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Income Taxes | 9 Months Ended
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May 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Note 5 – Income Taxes The Company recorded income tax expense of $0.3 million and $7.1 million for the three months ended May 31, 2019 and 2018, respectively. The Company recorded an income tax benefit of $0.8 million and expense of $12.6 million for the nine months ended May 31, 2019 and 2018, respectively. It is the Company’s policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 42.6 percent and 28.5 percent for the nine months ended May 31, 2019 and 2018, respectively. The change in the estimated annual effective income tax rate from May 2018 to May 2019 relates primarily to the change in earnings mix between foreign and domestic operations, including a pre-tax loss in domestic operations. A larger percentage of earnings for the nine months ended May 31, 2019 was generated in foreign jurisdictions taxed at a higher statutory tax rate than the 21 percent U.S. federal tax rate. The rate was also impacted by the reduction of the U.S corporate income tax rate from a prior year blended rate of 25.7 percent to 21 percent due to U.S. Tax Reform offset by the elimination of the manufacturing deduction. The tax effects of significant or unusual items are not considered in the estimated annual effective income tax rate. The tax effects of such discrete events are recognized in the interim period in which the events occur. The Company recorded discrete items resulting in an income tax benefit of $0.8 million for the nine months ended May 31, 2019. The Company recorded income tax expense of $4.7 million related to discrete items for the nine months ended May 31, 2018 as a result of amounts recorded for U.S. Tax Reform. The United States enacted significant tax reform into law on December 22, 2017. U.S. Tax Reform made complex and broad changes to the U.S. tax laws. U.S. Tax Reform required companies to pay a one-time deemed repatriation tax on certain undistributed earnings of foreign subsidiaries. The Company recorded a $1.7 million expense for the deemed repatriation tax in fiscal year 2018. U.S. Tax Reform also established new income tax provisions that will affect the Company’s fiscal year 2019, including, but not limited to, eliminating the U.S. manufacturing deduction, and establishing a new minimum tax on global intangible low-taxed income (“GILTI”). The Company has elected to account for GILTI as a period cost, the effect of which is reflected in the estimated annual effective tax rate of 42.6 percent for the nine months ended May 31, 2019.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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