Income Taxes

6 Months Ended

Feb. 28, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 11. Income Taxes

The Company's global operations, acquisition activity (as applicable) and specific tax attributes provide opportunities for continuous global tax planning initiatives to maximize tax credits and deductions. Comparative earnings before income taxes, income tax expense and effective income tax rates from continuing operations are as follows (dollars in thousands):

	Three Months Ended February 28,						Six Months Ended February 28,
	2022			2021			2022			2021
Earnings from continuing operations before income tax expense	$	3,458		$	3,585		$	8,424		$	10,664
Income tax expense	1,337			1			3,118			2,258
Effective income tax rate	38.7		%	0.0		%	37.0		%	21.2		%

The Company’s earnings from continuing operations before income taxes include earnings from both U.S. and foreign jurisdictions. Though most foreign tax rates are now in line with the U.S. tax rate of 21%, the annual effective tax rate is impacted by withholding taxes, losses in jurisdictions where no benefit can be realized, and various aspects of the U.S. Tax Cuts and Jobs Act, such as the Global Intangible Low-Taxed Income, Foreign-Derived Intangible Income and Base Erosion and Anti-Abuse Tax provisions.

The effective tax rate for the three months ended February 28, 2022 was 38.7%, compared to 0.0% for the comparable prior-year period. Overall, both time periods are significantly impacted by year-to-date losses and deductions in jurisdictions where no tax benefit can be realized. The lower effective tax rate for the three months ended February 28, 2021 was primarily driven by tax benefits related to stock compensation and tax planning initiatives that did not recur in the current year. Additionally, both the current and prior-year effective income tax rates include the impact of non-recurring items.