Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES (Tables)

v3.21.1
INCOME TAXES (Tables)
6 Months Ended
Feb. 28, 2021
INCOME TAXES [Abstract]  
Provision for Income Taxes
The provision for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year. Income tax information for the three and six months ended February 28, 2021 and February 29, 2020 are as follows:

   
Three Months Ended
   
Six Months Ended
 
   
February 28,
2021
   
February 29,
2020
   
February 28,
2021
   
February 29,
2020
 
   
(In thousands)
 
Effective income tax rate
   
24.7
%
   
22.3
%
   
24.7
%
   
24.6
%
                                 
Income tax expense (benefit):
                               
Current
 
$
5,723
   
$
76
   
$
5,856
   
$
1,244
 
Deferred
   
(56
)
   
3
     
71
     
722
 
Total
 
$
5,667
   
$
79
   
$
5,927
   
$
1,966
 
                                 
Income taxes paid:
                               
Federal
 
$
   
$
877
   
$
   
$
877
 
State
   
     
194
     
     
194
 
Total
 
$
   
$
1,071
   
$
   
$
1,071
 
Deferred Tax Assets (Liabilities)
Deferred income taxes reflect the tax effects of net operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liability as of February 28, 2021 and August 31, 2020 are as follows:

   
February 28, 2021
   
August 31, 2020
 
Deferred tax assets (liabilities):
 
(In thousands)
 
Depreciation and depletion
   
(1,654
)
   
(1,701
)
Non-qualified stock options
   
522
     
491
 
Accrued compensation
   
66
     
167
 
Deferred revenues
   
64
     
89
 
Other
   
45
     
45
 
Net operating loss carryforwards
 
$
   
$
23
 
Net deferred tax liability
 
$
(957
)
 
$
(886
)