	317,378		120,402		36,608
Total	$	1,515,147	$	534,018	$	370,778

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)	2022		2021		2020
Current:
United States	$	122,334	$	113,696	$	26,901
Foreign	63,912		25,642		7,588
State and local	20,228		19,458		7,133
Current taxes	206,474		158,796		41,622
Deferred:
United States	81,162		(10,563)		45,771
Foreign	(3,388)		(2,512)		(43)
State and local	13,637		(24,568)		5,832
Deferred taxes	91,411		(37,643)		51,560
Total income taxes on income	297,885		121,153		93,182
Income taxes on discontinued operations	—		—		706
Income taxes on continuing operations	$	297,885	$	121,153	$	92,476

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)	2022			2021			2020
Income tax expense at statutory rate	$	318,181		$	112,144		$	77,863
Change in valuation allowance	(447)			37,092			968
Foreign tax impairment on valuation of subsidiaries (1)	—			(29,866)			5,084
Global intangible low-taxed income (2)	685			17,263			1,252
Nontaxable foreign interest (1)	3			(14,617)			8
State and local taxes (3)(4)	26,753			(3,838)			9,895
Capital loss(5)	(34,736)			—			—
Research and development credit(4)	(13,102)			(1,289)			(563)
Other	548			4,264			(2,031)
Income tax expense on continuing operations	$	297,885		$	121,153		$	92,476
Effective income tax rate from continuing operations	19.7		%	22.7		%	24.9		%

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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.

(4) 2022 includes the impact of uncertain tax positions.

(5) Resulted from a tax restructuring transaction.

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)	2022		2021
Deferred tax assets:
Net operating losses and credits	$	300,787	$	291,145
Deferred compensation and employee benefits	39,095		64,693
ROU operating lease liabilities	33,398		28,915
Reserves and other accrued expenses	11,730		13,846
Other	17,253		3,817
Total deferred tax assets	402,263		402,416
Valuation allowance for deferred tax assets	(268,547)		(278,099)
Deferred tax assets, net	133,716		124,317
Deferred tax liabilities:
Property, plant and equipment	(261,638)		(180,925)
ROU operating lease assets	(32,444)		(26,950)
Intangible assets	(48,558)		—
Derivatives	(27,324)		(5,123)
Other	(14,054)		(3,817)
Total deferred tax liabilities	(384,018)		(216,815)
Net deferred tax liabilities	$	(250,302)	$	(92,498)

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)	2022		2021		2020
Balance at September 1,	$	5,531	$	8,652	$	8,652
Change for tax positions of current year	17,461		—		—
Change for tax positions of prior years	6,755		—		—
Reductions due to lapse of statute of limitations	—		(3,121)		—
Balance at August 31, (1)	$	29,747	$	5,531	$	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.