Document and Entity Information
Document and Entity Information | 12 Months Ended |
Aug. 31, 2019shares | |
Entity Information [Line Items] | |
Entity Registrant Name | EXFO Inc. |
Entity Central Index Key | 0001116284 |
Current Fiscal Year End Date | --08-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Document Type | 20-F |
Document Period End Date | Aug. 31, 2019 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Subordinate Voting Shares [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 23,703,675 |
Multiple Voting Shares [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 31,643,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Current assets | ||
Cash | $ 16,518 | $ 12,758 |
Short-term investments (note 6) | 2,918 | 2,282 |
Accounts receivable (note 6) | ||
Trade | 51,517 | 47,273 |
Other | 3,396 | 4,137 |
Income taxes and tax credits recoverable (note 20) | 3,159 | 4,790 |
Inventories (note 7) | 38,017 | 38,589 |
Prepaid expenses | 6,510 | 5,291 |
Other assets (note 19) | 3,083 | 2,279 |
Total current assets | 125,118 | 117,399 |
Tax credits recoverable (note 20) | 46,704 | 47,677 |
Property, plant and equipment (notes 8 and 22) | 39,364 | 44,310 |
Intangible assets (notes 9 and 22) | 21,654 | 29,866 |
Goodwill (notes 9 and 22) | 38,648 | 39,892 |
Deferred income tax assets (note 20) | 4,821 | 4,714 |
Other assets | 1,293 | 686 |
Total assets | 277,602 | 284,544 |
Current liabilities | ||
Bank loan (note 10) | 5,000 | 10,692 |
Accounts payable and accrued liabilities (note 11) | 50,790 | 47,898 |
Provisions (note 11) | 1,065 | 2,954 |
Income taxes payable | 704 | 873 |
Deferred revenue (note 19) | 24,422 | 16,556 |
Other liabilities | 1,606 | 3,197 |
Current portion of long-term debt (note 12) | 2,449 | 2,921 |
Total current liabilities | 86,036 | 85,091 |
Provisions (note 11) | 2,737 | 2,347 |
Deferred revenue (note 19) | 9,056 | 6,947 |
Long-term debt (note 12) | 3,293 | 5,907 |
Deferred income tax liabilities (note 20) | 3,598 | 5,910 |
Other liabilities | 318 | 421 |
Total liabilities | 105,038 | 106,623 |
Commitments (note 13) | ||
Shareholders' equity | ||
Share capital (note 14) | 92,706 | 91,937 |
Contributed surplus | 19,196 | 18,428 |
Retained earnings | 112,173 | 114,906 |
Accumulated other comprehensive loss (note 15) | (51,511) | (47,350) |
Total shareholder' equity | 172,564 | 177,921 |
Total liabilities and stockholders' equity | $ 277,602 | $ 284,544 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||
Consolidated Statements of Earnings [Abstract] | ||||
Sales (note 22) | $ 286,890 | $ 269,546 | $ 243,301 | |
Cost of sales | [1] | 118,677 | 105,004 | 94,329 |
Selling and administrative | 98,646 | 98,794 | 86,256 | |
Net research and development | 50,553 | 57,154 | 47,168 | |
Depreciation of property, plant and equipment | 5,469 | 5,444 | 3,902 | |
Amortization of intangible assets | 9,012 | 10,327 | 3,289 | |
Change in fair value of cash contingent consideration | 0 | (670) | (383) | |
Interest and other expense | 718 | 1,378 | 303 | |
Foreign exchange (gain) loss | 949 | (1,309) | 978 | |
Share in net loss of an associate (note 3) | 0 | 2,080 | 0 | |
Gain on deemed disposal of the investment in an associate (note 3) | 0 | (2,080) | 0 | |
Earnings (loss) before income taxes | 2,866 | (6,576) | 7,459 | |
Income taxes (note 20) | 5,346 | 5,678 | 6,608 | |
Net earnings (loss) for the year | (2,480) | (12,254) | 851 | |
Net loss for the year attributable to non-controlling interest | 0 | (352) | 0 | |
Net earnings (loss) for the year attributable to parent interest | $ (2,480) | $ (11,902) | $ 851 | |
Basic and diluted net earnings (loss) attributable to parent interest per share (in dollars per share) | $ (0.04) | $ (0.22) | $ 0.02 | |
Basic weighted average number of shares outstanding (in shares) | 55,325 | 54,998 | 54,423 | |
Diluted weighted average number of shares outstanding (note 21) (in shares) | 55,325 | 54,998 | 55,555 | |
[1] | The cost of sales is exclusive of depreciation and amortization, shown separately. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Net earnings (loss) for the year | $ (2,480) | $ (12,254) | $ 851 |
Items that may be reclassified subsequently to net earnings | |||
Foreign currency translation adjustment | (4,177) | (6,491) | 8,262 |
Unrealized gains/losses on forward exchange contracts | (795) | (1,476) | 1,403 |
Reclassification of realized gains/losses on forward exchange contracts in net earnings | 744 | (972) | 423 |
Deferred income tax effect of gains/losses on forward exchange contracts | 67 | 554 | (479) |
Other comprehensive income (loss) | (4,161) | (8,385) | 9,609 |
Comprehensive income (loss) for the year | (6,641) | (20,639) | 10,460 |
Comprehensive loss for the year attributable to non-controlling interest | 0 | (352) | 0 |
Comprehensive income (loss) for the year attributable to parent interest | $ (6,641) | $ (20,287) | $ 10,460 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Adjusted Balance [Member] | Share Capital [Member] | Share Capital [Member]Adjusted Balance [Member] | Contributed Surplus [Member] | Contributed Surplus [Member]Adjusted Balance [Member] | Retained Earnings [Member] | Retained Earnings [Member]Adjusted Balance [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]Adjusted Balance [Member] | Non-controlling Interest [Member] |
Balance, beginning of period at Aug. 31, 2016 | $ 181,401 | $ 85,516 | $ 18,150 | $ 126,309 | $ (48,574) | ||||||
Issuance of share capital (note 14) | 3,490 | 3,490 | 0 | 0 | 0 | ||||||
Reclassification of stock-based compensation costs (note 14) | 0 | 1,405 | (1,405) | 0 | 0 | ||||||
Stock-based compensation costs | 1,439 | 0 | 1,439 | 0 | 0 | ||||||
Net earnings (loss) for the year | 851 | 0 | 0 | 851 | 0 | ||||||
Other comprehensive income (loss) | |||||||||||
Foreign currency translation adjustment | 8,262 | 0 | 0 | 0 | 8,262 | ||||||
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | 1,347 | 0 | 0 | 0 | 1,347 | ||||||
Comprehensive income (loss) for the year | 10,460 | ||||||||||
Balance, end of period at Aug. 31, 2017 | 196,790 | 90,411 | 18,184 | 127,160 | (38,965) | $ 0 | |||||
Reclassification of stock-based compensation costs (note 14) | 0 | 1,526 | (1,526) | 0 | 0 | 0 | |||||
Redemption of share capital (note 14) | 0 | ||||||||||
Stock-based compensation costs | 1,770 | 0 | 1,770 | 0 | 0 | 0 | |||||
Business combination (note 3) | (3,662) | 0 | 0 | 0 | 0 | (3,662) | |||||
Acquisition of non-controlling interest on acquisition of subsidiary (note 3) | 3,662 | 0 | 0 | (352) | 0 | 4,014 | |||||
Net earnings (loss) for the year | (12,254) | 0 | 0 | (11,902) | 0 | (352) | |||||
Other comprehensive income (loss) | |||||||||||
Foreign currency translation adjustment | (6,491) | 0 | 0 | 0 | (6,491) | 0 | |||||
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | (1,894) | 0 | 0 | 0 | (1,894) | 0 | |||||
Comprehensive income (loss) for the year | (20,639) | ||||||||||
Balance, end of period (Adoption of IFRS 9 [Member]) at Aug. 31, 2018 | (253) | 0 | 0 | (253) | 0 | ||||||
Balance, end of period at Aug. 31, 2018 | 177,921 | $ 177,668 | 91,937 | $ 91,937 | 18,428 | $ 18,428 | 114,906 | $ 114,653 | (47,350) | $ (47,350) | $ 0 |
Reclassification of stock-based compensation costs (note 14) | 0 | 1,106 | (1,106) | 0 | 0 | ||||||
Redemption of share capital (note 14) | (312) | (337) | 25 | 0 | 0 | ||||||
Stock-based compensation costs | 1,849 | 0 | 1,849 | 0 | 0 | ||||||
Net earnings (loss) for the year | (2,480) | 0 | 0 | (2,480) | 0 | ||||||
Other comprehensive income (loss) | |||||||||||
Foreign currency translation adjustment | (4,177) | 0 | 0 | 0 | (4,177) | ||||||
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | 16 | 0 | 0 | 0 | 16 | ||||||
Comprehensive income (loss) for the year | (6,641) | ||||||||||
Balance, end of period at Aug. 31, 2019 | $ 172,564 | $ 92,706 | $ 19,196 | $ 112,173 | $ (51,511) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Other comprehensive income (loss) | |||
Changes in unrealized gains/losses on forward exchange contracts, deferred income taxes | $ 67 | $ 554 | $ (479) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Cash flows from operating activities | |||
Net earnings (loss) for the year | $ (2,480) | $ (12,254) | $ 851 |
Add (deduct) items not affecting cash | |||
Stock-based compensation costs | 1,831 | 1,748 | 1,477 |
Depreciation and amortization | 14,481 | 15,771 | 7,191 |
Gain on disposal of capital assets (note 4) | (1,732) | 0 | 0 |
Writeoff of capital assets | 1,386 | 592 | 0 |
Change in fair value of cash contingent consideration | 0 | (670) | (383) |
Deferred revenue | 10,477 | 1,998 | 1,723 |
Deferred income taxes | (2,103) | 1,368 | 1,054 |
Share in net loss of an associate | 0 | 2,080 | 0 |
Gain on deemed disposal of the investment in an associate | 0 | (2,080) | 0 |
Changes in foreign exchange gain/loss | (46) | (181) | 1,096 |
Cash flows from operations before changes in working capital | 21,814 | 8,372 | 13,009 |
Changes in non-cash operating items | |||
Accounts receivable | (4,786) | 7,275 | 3,955 |
Income taxes and tax credits | 1,536 | 86 | (2,386) |
Inventories | (134) | (1,020) | 911 |
Prepaid expenses | (1,307) | 57 | (918) |
Other assets | (1,459) | (1,311) | (121) |
Accounts payable and accrued liabilities and provisions | 3,184 | 1,033 | (1,745) |
Other liabilities | (1,606) | (122) | 165 |
Net cash flows from operating activities | 17,242 | 14,370 | 12,870 |
Cash flows from investing activities | |||
Additions to short-term investments | (1,879) | (1,550) | (2,910) |
Proceeds from disposal and maturity of short-term investments | 1,168 | 234 | 6,374 |
Purchases of capital assets (notes 8 and 9) | (7,498) | (10,452) | (7,175) |
Proceeds from disposal of capital assets (note 4) | 3,318 | 0 | 0 |
Investment in an associate (note 3) | 0 | (12,530) | 0 |
Business combinations, net of cash acquired (note 3) | 0 | (19,600) | (12,792) |
Net cash flows from investing activities | (4,891) | (43,898) | (16,503) |
Cash flows from financing activities | |||
Bank loan | (5,195) | ||
Bank loan | 11,061 | 0 | |
Repayment of long-term debt | (2,817) | (1,688) | (1,480) |
Redemption of share capital (note 14) | (312) | 0 | 0 |
Other liabilities | 0 | (1,449) | 0 |
Acquisition of non-controlling interest (note 3) | 0 | (3,657) | 0 |
Net cash flows from financing activities | (8,324) | 4,267 | (1,480) |
Effect of foreign exchange rate changes on cash | (267) | (416) | 340 |
Change in cash | 3,760 | (25,677) | (4,773) |
Cash - Beginning of year | 12,758 | 38,435 | 43,208 |
Cash - End of year | 16,518 | 12,758 | 38,435 |
Supplementary information | |||
Income taxes paid | $ 2,577 | $ 2,376 | $ 2,866 |
Nature of Activities and Incorp
Nature of Activities and Incorporation | 12 Months Ended |
Aug. 31, 2019 | |
Nature of Activities and Incorporation [Abstract] | |
Nature of Activities and Incorporation | 1 Nature of Activities and Incorporation EXFO Inc. and its subsidiaries (together “EXFO” or the “company”) develops . EXFO is a company incorporated under the Canada Business Corporations Act and is domiciled in Canada. The address of its headquarters is 400 Godin Avenue, Québec City, Quebec, Canada, G1M 2K2. These consolidated financial statements were authorized for issue by the Board of Directors on November 26, 2019. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Aug. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2 Basis of Presentation These consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards International Accounting Standards Board IFRS Pronouncements Adopted in Fiscal 2019 Financial instruments The final version of IFRS 9, “ Financial Instruments Financial Instruments: Recognition and Measurement As reported as at August 31, 2018 Adjustments As adjusted as at September 1, 2018 Accounts receivable – Trade (note 6) $ 47,273 $ (303 ) $ 46,970 Income taxes recoverable $ 4,790 $ 50 $ 4,840 Total assets $ 284,544 $ (253 ) $ 284,291 Retained earnings $ 114,906 $ (253 ) $ 114,653 Shareholders’ equity $ 177,921 $ (253 ) $ 177,668 In addition, the company’s consolidated financial instruments are accounted for as follows under IFRS 9 as compared to the company’s previous accounting policy with IAS 39: Financial assets Classification – IAS 39 Classification – IFRS 9 Cash Loans and receivables Amortized cost Short-term investments Available for sale Fair value through other comprehensive income Accounts receivable Loans and receivables Amortized cost Forward exchange contracts Derivatives used for hedging Fair value through other comprehensive income Financial liabilities Bank loan Other financial liabilities Amortized cost Accounts payable and accrued liabilities Other financial liabilities Amortized cost Other liabilities Other financial liabilities Amortized cost Long-term debt Other financial liabilities Amortized cost Forward exchange contracts Derivatives used for hedging Fair value through other comprehensive income Hedge accounting All existing hedge relationships that were designated as effective hedging relationships under IAS 39 were re-designated, and continue to qualify for hedge accounting under IFRS 9. The adoption of IFRS 9 did not change the application of hedge accounting for the company’s effective hedges. Revenue from contracts with customers IFRS 15, “ Revenue from Contracts with Customers The company concluded that the main areas of impact relate to the allocation of the transaction price to the various performance obligations under the contracts, the timing of revenue recognition for sales arrangement that contain customer acceptance clauses, and the sale of licenses that provide customers with the “right to use” the company’s intellectual property. The adoption of the new standard had no material impact on the company’s consolidated financial statements. Foreign currency transactions and advance consideration IFRIC 22, “ Foreign Currency Transactions and Advance Consideration Basis of measurement These consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of derivative financial instruments, short-term investments and the contingent liability. Consolidation These consolidated financial statements include the accounts of the company and its domestic and foreign subsidiaries. Intercompany accounts and transactions have been eliminated. Revenue recognition under IFRS 15 The company exercises judgment and use estimates in connection with determining the amounts of product and services revenues to be recognized in each accounting period. The company accounts for revenue once a legally enforceable contract with a customer has been approved by the parties and the related promises to transfer products or services have been identified. A contract is defined by the company as an arrangement with commercial substance identifying payment terms, each party’s rights and obligations regarding the products or services to be transferred and collection is probable. The company’s contracts usually take the form of a customer purchase order. Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one single performance obligation may require significant judgment. The company derives revenues from goods and services. Sales of goods, consist of standalone hardware products, hardware products with embedded software that are essential to providing customers the intended functionality of the solutions, standalone software licenses, as well as hardware products bundled with a software license. Sales of services mainly consist of professional services, consulting, stand-ready software-as-a-service (SAAS), maintenance contracts, extended warranties, installation, integration and training. The company’s performance obligations consist of a variety of products and services. Revenue is recognized when control of the products or services are transferred to the customers in an amount that reflects the consideration the company expects to be entitled to in exchange for products and services. Revenue from software and hardware support is recognized ratably over the support period. Support services generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates, bug fixes and hardware repair and replacement. SAAS services are recognized ratably over the contract term. If the contract contains a single performance obligation, the entire transaction price is attributed to that performance obligation. Some of the company’s contracts include multiple distinct performance obligations with a combination of products and services, maintenance and support, professional services and/or training. The company allocates the transaction price among the performance obligations in an amount that depicts the relative standalone selling prices (SSP) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. The company assesses SSP based on historical pricing for products and services, whether sold alone or as part of a multiple element transaction. The company reviews sales of the product and services elements on a regular basis and updates, when appropriate, its SSP for such elements to ensure that it reflects recent pricing experience. Payments for products and services are typically due up front with payment terms of 30 to 90 days. However, the company has contracts pursuant to which payments are due over a certain period generally not exceeding one year based on agreed-upon payments terms either prior or following the transfer of control for the contracted performance obligations. Payments on multi-year maintenance, consulting services are typically due in annual, quarterly or monthly installments over the contract term. The company did not have any material variable consideration such as obligations for returns, refunds or warranties as at August 31, 2019. Presentation currency The functional currency of the company is the Canadian dollar. The company has adopted the US dollar as its presentation currency as it is the most commonly used reporting currency in its industry. The consolidated financial statements are translated into the presentation currency as follows: assets and liabilities are translated at the exchange rate in effect on the date of the consolidated balance sheet; revenues and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive income in shareholders’ equity. Foreign currency translation (a) Foreign currency transactions Transactions denominated in currencies other than the functional currency are translated into the relevant functional currency as follows: Monetary assets and liabilities are translated at the exchange rate in effect on the date of the consolidated balance sheet, and revenues and expenses are translated at the exchange rate in effect on the date of the transaction. Non-monetary assets and liabilities measured at historical cost and denominated in a foreign currency are translated using the exchange rate at the date of the transaction, whereas non-monetary items that are measured at fair value and denominated in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Foreign exchange gains and losses arising from such translation are included in the consolidated statements of earnings. (b) Foreign operations Each foreign operation determines its own functional currency and items included in the financial statements of each foreign operation are measured using that functional currency. The financial statements of each foreign operation that has a functional currency different from the company are translated into Canadian dollars as follows: assets and liabilities are translated at the exchange rate in effect on the date of the consolidated balance sheet; revenues and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive income in shareholders’ equity. Financial instruments The classification of financial instruments depends on the intended purpose when the financial instruments were acquired or issued, as well as on their characteristics and designation by the company. Financial assets at amortized cost Financial assets are measured at amortized cost if they are held within a business model whose objective is to hold assets to collect contractual cash flows, and their contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Otherwise, they are classified at fair value through profit or loss through other comprehensive income. Financial liabilities at amortized cost Financial liabilities are measured at amortized cost. