Income Taxes (Tables)
|
12 Months Ended |
Aug. 31, 2024 |
Income Tax Disclosure [Abstract] |
|
Schedule of (Loss) Income before Income Tax, Domestic and Foreign |
Income (loss) from continuing operations before income taxes was as follows for the years ended August 31 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
United States |
|
$ |
(305,577 |
) |
|
$ |
(32,541 |
) |
|
$ |
204,150 |
|
Foreign |
|
|
(15,856 |
) |
|
|
4,465 |
|
|
|
12,526 |
|
Total |
|
$ |
(321,433 |
) |
|
$ |
(28,076 |
) |
|
$ |
216,676 |
|
|
Schedule of Components of Income Tax (Benefit) Expense |
Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(5,161 |
) |
|
$ |
(377 |
) |
|
$ |
18,114 |
|
State |
|
|
207 |
|
|
|
974 |
|
|
|
1,392 |
|
Foreign |
|
|
(318 |
) |
|
|
590 |
|
|
|
39 |
|
Total current tax expense (benefit) |
|
|
(5,272 |
) |
|
|
1,187 |
|
|
|
19,545 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(53,831 |
) |
|
|
(4,198 |
) |
|
|
21,771 |
|
State |
|
|
(264 |
) |
|
|
(686 |
) |
|
|
780 |
|
Foreign |
|
|
4,082 |
|
|
|
950 |
|
|
|
2,501 |
|
Total deferred tax expense (benefit) |
|
|
(50,013 |
) |
|
|
(3,934 |
) |
|
|
25,052 |
|
Total income tax expense (benefit) |
|
$ |
(55,285 |
) |
|
$ |
(2,747 |
) |
|
$ |
44,597 |
|
|
Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Federal statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
|
|
21.0 |
% |
State taxes, net of credits |
|
|
2.1 |
|
|
|
5.0 |
|
|
|
1.6 |
|
Foreign income taxed at different rates |
|
|
— |
|
|
|
(1.2 |
) |
|
|
— |
|
Valuation allowance on deferred tax assets |
|
|
(4.5 |
) |
|
|
(6.1 |
) |
|
|
0.4 |
|
Non-deductible officers’ compensation |
|
|
(0.3 |
) |
|
|
(7.8 |
) |
|
|
2.5 |
|
Other non-deductible expenses |
|
|
(0.4 |
) |
|
|
(1.6 |
) |
|
|
0.3 |
|
Research and development credits |
|
|
0.4 |
|
|
|
6.4 |
|
|
|
(0.9 |
) |
Tax return to provision adjustment |
|
|
— |
|
|
|
(1.2 |
) |
|
|
(2.4 |
) |
Unrecognized tax benefits |
|
|
0.1 |
|
|
|
(8.5 |
) |
|
|
1.2 |
|
Interest income |
|
|
0.2 |
|
|
|
1.4 |
|
|
|
(0.1 |
) |
Excess tax benefit from stock-based compensation |
|
|
— |
|
|
|
3.2 |
|
|
|
(1.6 |
) |
Non-deductible goodwill |
|
|
(1.5 |
) |
|
|
— |
|
|
|
— |
|
Other |
|
|
0.1 |
|
|
|
(0.8 |
) |
|
|
(1.4 |
) |
Effective tax rate |
|
|
17.2 |
% |
|
|
9.8 |
% |
|
|
20.6 |
% |
|
Schedule of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities comprised the following as of August 31 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
Deferred tax assets: |
|
|
|
|
|
|
Operating lease liabilities |
|
$ |
19,806 |
|
|
$ |
17,605 |
|
Amortizable goodwill and other intangibles |
|
|
44,193 |
|
|
|
13,488 |
|
Employee benefit accruals |
|
|
6,709 |
|
|
|
8,772 |
|
Net operating loss carryforwards |
|
|
35,089 |
|
|
|
20,280 |
|
Environmental liabilities |
|
|
10,755 |
|
|
|
10,109 |
|
Other contingencies |
|
|
1,911 |
|
|
|
5,579 |
|
State credit carryforwards |
|
|
8,360 |
|
|
|
7,711 |
|
Inventory valuation methods |
|
|
1,755 |
|
|
|
2,508 |
|
163(j) interest expense carryforward |
|
|
10,138 |
|
|
|
3,786 |
|
Other |
|
|
5,424 |
|
|
|
3,407 |
|
Valuation allowances |
|
|
(31,420 |
) |
|
|
(17,042 |
) |
Total deferred tax assets |
|
|
112,720 |
|
|
|
76,203 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Accelerated depreciation and other basis differences |
|
|
60,193 |
|
|
|
61,938 |
|
Operating lease right-of-use assets |
|
|
19,786 |
|
|
|
17,573 |
|
Investment in operating partnerships |
|
|
14,805 |
|
|
|
25,769 |
|
Prepaid expense acceleration and other |
|
|
3,831 |
|
|
|
6,827 |
|
Total deferred tax liabilities |
|
|
98,615 |
|
|
|
112,107 |
|
Net deferred tax assets (liabilities) |
|
$ |
14,105 |
|
|
$ |
(35,904 |
) |
|
Summary of Reserve for Unrecognized Tax Benefits, Excluding Interest and Penalties |
The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Unrecognized tax benefits, as of the beginning of the year |
|
$ |
11,830 |
|
|
$ |
10,326 |
|
|
$ |
8,320 |
|
Additions (reductions) for tax positions of prior years |
|
|
26 |
|
|
|
281 |
|
|
|
1,055 |
|
Additions for tax positions of the current year |
|
|
755 |
|
|
|
1,223 |
|
|
|
974 |
|
Reductions for lapse of statutes |
|
|
(4,710 |
) |
|
|
— |
|
|
|
(23 |
) |
Unrecognized tax benefits, as of the end of the year |
|
$ |
7,901 |
|
|
$ |
11,830 |
|
|
$ |
10,326 |
|
|