Income Taxes (Tables)

12 Months Ended

Aug. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of provision for (benefit from) income taxes

The provision for (benefit from) income taxes for the years ended August 31, 2022, 2021 and 2020 is as follows:

	2022		2021		2020
	(Dollars in thousands)
Current:
Federal	$	56,582	$	(533)	$	4,519
State	24,224		2,943		(2,231)
Foreign	9,833		56		2,748
Total Current	90,639		2,466		5,036
Deferred:
Federal	41,710		(24,676)		(36,231)
State	491		(15,666)		(5,263)
Foreign	(724)		(373)		(273)
Total Deferred	41,477		(40,715)		(41,767)
Total	$	132,116	$	(38,249)	$	(36,731)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of August 31, 2022 and 2021, are as follows:

	2022		2021
	(Dollars in thousands)
Deferred tax assets:
Accrued expenses	$	61,843	$	57,245
Postretirement health care and deferred compensation	46,008		42,217
Tax credit carryforwards	101,457		128,824
Loss carryforwards	110,018		115,327
Nonqualified equity	424,869		391,309
Lease obligations	60,329		62,770
Other	95,027		92,325
Deferred tax assets valuation allowance	(189,685)		(208,810)
Total deferred tax assets	709,866		681,207
Deferred tax liabilities:
Pension costs	14,600		24,277
Investments	169,970		110,910
Property, plant and equipment	605,463		557,129
Lease right of use assets	58,852		61,870
Other	—		28,549
Total deferred tax liabilities	848,885		782,735
Net deferred tax liabilities	$	139,019	$	101,528

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, 2022, 2021 and 2020 is as follows:

	2022		2021		2020
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal income tax benefit	1.1		(2.6)		(1.8)
Patronage earnings	(13.6)		(11.4)		(13.1)
Domestic production activities deduction	(3.2)		(8.2)		(19.0)
Export activities at rates other than the U.S. statutory rate	0.4		0.5		1.8
Intercompany transfer of business assets	(0.1)		(4.7)		(1.6)
Increase in unrecognized tax benefits	—		0.8		4.2
Valuation allowance	0.2		(0.2)		(1.0)
Tax credits	—		—		0.2
Other	1.5		(2.6)		(0.2)
Effective tax rate	7.3	%	(7.4)	%	(9.5)	%

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:

	2022		2021		2020
	(Dollars in thousands)
Balance at beginning of period	$	122,149	$	119,150	$	101,128
Additions attributable to current year tax positions	—		2,000		14,410
Additions attributable to prior year tax positions	2,810		15,974		6,128
Reductions attributable to prior year tax positions	—		(14,975)		(2,516)
Balance at end of period	$	124,959	$	122,149	$	119,150