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income are initially recognized at fair value plus transaction costs and are subsequently measured at fair value. After their initial recognition, any changes in their fair value are reflected in the consolidated statements of comprehensive income. Derivative financial instruments and hedging activities Forward exchange contracts are utilized by the company to manage its foreign currency exposure. Forward exchange contracts are entered into by the company to hedge anticipated US-dollar-denominated sales and the related accounts receivable as well as Indian-rupee-denominated operating expenses and the related accounts payable. The company’s policy is not to utilize those derivative financial instruments for trading or speculative purposes. The company’s forward exchange contracts, which are designated as cash flow hedging instruments, qualify for hedge accounting. Forward exchange contracts are classified as financial instruments at fair value through other comprehensive income. They are initially recorded at fair value and subsequently measured at fair value. The fair value of forward exchange contracts is determined using observable prices and forward exchange rates at the consolidated balance sheet date, with the resulting value discounted back to present value. After initial recognition, the effective portion of changes in their fair value is reflected in other comprehensive income. Any ineffective portion is recognized immediately in the consolidated statements of earnings. Upon recognition of related hedged sales and operating expenses, accumulated changes in fair value of forward exchange contracts are respectively reclassified in sales and net research and development expenses in the consolidated statements of earnings. At the inception of a hedge relationship, the company formally designates and documents the hedge relationship to which the company wishes to apply hedge accounting, the risk management objectives, the hedging instrument, the hedged item and the method used to test effectiveness. The company assesses effectiveness of the hedge relationship at inception and on an ongoing basis using the dollar-offset method. Fair value hierarchy The company classifies its derivative and non-derivative financial assets and financial liabilities measured at fair value using the fair value hierarchy as follows: Level 1: Quoted prices (unadjusted) in an active market for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset and liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. The company’s short-term investments and forward exchange contracts are measured at fair value at each balance sheet date. The company’s short-term investments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The company’s forward exchange contracts are classified within Level 2 of the fair value hierarchy because they are valued using observable prices and forward foreign exchange rates at the balance sheet dates. Short-term investments All investments with original terms to maturity of three months or less and that are not required for the purposes of meeting short-term cash requirements are classified as short-term investments. Inventories Inventories are valued on an average cost basis, at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. The cost of work in progress and finished goods includes material, labor and an allocation of manufacturing overhead. Property, plant and equipment and depreciation Property, plant and equipment are recorded at cost, net of accumulated depreciation and accumulated impairment losses. Such cost is reduced by related research and development tax credits. Depreciation is provided on a straight-line basis over the estimated useful lives of the asset as follows: Term Land improvements 15 years Buildings 20 to 60 years Equipment 3 to 15 years Leasehold improvements The lesser of useful life and remaining lease term The assets’ residual values and useful lives are reviewed at each financial year-end and are adjusted prospectively, if appropriate. Intangible assets, goodwill and amortization Intangible assets Intangible assets with finite useful lives primarily include the cost of core technology, customer relationships and software. The cost of intangible assets acquired in a business combination is the fair value of the assets at the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is provided on a straight-line basis over the estimated useful lives of two to eight years for core technologies, three months to five years for customer relationships, one year for brand name, and two and eight years for software. None of the company’s intangible assets were developed internally. The amortization method and the useful lives of intangible assets are reviewed at each financial year-end, and adjusted prospectively, if appropriate. Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value of net identifiable assets acquired and is allocated to each cash-generating unit (CGU) or group of CGUs that are expected to benefit from the related business combination. A group of CGUs represents the lowest level within the company at which the goodwill is monitored for internal management purposes, which is not higher than an operating segment. Goodwill is not amortized but must be tested for impairment on an annual basis or more frequently if events or circumstances indicate that it might be impaired. Research and development All costs related to research are expensed as incurred, net of related tax credits and grants. Development costs are expensed as incurred, net of related tax credits and grants, unless they meet the recognition criteria of IAS 38, “ Intangible Assets The company elected to account for non-refundable research and development tax credits under IAS 20, “ Accounting for Governmental Grants and Disclosures of Governmental Assistance Impairment of non-financial assets The company assesses at each reporting date whether there is an indication that the carrying value of property, plant and equipment and finite-life intangible assets may not be recoverable. Non-financial assets that are not amortized (such as goodwill) are subject to an annual impairment test. If any indication exists, or when annual impairment testing is required, the company estimates the asset or asset group’s recoverable amount. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). The recoverable amount is the higher of an asset or CGU’s fair value less costs of disposal and its value in use. Where the carrying value of an asset or CGU exceeds its recoverable amount, the asset or the CGU is considered impaired and is written down to its recoverable amount. The company performs its annual goodwill impairment test in the fourth quarter of each fiscal year. For property, plant and equipment and finite-life intangible assets, the reversal of impairment is limited so that the carrying value of the asset does not exceed its recoverable amount, nor exceed the carrying value that would have been determined, net of depreciation or amortization, had no impairment loss been recognized for the asset in prior periods. Impairment losses on goodwill are not reversed. Leases Operating leases are leases for which the company does not assume substantially all the risks and rewards of ownership of the asset. Operating lease rentals are charged to the consolidated statements of earnings on a straight-line basis over the lease term. As at August 31, 2018 and 2019, all significant leases of the company were classified as operating leases. Government grants Grants related to operating expenses are included in earnings when the related expenses are incurred. Grants related to capital expenditures are deducted from the related assets. Grants are included in the consolidated statements of earnings or deducted from the related assets, provided there is reasonable assurance that the company has complied and will comply with all the conditions related to the grants and that the grants will be received. Warranty The company offers its customers basic warranties of one to three years, depending on the specific products and terms of the purchase agreement. The company’s typical warranties require it to repair or replace defective products during the warranty period at no cost to the customer. Costs related to basic warranties are accrued at the time of shipment, based upon estimates of expected rework and warranty costs to be incurred. Costs associated with separately priced extended warranties are expensed as incurred. Income taxes Income taxes comprise current and deferred income taxes. Current income taxes Current income tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered or paid to the taxation authorities. Income tax rates used to calculate the amount are those that are enacted or substantively enacted at the balance sheet dates in the tax jurisdictions where the company generates taxable income/loss. Deferred income taxes The company provides for deferred income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on deductible or taxable temporary differences between financial statement values and tax values of assets and liabilities as well as the carry-forward of unused tax losses and deductions, using enacted or substantively enacted income tax rates at the balance sheet dates, that are expected to be in effect for the years in which the assets are expected to be recovered or the liabilities to be settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable income will be available against which the deductible temporary differences as well as unused tax losses and deductions can be utilized. Deferred tax liabilities are recognized for all taxable temporary differences and for taxable temporary differences arising on investments in subsidiaries, except where the reversal of these temporary differences can be controlled, and it is probable that the differences will not reverse in the foreseeable future. Deferred income tax assets and liabilities are presented as non-current in the consolidated balance sheets. Uncertain tax positions The company is subject to income tax laws and regulations in several jurisdictions. There are many transactions and calculations during the course of business for which the ultimate tax determination is uncertain. The company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk. These provisions are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The company reviews the adequacy of these provisions at the end of the reporting periods and any changes in the provisions are recognized in the consolidated statements of earnings when they occur. However, it is possible that at some future dates, liabilities in excess of the company’s provisions could result from audits by, or litigation with, the relevant taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will be recognized in the consolidated statement of earnings in the period in which such determination is made. Earnings per share Basic earnings per share are calculated by dividing net earnings attributable to common equity holders of the company by the weighted average number of common shares outstanding during the year. Diluted earnings per share are calculated by dividing net earnings attributable to common equity holders of the company by the weighted average number of common shares outstanding during the year, plus the effect of dilutive potential common shares outstanding during the year. This method requires that diluted earnings per share be calculated (using the treasury stock method) as if all dilutive potential common shares had been exercised at the latest at the beginning of the year or on the date of issuance, as the case may be, and that the funds obtained thereby (plus an amount equivalent to the unamortized portion of related stock-based compensation costs) be used to purchase common shares of the company at the average market price of the common shares during the year. Stock-based compensation Equity-settled awards The company’s stock options, restricted share units and deferred share units are equity-settled awards. The company accounts for stock-based compensation costs on equity-settled awards using the Black-Scholes option valuation model. The fair value of equity-settled awards is measured at the date of grant. Stock-based compensation costs are amortized to expense over the vesting periods together with a corresponding change in contributed surplus in shareholders’ equity. For equity-settled awards with graded vesting, each tranche is considered a separate grant with a different vesting date and fair value, and each tranche is accounted for separately. Cash-settled awards The company’s stock appreciation rights are cash-settled awards. The company accounts for stock-based compensation costs on cash-settled awards using the Black-Scholes option valuation model. The fair value of the cash-settled awards is remeasured at the end of each reporting period, with any changes in the fair value recognized in the consolidated statements of earnings. Operating segments Operating segments are defined as components of an entity engaged in business activities from which it may earn revenues and incur expenses, and whose operating results are regularly reviewed by the chief operating decisionmaker (CODM) to make decisions about resources to be allocated to segments and assess their performance and for which discrete information is available. The function of the CODM is performed by the Chief Executive Officer who reviews consolidated results for the purposes of allocating resources and evaluating performance. Accordingly, the company determines that it has one operating segment as of, and for the years ended August 31, 2017, 2018 and 2019. Entity-wide disclosures are presented in note 22. Critical accounting judgments in applying accounting policies and estimates The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses as well as the disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those judgments, estimates and assumptions. Critical judgments, estimates and assumptions are the following: Critical judgments in applying accounting policies (a) Determination of functional currency The company operates in multiple countries and generates revenue and incurs expenses in several currencies, namely the Canadian dollar, the US dollar, the euro, the British pound, the Indian rupee and the CNY (Chinese currency). The determination of the functional currency of the company and its subsidiaries may require significant judgment. In determining the functional currency of the company and its subsidiaries, management takes into account primary, secondary and tertiary indicators. When indicators are mixed, and the functional currency is not obvious, management uses its judgment to determine the functional currency. (b) Determination of cash generating units and allocation of goodwill For the purpose of impairment testing, goodwill must be allocated to each CGU or group of CGUs that are expected to benefit from the synergies of the business combination. Initial allocation and possible reallocation of goodwill to a CGU or a group of CGUs requires judgment. Critical estimates and assumptions (a) Inventories The company states its inventories at the lower of cost, determined on an average cost basis, and net realizable value, and provides reserves for excess and obsolete inventories. The company determines its reserves for excess and obsolete inventories based on the quantities on hand at the reporting dates compared to foreseeable needs, taking into account changes in demand, technology or market. (b) Income taxes The company is subject to income tax laws and regulations in several jurisdictions. Under these laws and regulations, uncertainties exist with respect to the interpretation of complex tax laws and regulations and the amount and timing of future taxable income. The company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk based on its interpretation of laws and regulations. In addition, management has made reasonable estimates and assumptions to determine the amount of deferred tax assets that can be recognized in the consolidated financial statements, based upon the likely timing and level of anticipated future taxable income together with tax planning strategies. The ultimate realization of the company’s deferred income tax assets is dependent upon the generation of sufficient future taxable income during the periods in which those assets are expected to be realized. (c) Tax credits recoverable Tax credits are recorded if there is reasonable assurance that the company has complied and will comply with all the conditions related to the tax credits and that the tax credits will be received. The ultimate recovery of the company’s non-refundable tax credits is dependent upon the generation of sufficient future taxable income during the tax credits carry-forward periods. Management has made reasonable estimates and assumptions to determine the amount of non-refundable tax credits that can be recognized in the consolidated financial statements, based upon the likely timing and level of anticipated future taxable income together with tax planning strategies (note 20). (d) Impairment of non-financial assets Impairment exists when the carrying value of an asset or group of assets (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation for the company’s CGUs is based on a market approach that relies on unobservable inputs based on valuation multiples and recent transactions for comparable assets or businesses, within the same industry. The company applies judgment in making adjustments to the unobservable inputs for factors such as size, risk profile or profitability. The company also considers the company’s value derived from its market capitalization, adjusting for a control premium considered appropriate based on other comparable companies with significant controlling interests. Depending on the market evidence available, the company, from time to time, may further supplement this market approach with an income approach that considers discounted cash flows to determine fair value less costs of disposal, as well as the nature and magnitude of research and development activities carried out by the CGU. The discounted cash flow model involves significant judgment with respect to estimating cash flows (based on market participant assumptions) and the appropriate discount rate. (e) Purchase price allocation in business combinations The fair value of the total consideration transferred in business combinations (purchase price) must be allocated based on estimated fair value of acquired net assets at the date of acquisition. Allocating the purchase price requires management to make estimates and judgments to determine assets acquired and liabilities assumed, useful lives of certain long-lived assets and the respective fair value of assets acquired, and liabilities assumed; this may require the use of unobservable inputs, including management’s expectations of future revenue growth, operating costs and profit margins as well as discount rates. (f) Identification of performance obligations Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one single performance obligation may require significant judgment. Recently issued IFRS Pronouncements Not Yet Adopted Leases IFRS 16, Leases IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e., the customer (lessee) and the supplier (lessor). IFRS 16 will supersede IAS 17, “ Leases ”, and related interpretations. Under IFRS 16, This new standard is effective for annual periods beginning on or after January 1, 2019. The company will adopt this new standard on September 1, 2019, Uncertainty over income tax treatments IFRIC 23, “ Uncertainty over Income Tax Treatments |
Business Combinations
Business Combinations | 12 Months Ended |
