|
Income Taxes (Tables)
|
12 Months Ended |
|
Aug. 31, 2013
|
| Income Tax Disclosure [Abstract] |
|
| Income Tax Expense from Continuing Operations |
Income tax expense from continuing operations is summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Year ended August 31, |
|
|
|
|
2013 |
|
2012 |
|
2011 |
|
|
Currently payable: |
|
|
|
|
|
|
|
|
Federal |
|
$ |
24,809 |
|
|
$ |
22,078 |
|
|
$ |
(78 |
) |
|
|
Foreign |
|
13,335 |
|
|
10,396 |
|
|
20,903 |
|
|
|
State |
|
902 |
|
|
1,534 |
|
|
586 |
|
|
|
|
|
39,046 |
|
|
34,008 |
|
|
21,411 |
|
|
|
Deferred: |
|
|
|
|
|
|
|
|
Federal |
|
(13,514 |
) |
|
(495 |
) |
|
14,948 |
|
|
|
Foreign |
|
(9,942 |
) |
|
(4,598 |
) |
|
(4,223 |
) |
|
|
State |
|
(218 |
) |
|
439 |
|
|
(4,303 |
) |
|
|
|
|
(23,674 |
) |
|
(4,654 |
) |
|
6,422 |
|
|
|
|
|
$ |
15,372 |
|
|
$ |
29,354 |
|
|
$ |
27,833 |
|
|
|
| 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:
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|
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|
Year ended August 31, |
|
|
|
|
2013 |
|
2012 |
|
2011 |
|
|
Federal statutory rate |
|
35.0 |
% |
|
35.0 |
% |
|
35.0 |
% |
|
|
State income taxes, net of Federal effect |
|
0.9 |
|
|
1.2 |
|
|
0.4 |
|
|
|
Net effect of foreign tax rates and credits |
|
(8.8 |
) |
|
(14.6 |
) |
|
(14.0 |
) |
|
|
NOL utilization and changes in valuation allowance |
|
(3.1 |
) |
|
0.1 |
|
|
(3.0 |
) |
|
|
Tax contingency reserve |
|
(5.6 |
) |
|
(2.2 |
) |
|
(1.6 |
) |
|
|
Prior period correction (1) |
|
(6.5 |
) |
|
— |
|
|
— |
|
|
|
Other items |
|
(2.5 |
) |
|
(0.5 |
) |
|
3.4 |
|
|
|
Effective income tax rate |
|
9.4 |
% |
|
19.0 |
% |
|
20.2 |
% |
|
(1) During the fourth quarter of fiscal 2013, the Company recorded a $10.6 million adjustment to properly state deferred income tax balances associated with its equity compensation programs. The correction is not material to current or previously issued financial statements.
|
| 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):
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August 31, |
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|
|
|
2013 |
|
2012 |
|
|
Deferred income tax assets: |
|
|
|
|
|
|
Operating loss and tax credit carryforwards |
|
$ |
35,071 |
|
|
$ |
16,393 |
|
|
|
Compensation related liabilities |
|
20,812 |
|
|
9,909 |
|
|
|
Postretirement benefits |
|
7,731 |
|
|
10,679 |
|
|
|
Inventory reserves |
|
7,049 |
|
|
8,045 |
|
|
|
Book reserves and other items |
|
11,523 |
|
|
12,781 |
|
|
|
Total deferred income tax assets |
|
82,186 |
|
|
57,807 |
|
|
|
Valuation allowance |
|
(22,777 |
) |
|
(8,153 |
) |
|
|
Net deferred income tax assets |
|
59,409 |
|
|
49,654 |
|
|
|
Deferred income tax liabilities: |
|
|
|
|
|
|
Depreciation and amortization |
|
(129,498 |
) |
|
(156,751 |
) |
|
|
Other items |
|
(1,985 |
) |
|
(2,098 |
) |
|
|
Deferred income tax liabilities |
|
(131,483 |
) |
|
(158,849 |
) |
|
|
Net deferred income tax liability |
|
$ |
(72,074 |
) |
|
$ |
(109,195 |
) |
|
|
| 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):
|
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|
|
|
|
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|
|
|
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|
|
|
|
|
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|
2013 |
|
2012 |
|
2011 |
|
|
Beginning balance |
|
$ |
24,608 |
|
|
$ |
26,179 |
|
|
$ |
28,225 |
|
|
|
Increase for tax positions taken in a prior period |
|
3,601 |
|
|
3,400 |
|
|
4,026 |
|
|
|
Decrease for tax positions taken in a prior period |
|
(7,622 |
) |
|
(4,579 |
) |
|
(6,072 |
) |
|
|
Decrease due to settlements |
|
(2,581 |
) |
|
(392 |
) |
|
— |
|
|
|
Ending balance |
|
$ |
18,006 |
|
|
$ |
24,608 |
|
|
$ |
26,179 |
|
|
|
| Earnings before Income Taxes, Including both Continuing and Discontinued Operations |
Earnings before income taxes, for continuing operations, are summarized as follows (in thousands):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Year Ended August 31, |
|
|
|
|
2013 |
|
2012 |
|
2011 |
|
|
Domestic |
|
$ |
67,392 |
|
|
$ |
65,685 |
|
|
$ |
47,445 |
|
|
|
Foreign |
|
95,557 |
|
|
88,945 |
|
|
90,576 |
|
|
|
|
|
$ |
162,949 |
|
|
$ |
154,630 |
|
|
$ |
138,021 |
|
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