INCOME TAX (Tables)

12 Months Ended

Aug. 31, 2023

Income Tax Disclosure [Abstract]

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

The components of earnings before income taxes were as follows:

	Year Ended August 31,
(in thousands)	2023		2022		2021
United States	$	1,095,099	$	1,197,769	$	413,616
Foreign	26,868		317,378		120,402
Total	$	1,121,967	$	1,515,147	$	534,018

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)	2023		2022		2021
Current:
United States	$	168,399	$	122,334	$	113,696
Foreign	6,089		63,912		25,642
State and local	32,916		20,228		19,458
Current taxes	207,404		206,474		158,796
Deferred:
United States	46,008		81,162		(10,563)
Foreign	(847)		(3,388)		(2,512)
State and local	9,642		13,637		(24,568)
Deferred taxes	54,803		91,411		(37,643)
Total income taxes	$	262,207	$	297,885	$	121,153

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

	Year Ended August 31,
(in thousands)	2023			2022			2021
Income tax expense at statutory rate	$	235,613		$	318,181		$	112,144
State and local taxes (1)(2)	33,621			26,753			(3,838)
Research and development credit(2)	(7,986)			(13,102)			(1,289)
Foreign tax impairment on valuation of subsidiaries (3)	(7,334)			—			(29,866)
Change in valuation allowance	6,471			(447)			37,092
Global intangible low-taxed income (4)(5)	(1,967)			685			17,263
Capital loss(6)	—			(34,736)			—
Nontaxable foreign interest (3)	—			3			(14,617)
Other	3,789			548			4,264
Income tax expense	$	262,207		$	297,885		$	121,153
Effective income tax rate	23.4		%	19.7		%	22.7		%

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

(2) 2023 and 2022 include impacts of uncertain tax positions.

(3) Fully offset by a valuation allowance.

(4) Amounts are net of adjustments resulting from differences between prior year estimates and amounts included in tax returns.

(5) 2021 includes the tax effect of a gain recognized in connection with a global tax restructuring.

(6) 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)	2023		2022
Deferred tax assets:
Net operating losses and credits	$	298,624	$	300,787
Capitalized research and development	45,669		—
ROU operating lease liabilities	39,984		33,398
Deferred compensation and employee benefits	33,491		39,095
Reserves and other accrued expenses	16,510		11,730
Other	21,750		17,253
Total deferred tax assets	456,028		402,263
Valuation allowance for deferred tax assets	(280,463)		(268,547)
Deferred tax assets, net	175,565		133,716
Deferred tax liabilities:
Property, plant and equipment	(351,900)		(261,638)
Intangible assets	(44,168)		(48,558)
ROU operating lease assets	(38,801)		(32,444)
Derivatives	(35,992)		(27,324)
Other	(11,453)		(14,054)
Total deferred tax liabilities	(482,314)		(384,018)
Net deferred tax liabilities	$	(306,749)	$	(250,302)

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)	2023		2022		2021
Balance at September 1,	$	29,747	$	5,531	$	8,652
Change for tax positions of current year	14,792		17,461		—
Change for tax positions of prior years	(374)		6,755		—
Reductions due to lapse of statute of limitations	—		—		(3,121)
Balance at August 31, (1)	$	44,165	$	29,747	$	5,531

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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.