Aug. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 3 Business Combinations Fiscal 2018 Astellia S.A. (renamed EXFO Solutions S.A.S.) - Business combination achieved in stages On September 8, 2017, the company acquired a 33.1% interest in Astellia S.A. (EXFO Solutions), a publicly traded company on the NYSE Euronext Paris stock exchange. EXFO Solutions is a provider of network and subscriber intelligence-enabling mobile operators to drive service quality, maximize operational efficiency, reduce churn and increase revenue. Its vendor-independent, real-time monitoring and troubleshooting solution is used to optimize networks end-to-end from radio to core. The purchase price amounted to €10 per share for a total cash consideration of €8,567,500 (US$10,311,100). On October 10, 2017, the company reached an agreement with EXFO Solutions to acquire EXFO Solutions’ remaining shares, at a share price of €10, for a total consideration of €17,321,380 (US$21,357,500) by way of a public tender offer. The public offering opened on December 15, 2017 and closed on January 26, 2018. On December 21 and 22, 2017, the company acquired additional interests of 6.0% and 1.2% respectively in EXFO Solutions at a purchase price of €10 per share for a total cash consideration of €1,878,610 (US$2,218,600), which brought the company’s investment in EXFO Solutions to 40.3%. On January 26, 2018, upon the closing of the public tender offer, the company acquired additional interest of 48.1% in EXFO Solutions at a purchase price of €10 per share for a total cash consideration of €12,452,090 (US$15,476,900), which brought the company’s investment in EXFO Solutions to 88.4% and provided the company with control over EXFO Solutions. The company re-opened the public tender offer to acquire the remaining shares of EXFO Solutions from February 9, 2018 to February 22, 2018. During that period, the company acquired an additional interest of 8.9% in EXFO Solutions at a purchase price of €10 per share for a total cash consideration of €2,318,530 (US$2,841,400), which brought the company’s investment in EXFO Solutions to 97.3%. Finally, on February 28, 2018, the company entered into a squeeze-out process to acquire the remaining 2.7% interest in EXFO Solutions at a share price of €10, for a total cash consideration of €672,150 (US$820,600). The binding terms of the squeeze-out process gave the company control over EXFO Solutions’ remaining shares as at February 28, 2018 and consequently, as of that date the company controlled 100% of EXFO Solutions’ shares. The fair value of the total consideration paid for all shares of EXFO Solutions amounted to €25,888,880 (US$32,137,800) and consisted of €21,102,880 (US$26,241,000) in cash, net of EXFO Solutions’ cash of €4,786,000 (US$5,896,800) at the date of acquisition of control. From September 8, 2017 to January 25, 2018, the investment in EXFO Solutions provided the company with significant influence over EXFO Solutions, and it was therefore accounted for under the equity method as Investments in Associates and Joint Ventures Upon the acquisition of an additional 48.1% interest in on January 26, 2018 (the “acquisition date”), the acquisition has been considered a business combination, and the acquisition was accounted for by applying the acquisition method as required Business Combinations Consolidated Financial Statements onsequently, the fair value of the total consideration was allocated to the assets acquired and liabilities assumed based on management’s estimate of their fair value as at the acquisition date. The results of operations of the acquired business have been included in the consolidated financial statements of the company since January 26, 2018. The company recognized the non-controlling interest in at fair value. At the acquisition date, the carrying value of the 40.3% interest in held prior to the business combination was re-measured at fair value, that is, and was deemed to have been disposed of on that date In addition, upon the successive acquisitions of the non-controlling interest in February 2018, the company recorded a gain in the amount of $352,000 in shareholders’ equity, representing the excess of the carrying value of the non-controlling interest and the purchase price paid. The following table summarizes EXFO Solutions’ contributed sales and net loss attributable to the parent interest for the period from January 26, 2018 to August 31, 2018: Sales (1) $ 16,377 Net loss attributable to the parent interest (1, 2) $ 12,850 If the acquisition had occurred on September 1, 2017, consolidated pro forma sales and net loss attributable to the parent interest of the combined entities for the year ended August 31, 2018 would have been $292,134,000 and $18,768,000 respectively. (1) Includes acquisition-related deferred revenue fair value adjustment of $2,095,000. (2) Includes amortization of acquired intangible assets of $5,077,000. The fair value of the total consideration was allocated based on an estimate of fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 16,374 Income taxes and tax credits recoverable 11,259 Inventories 3,045 Prepaid expenses 1,229 Property, plant and equipment 1,944 Core technologies 12,869 Customer relationships 8,381 Brand name 846 Other intangible assets 498 Other assets 1,402 57,847 Liabilities assumed Accounts payable and accrued liabilities 11,068 Deferred revenue 4,748 Long-term debt (note 12) 8,888 Deferred income tax liabilities 2,692 Other liabilities 6,715 Net identifiable assets acquired 23,736 Goodwill 2,505 Fair value of the total consideration, net of cash acquired $ 26,241 The fair value of the total consideration, net of cash acquired, consisted of the following at the acquisition date: Cash paid net of cash acquired $ 9,580 Fair value of shares held 12,967 Non-controlling interest (purchased in February 2018) 3,694 $ 26,241 The estimated fair value of acquired accounts receivable amounted to $16,374,000 as at January 26, 2018. The gross contractual amount of accounts receivable amounted to $18,758,000 as at January 26, 2018. The estimate at the acquisition date of the gross contractual cash flows not expected to be collected amounted to $2,384,000. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives of four and eight years for core technologies, two to five years for customer relationships, and one year for brand name. Acquired goodwill mainly represents synergies with the company’s products as well as EXFO Solutions’ acquired workforce. Acquired goodwill is not deductible for tax purposes. Goodwill was allocated to the EXFO Solutions CGU up to August 31, 2018. Since then, it has been allocated to the service assurance, systems and services CGU (note 9). The functional currency of EXFO Solutions is the euro and as such it is considered a foreign operation. The financial operations of EXFO Solutions are translated into Canadian dollars as follows: assets and liabilities are translated at the exchange rate in effect on the date of the balance sheet; revenue and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive loss in shareholders’ equity. Yenista Optics S.A.S. (renamed EXFO Optics S.A.S.) On October 2, 2017, the company acquired all issued and outstanding shares of Yenista Optics S.A.S. (EXFO Optics), a privately held company located in France and a supplier of advanced optical test equipment for the research and development and manufacturing markets. The acquisition-date fair value of the total consideration amounted to €9,400,000 (US$11,052,000) and consisted of €8,114,000 (US$9,540,000) in cash, net of EXFO Optics’ cash of €1,286,000 (US$1,512,000) at the acquisition date. This acquisition was accounted for by applying the acquisition method as Business Combinations Consolidated Financial Statements consequently, the fair value of the total consideration was allocated to the assets acquired and liabilities assumed based on management’s estimate of their fair value as at the acquisition date. The results of operations of the acquired business have been included in the consolidated financial statements of the company since October 2, 2017, being the acquisition date. The fair value of the total consideration was allocated based on an estimate of the fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 1,889 Inventories 2,384 Property, plant and equipment 1,424 Core technologies 3,686 Customer relationships 811 In-process research and development 305 Other intangible assets 132 Prepaid expenses 171 10,802 Liabilities assumed Accounts payable and accrued liabilities 1,035 Long-term debt (note 12) 2,143 Deferred income taxes 1,510 Net identifiable assets acquired 6,114 Goodwill 3,426 Fair value of the total consideration, net of cash acquired $ 9,540 Acquired intangible assets are amortized on a straight-line basis over their estimated useful life of two to five years for core technologies and three months for customer relationships. Acquired goodwill mainly represents synergies with the company’s products as well as EXFO Optics’ acquired workforce. Acquired goodwill is not deductible for tax purposes. Goodwill is allocated to the EXFO Optics CGU (note 9). The functional currency of EXFO Optics is the euro, and, as such, it is considered a foreign operation. The financial operations of EXFO Optics are translated into Canadian dollars as follows: assets and liabilities were translated at the exchange rate in effect on the date of the balance sheet; revenue and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive loss in shareholders’ equity. In connection with business combinations completed in fiscal 2018, the company incurred acquisition-related costs of $2,484,000, of which $2,236,000 were presented in selling and administrative expenses and $248,000 were presented in interest and other expense. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Aug. 31, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 4 Restructuring Charges Fiscal 2018 In August 2018, the company implemented a restructuring plan to accelerate the integration of its acquired monitoring and analytics technologies from EXFO Solutions and simplify its cost structure and optimize resources as the company converges toward fewer sites and reduces its workforce. This plan resulted in expenses mainly comprising severance expenses, costs for remaining non-cancellable operating leases, writeoff of research and development income tax credits and impairment of long-lived assets, net of related income taxes. During the fourth quarter of fiscal 2018, the company recorded severance expenses of $2,072,000, costs for remaining non‑cancelable operating lease of $1,137,000, writeoff of research and development income tax credits of $1,200,000 and impairment of long-lived assets of $150,000, net of related income taxes of $1,150,000, for total after-tax restructuring charges of $3,409,000. The additional restructuring charges of $3,305,000, and related income taxes of $63,000, for total after-tax restructuring charges of $3,242,000 (note 18), was recorded in fiscal 2019. Restructuring charges in fiscal 2019 comprised severance expenses and were part of the fiscal 2018 restructuring plan. In fiscal 2019, as part of this restructuring plan and the shutdown of its facilities in Toronto, Canada, the company sold one of its buildings for net proceeds of $3,318,000. The transaction resulted in a pre-tax gain of $1,732,000 that was recorded in the consolidated statement of earnings for the year ended August 31, 2019. In addition, in fiscal 2019, as part of this restructuring plan and the shutdown of some of its facilities in the United States, the company transferred the ownership of certain intellectual properties held in the United States to Canada. This created a deductible tax asset in Canada and resulted in the recognition of a deferred income tax recovery of $2,383,000 in fiscal 2019 as the recovery of this asset is probable. This deferred income tax recovery was recorded in the consolidated statement of earnings for the year ended August 31, 2019. The following tables summarize changes in restructuring accrual during the years ended August 31, 2018 and 2019: Years ended August 31, 2019 2018 Balance – Beginning of year $ 3,167 $ 2,477 Addition 3,305 3,209 Payments (5,339 ) (2,052 ) Reversal – (467 ) Balance – End of year (note 11) $ 1,133 $ 3,167 Fiscal 2017 In May 2017, the company implemented a restructuring plan to streamline its passive monitoring solutions portfolio. This plan resulted in severance expenses of $4,049,000 and inventory writeoffs of $1,030,000, for total restructuring charges of $5,079,000 during the year. All expenses related to this plan were fully paid as at August 31, 2018. |
Capital Disclosures
Capital Disclosures | 12 Months Ended |
Aug. 31, 2019 | |
Capital Disclosures [Abstract] | |
Capital Disclosures | 5 Capital Disclosures The company is not subject to any external restrictions on its capital. The company’s objectives when managing capital are: • To maintain a flexible capital structure that optimizes the cost of capital at acceptable risk; • To sustain future development of the company, including research and development activities, market development and potential acquisitions of complementary businesses or products; and • To provide the company’s shareholders with an appropriate return on their investment. No changes were made to the objectives and policies during the years ended August 31, 2018 and 2019. The company defines its capital as shareholders’ equity, excluding accumulated other comprehensive loss. The capital of the company amounted to $225,271,000 and $224,075,000 as at August 31, 2018 and 2019 respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Aug. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments | 6 Financial Instruments The following tables summarize financial instruments by category: As at August 31, 2019 Amortized cost Fair value through other comprehensive income Total Financial assets Cash $ 16,518 $ – $ 16,518 Short-term investments $ – $ 2,918 $ 2,918 Accounts receivable $ 54,834 $ – $ 54,834 Forward exchange contracts $ – $ 79 $ 79 Financial liabilities Bank loan $ 5,000 $ – $ 5,000 Accounts payable and accrued liabilities $ 49,945 $ – $ 49,945 Other liabilities $ 1,606 $ – $ 1,606 Long-term debt $ 5,742 $ – $ 5,742 Forward exchange contracts $ – $ 1,057 $ 1,057 As at August 31, 2018 – IAS 39 Loans and receivables Available for sale Other financial liabilities Derivatives used for hedging Total Financial assets Cash $ 12,758 $ ‒ $ ‒ $ ‒ $ 12,758 Short-term investments $ ‒ $ 2,282 $ ‒ $ ‒ $ 2,282 Accounts receivable $ 46,955 $ ‒ $ ‒ $ ‒ $ 46,955 Other assets $ 352 $ ‒ $ ‒ $ ‒ $ 352 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ 318 $ 318 Financial liabilities Bank loan $ ‒ $ ‒ $ 10,692 $ ‒ $ 10,692 Accounts payable and accrued liabilities $ ‒ $ ‒ $ 47,308 $ ‒ $ 47,308 Other liabilities $ ‒ $ ‒ $ 3,197 $ ‒ $ 3,197 Long-term debt $ ‒ $ ‒ $ 8,828 $ ‒ $ 8,828 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ 807 $ 807 Fair value Cash, accounts receivable, bank loan, accounts payable and accrued liabilities and other liabilities are financial instruments whose carrying values approximate their fair values due to their short-term maturities. The fair value of the long-term debt amounted to $8,879,000 and $5,644,000 as at August 31, 2018 and 2019. The fair value of derivative and non-derivative financial assets and financial liabilities measured at fair value by level of hierarchy is as follows: As at August 31, 2019 As at August 31, 2018 Level 1 Level 2 Level 1 Level 2 Financial assets Short-term investments $ 2,918 $ – $ 2,282 $ – Forward exchange contracts $ – $ 79 $ – $ 318 Financial liabilities Forward exchange contracts $ – $ 1,057 $ – $ 807 Valuation techniques used to value financial instruments are as follows: The fair value of the long-term debt is estimated by discounting expected cash flows at rates currently offered to the company for debts of the same remaining maturities and conditions. The fair value of forward exchange contracts is based on the amount at which they could be settled based on estimated current market rates. Market risk Currency risk The functional currency of the company is the Canadian dollar. The company is exposed to currency risk as a result of its export sales of products manufactured in Canada, China, France and Finland, the majority of which are denominated in US dollars and euros. This risk is partially hedged by forward exchange contracts and certain cost of sales and operating expenses (US dollars and euros). In addition, the company is exposed to currency risk as a result of its research and development activities in India (Indian rupees). This risk is partially hedged by forward exchange contracts. Forward exchange contracts, which are designated as cash flow hedging instruments, qualify for hedge accounting. As at August 31, 2018 and 2019, the company held contracts to sell US dollars for Canadian dollars and Indian rupees at various forward rates, which are summarized as follows: US dollars – Canadian dollars Expiry dates Contractual amounts Weighted average contractual forward rates As at August 31, 2018 September 2018 to August 2019 $ 26,400 1.3029 September 2019 to August 2020 15,700 1.2756 September 2020 to May 2021 3,700 1.2703 Total $ 45,800 1.2909 As at August 31, 2019 September 2019 to August 2020 $ 35,500 1.3013 September 2020 to August 2021 19,900 1.3107 September 2021 to July 2022 6,000 1.3216 Total $ 61,400 1.3063 US dollars – Indian rupees Expiry dates Contractual amounts Weighted average contractual forward rates As at August 31, 2018 September 2018 to May 2019 $ 4,600 67.68 As at August 31, 2019 September 2019 to August 2020 $ 3,500 71.48 The carrying amount of forward exchange contracts is equal to fair value, which is based on the amount at which they could be settled based on estimated current market rates. As at August 31, 2019, forward exchange contracts in the amount of $79,000 are presented as current assets in other accounts receivable, forward exchange contracts in the amount of $845,000 are presented as current liabilities in accounts payable and accrued liabilities, and forward exchange contracts in the amount of $212,000 are presented as long-term liabilities in other long-term liabilities in the consolidated balance sheet. Forward exchange contracts of $167,000, included in other accounts payable and accrued liabilities, for which related hedged sales are recognized, are recorded in the consolidated statement of earnings. Otherwise, other forward exchange contracts are not yet recorded in the consolidated statement of earnings and are recorded in other comprehensive income. As at August 31, 2018, forward exchange contracts in the amount of $318,000 are presented as current assets in other accounts receivable, forward exchange contracts in the amount of $590,000 are presented as current liabilities in accounts payable and accrued liabilities, and forward exchange contracts in the amount of $217,000 are presented as long-term liabilities in other long-term liabilities in the consolidated balance sheet. Forward exchange contracts of $64,000, included in other accounts receivable, for which related hedged sales are recognized, are recorded in the consolidated statement of earnings. Otherwise, other forward exchange contracts are not yet recorded in the consolidated statement of earnings and are recorded in other comprehensive income. Based on the portfolio of forward exchange contracts as at August 31, 2019, the company estimates that the portion of net unrealized losses on these contracts as of that date, which will be realized and reclassified from accumulated other comprehensive income to net earnings over the next 12 months, amounts to $599,000. For the years ended August 31, 2017, 2018 and 2019, the company recorded within its sales the following foreign exchange gains (losses) on forward exchange contracts: Years ended August 31, 2019 2018 2017 Gains (losses) on forward exchange contracts $ (591 ) $ 875 $ (468 ) The following table summarizes significant derivative and non-derivative financial assets and financial liabilities that are subject to currency risk as at August 31, 2018 and 2019 and for which such risk is charged to earnings: As at August 31, 2019 2018 Carrying/nominal amount (in thousands of US dollars) Carrying/nominal amount (in thousands of euros) Carrying/nominal amount (in thousands of US dollars) Carrying/nominal amount (in thousands of euros) Financial assets Cash $ 5,531 € 3,129 $ 2,790 € 3,352 Accounts receivable 30,451 6,389 30,306 3,787 35,982 9,518 33,096 7,139 Financial liabilities Bank loan 5,000 – 7,197 3,000 Accounts payable and accrued liabilities 12,563 2,218 13,017 2,107 Forward exchange contracts (nominal value) 5,800 – 5,000 – 23,363 2,218 25,214 5,107 Net exposure $ 12,619 € 7,300 $ 7,882 € 2,032 In addition to these assets and liabilities, the company has derivative financial liabilities for its outstanding forward exchange contracts in the amount (nominal value) of $45,800,000 and $61,400,000 as at August 31, 2018 and 2019 respectively for which the currency risk is charged to other comprehensive income. The value of the Canadian dollar compared to the US dollar was CA$1.3055 = US$1.00 and CA$1.3294 = US$1.00 as at August 31, 2018 and 2019 respectively. The value of the Canadian dollar compared to the euro was CA$1.5210 = €1.00 and CA$1.4672 = €1.00 as at August 31, 2018 and 2019 respectively. The following sensitivity analysis summarizes the effect that a change in the value of the Canadian dollar (compared to the US dollar and euro) on derivative and non-derivative financial assets and financial liabilities denominated in US dollars and euros would have on net earnings, net earnings per diluted share and comprehensive income, based on the foreign exchange rates as at August 31, 2018 and 2019: • An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would decrease (increase) net earnings by $844,000, or $0.02 per diluted share, and $1,166,000, or $0.02 per diluted share, as at August 31, 2018 and 2019 respectively. • An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the euro would decrease (increase) net earnings by $335,000, or $0.01 per diluted share, and $769,000 or $0.01 per diluted share, as at August 31, 2018 and 2019 respectively. • An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would increase (decrease) other comprehensive income by $2,956,000 and $4,072,000 as at August 31, 2018 and 2019 respectively. The impact of the change in the value of the Canadian dollar compared to the US dollar and the euro on these derivative and non-derivative financial assets and financial liabilities is recorded in the foreign exchange gain or loss line item in the consolidated statements of earnings, except for outstanding forward contracts, and except for those of foreign operations, whose impact is recorded in other comprehensive income. The change in the value of the Canadian dollar compared to the US dollar and the euro also affects the company’s balances of income tax recoverable or payable, as well as deferred income tax assets and liabilities denominated in US dollars and euros; this may result in additional and significant foreign exchange gains or losses. However, these tax-related assets and liabilities are not considered financial instruments and are therefore excluded from the sensitivity analysis above. The foreign exchange rate fluctuations also flow through the consolidated statements of earnings line items, as a significant portion of the company’s cost of sales and operating expenses are denominated in Canadian dollars, euros, British pounds and Indian rupees, and the company reports its results in US dollars; that effect is not reflected in the sensitivity analysis above. Interest rate risk The company has limited exposure to interest rate risk. The company is mainly exposed to interest rate risks through its cash, short-term investments, bank loan and long-term debt. The company analyzes its interest risk exposure on an ongoing basis. A change in interest rate of 1% would have an insignificant impact on net earnings and comprehensive income. Short-term investments Short-term investments consist of the following: As at August 31, 2019 2018 Term deposits denominated in Indian rupees, bearing interest at annual rates of 5.0% to 6.8% in 2018 and 5.1% to 7.0% in 2019, maturing on different dates between October 2018 and August 2019 in 2018 and September 2019 and May 2020 in 2019 $ 2,548 $ 1,909 Other 370 373 $ 2,918 $ 2,282 Due to their short-term maturity, the company’s short-term investments are not subject to a significant fair value interest rate risk. Accordingly, changes in fair value have been nominal to the