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Income Taxes (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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