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v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
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Aug. 31, 2022
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) |  | 2022 |  |  | 2021 |  |  | 2020 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | (6.7 | ) |  | $ | (95.9 | ) |  | $ | 21.0 |
State |  |  | 0.9 |  |  |  | 1.9 |  |  |  | 0.8 |
Foreign |  |  | 19.2 |  |  |  | 4.3 |  |  |  | 25.4 |
|  |  | 13.4 |  |  |  | (89.7 | ) |  |  | 47.2 |
Deferred |  |  |  |  |  |  |  |  |
Federal |  |  | 2.2 |  |  |  | 54.1 |  |  |  | (8.3 | )
State |  |  | 1.4 |  |  |  | (2.3 | ) |  |  | 0.7 |
Foreign |  |  | 1.6 |  |  |  | (3.4 | ) |  |  | 0.5 |
|  |  | 5.2 |  |  |  | 48.4 |  |  |  | (7.1 | )
Change in valuation allowance |  |  | (0.5 | ) |  |  | 1.1 |  |  |  | 0.1 |
Income tax expense (benefit) |  | $ | 18.1 |  |  | $ | (40.2 | ) |  | $ | 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, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Federal statutory rate |  |  | 21.0 | % |  |  | (21.0 | )% |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 3.4 |  |  |  | (15.0 | ) |  |  | 2.0 |
Foreign operations |  |  | 9.0 |  |  |  | 25.5 |  |  |  | 4.5 |
Carryback rate benefit |  |  | (3.2 | ) |  |  | (379.1 | ) |  |  | — |
Permanent differences |  |  | 7.2 |  |  |  | (45.6 | ) |  |  | 8.9 |
Change in valuation allowance |  |  | (0.8 | ) |  |  | 12.6 |  |  |  | 0.1 |
Uncertain tax positions |  |  | (1.8 | ) |  |  | (44.0 | ) |  |  | 3.1 |
Noncontrolling interest in flow-through entity |  |  | (3.0 | ) |  |  | (2.9 | ) |  |  | (6.1 | )
Other |  |  | (1.9 | ) |  |  | 0.7 |  |  |  | (1.3 | )
Effective tax rate |  |  | 29.9 | % |  |  | (468.8 | )% |  |  | 32.2 | %
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) |  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Accrued payroll and related liabilities |  | $ | 27.6 |  |  | $ | 23.7 |
Deferred revenue |  |  | 6.7 |  |  |  | 7.4 |
Inventories and other |  |  | 9.8 |  |  |  | 16.8 |
Maintenance and warranty accruals |  |  | 3.2 |  |  |  | 2.5 |
Lease liability |  |  | 12.4 |  |  |  | 8.5 |
Net operating losses |  |  | 19.6 |  |  |  | 15.9 |
Investment, asset tax credits and other |  |  | 1.5 |  |  |  | 1.4 |
|  |  | 80.8 |  |  |  | 76.2 |
Valuation allowance |  |  | (9.9 | ) |  |  | (10.4 | )
Deferred tax liabilities: |  |  |  |  |  |
Fixed assets |  |  | (110.6 | ) |  |  | (106.1 | )
Original issue discount |  |  | (0.1 | ) |  |  | (17.1 | )
Intangibles |  |  | (5.3 | ) |  |  | (3.0 | )
Right-of-use asset |  |  | (11.9 | ) |  |  | (8.9 | )
Other |  |  | (11.7 | ) |  |  | (4.0 | )
|  |  | (139.5 | ) |  |  | (139.1 | )
Net deferred tax liability |  | $ | (68.6 | ) |  | $ | (73.3 | )
Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
|  | Year Ended August 31, |
(In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Unrecognized Tax Benefit – Opening Balance |  | $ | 1.6 |  |  | $ | 5.5 |  |  | $ | 1.6 |
Gross increases – tax positions in prior period |  |  | — |  |  |  | — |  |  |  | 4.0 |
Gross decreases – tax positions in prior period |  |  | (0.9 | ) |  |  | (3.6 | ) |  |  | — |
Settlements |  |  | — |  |  |  | — |  |  |  | — |
Lapse of statute of limitations |  |  | (0.3 | ) |  |  | (0.3 | ) |  |  | (0.1 | )
Unrecognized Tax Benefit – Ending Balance |  | $ | 0.4 |  |  | $ | 1.6 |  |  | $ | 5.5 |

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