degree that amortized cost approximates the fair value. Any change in the fair value of the company’s short-term investments, all of which are classified as financial assets at fair value through other comprehensive income, is recorded in the consolidated statements of comprehensive income. Other financial instruments Short-term other liabilities bear interest at EURIBOR, plus a margin. Accounts receivable and accounts payable and accrued liabilities are non-interest-bearing financial assets and financial liabilities. Credit risk Financial instruments that potentially subject the company to credit risk consist of cash, short-term investments, accounts receivable, other assets and forward exchange contracts (with a positive fair value). As at August 31, 2019, the company’s short-term investments consist of debt instruments issued by high-credit-quality corporations. These debt instruments are not expected to be affected by a significant credit risk. The company’s cash and forward exchange contracts are held with or issued by high-credit-quality financial institutions; therefore, the company considers the risk of non-performance on these instruments to be limited. The company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade accounts receivable and contract assets. To measure the expected credit losses, trade accounts receivable and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade accounts receivable for the same type of contracts. The company has therefore concluded that the expected loss rates for trade accounts receivable are a reasonable approximation of the loss rates for the contract assets. The expected loss rates are based on the payment profiles of sales over a period of 60 months. The historical loss rates are adjusted to reflect current and forward-looking information on economic factors affecting the ability of the customers to settle the accounts receivable. For the years ended August 31, 2018 and 2019, no customer represented more than 10% of sales. For the year ended August 31, 2017, the company’s top customer represented 10.1% of sales. The following table summarizes the age of trade accounts receivable: As at August 31, 2019 2018 Current $ 39,054 $ 34,344 Past due, 0 to 30 days 3,529 6,011 Past due, 31 to 60 days 2,006 2,556 Past due, more than 60 days 6,928 4,362 $ 51,517 $ 47,273 Changes in the allowance for doubtful accounts are as follows: Years ended August 31, 2019 2018 Balance – Beginning of year $ 772 $ 2,960 IFRS 9 adoption initial adjustment (note 2) 303 – Addition charged to earnings 864 834 Writeoff of uncollectible accounts and reversal (404 ) (3,022 ) Balance – End of year $ 1,535 $ 772 Liquidity risk Liquidity risk is defined as the potential that the company cannot meet its obligations as they become due. The following tables summarize the contractual maturity of the company’s derivative and non-derivative financial liabilities: As at August 31, 2019 No later than one year Later than 1 year and no later than 5 years Later than 5 years Bank loan $ 5,000 $ – $ – Accounts payable and accrued liabilities 49,945 – – Forward exchange contracts Outflow 39,000 25,900 – Inflow (38,252 ) (25,585 ) – Long-term debt 2,449 3,237 56 Other liabilities 1,606 – – Total $ 59,748 $ 3,552 $ 56 As at August 31, 2018 No later than one year Later than 1 year and no later than 5 years Later than 5 years Bank loan $ 10,692 $ – $ – Accounts payable and accrued liabilities 47,308 – – Forward exchange contracts Outflow 31,000 19,400 – Inflow (30,738 ) (18,940 ) – Long-term debt 2,921 5,745 162 Other liabilities 3,197 – – Total $ 64,380 $ 6,205 $ 162 As at August 31, 2019, the company had $19,436,000 in cash and short-term investments and $54,913,000 in accounts receivable. In addition to these financial assets, the company has unused available lines of credit totaling $56,496,000 for working capital and general corporate purposes, including potential acquisitions as well as unused lines of credit totaling $21,948,000 for foreign currency exposure related to its forward exchange contracts (note 10). |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2019 | |
Inventories [Abstract] | |
Inventories | 7 Inventories As at August 31, 2019 2018 Raw materials $ 24,115 $ 24,561 Work in progress 1,009 869 Finished goods 12,893 13,159 $ 38,017 $ 38,589 The cost of sales comprised almost exclusively the amount of inventory recognized as an expense during the reporting years, and amounts to $98,503,000, $116,923,000 and $127,725,000 for the years ended August 31, 2017, 2018 and 2019 respectively, including related depreciation and amortization, which are shown separately in operating expenses (note 18). Inventory writedown amounted to $3,259,000, $2,541,000 and $3,270,000 for the years ended August 31, 2017, 2018 and 2019 respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Aug. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8 Property, Plant and Equipment Land and land improvements Buildings Equipment Leasehold improvements Total Cost as at September 1, 2017 $ 4,522 $ 31,951 $ 35,574 $ 3,048 $ 75,095 Additions 17 3,048 5,677 46 8,788 Business combinations (note 3) – – 3,105 263 3,368 Disposals – (1,413 ) (3,651 ) (175 ) (5,239 ) Foreign currency translation adjustment (180 ) (1,240 ) (1,617 ) (134 ) (3,171 ) Cost as at August 31, 2018 4,359 32,346 39,088 3,048 78,841 Additions – 1,116 3,700 164 4,980 Disposals (192 ) (3,378 ) (4,623 ) (164 ) (8,357 ) Foreign currency translation adjustment (76 ) (592 ) (1,329 ) (153 ) (2,150 ) Cost as at August 31, 2019 $ 4,091 $ 29,492 $ 36,836 $ 2,895 $ 73,314 Accumulated depreciation as at September 1, 2017 $ 1,295 $ 7,333 $ 25,207 $ 1,128 $ 34,963 Depreciation for the year 48 604 4,420 372 5,444 Disposals – (994 ) (3,440 ) (30 ) (4,464 ) Foreign currency translation adjustment (53 ) (282 ) (1,024 ) (53 ) (1,412 ) Accumulated depreciation as at August 31, 2018 1,290 6,661 25,163 1,417 34,531 Depreciation for the year 47 667 4,391 364 5,469 Disposals – (1,452 ) (3,673 ) (114 ) (5,239 ) Foreign currency translation adjustment (53 ) (120 ) (602 ) (36 ) (811 ) Accumulated depreciation as at August 31, 2019 $ 1,284 $ 5,756 $ 25,279 $ 1,631 $ 33,950 Net carrying value as at: August 31, 2018 $ 3,069 $ 25,685 $ 13,925 $ 1,631 $ 44,310 August 31, 2019 $ 2,807 $ 23,736 $ 11,557 $ 1,264 $ 39,364 As at August 31, 2018 and 2019, unpaid additions to property, plant and equipment amounted to $1,788,000 and $894,000 respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Aug. 31, 2019 | |
Intangible Assets and Goodwill [Abstract] | |
Intangible Assets and Goodwill | 9 Intangible Assets and Goodwill Intangible assets Core technology Customer relationships In-process research and development Brand name Software Total Cost as at September 1, 2017 $ 12,893 $ 1,689 $ – $ – $ 11,901 $ 26,483 Additions 89 – – – 3,049 3,138 Business combinations (note 3) 16,555 9,192 305 846 630 27,528 Disposal (60 ) – – – (2,474 ) (2,534 ) Foreign currency translation adjustment (1,419 ) (590 ) (13 ) (50 ) (446 ) (2,518 ) Cost as at August 31, 2018 28,058 10,291 292 796 12,660 52,097 Additions 363 – – – 1,719 2,082 Disposal (27 ) – (293 ) – (222 ) (542 ) Foreign currency translation adjustment (1,955 ) (618 ) 1 (46 ) (240 ) (2,858 ) Cost as at August 31, 2019 $ 26,439 $ 9,673 $ – $ 750 $ 13,917 $ 50,779 Accumulated amortization as at September 1, 2017 $ 5,130 $ 169 $ – $ – $ 10,001 $ 15,300 Amortization for the year 4,878 3,949 – 519 981 10,327 Disposal (45 ) – – – (2,462 ) (2,507 ) Foreign currency translation adjustment (353 ) (185 ) – (7 ) (344 ) (889 ) Accumulated amortization as at August 31, 2018 9,610 3,933 – 512 8,176 22,231 Amortization for the year 4,926 2,372 – 284 1,430 9,012 Disposal (19 ) – – – (219 ) (238 ) Foreign currency translation adjustment (1,080 ) (424 ) – (46 ) (330 ) (1,880 ) Accumulated amortization as at August 31, 2019 $ 13,437 $ 5,881 $ – $ 750 $ 9,057 $ 29,125 Net carrying value as at: August 31, 2018 $ 18,448 $ 6,358 $ 292 $ 284 $ 4,484 $ 29,866 August 31, 2019 $ 13,002 $ 3,792 $ – $ – $ 4,860 $ 21,654 Remaining amortization period as at August 31, 2019 4 years 2 years – – 3 years Goodwill Years ended August 31, 2019 2018 Balance – Beginning of year $ 39,892 $ 35,077 Business combinations (note 3) – 5,931 Foreign currency translation adjustment (1,244 ) (1,116 ) Balance – End of year $ 38,648 $ 39,892 In the fourth quarter of fiscal 2018 and 2019, the company performed its annual goodwill impairment test for all CGUs. Goodwill has been allocated to the lowest level within the company at which it is monitored by management to make business decisions, which are the following CGUs: As at August 31, 2019 2018 EXFO CGU $ 12,949 $ 13,185 EXFO Optics CGU (note 3) 3,376 3,562 Service assurance, systems and services CGU 22,323 – Brix CGU – 13,327 Ontology CGU (note 3) – 7,471 EXFO Solutions CGU (note 3) – 2,347 Total $ 38,648 $ 39,892 Prior to fiscal 2019, the Brix, Ontology and EXFO Solutions CGUs have been identified as three separate CGUs for goodwill impairment testing as they represented the lowest level at which the goodwill was monitored for internal management purposes, and the smallest group of assets that generated cash inflows that were largely independent of the cash inflows from other CGUs. However, at the end of August 2018, management implemented a restructuring plan to fast-track the integration of newly acquired EXFO Solutions’ and Ontology’s technologies with those of the company’s service assurance on a common monitoring and analytics platform to better position the company’s offering and reduce its costs (note 4). Consequently, starting September 1, 2018, following the announcement of this plan, all future operating and investing decisions related to these three CGUs have been aligned with the restructuring plan and related goodwill, previously allocated to each of these three CGUs, has been monitored for internal management purposes on a combined basis under the Service assurance, systems and services (SASS) CGU, which represented the smallest group of assets that would generate future cash inflows that would largely be independent of the cash inflows from the other CGUs. In fiscal 2018, the goodwill impairment test had been performed closely to the date of the goodwill reallocation from the Brix, Ontology and EXFO Solutions’ CGUs to the SASS CGU, and the goodwill of each of the three CGUs was not impaired. Consequently, no goodwill impairment test was performed on the date of goodwill reallocation to the combined CGU. In performing the fiscal 2019 goodwill impairment review of its CGUs, the company determined the recoverable amount of goodwill based on fair value less costs of disposal. In estimating the recoverable amount of its CGUs, the company used a market approach, which is based on sales multiples within the range of 1.0 to 7.6 times sales for comparable businesses with similar operations within the same industry over the past year. The company applied judgment in making certain adjustments for factors such as size, risk profile or profitability of the comparable businesses, when compared to the company’s CGUs. In addition, for the SASS CGU, the company also used a liquidation approach based on the level of research and development expenses incurred over the last two years. As at August 31, 2019, the recoverable amount for all CGUs exceeded their carrying value. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Aug. 31, 2019 | |
Credit Facilities [Abstract] | |
Credit Facilities | 10 Credit Facilities The company has revolving credit facilities of up to CA$70,000,000 (US$52,655,000) and US$9,000,000. These credit facilities are used to finance working capital and for other general corporate purposes. The Canadian dollar revolving credit facility bears interest at the Canadian prime rate or LIBOR, plus a margin, and the US dollar revolving credit facility bears interest at the US prime rate or LIBOR plus a margin. These revolving credit facilities are secured by a movable mortgage over the universality of the company’s Canadian movable assets, present and future, as well as over the universality of movable assets, present and future, of certain US and UK subsidiaries. The company is subject to covenants under this credit facility that were met as at August 31, 2019. As at August 31, 2019, an amount of $5,433,000 was drawn from these credit facilities for the bank loan of $5,000,000 and letters of guarantee of $433,000. The company also has credit facilities of up to €500,000 (US$552,000) for which an amount of €251,000 (US$277,000) was drawn from these lines of credit for letters of guarantee. These credit facilities are unsecured and bear interest at EURIBOR, plus a margin. In addition, the company has lines of credit totaling $26,179,000 for the foreign currency risk exposure related to its US dollar – Canadian dollar forward exchange contracts (note 6). As at August 31, 2019, an amount of $5,818,000 was reserved from these lines of credit. Finally, the company has a line of credit of INR128,571,000 (US$1,800,000) for the foreign currency risk exposure related to its US dollar – Indian rupee forward exchange contracts (note 6). As at August 31, 2019, an amount of INR15,214,000 (US$213,000) was reserved from this line of credit. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities and Provisions | 12 Months Ended |
Aug. 31, 2019 | |
Accounts Payable and Accrued Liabilities and Provisions [Abstract] | |
Accounts Payable and Accrued Liabilities and Provisions | 11 Accounts Payable and Accrued Liabilities and Provisions Accounts payable and accrued liabilities As at August 31, 2019 2018 Trade $ 27,996 $ 26,052 Salaries and social benefits 19,716 18,101 Forward exchange contracts (note 6) 845 590 Other 2,233 3,155 $ 50,790 $ 47,898 Provisions As at August 31, 2019 2018 Warranty $ 356 $ 417 Restructuring charges (note 4) 1,133 3,167 Other 2,313 1,717 $ 3,802 $ 5,301 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Aug. 31, 2019 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 12 Long-Term Debt As part of the acquisitions of EXFO Optics and EXFO Solutions, the company assumed long-term debt (note 3). As at August 31, 2019 2018 Unsecured, non-interest-bearing loans, denominated in euros, repayable in quarterly instalments, maturing in March 2024 and March 2025 $ 866 $ 883 Unsecured loans, denominated in euros, repayable in monthly, quarterly or bi‑annual instalments, bearing interest at annual rates of nil to 5.0%, maturing at different dates between December 2018 and September 2023 in 2018 and March 2020 and September 2023 in 2019 3,111 4,853 Loans, secured by the universality of the assets of a subsidiary, denominated in euros, repayable in monthly instalments, bearing interest at annual rates of 0.7% to 2.0%, maturing at different dates between December 2018 and August 2022 in 2018 and April 2020 and August 2022 in 2019 459 828 Loans, secured by the universality of the assets of a subsidiary, denominated in euros, repayable in monthly or quarterly instalments, bearing interest at annual rates of 1.1% to 2.9%, maturing at different dates between March 2020 and July 2022 1,306 2,264 5,742 8,828 Current portion of long-term debt 2,449 2,921 $ 3,293 $ 5,907 The company is subject to certain covenants under its long-term debt that were met as at August 31, 2019. Principal repayments of long-term debt over the forthcoming years are as follows as at August 31, 2019: No later than one year $ 2,449 Later than one year and no later than five years 3,237 Later than five years 56 $ 5,742 |
Commitments
Commitments | 12 Months Ended |
Aug. 31, 2019 | |
Commitments [Abstract] | |
Commitments | 13 Commitments The company entered into operating leases for certain of its premises and equipment, which expire at various dates through 2024. Minimum rentals payable under operating leases are as follows: As at August 31, 2019 2018 No later than 1 year $ 2,895 $ 3,365 Later than 1 year and no later than 5 years 6,323 9,519 Later than 5 years 23 502 $ 9,241 $ 13,386 For the years ended August 31, 2017, 2018 and 2019, rental expenses under operating leases amounted to $2,945,000, $ ,000 and $4,026,000 respectively. The company also entered into license agreements for certain intellectual property which expire at various dates through 2022: As at August 31, 2019 2018 No later than 1 year $ 2,289 $ 1,492 Later than 1 year and no later than 5 years 2,444 1,982 $ 4,733 $ 3,474 |
Share Capital
Share Capital | 12 Months Ended |
Aug. 31, 2019 | |
Share Capital [Abstract] | |
Share Capital | 14 Share Capital Authorized – unlimited as to number, without par value Subordinate voting and participating, bearing a non-cumulative dividend to be determined by the Board of Directors, ranking pari passu Multiple voting and participating, entitling to 10 votes each, bearing a non-cumulative dividend to be determined by the Board of Directors, convertible at the holder’s option into subordinate voting shares on a one-for-one basis, ranking pari passu Authorized – unlimited as to number, without par value Subordinate voting and participating, bearing a non-cumulative dividend to be determined by the Board of Directors, ranking pari passu Multiple voting and participating, entitling to 10 votes each, bearing a non-cumulative dividend to be determined by the Board of Directors, convertible at the holder’s option into subordinate voting shares on a one-for-one basis, ranking pari passu The following table summarizes the company’s share capital activity: Multiple Voting Shares Subordinate Voting Shares Number Amount Number Amount Total amount Balance as at September 1, 2016 31,643,000 $ 1 21,917,942 $ 85,515 $ 85,516 Issuance of share capital – – 793,070 3,490 3,490 Redemption of restricted share units (note 16) – – 327,859 – – Redemption of deferred share units (note 16) – – 29,906 – – Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,405 1,405 Balance as at August 31, 2017 31,643,000 1 23,068,777 90,410 90,411 Redemption of restricted share units (note 16) – – 345,883 – – Redemption of deferred share units (note 16) – – 58,335 – – Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,526 1,526 Balance as at August 31, 2018 31,643,000 1 23,472,995 91,936 91,937 Redemption of restricted share units (note 16) – – 317,072 – – Redemption of share capital – – (86,392 ) (337 ) (337 ) Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,106 1,106 Balance as at August 31, 2019 31,643,000 $ 1 23,703,675 $ 92,705 $ 92,706 a) On January 8, 2019, the company announced that its Board of Directors had approved a share repurchase program, by way of a normal course issued bid on the open market of up to 6.3% of the issued and outstanding subordinate voting shares, representing 1,200,000 subordinate voting shares at the prevailing market price. The normal course issuer bid started on January 14, 2019 and will end on January 13, 2020 or earlier if the company repurchases the maximum number of shares permitted. All shares repurchased under the bid will be cancelled. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Aug. