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Income Taxes (Tables) | 12 Months Ended
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Aug. 31, 2024
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) |  | 2024 |  |  | 2023 |  |  | 2022 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | 2.0 |  |  | $ | 7.4 |  |  | $ | (6.7 | )
State |  |  | 2.2 |  |  |  | 2.7 |  |  |  | 0.9 |
Foreign |  |  | 38.8 |  |  |  | 9.7 |  |  |  | 19.2 |
|  |  | 43.0 |  |  |  | 19.8 |  |  |  | 13.4 |
Deferred |  |  |  |  |  |  |  |  |
Federal |  |  | 14.6 |  |  |  | 7.9 |  |  |  | 2.2 |
State |  |  | 0.1 |  |  |  | 0.6 |  |  |  | 1.4 |
Foreign |  |  | (2.0 | ) |  |  | (3.4 | ) |  |  | 1.6 |
|  |  | 12.7 |  |  |  | 5.1 |  |  |  | 5.2 |
Change in valuation allowance |  |  | 6.3 |  |  |  | (0.3 | ) |  |  | (0.5 | )
Income tax expense (benefit) |  | $ | 62.0 |  |  | $ | 24.6 |  |  | $ | 18.1 |
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, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 1.4 |  |  |  | 3.0 |  |  |  | 3.1 |
Foreign operations |  |  | 4.6 |  |  |  | 6.2 |  |  |  | 9.0 |
U.S. tax on foreign earnings |  |  | 2.3 |  |  |  | 4.5 |  |  |  | 1.8 |
U.S. impact of foreign branch |  |  | (1.9 | ) |  |  | — |  |  |  | — |
Carryback rate benefit |  |  | — |  |  |  | — |  |  |  | (3.2 | )
Permanent differences |  |  | 4.0 |  |  |  | (5.8 | ) |  |  | 5.4 |
Base erosion and anti-avoidance tax (BEAT) |  |  | 0.5 |  |  |  | 1.6 |  |  |  | — |
Change in valuation allowance |  |  | 2.8 |  |  |  | (0.5 | ) |  |  | (0.8 | )
Unrecognized tax benefits |  |  | 0.7 |  |  |  | 1.4 |  |  |  | (1.8 | )
Noncontrolling interest in flow-through entity |  |  | (0.3 | ) |  |  | (2.7 | ) |  |  | (3.0 | )
Credits |  |  | (4.7 | ) |  |  | 0.1 |  |  |  | (0.6 | )
Other |  |  | (2.7 | ) |  |  | (1.8 | ) |  |  | (1.0 | )
Effective tax rate |  |  | 27.7 | % |  |  | 27.0 | % |  |  | 29.9 | %
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) |  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Accrued payroll and related liabilities |  | $ | 31.7 |  |  | $ | 37.1 |
Deferred revenue |  |  | 6.7 |  |  |  | 6.6 |
Inventories and other |  |  | 26.7 |  |  |  | 12.4 |
Maintenance and warranty accruals |  |  | 3.5 |  |  |  | 3.5 |
Lease liability |  |  | 14.7 |  |  |  | 16.5 |
Net operating losses |  |  | 35.9 |  |  |  | 18.4 |
Investment, asset tax credits and other |  |  | 16.3 |  |  |  | 0.9 |
|  |  | 135.5 |  |  |  | 95.4 |
Valuation allowance |  |  | (15.9 | ) |  |  | (9.6 | )
Deferred tax liabilities: |  |  |  |  |  |
Fixed assets |  |  | (187.3 | ) |  |  | (131.9 | )
Intangibles |  |  | (5.2 | ) |  |  | (5.1 | )
Right-of-use asset |  |  | (14.4 | ) |  |  | (16.0 | )
Other |  |  | (8.7 | ) |  |  | (13.8 | )
|  |  | (215.6 | ) |  |  | (166.8 | )
Net deferred tax liability |  | $ | (96.0 | ) |  | $ | (81.0 | )
Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
|  | Year Ended August 31, |
(In millions) |  | 2024 |  |  | 2023 |  |  | 2022 |
Unrecognized Tax Benefit – Opening Balance |  | $ | 1.7 |  |  | $ | 0.4 |  |  | $ | 1.6 |
Gross increases – tax positions in prior period |  |  | 1.8 |  |  |  | 1.3 |  |  |  | — |
Gross decreases – tax positions in prior period |  |  | — |  |  |  | — |  |  |  | (0.9 | )
Settlements |  |  | — |  |  |  | — |  |  |  | — |
Lapse of statute of limitations |  |  | (0.4 | ) |  |  | — |  |  |  | (0.3 | )
Unrecognized Tax Benefit – Ending Balance |  | $ | 3.1 |  |  | $ | 1.7 |  |  | $ | 0.4 |

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