|
Income Taxes (Tables)
|
12 Months Ended |
|
Aug. 31, 2012
|
| Income Tax Expense from Continuing Operations |
Income tax
expense from continuing operations is summarized as follows (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year ended
August 31, |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
|
Currently
payable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
28,458 |
|
|
$ |
2,402 |
|
|
$ |
9,708 |
|
|
Foreign
|
|
|
13,308 |
|
|
|
23,847 |
|
|
|
15,834 |
|
|
State
|
|
|
1,782 |
|
|
|
1,982 |
|
|
|
784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,548 |
|
|
|
28,231 |
|
|
|
26,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(1,079 |
) |
|
|
15,297 |
|
|
|
(4,892 |
) |
|
Foreign
|
|
|
(9,765 |
) |
|
|
(4,639 |
) |
|
|
(2,147 |
) |
|
State
|
|
|
320 |
|
|
|
(4,178 |
) |
|
|
(441 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,524 |
) |
|
|
6,480 |
|
|
|
(7,480 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
33,024 |
|
|
$ |
34,711 |
|
|
$ |
18,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of Income Taxes at Federal Statutory Rate to Effective Tax Rate |
A
reconciliation of income taxes at the Federal statutory rate to the
effective tax rate is summarized in the following table:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year ended August 31, |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
|
Federal statutory
rate
|
|
|
35.0 |
% |
|
|
35.0 |
% |
|
|
35.0 |
% |
|
State income taxes, net of
Federal effect
|
|
|
1.9 |
|
|
|
0.5 |
|
|
|
0.4 |
|
|
Net effect of foreign tax
rates and credits
|
|
|
(22.2 |
) |
|
|
(13.1 |
) |
|
|
(23.5 |
) |
|
Restructuring and valuation
allowance
|
|
|
0.7 |
|
|
|
(2.6 |
) |
|
|
(1.9 |
) |
|
Impairment
charge
|
|
|
13.7 |
|
|
|
— |
|
|
|
— |
|
|
Other items(1)
|
|
|
(1.6 |
) |
|
|
2.0 |
|
|
|
11.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
|
27.5 |
% |
|
|
21.8 |
% |
|
|
21.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) |
Other items for the year
ended August 31, 2010 of 11.1% includes provision to return
adjustments and additional provisions for unrecognized tax
benefits. |
|
| Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities |
Temporary
differences and carryforwards that gave rise to deferred tax assets
and liabilities include the following items (in
thousands):
|
|
|
|
|
|
|
|
|
| |
|
Year ended August 31, |
|
| |
|
2012 |
|
|
2011 |
|
|
Deferred income tax
assets:
|
|
|
|
|
|
|
|
|
|
Operating loss and tax
credit carryforwards
|
|
$ |
16,393 |
|
|
$ |
19,312 |
|
|
Compensation related
liabilities
|
|
|
9,909 |
|
|
|
8,122 |
|
|
Postretirement
benefits
|
|
|
10,679 |
|
|
|
7,192 |
|
|
Inventory
|
|
|
8,045 |
|
|
|
9,202 |
|
|
Restructuring and idle
facility reserves
|
|
|
4,580 |
|
|
|
5,674 |
|
|
Book reserves and other
items
|
|
|
8,201 |
|
|
|
16,073 |
|
|
|
|
|
|
|
|
|
|
|
Total deferred income tax
assets
|
|
|
57,807 |
|
|
|
65,575 |
|
|
Valuation
allowance
|
|
|
(8,153 |
) |
|
|
(7,260 |
) |
|
|
|
|
|
|
|
|
|
|
Net deferred income tax
assets
|
|
|
49,654 |
|
|
|
58,315 |
|
|
Deferred income tax
liabilities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
(156,751 |
) |
|
|
(155,022 |
) |
|
2% Convertible Notes
interest
|
|
|
— |
|
|
|
(34,579 |
) |
|
Other items
|
|
|
(2,098 |
) |
|
|
(2,198 |
) |
|
|
|
|
|
|
|
|
|
|
Deferred income tax
liabilities
|
|
|
(158,849 |
) |
|
|
(191,799 |
) |
|
|
|
|
|
|
|
|
|
|
Net deferred income tax
liability
|
|
$ |
(109,195 |
) |
|
$ |
(133,484 |
) |
|
|
|
|
|
|
|
|
|
|
| Changes in Gross Liability for Unrecognized Tax benefits, Excluding Interest and Penalties |
Changes in the
Company’s gross liability for unrecognized tax benefits,
excluding interest and penalties, are as follows (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
|
Beginning
balance
|
|
$ |
26,179 |
|
|
$ |
28,225 |
|
|
$ |
28,541 |
|
|
Increase for tax positions
taken in a prior period
|
|
|
3,400 |
|
|
|
4,026 |
|
|
|
2,868 |
|
|
Decrease for tax positions
taken in a prior period
|
|
|
(4,579 |
) |
|
|
(6,072 |
) |
|
|
(484 |
) |
|
Decrease due to
settlements
|
|
|
(392 |
) |
|
|
— |
|
|
|
(2,700 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
$ |
24,608 |
|
|
$ |
26,179 |
|
|
$ |
28,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings before Income Taxes, Including both Continuing and Discontinued Operations |
Earnings before
income taxes, including both continuing and discontinued
operations, are summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended August
31, |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
|
Domestic
|
|
$ |
79,467 |
|
|
$ |
40,096 |
|
|
$ |
14,967 |
|
|
Foreign
|
|
|
40,847 |
|
|
|
102,125 |
|
|
|
33,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|