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 15 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss are as follows: Foreign currency translation adjustment Cash-flow hedge Accumulated other comprehensive loss Balance as at September 1, 2016 $ (49,136 ) $ 562 $ (48,574 ) Foreign currency translation adjustment 8,262 – 8,262 Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes – 1,347 1,347 Balance as at August 31, 2017 (40,874 ) 1,909 (38,965 ) Foreign currency translation adjustment (6,491 ) – (6,491 ) Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes – (1,894 ) (1,894 ) Balance as at August 31, 2018 (47,365 ) 15 (47,350 ) Foreign currency translation adjustment (4,177 ) – (4,177 ) Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes – 16 16 Balance as at August 31, 2019 $ (51,542 ) $ 31 $ (51,511 ) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Aug. 31, 2019 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 16 Stock-Based Compensation Plans The following table summarizes the stock-based compensation costs recognized for employee services received during the years ended August 31, 2017, 2018 and 2019: Years ended August 31, 2019 2018 2017 Stock-based compensation costs arising from equity-settled awards $ 1,849 $ 1,770 $ 1,439 Stock-based compensation costs arising from cash-settled awards (18 ) (22 ) 38 $ 1,831 $ 1,748 $ 1,477 The maximum number of additional subordinate voting shares issuable under the Long-Term Incentive Plan and the Deferred Share Unit Plan cannot exceed 11,792,893 shares. The maximum number of subordinate voting shares that may be granted to any individual on an annual basis cannot exceed 5% of the number of outstanding subordinate voting shares. The company settles equity-settled awards through the issuance of common shares from treasury. Long-Term Incentive Plan The company established the Long-Term Incentive Plan for its directors, executive officers and employees and those of its subsidiaries, as determined by the Board of Directors. Up to January 2019, the plan included stock options and restricted share units. On January 2019, the plan was amended to include performance share units. The plan was approved by the shareholders of the company. Stock options The exercise price of stock options granted under the Long-Term Incentive Plan is the market price of the common shares on the date of grant. Stock options granted under the plan expire 10 years from the date of grant and generally vest over a four-year period, being the required period of service from employees, generally with 25% vesting on an annual basis commencing on the first anniversary of the date of grant. As at August 31, 2018 and 2019, the company had no outstanding or exercisable stock options. Restricted share units (RSUs) RSUs are stock awards that rise and fall in value based on the market price of the company’s subordinate voting shares and are redeemable for actual subordinate voting shares. Vesting dates are also established by the Board of Directors on the date of grant. The vesting dates are subject to a minimum term of three years and a maximum term of 10 years from the award date, being the required period of service from employees. Fair value of RSUs equals the market price of the common shares on the date of grant. The following table summarizes RSU activity for the years ended August 31, 2017, 2018 and 2019: Years ended August 31, 2019 2018 2017 Outstanding – Beginning of year 1,615,152 1,611,330 1,551,555 Granted 632,931 420,621 527,143 Redeemed (317,072 ) (345,883 ) (327,859 ) Forfeited (94,565 ) (70,916 ) (139,509 ) Outstanding – End of year 1,836,446 1,615,152 1,611,330 None of the RSUs outstanding as at August 31, 2018 and 2019 were redeemable. The weighted average grant-date fair value of RSUs granted during the years ended August 31, 2017, 2018 and 2019 amounted to $4.54, $4.22 and $3.30 respectively. The weighted-average market price of the shares at the date of redemption of RSUs redeemed during the years ended August 31, 2017, 2018 and 2019, was $4.55, $4.19 and $3.20 respectively. Performance share units (PSUs) PSUs are stock awards that rise and fall in value based on the market price of the company’s subordinate voting shares and are redeemable for actual subordinate voting shares. Vesting dates are also established by the Board of Directors on the date of grant. The vesting dates are subject to a minimum term of three years and a maximum term of 10 years from the award date, being the required period of service from employees. Fair value of PSUs equals the market price of the common shares on the date of grant. The ultimate number of PSUs to be granted is subject to the attainment of targets on the vesting date. As at August 31, 2019, the company had no outstanding PSUs. Deferred Share Unit Plan The company established a Deferred Share Unit (DSU) Plan for the members of the Board of Directors as part of their annual retainer fees. Each DSU entitles the Board members to receive one subordinate voting share. DSUs are acquired on the date of grant and are redeemed in subordinate voting shares when the Board member ceases to be a director of the company. This plan was approved by the shareholders of the company. The following table summarizes DSU activity for the years ended August 31, 2017, 2018 and 2019: Years ended August 31, 2019 2018 2017 Outstanding – Beginning of year 181,689 174,279 159,127 Granted 69,818 65,745 45,058 Redeemed – (58,335 ) (29,906 ) Outstanding – End of year 251,507 181,689 174,279 As at August 31, 2017, 2018 and 2019, none of the DSUs outstanding were redeemable. The weighted average grant-date fair value of DSUs granted during the years ended August 31, 2017, 2018 and 2019 amounted to $4.53, $4.10 and $3.64 respectively. The weighted-average market price of the shares at the date of redemption of DSUs redeemed during the years ended August 31, 2017 and 2018 was $5.02 and $4.29 respectively. Stock Appreciation Rights Plan The company established the Stock Appreciation Rights Plan for certain employees. Under that plan, eligible employees are entitled to receive a cash amount equivalent to the difference between the market price of the common shares on the date of exercise and the exercise price determined on the date of grant. Stock appreciation rights granted under the plan expire 10 years from the date of grant and generally vest over a four-year period, being the required period of service from employees. This plan was approved by the shareholders of the company. The liability arising from stock appreciation rights as at August 31, 2018 and 2019 amounted to $93,000 and $77,000 respectively and is recorded in accounts payable and accrued liabilities in the consolidated balance sheets. Stock appreciation rights are immaterial to the company’s consolidated financial statements. |
Related-Party Disclosures
Related-Party Disclosures | 12 Months Ended |
Aug. 31, 2019 | |
Related-Party Disclosures [Abstract] | |
Related-Party Disclosures | 17 Related-Party Disclosures Ultimate controlling shareholder Mr. Germain Lamonde, the company’s Executive Chairman, is the company’s ultimate controlling shareholder. Compensation of key management personnel Years ended August 31, 2019 2018 2017 Salaries and short-term employee benefits $ 4,029 $ 3,985 $ 3,715 Stock-based compensation costs 1,175 1,047 775 $ 5,204 $ 5,032 $ 4,490 |
Statements of Earnings
Statements of Earnings | 12 Months Ended |
Aug. 31, 2019 | |
Statements of Earnings [Abstract] | |
Statements of Earnings | 18 Statements of Earnings Sales Sales are as follows: Years ended August 31, 2019 2018 2017 Test and measurement $ 204,693 $ 197,423 $ 193,863 Service assurance, systems and services 82,788 71,248 49,906 Foreign exchange gains (losses) on forward exchange contracts (591 ) 875 (468 ) Total sales for the year $ 286,890 $ 269,546 $ 243,301 Net research and development Net research and development expenses comprise the following: Years ended August 31, 2019 2018 2017 Gross research and development expenses $ 57,972 $ 65,243 $ 53,124 Research and development tax credits and grants (7,419 ) (8,089 ) (5,956 ) Net research and development expenses for the year $ 50,553 $ 57,154 $ 47,168 Depreciation and amortization Depreciation and amortization expenses by functional area are as follows: Years ended August 31, 2019 2018 2017 Cost of sales Depreciation of property, plant and equipment $ 1,862 $ 2,077 $ 1,522 Amortization of intangible assets 7,186 9,212 2,652 9,048 11,289 4,174 Selling and administrative expenses Depreciation of property, plant and equipment 1,354 902 530 Amortization of intangible assets 1,043 592 251 2,397 1,494 781 Net research and development expenses Depreciation of property, plant and equipment 2,253 2,465 1,850 Amortization of intangible assets 783 523 386 3,036 2,988 2,236 $ 14,481 $ 15,771 $ 7,191 Depreciation of property, plant and equipment $ 5,469 $ 5,444 $ 3,902 Amortization of intangible assets 9,012 10,327 3,289 Total depreciation and amortization expenses for the year $ 14,481 $ 15,771 $ 7,191 Employee compensation Employee compensation comprises the following: Years ended August 31, 2019 2018 2017 Salaries and benefits $ 136,059 $ 134,453 $ 115,832 Restructuring charges 3,305 2,072 3,509 Stock-based compensation costs 1,831 1,748 1,414 Total employee compensation for the year $ 141,195 $ 138,273 $ 120,755 Restructuring charges by functional area are as follows: Years ended August 31, 2019 2018 2017 Cost of sales $ 304 $ 517 $ 1,697 Selling and administrative expenses 495 673 1,150 Net research and development costs 2,506 3,219 2,232 Interest and other expense – 150 – Income taxes (63 ) (1,150 ) – Total restructuring charges for the year $ 3,242 $ 3,409 $ 5,079 Stock-based compensation costs by functional area are as follows: Years ended August 31, 2019 2018 2017 Cost of sales $ 136 $ 143 $ 121 Selling and administrative expenses 1,375 1,217 1,052 Net research and development expenses 320 388 304 Total stock-based compensation costs for the year $ 1,831 $ 1,748 $ 1,477 |
Other Disclosures
Other Disclosures | 12 Months Ended |
Aug. 31, 2019 | |
Other Disclosures [Abstract] | |
Other Disclosures | 19 Other Disclosures Other assets As at August 31, 2018 and 2019, the carrying value of contract assets amounted to $2,279,000 and $3,083,000 respectively and were presented in other current assets in the consolidated balance sheets. Contract assets represent unbilled work in progress. Deferred revenue As at August 31, 2019, the company had total deferred revenue of $33,478,000, which represents the aggregate total contract price allocated to undelivered performance obligations. The company expects to recognize $24,422,000 of this amount during the next 12 months and expects to recognize the remaining $9,056,000 thereafter. The company expects that the amount of deferred revenue will change from quarter to quarter for several reasons, including the specific timing, duration and size of large customer support and service agreements, varying billing cycles of such agreements, the specific timing of customer renewals, and foreign currency fluctuations. The company did not have any significant financing components, variable consideration or performance obligations satisfied in a prior period recognized during the year ended August 31, 2019. During the year ended August 31, 2019, sales include an amount of $16,556,000 that was included in the carrying value of deferred revenue as at August 31, 2018. Defined contribution pension plans The company maintains separate defined contribution pension plans for certain eligible employees. These plans, which are accounted for on an accrual basis, are summarized as follows: • Canadian defined contribution pension plan The company maintains a plan for certain eligible employees residing in Canada, under which the company may elect to match the employees’ contributions up to a maximum of 4% of an employee’s gross salary. Cash contributions to this plan and expenses for the years ended August 31, 2017, 2018 and 2019, amounted to $1,571,000, $1,610,000 and $1,592,000 respectively. • US defined contribution pension plan (401K plan) The company maintains a 401K plan for eligible employees residing in the U.S. Under this plan, the company must contribute an amount equal to 3% of an employee’s current compensation. In addition, eligible employees may contribute up to the lesser of 1% of eligible compensation or the statutorily prescribed annual limit to the 401K plan. The 401K plan permits but does not require the company to make additional matching contributions to the 401K plan on behalf of the eligible participants, subject to a maximum of 50% of the first 6% of the participant’s current compensation subject to certain legislated maximum contribution limits. During the years ended August 31, 2017, 2018 and 2019, the company recorded cash contributions and expenses totaling $630,000, $591,000 and $460,000 respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 20 Income Taxes The reconciliation of the income tax provision (recovery) calculated using the combined Canadian federal and provincial statutory income tax rate with the income tax provision in the consolidated financial statements is as follows: Years ended August 31, 2019 2018 2017 Income tax provision (recovery) at combined Canadian federal and provincial statutory tax rate ( 27 $ 774 $ (1,775 ) $ 2,014 Increase (decrease) due to: Foreign income/loss taxed at different rates 13 452 (900 ) Non-deductible loss (non-taxable income) 10 (69 ) (245 ) Non-deductible expenses 594 1,285 981 Change in tax rates – 167 (10 ) Effect of the US tax reform (1) – 1,528 – Foreign exchange effect of translation of foreign subsidiaries in the functional currency 63 (16 ) 176 Recognition of previously unrecognized deferred income tax assets (note 4) (2,383 ) (560 ) – Utilization of previously unrecognized deferred income tax assets (964 ) (627 ) (46 ) Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses 5,761 6,100 4,659 Other 1,478 (807 ) (21 ) Income tax provision for the year $ 5,346 $ 5,678 $ 6,608 (1) On December 22, 2017, the US tax reform (“Tax Cuts and Jobs Act”) was substantively enacted and reduces the maximum corporate income tax rate from 35% to 21%, effective January 1, 2018. Based on management’s estimate of deferred tax assets expected to be used in fiscal 2018 and beyond against taxable income in the United States, the company recorded a deferred income tax expense of $1,528,000 in the consolidated statement of earnings for the year ended August 31, 2018 to account for the effect of this substantively enacted tax rate. Years ended August 31, 2019 2018 2017 The income tax provision consists of the following: Current Current income taxes $ 7,449 $ 4,310 $ 5,554 Deferred Deferred income taxes relating to the origination and reversal of temporary differences (4,517 ) (3,545 ) (3,559 ) Benefit arising from previously unrecognized tax losses and deductible temporary differences (2,383 ) (560 ) – Utilization of previously unrecognized deferred income tax assets (964 ) (627 ) (46 ) (7,864 ) (4,732 ) (3,605 ) Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses 5,761 6,100 4,659 (2,103 ) 1,368 1,054 Income tax provision for the year $ 5,346 $ 5,678 $ 6,608 The changes in deferred income tax assets and liabilities for the year ended August 31, 2018 are as follows: Balance Credited Credited Business Foreign Balance Deferred income tax assets Long-lived assets $ 1,802 $ 200 $ – $ – $ (77 ) $ 1,925 Provisions and accruals 3,772 (250 ) 554 – (113 ) 3,963 Deferred revenue 2,890 (101 ) – – (73 ) 2,716 Research and development expenses 2,731 (101 ) – – (106 ) 2,524 Losses carried forward 4,241 (2,633 ) – 3,687 (222 ) 5,073 Deferred income tax liabilities Long-lived assets (1,002 ) 1,903 – (7,889 ) 527 (6,461 ) Research and development tax credits (10,995 ) (386 ) – – 445 (10,936 ) Total $ 3,439 $ (1,368 ) $ 554 $ (4,202 ) $ 381 $ (1,196 ) Classified as follows: Deferred income tax assets $ 6,555 $ 4,714 Deferred income tax liabilities (3,116 ) (5,910 ) $ 3,439 $ (1,196 ) The changes in deferred income tax assets and liabilities for the year ended August 31, 2019 are as follows: Balance Credited Credited Foreign Balance Deferred income tax assets Long-lived assets $ 1,925 $ 2,695 $ – $ (52 ) $ 4,568 Provisions and accruals 3,963 446 67 15 4,491 Deferred revenue 2,716 490 – (36 ) 3,170 Research and development expenses 2,524 (149 ) – (45 ) 2,330 Losses carried forward 5,073 (2,751 ) – (176 ) 2,146 Deferred income tax liabilities Long-lived assets (6,461 ) 1,710 – 345 (4,406 ) Research and development tax credits (10,936 ) (338 ) – 198 (11,076 ) Total $ (1,196 ) $ 2,103 $ 67 $ 249 $ 1,223 Classified as follows: Deferred income tax assets $ 4,714 $ 4,821 Deferred income tax liabilities (5,910 ) (3,598 ) $ (1,196 ) $ 1,223 Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses are as follows: As at August 31, 2019 2018 Temporary deductible differences $ 241 $ 1,435 Losses carried forward 39,721 42,361 $ 39,962 $ 43,796 As at August 31, 2019, the year of expiry of operating losses for which no deferred income tax assets were recognized in the consolidated balance sheet are as follows, presented by tax jurisdiction: Year of expiry Finland France Spain United States United Kingdom 2020 $ 3,397 $ – $ – $ – $ – 2021 6,345 – – 1,958 – 2022 11,001 – – 7,435 – 2023 7,127 – – 1,972 – 2024 5,502 – – 1,351 – 2025 6,859 – – 1,351 – 2026 235 – – 1,351 – 2027 1,425 – – 1,351 – 2028 – – – 2,447 – 2030 – – – 2,713 – 2031 – – – 109 – 2033 – – – 4,681 – 2034 – – – 4,851 – 2035 – – – 2,616 – 2036 – – – 8,501 – 2037 – – – 9,660 – 2038 – – – 7,997 – Indefinite – 35,839 6,100 – 4,461 $ 41,891 $ 35,839 $ 6,100 $ 60,344 $ 4,461 Furthermore, as at August 31, 2019, the company had available capital losses in Canada amounting to $49,363,000 (CA$65,622,000) at the federal level and $52,545,000 (CA$69,853,000) at the provincial level for which no deferred income tax assets were recognized. These losses can be carried forward indefinitely against capital gains. As at August 31, 2019, non-refundable research and development tax credits recognized in the consolidated balance sheet amounted to $ ,000. In order to recover these non-refundable research and development tax credits, the company needs to generate approximately $ ,000,000 (CA$ ,000,000) in pre-tax earnings at the Canadian federal level. In order to generate $ ,000,000 in pre-tax earnings at the Canadian federal level over the estimated recovery period of years, the company must generate a 1 As at August 31, 2019, no income taxes were recognized on taxable temporary differences of $23,111, 000; such (1) Undistributed profits of its foreign subsidiaries will not be distributed in the foreseeable future; and (2) Undistributed profits of its domestic subsidiaries will not be taxable when distributed. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Aug. 31, 2019 | |
Earnings per Share [Abstract] | |
Earnings per Share | 21 Earnings per Share The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding: Years ended August 31, 2019 2018 2017 Basic weighted average number of shares outstanding (000’s) 55,325 54,998 54,423 Plus dilutive effect of (000’s): Restricted share units – – 979 Deferred share units – – 153 Diluted weighted average number of shares outstanding (000’s) 55,325 54,998 55,555 Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares, or their inclusion would be antidilutive (000’s) 1,701 1,799 – For the years ended August 31, 2018 and 2019, the diluted amount per share was the same amount as the basic amount per share since the dilutive effect of restricted share units and deferred share units was not included in the calculation; otherwise, the effect would have been antidilutive. Accordingly, the diluted amount per share for these periods was calculated using the basic weighted average number of shares outstanding. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | 22 Segment Information Sales to external customers by geographic region are detailed as follows: Years ended August 31, 2019 2018 2017 United States $ 106,607 $ 100,225 $ 97,186 Canada 15,913 18,425 22,586 Other 21,391 16,743 14,951 Americas 143,911 135,393 134,723 United Kingdom 16,438 17,508 11,799 Other 76,285 67,169 50,302 Europe, Middle East and Africa 92,723 84,677 62,101 China 27,620 20,724 22,312 Other 22,636 28,752 24,165 Asia-Pacific 50,256 49,476 46,477 $ 286,890 $ 269,546 $ 243,301 Sales were allocated to geographic regions based on the country of residence of the related customers. Long-lived assets by geographic region are detailed as follows: As at August 31, 2019 As at August 31, 2018 Property, plant and equipment Intangible assets Goodwill Property, plant and equipment Intangible assets Goodwill Canada $ 29,517 $ 5,675 $ 17,487 $ 32,107 $ 5,668 $ 4,481 United States 7 – – 1,677 435 13,327 Finland 331 446 8,547 473 380 8,704 France 1,896 12,788 5,600 2,401 19,330 5,909 United Kingdom 640 2,706 7,014 755 4,005 7,471 India 4,249 23 – 4,021 28 – China 2,667 16 – 2,822 20 – Other 57 – – 54 – – $ 39,364 $ 21,654 $ 38,648 $ 44,310 $ 29,866 $ 39,892 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Aug. 31, 2019 | |
Basis of Presentation [Abstract] | |
IFRS Pronouncements Adopted in Fiscal 2019 | IFRS Pronouncements Adopted in Fiscal 2019 Financial instruments The final version of IFRS 9, “ Financial Instruments Financial Instruments: Recognition and Measurement As reported as at August 31, 2018 Adjustments As adjusted as at September 1, 2018 Accounts receivable – Trade (note 6) $ 47,273 $ (303 ) $ 46,970 Income taxes recoverable $ 4,790 $ 50 $ 4,840 Total assets $ 284,544 $ (253 ) $ 284,291 Retained earnings $ 114,906 $ (253 ) $ 114,653 Shareholders’ equity $ 177,921 $ (253 ) $ 177,668 In addition, the company’s consolidated financial instruments are accounted for as follows under IFRS 9 as compared to the company’s previous accounting policy with IAS 39: Financial assets Classification – IAS 39 Classification – IFRS 9 Cash Loans and receivables Amortized cost Short-term investments Available for sale Fair value through other comprehensive income Accounts receivable Loans and receivables Amortized cost Forward exchange contracts Derivatives used for hedging Fair value through other comprehensive income Financial liabilities Bank loan Other financial liabilities Amortized cost Accounts payable and accrued liabilities Other financial liabilities Amortized cost Other liabilities Other financial liabilities Amortized cost Long-term debt Other financial liabilities Amortized cost Forward exchange contracts Derivatives used for hedging Fair value through other comprehensive income Hedge accounting All existing hedge relationships that were designated as effective hedging relationships under IAS 39 were re-designated, and continue to qualify for hedge accounting under IFRS 9. The adoption of IFRS 9 did not change the application of hedge accounting for the company’s effective hedges. Revenue from contracts with customers IFRS 15, “ Revenue from Contracts with Customers The company concluded that the main areas of impact relate to the allocation of the transaction price to the various performance obligations under the contracts, the timing of revenue recognition for sales arrangement that contain customer acceptance clauses, and the sale of licenses that provide customers with the “right to use” the company’s intellectual property. The adoption of the new standard had no material impact on the company’s consolidated financial statements. Foreign currency transactions and advance consideration IFRIC 22, “ Foreign Currency Transactions and Advance Consideration |
Basis of measurement | Basis of measurement These consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of derivative financial instruments, short-term investments and the contingent liability. |
Consolidation | Consolidation These consolidated financial statements include the accounts of the company and its domestic and foreign subsidiaries. Intercompany accounts and transactions have been eliminated. |
