Income Taxes (Tables)

12 Months Ended

Aug. 31, 2019

Schedule of provision for (benefit from) income taxes

The provision for (benefit from) income taxes for the years ended August 31, 2019, 2018 and 2017 is as follows:



	2019			2018			2017
	(Dollars in thousands)
Current:
Federal	$	211		$	15,576		$	8,394
State	3,815			7,041			(1,787		)
Foreign	(2,630		)	20,268			6,736
Total Current	1,396			42,885			13,343
Deferred:
Federal	(4,923		)	(146,780		)	(173,184		)
State	(8,491		)	(127		)	(13,244		)
Foreign	(438		)	(54		)	(8,039		)
Total Deferred	(13,852		)	(146,961		)	(194,467		)
Total	$	(12,456	)	$	(104,076	)	$	(181,124	)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of August 31, 2019 and 2018, are as follows:



	2019			2018
	(Dollars in thousands)
Deferred tax assets:
Accrued expenses	$	62,245		$	138,417
Postretirement health care and deferred compensation	42,747			41,797
Tax credit carryforwards	152,347			154,240
Loss carryforwards	136,435			104,519
Nonqualified equity	290,447			178,046
Major maintenance	—			5,484
Other	97,071			83,580
Deferred tax assets valuation reserve	(246,344		)	(230,373		)
Total deferred tax assets	534,948			475,710
Deferred tax liabilities:
Pension	11,237			19,397
Investments	99,838			98,608
Major maintenance	4,679			—
Property, plant and equipment	560,334			513,238
Other	1,760			26,828
Total deferred tax liabilities	677,848			658,071
Net deferred tax liabilities	$	142,900		$	182,361

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, 2019, 2018 and 2017 is as follows:



	2019		2018		2017
Statutory federal income tax rate	21.0	%	25.7	%	35.0	%
State and local income taxes, net of federal income tax benefit	(0.7	)	0.7		12.1
Patronage earnings	(14.3	)	(13.6	)	91.7
Domestic production activities deduction	(9.9	)	(8.4	)	30.5
Export activities at rates other than the U.S. statutory rate	0.2		6.1		51.6
U.S. tax reform	—		(23.2	)	—
Intercompany transfer of business assets	—		(6.1	)	—
Increase in unrecognized tax benefits	0.2		6.8		—
Valuation allowance	0.3		(3.4	)	(77.1	)
Tax credits	0.4		0.7		22.8
Crack spread contingency	—		—		4.8
Other	1.3		(0.8	)	(7.0	)
Effective tax rate	(1.5	)%	(15.5	)%	164.4	%

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:



	2019			2018		2017
	(Dollars in thousands)
Balance at beginning of period	$	91,135		$	37,830	$	37,105
Additions attributable to current year tax positions	14,162			3,640		725
Additions attributable to prior year tax positions	—			49,665		—
Reductions attributable to prior year tax positions	(4,169		)	—		—
Balance at end of period	$	101,128		$	91,135	$	37,830