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Income Taxes
 9 Months Ended
May 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The effective tax rate for the Company’s continuing operations for the three and nine months ended May 31, 2017 was an expense of 0.9% and 2.5%, respectively, compared to an expense of 0.8% and 2.5% for the three and nine months ended May 31, 2016, respectively.
A reconciliation of the difference between the federal statutory rate and the Company’s effective rate is as follows:
 
Three Months Ended May 31,
 
Nine Months Ended May 31,
 
2017
 
2016
 
2017
 
2016
Federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
State taxes, net of credits
2.0

 
1.7

 
2.0

 
1.4

Foreign income taxed at different rates
(2.3
)
 
(2.4
)
 
(2.1
)
 
(6.1
)
Non-deductible officers’ compensation
2.2

 
0.7

 
1.9

 
(1.3
)
Noncontrolling interests
(1.6
)
 
(1.6
)
 
(2.5
)
 
3.0

Research and development credits
(0.9
)
 
(2.1
)
 
(0.8
)
 
1.6

Tax return to provision adjustment
(4.7
)
 
(1.1
)
 
(2.8
)
 
0.4

Valuation allowance on deferred tax assets
(31.2
)
 
(31.2
)
 
(30.3
)
 
(33.5
)
Non-deductible goodwill
—

 
0.3

 
—

 
(0.6
)
Unrecognized tax benefits
0.7

 
1.4

 
0.9

 
(1.4
)
Other non-deductible expenses
1.6

 
0.7

 
1.3

 
(1.8
)
Other
0.1

 
(0.6
)
 
(0.1
)
 
0.8

Effective tax rate(1)
0.9
 %
 
0.8
 %
 
2.5
 %
 
(2.5
)%

_____________________________
(1)
For periods with reported pre-tax losses, the effect of reconciling items with positive signs is a tax benefit in excess of applying the federal statutory rate to the pre-tax loss.
The effective tax rate from continuing operations for the third quarter and first nine months of fiscal 2017 and 2016 was lower than the federal statutory rate of 35% primarily due to the low projected annual effective tax rate applied to the quarterly results. The low projected annual effective tax rate is the result of the Company’s full valuation allowance positions partially offset by increases in deferred tax liabilities from indefinite-lived assets in all jurisdictions.
The Company files federal and state income tax returns in the U.S. and foreign tax returns in Puerto Rico and Canada. For U.S. federal income tax returns, fiscal years 2013 to 2016 remain subject to examination under the statute of limitations. The Company's U.S. federal income tax return for fiscal 2015 is currently under examination.