Revenue recognition under IFRS 15 | Revenue recognition under IFRS 15 The company exercises judgment and use estimates in connection with determining the amounts of product and services revenues to be recognized in each accounting period. The company accounts for revenue once a legally enforceable contract with a customer has been approved by the parties and the related promises to transfer products or services have been identified. A contract is defined by the company as an arrangement with commercial substance identifying payment terms, each party’s rights and obligations regarding the products or services to be transferred and collection is probable. The company’s contracts usually take the form of a customer purchase order. Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one single performance obligation may require significant judgment. The company derives revenues from goods and services. Sales of goods, consist of standalone hardware products, hardware products with embedded software that are essential to providing customers the intended functionality of the solutions, standalone software licenses, as well as hardware products bundled with a software license. Sales of services mainly consist of professional services, consulting, stand-ready software-as-a-service (SAAS), maintenance contracts, extended warranties, installation, integration and training. The company’s performance obligations consist of a variety of products and services. Revenue is recognized when control of the products or services are transferred to the customers in an amount that reflects the consideration the company expects to be entitled to in exchange for products and services. Revenue from software and hardware support is recognized ratably over the support period. Support services generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates, bug fixes and hardware repair and replacement. SAAS services are recognized ratably over the contract term. If the contract contains a single performance obligation, the entire transaction price is attributed to that performance obligation. Some of the company’s contracts include multiple distinct performance obligations with a combination of products and services, maintenance and support, professional services and/or training. The company allocates the transaction price among the performance obligations in an amount that depicts the relative standalone selling prices (SSP) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. The company assesses SSP based on historical pricing for products and services, whether sold alone or as part of a multiple element transaction. The company reviews sales of the product and services elements on a regular basis and updates, when appropriate, its SSP for such elements to ensure that it reflects recent pricing experience. Payments for products and services are typically due up front with payment terms of 30 to 90 days. However, the company has contracts pursuant to which payments are due over a certain period generally not exceeding one year based on agreed-upon payments terms either prior or following the transfer of control for the contracted performance obligations. Payments on multi-year maintenance, consulting services are typically due in annual, quarterly or monthly installments over the contract term. The company did not have any material variable consideration such as obligations for returns, refunds or warranties as at August 31, 2019. |
Presentation currency | Presentation currency The functional currency of the company is the Canadian dollar. The company has adopted the US dollar as its presentation currency as it is the most commonly used reporting currency in its industry. The consolidated financial statements are translated into the presentation currency as follows: assets and liabilities are translated at the exchange rate in effect on the date of the consolidated balance sheet; revenues and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive income in shareholders’ equity. |
Foreign currency translation | Foreign currency translation (a) Foreign currency transactions Transactions denominated in currencies other than the functional currency are translated into the relevant functional currency as follows: Monetary assets and liabilities are translated at the exchange rate in effect on the date of the consolidated balance sheet, and revenues and expenses are translated at the exchange rate in effect on the date of the transaction. Non-monetary assets and liabilities measured at historical cost and denominated in a foreign currency are translated using the exchange rate at the date of the transaction, whereas non-monetary items that are measured at fair value and denominated in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Foreign exchange gains and losses arising from such translation are included in the consolidated statements of earnings. (b) Foreign operations Each foreign operation determines its own functional currency and items included in the financial statements of each foreign operation are measured using that functional currency. The financial statements of each foreign operation that has a functional currency different from the company are translated into Canadian dollars as follows: assets and liabilities are translated at the exchange rate in effect on the date of the consolidated balance sheet; revenues and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive income in shareholders’ equity. |
Financial instruments | Financial instruments The classification of financial instruments depends on the intended purpose when the financial instruments were acquired or issued, as well as on their characteristics and designation by the company. Financial assets at amortized cost Financial assets are measured at amortized cost if they are held within a business model whose objective is to hold assets to collect contractual cash flows, and their contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Otherwise, they are classified at fair value through profit or loss through other comprehensive income. Financial liabilities at amortized cost Financial liabilities are measured at amortized cost. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income are initially recognized at fair value plus transaction costs and are subsequently measured at fair value. After their initial recognition, any changes in their fair value are reflected in the consolidated statements of comprehensive income. |
Derivative financial instruments and hedging activities | Derivative financial instruments and hedging activities Forward exchange contracts are utilized by the company to manage its foreign currency exposure. Forward exchange contracts are entered into by the company to hedge anticipated US-dollar-denominated sales and the related accounts receivable as well as Indian-rupee-denominated operating expenses and the related accounts payable. The company’s policy is not to utilize those derivative financial instruments for trading or speculative purposes. The company’s forward exchange contracts, which are designated as cash flow hedging instruments, qualify for hedge accounting. Forward exchange contracts are classified as financial instruments at fair value through other comprehensive income. They are initially recorded at fair value and subsequently measured at fair value. The fair value of forward exchange contracts is determined using observable prices and forward exchange rates at the consolidated balance sheet date, with the resulting value discounted back to present value. After initial recognition, the effective portion of changes in their fair value is reflected in other comprehensive income. Any ineffective portion is recognized immediately in the consolidated statements of earnings. Upon recognition of related hedged sales and operating expenses, accumulated changes in fair value of forward exchange contracts are respectively reclassified in sales and net research and development expenses in the consolidated statements of earnings. At the inception of a hedge relationship, the company formally designates and documents the hedge relationship to which the company wishes to apply hedge accounting, the risk management objectives, the hedging instrument, the hedged item and the method used to test effectiveness. The company assesses effectiveness of the hedge relationship at inception and on an ongoing basis using the dollar-offset method. |
Fair value hierarchy | Fair value hierarchy The company classifies its derivative and non-derivative financial assets and financial liabilities measured at fair value using the fair value hierarchy as follows: Level 1: Quoted prices (unadjusted) in an active market for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset and liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. The company’s short-term investments and forward exchange contracts are measured at fair value at each balance sheet date. The company’s short-term investments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The company’s forward exchange contracts are classified within Level 2 of the fair value hierarchy because they are valued using observable prices and forward foreign exchange rates at the balance sheet dates. |
Short-term investments | Short-term investments All investments with original terms to maturity of three months or less and that are not required for the purposes of meeting short-term cash requirements are classified as short-term investments. |
Inventories | Inventories Inventories are valued on an average cost basis, at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. The cost of work in progress and finished goods includes material, labor and an allocation of manufacturing overhead. |
Property, plant and equipment and depreciation | Property, plant and equipment and depreciation Property, plant and equipment are recorded at cost, net of accumulated depreciation and accumulated impairment losses. Such cost is reduced by related research and development tax credits. Depreciation is provided on a straight-line basis over the estimated useful lives of the asset as follows: Term Land improvements 15 years Buildings 20 to 60 years Equipment 3 to 15 years Leasehold improvements The lesser of useful life and remaining lease term The assets’ residual values and useful lives are reviewed at each financial year-end and are adjusted prospectively, if appropriate. |
Intangible assets, goodwill and amortization | Intangible assets, goodwill and amortization Intangible assets Intangible assets with finite useful lives primarily include the cost of core technology, customer relationships and software. The cost of intangible assets acquired in a business combination is the fair value of the assets at the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is provided on a straight-line basis over the estimated useful lives of two to eight years for core technologies, three months to five years for customer relationships, one year for brand name, and two and eight years for software. None of the company’s intangible assets were developed internally. The amortization method and the useful lives of intangible assets are reviewed at each financial year-end, and adjusted prospectively, if appropriate. Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value of net identifiable assets acquired and is allocated to each cash-generating unit (CGU) or group of CGUs that are expected to benefit from the related business combination. A group of CGUs represents the lowest level within the company at which the goodwill is monitored for internal management purposes, which is not higher than an operating segment. Goodwill is not amortized but must be tested for impairment on an annual basis or more frequently if events or circumstances indicate that it might be impaired. Research and development All costs related to research are expensed as incurred, net of related tax credits and grants. Development costs are expensed as incurred, net of related tax credits and grants, unless they meet the recognition criteria of IAS 38, “ Intangible Assets The company elected to account for non-refundable research and development tax credits under IAS 20, “ Accounting for Governmental Grants and Disclosures of Governmental Assistance |
Impairment of non-financial assets | Impairment of non-financial assets The company assesses at each reporting date whether there is an indication that the carrying value of property, plant and equipment and finite-life intangible assets may not be recoverable. Non-financial assets that are not amortized (such as goodwill) are subject to an annual impairment test. If any indication exists, or when annual impairment testing is required, the company estimates the asset or asset group’s recoverable amount. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). The recoverable amount is the higher of an asset or CGU’s fair value less costs of disposal and its value in use. Where the carrying value of an asset or CGU exceeds its recoverable amount, the asset or the CGU is considered impaired and is written down to its recoverable amount. The company performs its annual goodwill impairment test in the fourth quarter of each fiscal year. For property, plant and equipment and finite-life intangible assets, the reversal of impairment is limited so that the carrying value of the asset does not exceed its recoverable amount, nor exceed the carrying value that would have been determined, net of depreciation or amortization, had no impairment loss been recognized for the asset in prior periods. Impairment losses on goodwill are not reversed. |
Leases | Leases Operating leases are leases for which the company does not assume substantially all the risks and rewards of ownership of the asset. Operating lease rentals are charged to the consolidated statements of earnings on a straight-line basis over the lease term. As at August 31, 2018 and 2019, all significant leases of the company were classified as operating leases. |
Government grants | Government grants Grants related to operating expenses are included in earnings when the related expenses are incurred. Grants related to capital expenditures are deducted from the related assets. Grants are included in the consolidated statements of earnings or deducted from the related assets, provided there is reasonable assurance that the company has complied and will comply with all the conditions related to the grants and that the grants will be received. |
Warranty | Warranty The company offers its customers basic warranties of one to three years, depending on the specific products and terms of the purchase agreement. The company’s typical warranties require it to repair or replace defective products during the warranty period at no cost to the customer. Costs related to basic warranties are accrued at the time of shipment, based upon estimates of expected rework and warranty costs to be incurred. Costs associated with separately priced extended warranties are expensed as incurred. |
Income taxes | Income taxes Income taxes comprise current and deferred income taxes. Current income taxes Current income tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered or paid to the taxation authorities. Income tax rates used to calculate the amount are those that are enacted or substantively enacted at the balance sheet dates in the tax jurisdictions where the company generates taxable income/loss. Deferred income taxes The company provides for deferred income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on deductible or taxable temporary differences between financial statement values and tax values of assets and liabilities as well as the carry-forward of unused tax losses and deductions, using enacted or substantively enacted income tax rates at the balance sheet dates, that are expected to be in effect for the years in which the assets are expected to be recovered or the liabilities to be settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable income will be available against which the deductible temporary differences as well as unused tax losses and deductions can be utilized. Deferred tax liabilities are recognized for all taxable temporary differences and for taxable temporary differences arising on investments in subsidiaries, except where the reversal of these temporary differences can be controlled, and it is probable that the differences will not reverse in the foreseeable future. Deferred income tax assets and liabilities are presented as non-current in the consolidated balance sheets. Uncertain tax positions The company is subject to income tax laws and regulations in several jurisdictions. There are many transactions and calculations during the course of business for which the ultimate tax determination is uncertain. The company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk. These provisions are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The company reviews the adequacy of these provisions at the end of the reporting periods and any changes in the provisions are recognized in the consolidated statements of earnings when they occur. However, it is possible that at some future dates, liabilities in excess of the company’s provisions could result from audits by, or litigation with, the relevant taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will be recognized in the consolidated statement of earnings in the period in which such determination is made. |
Earnings per share | Earnings per share Basic earnings per share are calculated by dividing net earnings attributable to common equity holders of the company by the weighted average number of common shares outstanding during the year. Diluted earnings per share are calculated by dividing net earnings attributable to common equity holders of the company by the weighted average number of common shares outstanding during the year, plus the effect of dilutive potential common shares outstanding during the year. This method requires that diluted earnings per share be calculated (using the treasury stock method) as if all dilutive potential common shares had been exercised at the latest at the beginning of the year or on the date of issuance, as the case may be, and that the funds obtained thereby (plus an amount equivalent to the unamortized portion of related stock-based compensation costs) be used to purchase common shares of the company at the average market price of the common shares during the year. |
Stock-based compensation | Stock-based compensation Equity-settled awards The company’s stock options, restricted share units and deferred share units are equity-settled awards. The company accounts for stock-based compensation costs on equity-settled awards using the Black-Scholes option valuation model. The fair value of equity-settled awards is measured at the date of grant. Stock-based compensation costs are amortized to expense over the vesting periods together with a corresponding change in contributed surplus in shareholders’ equity. For equity-settled awards with graded vesting, each tranche is considered a separate grant with a different vesting date and fair value, and each tranche is accounted for separately. Cash-settled awards The company’s stock appreciation rights are cash-settled awards. The company accounts for stock-based compensation costs on cash-settled awards using the Black-Scholes option valuation model. The fair value of the cash-settled awards is remeasured at the end of each reporting period, with any changes in the fair value recognized in the consolidated statements of earnings. |
Operating segments | Operating segments Operating segments are defined as components of an entity engaged in business activities from which it may earn revenues and incur expenses, and whose operating results are regularly reviewed by the chief operating decisionmaker (CODM) to make decisions about resources to be allocated to segments and assess their performance and for which discrete information is available. The function of the CODM is performed by the Chief Executive Officer who reviews consolidated results for the purposes of allocating resources and evaluating performance. Accordingly, the company determines that it has one operating segment as of, and for the years ended August 31, 2017, 2018 and 2019. Entity-wide disclosures are presented in note 22. |
Critical accounting judgments in applying accounting policies and estimates | Critical accounting judgments in applying accounting policies and estimates The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses as well as the disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those judgments, estimates and assumptions. Critical judgments, estimates and assumptions are the following: |
Critical judgments in applying accounting policies | Critical judgments in applying accounting policies (a) Determination of functional currency The company operates in multiple countries and generates revenue and incurs expenses in several currencies, namely the Canadian dollar, the US dollar, the euro, the British pound, the Indian rupee and the CNY (Chinese currency). The determination of the functional currency of the company and its subsidiaries may require significant judgment. In determining the functional currency of the company and its subsidiaries, management takes into account primary, secondary and tertiary indicators. When indicators are mixed, and the functional currency is not obvious, management uses its judgment to determine the functional currency. (b) Determination of cash generating units and allocation of goodwill For the purpose of impairment testing, goodwill must be allocated to each CGU or group of CGUs that are expected to benefit from the synergies of the business combination. Initial allocation and possible reallocation of goodwill to a CGU or a group of CGUs requires judgment. |
