Income Taxes (Tables)

12 Months Ended

Aug. 31, 2023

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit) of Continuing Operations

Components of income tax expense (benefit) were as follows:

	Year Ended August 31,
(In millions)	2023			2022			2021
Current
Federal	$	7.4		$	(6.7	)	$	(95.9	)
State		2.7			0.9			1.9
Foreign		9.7			19.2			4.3
		19.8			13.4			(89.7	)
Deferred
Federal		7.9			2.2			54.1
State		0.6			1.4			(2.3	)
Foreign		(3.4	)		1.6			(3.4	)
		5.1			5.2			48.4
Change in valuation allowance		(0.3	)		(0.5	)		1.1
Income tax expense (benefit)	$	24.6		$	18.1		$	(40.2	)

Reconciliation Between Effective and Statutory Tax Rates on Operations

The reconciliation between effective and statutory tax rates on operations is as follows:

	Year Ended August 31,
	2023			2022			2021
Federal statutory rate		21.0	%		21.0	%		(21.0	)%
State income taxes, net of federal benefit		3.0			3.1			(15.0	)
Foreign operations		6.2			9.0			25.5
U.S. tax on foreign earnings		4.5			1.8			—
Carryback rate benefit		—			(3.2	)		(379.1	)
Permanent differences		(5.8	)		5.4			(45.6	)
Base erosion and anti-avoidance tax (BEAT)		1.6			—			—
Change in valuation allowance		(0.5	)		(0.8	)		12.6
Uncertain tax positions		1.4			(1.8	)		(44.0	)
Noncontrolling interest in flow-through entity		(2.7	)		(3.0	)		(2.9	)
Credits and Other		(1.7	)		(1.6	)		0.7
Effective tax rate		27.0	%		29.9	%		(468.8	)%

Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities were as follows:

	As of August 31,
(In millions)	2023			2022
Deferred tax assets:
Accrued payroll and related liabilities	$	37.1		$	27.6
Deferred revenue		6.6			6.7
Inventories and other		12.4			9.8
Maintenance and warranty accruals		3.5			3.2
Lease liability		16.5			12.4
Net operating losses		18.4			19.6
Investment, asset tax credits and other		0.9			1.5
		95.4			80.8
Valuation allowance		(9.6	)		(9.9	)
Deferred tax liabilities:
Fixed assets		(131.9	)		(110.6	)
Intangibles		(5.1	)		(5.3	)
Right-of-use asset		(16.0	)		(11.9	)
Other		(13.8	)		(11.7	)
		(166.8	)		(139.5	)
Net deferred tax liability	$	(81.0	)	$	(68.6	)

Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

	Year Ended August 31,
(In millions)	2023		2022			2021
Unrecognized Tax Benefit – Opening Balance	$	0.4	$	1.6		$	5.5
Gross increases – tax positions in prior period		1.3		—			—
Gross decreases – tax positions in prior period		—		(0.9	)		(3.6	)
Settlements		—		—			—
Lapse of statute of limitations		—		(0.3	)		(0.3	)
Unrecognized Tax Benefit – Ending Balance	$	1.7	$	0.4		$	1.6