Income Taxes (Tables)

12 Months Ended

Aug. 31, 2018

Schedule of provision for (benefit from) income taxes

The provision for (benefit from) income taxes for the years ended August 31, 2018, 2017, and 2016 is as follows:



	2018			(As Restated) 2017			(As Restated) 2016
	(Dollars in thousands)
Current:
Federal	$	15,576		$	8,394		$	(14,536	)
State	7,041			(1,787		)	2,427
Foreign	20,268			6,736			3,018
	42,885			13,343			(9,091		)
Deferred:
Federal	(146,780		)	(173,184		)	34,753
State	(127		)	(13,244		)	(13,684		)
Foreign	(54		)	(8,039		)	7,121
	(146,961		)	(194,467		)	28,190
Total	$	(104,076	)	$	(181,124	)	$	19,099

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of August 31, 2018, and 2017, are as follows:



	2018			(As Restated) 2017
	(Dollars in thousands)
Deferred tax assets:
Accrued expenses	$	138,417		$	227,877
Postretirement health care and deferred compensation	41,797			82,682
Tax credit carryforwards	154,240			169,549
Loss carryforwards	104,519			156,615
Nonqualified equity	178,046			140,009
Major maintenance	5,484			13,011
Other	83,580			83,138
Deferred tax assets valuation reserve	(230,373		)	(289,082		)
Total deferred tax assets	475,710			583,799
Deferred tax liabilities:
Pension	19,397			32,150
Investments	98,608			130,816
Property, plant and equipment	513,238			709,313
Other	26,828			40,323
Total deferred tax liabilities	658,071			912,602
Net deferred tax liabilities	$	182,361		$	328,803

Reconciliation of the statutory federal income tax rates to effective tax rates

The reconciliation of the statutory federal income tax rates to the effective tax rates for the years ended August 31, 2018, 2017, and 2016 is as follows:



	2018		(As Restated) 2017		(As Restated) 2016
Statutory federal income tax rate	25.7	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	0.7		12.1		0.3
Patronage earnings	(13.6	)	91.7		(21.2	)
Domestic production activities deduction	(8.4	)	30.5		(12.1	)
Export activities at rates other than the U.S. statutory rate	6.1		51.6		(3.0	)
U.S. tax reform	(23.2	)	—		—
Intercompany transfer of business assets	(6.1	)	—		—
Increase in unrecognized tax benefits	6.8		—		—
Valuation allowance	(3.4	)	(77.1	)	25.4
Tax credits	0.7		22.8		(14.1	)
Crack spread contingency	—		4.8		(5.3	)
Other	(0.8	)	(7.0	)	(0.3	)
Effective tax rate	(15.5	)%	164.4	%	4.7	%

Reconciliation of the gross beginning and ending amounts of unrecognized tax benefits

A reconciliation of the gross beginning and ending amounts of unrecognized tax benefits for the periods presented follows:



	2018		2017		2016
	(Dollars in thousands)
Balance at beginning of period	$	37,830	$	37,105	$	72,181
Additions attributable to current year tax positions	3,640		725		1,387
Additions attributable to prior year tax positions	49,665		—		—
Reductions attributable to prior year tax positions	—		—		(36,463		)
Balance at end of period	$	91,135	$	37,830	$	37,105