Critical estimates and assumptions | Critical estimates and assumptions (a) Inventories The company states its inventories at the lower of cost, determined on an average cost basis, and net realizable value, and provides reserves for excess and obsolete inventories. The company determines its reserves for excess and obsolete inventories based on the quantities on hand at the reporting dates compared to foreseeable needs, taking into account changes in demand, technology or market. (b) Income taxes The company is subject to income tax laws and regulations in several jurisdictions. Under these laws and regulations, uncertainties exist with respect to the interpretation of complex tax laws and regulations and the amount and timing of future taxable income. The company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk based on its interpretation of laws and regulations. In addition, management has made reasonable estimates and assumptions to determine the amount of deferred tax assets that can be recognized in the consolidated financial statements, based upon the likely timing and level of anticipated future taxable income together with tax planning strategies. The ultimate realization of the company’s deferred income tax assets is dependent upon the generation of sufficient future taxable income during the periods in which those assets are expected to be realized. (c) Tax credits recoverable Tax credits are recorded if there is reasonable assurance that the company has complied and will comply with all the conditions related to the tax credits and that the tax credits will be received. The ultimate recovery of the company’s non-refundable tax credits is dependent upon the generation of sufficient future taxable income during the tax credits carry-forward periods. Management has made reasonable estimates and assumptions to determine the amount of non-refundable tax credits that can be recognized in the consolidated financial statements, based upon the likely timing and level of anticipated future taxable income together with tax planning strategies (note 20). (d) Impairment of non-financial assets Impairment exists when the carrying value of an asset or group of assets (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation for the company’s CGUs is based on a market approach that relies on unobservable inputs based on valuation multiples and recent transactions for comparable assets or businesses, within the same industry. The company applies judgment in making adjustments to the unobservable inputs for factors such as size, risk profile or profitability. The company also considers the company’s value derived from its market capitalization, adjusting for a control premium considered appropriate based on other comparable companies with significant controlling interests. Depending on the market evidence available, the company, from time to time, may further supplement this market approach with an income approach that considers discounted cash flows to determine fair value less costs of disposal, as well as the nature and magnitude of research and development activities carried out by the CGU. The discounted cash flow model involves significant judgment with respect to estimating cash flows (based on market participant assumptions) and the appropriate discount rate. (e) Purchase price allocation in business combinations The fair value of the total consideration transferred in business combinations (purchase price) must be allocated based on estimated fair value of acquired net assets at the date of acquisition. Allocating the purchase price requires management to make estimates and judgments to determine assets acquired and liabilities assumed, useful lives of certain long-lived assets and the respective fair value of assets acquired, and liabilities assumed; this may require the use of unobservable inputs, including management’s expectations of future revenue growth, operating costs and profit margins as well as discount rates. (f) Identification of performance obligations Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one single performance obligation may require significant judgment. |
Recently issued IFRS pronouncements not yet adopted | Recently issued IFRS Pronouncements Not Yet Adopted Leases IFRS 16, Leases IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e., the customer (lessee) and the supplier (lessor). IFRS 16 will supersede IAS 17, “ Leases ”, and related interpretations. Under IFRS 16, This new standard is effective for annual periods beginning on or after January 1, 2019. The company will adopt this new standard on September 1, 2019, Uncertainty over income tax treatments IFRIC 23, “ Uncertainty over Income Tax Treatments |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Basis of Presentation [Abstract] | |
Summary of impact of adoption of IFRS 9 | As reported as at August 31, 2018 Adjustments As adjusted as at September 1, 2018 Accounts receivable – Trade (note 6) $ 47,273 $ (303 ) $ 46,970 Income taxes recoverable $ 4,790 $ 50 $ 4,840 Total assets $ 284,544 $ (253 ) $ 284,291 Retained earnings $ 114,906 $ (253 ) $ 114,653 Shareholders’ equity $ 177,921 $ (253 ) $ 177,668 In addition, the company’s consolidated financial instruments are accounted for as follows under IFRS 9 as compared to the company’s previous accounting policy with IAS 39: Financial assets Classification – IAS 39 Classification – IFRS 9 Cash Loans and receivables Amortized cost Short-term investments Available for sale Fair value through other comprehensive income Accounts receivable Loans and receivables Amortized cost Forward exchange contracts Derivatives used for hedging Fair value through other comprehensive income Financial liabilities Bank loan Other financial liabilities Amortized cost Accounts payable and accrued liabilities Other financial liabilities Amortized cost Other liabilities Other financial liabilities Amortized cost Long-term debt Other financial liabilities Amortized cost Forward exchange contracts Derivatives used for hedging Fair value through other comprehensive income |
Estimated useful life | Depreciation is provided on a straight-line basis over the estimated useful lives of the asset as follows: Term Land improvements 15 years Buildings 20 to 60 years Equipment 3 to 15 years Leasehold improvements The lesser of useful life and remaining lease term |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
EXFO Solutions [Member] | |
Disclosure of detailed information about business combination [line items] | |
Sales and net loss attributable to parent interest | The following table summarizes EXFO Solutions’ contributed sales and net loss attributable to the parent interest for the period from January 26, 2018 to August 31, 2018: Sales (1) $ 16,377 Net loss attributable to the parent interest (1, 2) $ 12,850 If the acquisition had occurred on September 1, 2017, consolidated pro forma sales and net loss attributable to the parent interest of the combined entities for the year ended August 31, 2018 would have been $292,134,000 and $18,768,000 respectively. (1) Includes acquisition-related deferred revenue fair value adjustment of $2,095,000. (2) Includes amortization of acquired intangible assets of $5,077,000. |
Estimate of fair value of acquired net assets at the date of acquisition | The fair value of the total consideration was allocated based on an estimate of fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 16,374 Income taxes and tax credits recoverable 11,259 Inventories 3,045 Prepaid expenses 1,229 Property, plant and equipment 1,944 Core technologies 12,869 Customer relationships 8,381 Brand name 846 Other intangible assets 498 Other assets 1,402 57,847 Liabilities assumed Accounts payable and accrued liabilities 11,068 Deferred revenue 4,748 Long-term debt (note 12) 8,888 Deferred income tax liabilities 2,692 Other liabilities 6,715 Net identifiable assets acquired 23,736 Goodwill 2,505 Fair value of the total consideration, net of cash acquired $ 26,241 The fair value of the total consideration, net of cash acquired, consisted of the following at the acquisition date: Cash paid net of cash acquired $ 9,580 Fair value of shares held 12,967 Non-controlling interest (purchased in February 2018) 3,694 $ 26,241 |
EXFO Optics S.A.S. [Member] | |
Disclosure of detailed information about business combination [line items] | |
Estimate of fair value of acquired net assets at the date of acquisition | The fair value of the total consideration was allocated based on an estimate of the fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 1,889 Inventories 2,384 Property, plant and equipment 1,424 Core technologies 3,686 Customer relationships 811 In-process research and development 305 Other intangible assets 132 Prepaid expenses 171 10,802 Liabilities assumed Accounts payable and accrued liabilities 1,035 Long-term debt (note 12) 2,143 Deferred income taxes 1,510 Net identifiable assets acquired 6,114 Goodwill 3,426 Fair value of the total consideration, net of cash acquired $ 9,540 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring charges | The following tables summarize changes in restructuring accrual during the years ended August 31, 2018 and 2019: Years ended August 31, 2019 2018 Balance – Beginning of year $ 3,167 $ 2,477 Addition 3,305 3,209 Payments (5,339 ) (2,052 ) Reversal – (467 ) Balance – End of year (note 11) $ 1,133 $ 3,167 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments by category | The following tables summarize financial instruments by category: As at August 31, 2019 Amortized cost Fair value through other comprehensive income Total Financial assets Cash $ 16,518 $ – $ 16,518 Short-term investments $ – $ 2,918 $ 2,918 Accounts receivable $ 54,834 $ – $ 54,834 Forward exchange contracts $ – $ 79 $ 79 Financial liabilities Bank loan $ 5,000 $ – $ 5,000 Accounts payable and accrued liabilities $ 49,945 $ – $ 49,945 Other liabilities $ 1,606 $ – $ 1,606 Long-term debt $ 5,742 $ – $ 5,742 Forward exchange contracts $ – $ 1,057 $ 1,057 As at August 31, 2018 – IAS 39 Loans and receivables Available for sale Other financial liabilities Derivatives used for hedging Total Financial assets Cash $ 12,758 $ ‒ $ ‒ $ ‒ $ 12,758 Short-term investments $ ‒ $ 2,282 $ ‒ $ ‒ $ 2,282 Accounts receivable $ 46,955 $ ‒ $ ‒ $ ‒ $ 46,955 Other assets $ 352 $ ‒ $ ‒ $ ‒ $ 352 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ 318 $ 318 Financial liabilities Bank loan $ ‒ $ ‒ $ 10,692 $ ‒ $ 10,692 Accounts payable and accrued liabilities $ ‒ $ ‒ $ 47,308 $ ‒ $ 47,308 Other liabilities $ ‒ $ ‒ $ 3,197 $ ‒ $ 3,197 Long-term debt $ ‒ $ ‒ $ 8,828 $ ‒ $ 8,828 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ 807 $ 807 |
Fair value of derivative and non-derivative financial assets and liabilities measured at fair value by level of hierarchy | The fair value of derivative and non-derivative financial assets and financial liabilities measured at fair value by level of hierarchy is as follows: As at August 31, 2019 As at August 31, 2018 Level 1 Level 2 Level 1 Level 2 Financial assets Short-term investments $ 2,918 $ – $ 2,282 $ – Forward exchange contracts $ – $ 79 $ – $ 318 Financial liabilities Forward exchange contracts $ – $ 1,057 $ – $ 807 |
Summary of currency risk contracts held at various forward rates | As at August 31, 2018 and 2019, the company held contracts to sell US dollars for Canadian dollars and Indian rupees at various forward rates, which are summarized as follows: US dollars – Canadian dollars Expiry dates Contractual amounts Weighted average contractual forward rates As at August 31, 2018 September 2018 to August 2019 $ 26,400 1.3029 September 2019 to August 2020 15,700 1.2756 September 2020 to May 2021 3,700 1.2703 Total $ 45,800 1.2909 As at August 31, 2019 September 2019 to August 2020 $ 35,500 1.3013 September 2020 to August 2021 19,900 1.3107 September 2021 to July 2022 6,000 1.3216 Total $ 61,400 1.3063 US dollars – Indian rupees Expiry dates Contractual amounts Weighted average contractual forward rates As at August 31, 2018 September 2018 to May 2019 $ 4,600 67.68 As at August 31, 2019 September 2019 to August 2020 $ 3,500 71.48 |
Recorded sales foreign exchange gains (losses) on forward exchange contracts | For the years ended August 31, 2017, 2018 and 2019, the company recorded within its sales the following foreign exchange gains (losses) on forward exchange contracts: Years ended August 31, 2019 2018 2017 Gains (losses) on forward exchange contracts $ (591 ) $ 875 $ (468 ) |
Significant derivative and non-derivative financial assets and liabilities subject to currency risk | The following table summarizes significant derivative and non-derivative financial assets and financial liabilities that are subject to currency risk as at August 31, 2018 and 2019 and for which such risk is charged to earnings: As at August 31, 2019 2018 Carrying/nominal amount (in thousands of US dollars) Carrying/nominal amount (in thousands of euros) Carrying/nominal amount (in thousands of US dollars) Carrying/nominal amount (in thousands of euros) Financial assets Cash $ 5,531 € 3,129 $ 2,790 € 3,352 Accounts receivable 30,451 6,389 30,306 3,787 35,982 9,518 33,096 7,139 Financial liabilities Bank loan 5,000 – 7,197 3,000 Accounts payable and accrued liabilities 12,563 2,218 13,017 2,107 Forward exchange contracts (nominal value) 5,800 – 5,000 – 23,363 2,218 25,214 5,107 Net exposure $ 12,619 € 7,300 $ 7,882 € 2,032 |
Schedule of short-term investments | Short-term investments consist of the following: As at August 31, 2019 2018 Term deposits denominated in Indian rupees, bearing interest at annual rates of 5.0% to 6.8% in 2018 and 5.1% to 7.0% in 2019, maturing on different dates between October 2018 and August 2019 in 2018 and September 2019 and May 2020 in 2019 $ 2,548 $ 1,909 Other 370 373 $ 2,918 $ 2,282 |
Age of trade accounts receivable | The following table summarizes the age of trade accounts receivable: As at August 31, 2019 2018 Current $ 39,054 $ 34,344 Past due, 0 to 30 days 3,529 6,011 Past due, 31 to 60 days 2,006 2,556 Past due, more than 60 days 6,928 4,362 $ 51,517 $ 47,273 |
Changes in allowance for doubtful accounts | Changes in the allowance for doubtful accounts are as follows: Years ended August 31, 2019 2018 Balance – Beginning of year $ 772 $ 2,960 IFRS 9 adoption initial adjustment (note 2) 303 – Addition charged to earnings 864 834 Writeoff of uncollectible accounts and reversal (404 ) (3,022 ) Balance – End of year $ 1,535 $ 772 |
Summary of contractual maturity of the company's derivative and non-derivative financial liabilities | The following tables summarize the contractual maturity of the company’s derivative and non-derivative financial liabilities: As at August 31, 2019 No later than one year Later than 1 year and no later than 5 years Later than 5 years Bank loan $ 5,000 $ – $ – Accounts payable and accrued liabilities 49,945 – – Forward exchange contracts Outflow 39,000 25,900 – Inflow (38,252 ) (25,585 ) – Long-term debt 2,449 3,237 56 Other liabilities 1,606 – – Total $ 59,748 $ 3,552 $ 56 As at August 31, 2018 No later than one year Later than 1 year and no later than 5 years Later than 5 years Bank loan $ 10,692 $ – $ – Accounts payable and accrued liabilities 47,308 – – Forward exchange contracts Outflow 31,000 19,400 – Inflow (30,738 ) (18,940 ) – Long-term debt 2,921 5,745 162 Other liabilities 3,197 – – Total $ 64,380 $ 6,205 $ 162 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Inventories [Abstract] | |
Summary of inventories | As at August 31, 2019 2018 Raw materials $ 24,115 $ 24,561 Work in progress 1,009 869 Finished goods 12,893 13,159 $ 38,017 $ 38,589 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Land and land improvements Buildings Equipment Leasehold improvements Total Cost as at September 1, 2017 $ 4,522 $ 31,951 $ 35,574 $ 3,048 $ 75,095 Additions 17 3,048 5,677 46 8,788 Business combinations (note 3) – – 3,105 263 3,368 Disposals – (1,413 ) (3,651 ) (175 ) (5,239 ) Foreign currency translation adjustment (180 ) (1,240 ) (1,617 ) (134 ) (3,171 ) Cost as at August 31, 2018 4,359 32,346 39,088 3,048 78,841 Additions – 1,116 3,700 164 4,980 Disposals (192 ) (3,378 ) (4,623 ) (164 ) (8,357 ) Foreign currency translation adjustment (76 ) (592 ) (1,329 ) (153 ) (2,150 ) Cost as at August 31, 2019 $ 4,091 $ 29,492 $ 36,836 $ 2,895 $ 73,314 Accumulated depreciation as at September 1, 2017 $ 1,295 $ 7,333 $ 25,207 $ 1,128 $ 34,963 Depreciation for the year 48 604 4,420 372 5,444 Disposals – (994 ) (3,440 ) (30 ) (4,464 ) Foreign currency translation adjustment (53 ) (282 ) (1,024 ) (53 ) (1,412 ) Accumulated depreciation as at August 31, 2018 1,290 6,661 25,163 1,417 34,531 Depreciation for the year 47 667 4,391 364 5,469 Disposals – (1,452 ) (3,673 ) (114 ) (5,239 ) Foreign currency translation adjustment (53 ) (120 ) (602 ) (36 ) (811 ) Accumulated depreciation as at August 31, 2019 $ 1,284 $ 5,756 $ 25,279 $ 1,631 $ 33,950 Net carrying value as at: August 31, 2018 $ 3,069 $ 25,685 $ 13,925 $ 1,631 $ 44,310 August 31, 2019 $ 2,807 $ 23,736 $ 11,557 $ 1,264 $ 39,364 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Intangible Assets and Goodwill [Abstract] | |
Summary of intangible assets | Intangible assets Core technology Customer relationships In-process research and development Brand name Software Total Cost as at September 1, 2017 $ 12,893 $ 1,689 $ – $ – $ 11,901 $ 26,483 Additions 89 – – – 3,049 3,138 Business combinations (note 3) 16,555 9,192 305 846 630 27,528 Disposal (60 ) – – – (2,474 ) (2,534 ) Foreign currency translation adjustment (1,419 ) (590 ) (13 ) (50 ) (446 ) (2,518 ) Cost as at August 31, 2018 28,058 10,291 292 796 12,660 52,097 Additions 363 – – – 1,719 2,082 Disposal (27 ) – (293 ) – (222 ) (542 ) Foreign currency translation adjustment (1,955 ) (618 ) 1 (46 ) (240 ) (2,858 ) Cost as at August 31, 2019 $ 26,439 $ 9,673 $ – $ 750 $ 13,917 $ 50,779 Accumulated amortization as at September 1, 2017 $ 5,130 $ 169 $ – $ – $ 10,001 $ 15,300 Amortization for the year 4,878 3,949 – 519 981 10,327 Disposal (45 ) – – – (2,462 ) (2,507 ) Foreign currency translation adjustment (353 ) (185 ) – (7 ) (344 ) (889 ) Accumulated amortization as at August 31, 2018 9,610 3,933 – 512 8,176 22,231 Amortization for the year 4,926 2,372 – 284 1,430 9,012 Disposal (19 ) – – – (219 ) (238 ) Foreign currency translation adjustment (1,080 ) (424 ) – (46 ) (330 ) (1,880 ) Accumulated amortization as at August 31, 2019 $ 13,437 $ 5,881 $ – $ 750 $ 9,057 $ 29,125 Net carrying value as at: August 31, 2018 $ 18,448 $ 6,358 $ 292 $ 284 $ 4,484 $ 29,866 August 31, 2019 $ 13,002 $ 3,792 $ – $ – $ 4,860 $ 21,654 Remaining amortization period as at August 31, 2019 4 years 2 years – – 3 years |
Reconciliation of changes in goodwill | Goodwill Years ended August 31, 2019 2018 Balance – Beginning of year $ 39,892 $ 35,077 Business combinations (note 3) – 5,931 Foreign currency translation adjustment (1,244 ) (1,116 ) Balance – End of year $ 38,648 $ 39,892 |
Information for cash generating units | Goodwill has been allocated to the lowest level within the company at which it is monitored by management to make business decisions, which are the following CGUs: As at August 31, 2019 2018 EXFO CGU $ 12,949 $ 13,185 EXFO Optics CGU (note 3) 3,376 3,562 Service assurance, systems and services CGU 22,323 – Brix CGU – 13,327 Ontology CGU (note 3) – 7,471 EXFO Solutions CGU (note 3) – 2,347 Total $ 38,648 $ 39,892 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities and Provisions (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Accounts Payable and Accrued Liabilities and Provisions [Abstract] | |
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities As at August 31, 2019 2018 Trade $ 27,996 $ 26,052 Salaries and social benefits 19,716 18,101 Forward exchange contracts (note 6) 845 590 Other 2,233 3,155 $ 50,790 $ 47,898 |
Provisions | Provisions As at August 31, 2019 2018 Warranty $ 356 $ 417 Restructuring charges (note 4) 1,133 3,167 Other 2,313 1,717 $ 3,802 $ 5,301 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Long-Term Debt [Abstract] | |
Long-term debt | As part of the acquisitions of EXFO Optics and EXFO Solutions, the company assumed long-term debt (note 3). As at August 31, 2019 2018 Unsecured, non-interest-bearing loans, denominated in euros, repayable in quarterly instalments, maturing in March 2024 and March 2025 $ 866 $ 883 Unsecured loans, denominated in euros, repayable in monthly, quarterly or bi‑annual instalments, bearing interest at annual rates of nil to 5.0%, maturing at different dates between December 2018 and September 2023 in 2018 and March 2020 and September 2023 in 2019 3,111 4,853 Loans, secured by the universality of the assets of a subsidiary, denominated in euros, repayable in monthly instalments, bearing interest at annual rates of 0.7% to 2.0%, maturing at different dates between December 2018 and August 2022 in 2018 and April 2020 and August 2022 in 2019 459 828 Loans, secured by the universality of the assets of a subsidiary, denominated in euros, repayable in monthly or quarterly instalments, bearing interest at annual rates of 1.1% to 2.9%, maturing at different dates between March 2020 and July 2022 1,306 2,264 5,742 8,828 Current portion of long-term debt 2,449 2,921 $ 3,293 $ 5,907 |
Principal repayments of long-term debt | Principal repayments of long-term debt over the forthcoming years are as follows as at August 31, 2019: No later than one year $ 2,449 Later than one year and no later than five years 3,237 Later than five years 56 $ 5,742 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Commitments [Abstract] | |
Minimum rental payable under operating leases | The company entered into operating leases for certain of its premises and equipment, which expire at various dates through 2024. Minimum rentals payable under operating leases are as follows: As at August 31, 2019 2018 No later than 1 year $ 2,895 $ 3,365 Later than 1 year and no later than 5 years 6,323 9,519 Later than 5 years 23 502 $ 9,241 $ 13,386 |
Leases agreements for intellectual property | The company also entered into license agreements for certain intellectual property which expire at various dates through 2022: As at August 31, 2019 2018 No later than 1 year $ 2,289 $ 1,492 Later than 1 year and no later than 5 years 2,444 1,982 $ 4,733 $ 3,474 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Share Capital [Abstract] | |
Summary of share capital activity | The following table summarizes the company’s share capital activity: Multiple Voting Shares Subordinate Voting Shares Number Amount Number Amount Total amount Balance as at September 1, 2016 31,643,000 $ 1 21,917,942 $ 85,515 $ 85,516 Issuance of share capital – – 793,070 3,490 3,490 Redemption of restricted share units (note 16) – – 327,859 – – Redemption of deferred share units (note 16) – – 29,906 – – Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,405 1,405 Balance as at August 31, 2017 31,643,000 1 23,068,777 90,410 90,411 Redemption of restricted share units (note 16) – – 345,883 – – Redemption of deferred share units (note 16) – – 58,335 – – Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,526 1,526 Balance as at August 31, 2018 31,643,000 1 23,472,995 91,936 91,937 Redemption of restricted share units (note 16) – – 317,072 – – Redemption of share capital – – (86,392 ) (337 ) (337 ) Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,106 1,106 Balance as at August 31, 2019 31,643,000 $ 1 23,703,675 $ 92,705 $ 92,706 a) On January 8, 2019, the company announced that its Board of Directors had approved a share repurchase program, by way of a normal course issued bid on the open market of up to 6.3% of the issued and outstanding subordinate voting shares, representing 1,200,000 subordinate voting shares at the prevailing market price. The normal course issuer bid started on January 14, 2019 and will end on January 13, 2020 or earlier if the company repurchases the maximum number of shares permitted. All shares repurchased under the bid will be cancelled. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss are as follows: Foreign currency translation adjustment Cash-flow hedge Accumulated other comprehensive loss Balance as at September 1, 2016 $ (49,136 ) $ 562 $ (48,574 ) Foreign currency translation adjustment 8,262 – 8,262 Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes – 1,347 1,347 Balance as at August 31, 2017 (40,874 ) 1,909 (38,965 ) Foreign currency translation adjustment (6,491 ) – (6,491 ) Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes – (1,894 ) (1,894 ) Balance as at August 31, 2018 (47,365 ) 15 (47,350 ) Foreign currency translation adjustment (4,177 ) – (4,177 ) Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes – 16 16 Balance as at August 31, 2019 $ (51,542 ) $ 31 $ (51,511 ) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-based compensation costs recognized for employee services | The following table summarizes the stock-based compensation costs recognized for employee services received during the years ended August 31, 2017, 2018 and 2019: Years ended August 31, 2019 2018 2017 Stock-based compensation costs arising from equity-settled awards $ 1,849 $ 1,770 $ 1,439 Stock-based compensation costs arising from cash-settled awards (18 ) (22 ) 38 $ 1,831 $ 1,748 $ 1,477 |
Restricted Stock Units [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of stock option activity | The following table summarizes RSU activity for the years ended August 31, 2017, 2018 and 2019: Years ended August 31, 2019 2018 2017 Outstanding – Beginning of year 1,615,152 1,611,330 1,551,555 Granted 632,931 420,621 527,143 Redeemed (317,072 ) (345,883 ) (327,859 ) Forfeited (94,565 ) (70,916 ) (139,509 ) Outstanding – End of year 1,836,446 1,615,152 1,611,330 |
Deferred Share Unit Plan [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of stock option activity | The following table summarizes DSU activity for the years ended August 31, 2017, 2018 and 2019: Years ended August 31, 2019 2018 2017 Outstanding – Beginning of year 181,689 174,279 159,127 Granted 69,818 65,745 45,058 Redeemed – (58,335 ) (29,906 ) Outstanding – End of year 251,507 181,689 174,279 |
Related-Party Disclosures (Tabl
Related-Party Disclosures (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Related-Party Disclosures [Abstract] | |
Compensation of key management personnel | Compensation of key management personnel Years ended August 31, 2019 2018 2017 Salaries and short-term employee benefits $ 4,029 $ 3,985 $ 3,715 Stock-based compensation costs 1,175 1,047 775 $ 5,204 $ 5,032 $ 4,490 |
Statements of Earnings (Tables)
Statements of Earnings (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Statements of Earnings [Abstract] | |
Sales | Sales are as follows: Years ended August 31, 2019 2018 2017 Test and measurement $ 204,693 $ 197,423 $ 193,863 Service assurance, systems and services 82,788 71,248 49,906 Foreign exchange gains (losses) on forward exchange contracts (591 ) 875 (468 ) Total sales for the year $ 286,890 $ 269,546 $ 243,301 |
Net research and development expenses | Net research and development expenses comprise the following: Years ended August 31, 2019 2018 2017 Gross research and development expenses $ 57,972 $ 65,243 $ 53,124 Research and development tax credits and grants (7,419 ) (8,089 ) (5,956 ) Net research and development expenses for the year $ 50,553 $ 57,154 $ 47,168 |
Depreciation and amortization expenses by functional area | Depreciation and amortization expenses by functional area are as follows: Years ended August 31, 2019 2018 2017 Cost of sales Depreciation of property, plant and equipment $ 1,862 $ 2,077 $ 1,522 Amortization of intangible assets 7,186 9,212 2,652 9,048 11,289 4,174 Selling and administrative expenses Depreciation of property, plant and equipment 1,354 902 530 Amortization of intangible assets 1,043 592 251 2,397 1,494 781 Net research and development expenses Depreciation of property, plant and equipment 2,253 2,465 1,850 Amortization of intangible assets 783 523 386 3,036 2,988 2,236 $ 14,481 $ 15,771 $ 7,191 Depreciation of property, plant and equipment $ 5,469 $ 5,444 $ 3,902 Amortization of intangible assets 9,012 10,327 3,289 Total depreciation and amortization expenses for the year $ 14,481 $ 15,771 $ 7,191 |
Employee compensation | Employee compensation comprises the following: Years ended August 31, 2019 2018 2017 Salaries and benefits $ 136,059 $ 134,453 $ 115,832 Restructuring charges 3,305 2,072 3,509 Stock-based compensation costs 1,831 1,748 1,414 Total employee compensation for the year $ 141,195 $ 138,273 $ 120,755 Restructuring charges by functional area are as follows: Years ended August 31, 2019 2018 2017 Cost of sales $ 304 $ 517 $ 1,697 Selling and administrative expenses 495 673 1,150 Net research and development costs 2,506 3,219 2,232 Interest and other expense – 150 – Income taxes (63 ) (1,150 ) – Total restructuring charges for the year $ 3,242 $ 3,409 $ 5,079 Stock-based compensation costs by functional area are as follows: Years ended August 31, 2019 2018 2017 Cost of sales $ 136 $ 143 $ 121 Selling and administrative expenses 1,375 1,217 1,052 Net research and development expenses 320 388 304 Total stock-based compensation costs for the year $ 1,831 $ 1,748 $ 1,477 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Income Taxes [Abstract] | |
Reconciliation of income tax provision (recovery) | The reconciliation of the income tax provision (recovery) calculated using the combined Canadian federal and provincial statutory income tax rate with the income tax provision in the consolidated financial statements is as follows: Years ended August 31, 2019 2018 2017 Income tax provision (recovery) at combined Canadian federal and provincial statutory tax rate ( 27 $ 774 $ (1,775 ) $ 2,014 Increase (decrease) due to: Foreign income/loss taxed at different rates 13 452 (900 ) Non-deductible loss (non-taxable income) 10 (69 ) (245 ) Non-deductible expenses 594 1,285 981 Change in tax rates – 167 (10 ) Effect of the US tax reform (1) – 1,528 – Foreign exchange effect of translation of foreign subsidiaries in the functional currency 63 (16 ) 176 Recognition of previously unrecognized deferred income tax assets (note 4) (2,383 ) (560 ) – Utilization of previously unrecognized deferred income tax assets (964 ) (627 ) (46 ) Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses 5,761 6,100 4,659 Other 1,478 (807 ) (21 ) Income tax provision for the year $ 5,346 $ 5,678 $ 6,608 (1) On December 22, 2017, the US tax reform (“Tax Cuts and Jobs Act”) was substantively enacted and reduces the maximum corporate income tax rate from 35% to 21%, effective January 1, 2018. Based on management’s estimate of deferred tax assets expected to be used in fiscal 2018 and beyond against taxable income in the United States, the company recorded a deferred income tax expense of $1,528,000 in the consolidated statement of earnings for the year ended August 31, 2018 to account for the effect of this substantively enacted tax rate. |
Income tax provision | Years ended August 31, 2019 2018 2017 The income tax provision consists of the following: Current Current income taxes $ 7,449 $ 4,310 $ 5,554 Deferred Deferred income taxes relating to the origination and reversal of temporary differences (4,517 ) (3,545 ) (3,559 ) Benefit arising from previously unrecognized tax losses and deductible temporary differences (2,383 ) (560 ) – Utilization of previously unrecognized deferred income tax assets (964 ) (627 ) (46 ) (7,864 ) (4,732 ) (3,605 ) Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses 5,761 6,100 4,659 (2,103 ) 1,368 1,054 Income tax provision for the year $ 5,346 $ 5,678 $ 6,608 |
Changes in deferred income tax assets and liabilities | The changes in deferred income tax assets and liabilities for the year ended August 31, 2018 are as follows: Balance Credited Credited Business Foreign Balance Deferred income tax assets Long-lived assets $ 1,802 $ 200 $ – $ – $ (77 ) $ 1,925 Provisions and accruals 3,772 (250 ) 554 – (113 ) 3,963 Deferred revenue 2,890 (101 ) – – (73 ) 2,716 Research and development expenses 2,731 (101 ) – – (106 ) 2,524 Losses carried forward 4,241 (2,633 ) – 3,687 (222 ) 5,073 Deferred income tax liabilities Long-lived assets (1,002 ) 1,903 – (7,889 ) 527 (6,461 ) Research and development tax credits (10,995 ) (386 ) – – 445 (10,936 ) Total $ 3,439 $ (1,368 ) $ 554 $ (4,202 ) $ 381 $ (1,196 ) Classified as follows: Deferred income tax assets $ 6,555 $ 4,714 Deferred income tax liabilities (3,116 ) (5,910 ) $ 3,439 $ (1,196 ) The changes in deferred income tax assets and liabilities for the year ended August 31, 2019 are as follows: Balance Credited Credited Foreign Balance Deferred income tax assets Long-lived assets $ 1,925 $ 2,695 $ – $ (52 ) $ 4,568 Provisions and accruals 3,963 446 67 15 4,491 Deferred revenue 2,716 490 – (36 ) 3,170 Research and development expenses 2,524 (149 ) – (45 ) 2,330 Losses carried forward 5,073 (2,751 ) – (176 ) 2,146 Deferred income tax liabilities Long-lived assets (6,461 ) 1,710 – 345 (4,406 ) Research and development tax credits (10,936 ) (338 ) – 198 (11,076 ) Total $ (1,196 ) $ 2,103 $ 67 $ 249 $ 1,223 Classified as follows: Deferred income tax assets $ 4,714 $ 4,821 Deferred income tax liabilities (5,910 ) (3,598 ) $ (1,196 ) $ 1,223 |
Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses | Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses are as follows: As at August 31, 2019 2018 Temporary deductible differences $ 241 $ 1,435 Losses carried forward 39,721 42,361 $ 39,962 $ 43,796 |
Operating losses for which no deferred income tax assets recognized | As at August 31, 2019, the year of expiry of operating losses for which no deferred income tax assets were recognized in the consolidated balance sheet are as follows, presented by tax jurisdiction: Year of expiry Finland France Spain United States United Kingdom 2020 $ 3,397 $ – $ – $ – $ – 2021 6,345 – – 1,958 – 2022 11,001 – – 7,435 – 2023 7,127 – – 1,972 – 2024 5,502 – – 1,351 – 2025 6,859 – – 1,351 – 2026 235 – – 1,351 – 2027 1,425 – – 1,351 – 2028 – – – 2,447 – 2030 – – – 2,713 – 2031 – – – 109 – 2033 – – – 4,681 – 2034 – – – 4,851 – 2035 – – – 2,616 – 2036 – – – 8,501 – 2037 – – – 9,660 – 2038 – – – 7,997 – Indefinite – 35,839 6,100 – 4,461 $ 41,891 $ 35,839 $ 6,100 $ 60,344 $ 4,461 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Earnings per Share [Abstract] | |
Earnings per Share | The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding: Years ended August 31, 2019 2018 2017 Basic weighted average number of shares outstanding (000’s) 55,325 54,998 54,423 Plus dilutive effect of (000’s): Restricted share units – – 979 Deferred share units – – 153 Diluted weighted average number of shares outstanding (000’s) 55,325 54,998 55,555 Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares, or their inclusion would be antidilutive (000’s) 1,701 1,799 – |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Segment Information [Abstract] | |
Information by geographic region | Sales to external customers by geographic region are detailed as follows: Years ended August 31, 2019 2018 2017 United States $ 106,607 $ 100,225 $ 97,186 Canada 15,913 18,425 22,586 Other 21,391 16,743 14,951 Americas 143,911 135,393 134,723 United Kingdom 16,438 17,508 11,799 Other 76,285 67,169 50,302 Europe, Middle East and Africa 92,723 84,677 62,101 China 27,620 20,724 22,312 Other 22,636 28,752 24,165 Asia-Pacific 50,256 49,476 46,477 $ 286,890 $ 269,546 $ 243,301 Sales were allocated to geographic regions based on the country of residence of the related customers. Long-lived assets by geographic region are detailed as follows: As at August 31, 2019 As at August 31, 2018 Property, plant and equipment Intangible assets Goodwill Property, plant and equipment Intangible assets Goodwill Canada $ 29,517 $ 5,675 $ 17,487 $ 32,107 $ 5,668 $ 4,481 United States 7 – – 1,677 435 13,327 Finland 331 446 8,547 473 380 8,704 France 1,896 12,788 5,600 2,401 19,330 5,909 United Kingdom 640 2,706 7,014 755 4,005 7,471 India 4,249 23 – 4,021 28 – China 2,667 16 – 2,822 20 – Other 57 – – 54 – – $ 39,364 $ 21,654 $ 38,648 $ 44,310 $ 29,866 $ 39,892 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2019USD ($)yrSegment | Aug. 31, 2018USD ($)Segment | Aug. 31, 2017USD ($)Segment | Aug. 31, 2016USD ($) | |
Impact of initial application of new standards [Abstract] | ||||
Trade accounts receivable | $ 51,517 | $ 47,273 | ||
Income taxes recoverable | 3,159 | 4,790 | ||
Total assets | 277,602 | 284,544 | ||
Retained earnings | 112,173 | 114,906 | ||
Shareholders' equity | $ 172,564 | $ 177,921 | $ 196,790 | $ 181,401 |
Revenue recognition under IFRS 15 [Abstract] | ||||
Maximum term for payments pursuant to contracts | 1 year | |||
Operating segments [Abstract] | ||||
Number of operating segments | Segment | 1 | 1 | 1 | |
As Adjusted [Member] | ||||
Impact of initial application of new standards [Abstract] | ||||
Trade accounts receivable | $ 46,970 | |||
Income taxes recoverable | 4,840 | |||
Total assets | 284,291 | |||
Retained earnings | 114,653 | |||
Shareholders' equity | 177,668 | |||
Adjustments [Member] | ||||
Impact of initial application of new standards [Abstract] | ||||
Trade accounts receivable | (303) | |||
Income taxes recoverable | 50 | |||
Total assets | (253) | |||
Retained earnings | (253) | |||
Shareholders' equity | $ (253) | |||
Bottom of Range [Member] | ||||
Revenue recognition under IFRS 15 [Abstract] | ||||
Term of payments for products and services | 30 days | |||
Warranty [Abstract] | ||||
Basic warranty period | yr | 1 | |||
Top of Range [Member] | ||||
Revenue recognition under IFRS 15 [Abstract] | ||||
Term of payments for products and services | 90 days | |||
Warranty [Abstract] | ||||
Basic warranty period | yr | 3 | |||
IFRS 16 [Member] | Forecast [Member] | ||||
Recently issued IFRS Pronouncements Not Yet Adopted [Abstract] | ||||
Increase in assets | $ 11,000 | |||
Increase in liabilities | $ 11,000 | |||
Land Improvements [Member] | ||||
Property, plant and equipment and depreciation [Abstract] | ||||
Estimated useful lives | 15 years | |||
Buildings [Member] | Bottom of Range [Member] | ||||
Property, plant and equipment and depreciation [Abstract] | ||||
Estimated useful lives | 20 years | |||
Buildings [Member] | Top of Range [Member] | ||||
Property, plant and equipment and depreciation [Abstract] | ||||
Estimated useful lives | 60 years | |||
Equipment [Member] | Bottom of Range [Member] | ||||
Property, plant and equipment and depreciation [Abstract] | ||||
Estimated useful lives | 3 years | |||
Equipment [Member] | Top of Range [Member] | ||||
Property, plant and equipment and depreciation [Abstract] | ||||
Estimated useful lives | 15 years | |||
Leasehold Improvements [Member] | ||||
Property, plant and equipment and depreciation [Abstract] | ||||
Estimated useful lives | The lesser of useful life and remaining lease term | |||
Core Technology [Member] | Bottom of Range [Member] | ||||
Intangible assets [Abstract] | ||||
Estimated useful lives | 2 years | |||
Core Technology [Member] | Top of Range [Member] | ||||
Intangible assets [Abstract] | ||||
Estimated useful lives | 8 years | |||
Customer Relationships [Member] | Bottom of Range [Member] | ||||
Intangible assets [Abstract] | ||||
Estimated useful lives | 3 months | |||
Customer Relationships [Member] | Top of Range [Member] | ||||
Intangible assets [Abstract] | ||||
Estimated useful lives | 5 years | |||
Brand Names [member] | ||||
Intangible assets [Abstract] | ||||
Estimated useful lives | 1 year | |||
Software [Member] | Bottom of Range [Member] | ||||
Intangible assets [Abstract] | ||||
Estimated useful lives | 2 years | |||
Software [Member] | Top of Range [Member] | ||||
Intangible assets [Abstract] | ||||
Estimated useful lives | 8 years | |||
Bank Loan [Member] | ||||
Financial liabilities [Abstract] | ||||
Classification - IAS 39 | Other financial liabilities | |||
Classification - IFRS 9 | Amortized cost | |||
Accounts Payable and Accrued Liabilities [Member] | ||||
Financial liabilities [Abstract] | ||||
Classification - IAS 39 | Other financial liabilities | |||
Classification - IFRS 9 | Amortized cost | |||
Other Liabilities [Member] | ||||
Financial liabilities [Abstract] | ||||
Classification - IAS 39 | Other financial liabilities | |||
Classification - IFRS 9 | Amortized cost | |||
Long-term Debt [Member] | ||||
Financial liabilities [Abstract] | ||||
Classification - IAS 39 | Other financial liabilities | |||
Classification - IFRS 9 | Amortized cost | |||
Forward Exchange Contracts [Member] | ||||
Financial liabilities [Abstract] | ||||
Classification - IAS 39 | Derivatives used for hedging | |||
Classification - IFRS 9 | Fair value through other comprehensive income | |||
Cash [Member] | ||||
Financial assets [Abstract] | ||||
Classification - IAS 39 | Loans and receivables | |||
Classification - IFRS 9 | Amortized cost | |||
Short-term Investments [Member] | ||||
Financial assets [Abstract] | ||||
Classification - IAS 39 | Available for sale | |||
Classification - IFRS 9 | Fair value through other comprehensive income | |||
Accounts Receivables [Member] | ||||
Financial assets [Abstract] | ||||
Classification - IAS 39 | Loans and receivables | |||
Classification - IFRS 9 | Amortized cost | |||
Forward Exchange Contracts [Member] | ||||
Financial assets [Abstract] | ||||
Classification - IAS 39 | Derivatives used for hedging | |||
Classification - IFRS 9 | Fair value through other comprehensive income |
Business Combinations, Acquisit
Business Combinations, Acquisition of Astellia S.A. (Details) | Feb. 28, 2018USD ($)€ / shares | Jan. 26, 2018USD ($)€ / shares | Dec. 22, 2017USD ($)€ / shares | Dec. 21, 2017€ / shares | Oct. 10, 2017USD ($)€ / shares | Sep. 08, 2017USD ($)€ / shares | Feb. 22, 2018USD ($)€ / shares | Aug. 31, 2018USD ($) | Aug. 31, 2019USD ($)yr | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Feb. 28, 2018EUR (€) | Feb. 22, 2018EUR (€) | Jan. 26, 2018EUR (€) | Dec. 22, 2017EUR (€) | Oct. 10, 2017EUR (€) | Sep. 08, 2017EUR (€) | |
Business Combinations [Abstract] | ||||||||||||||||||
Equity loss pick-up | $ 0 | $ (2,080,000) | $ 0 | |||||||||||||||
Gain on deemed disposal of investment | 0 | 2,080,000 | 0 | |||||||||||||||
Liability assumed [Abstract] | ||||||||||||||||||
Goodwill | $ 39,892,000 | $ 38,648,000 | 39,892,000 | $ 35,077,000 | ||||||||||||||
EXFO Solutions [Member] | ||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||
Ownership interest | 100.00% | 88.40% | 40.30% | 33.10% | 97.30% | 100.00% | 97.30% | 88.40% | 40.30% | 33.10% | ||||||||
Additional ownership interest | 2.70% | 48.10% | 1.20% | 6.00% | 8.90% | 2.70% | 8.90% | 48.10% | 1.20% | |||||||||
Total consideration | $ 820,600 | $ 15,476,900 | $ 2,218,600 | $ 21,357,500 | $ 10,311,100 | $ 2,841,400 | € 672,150 | € 2,318,530 | € 12,452,090 | € 1,878,610 | € 17,321,380 | € 8,567,500 | ||||||
Share price (in euros per share) | € / shares | $ 10 | $ 10 | $ 10 | € 10 | $ 10 | $ 10 | $ 10 | |||||||||||
Total consideration paid for shares | $ 32,137,800 | 25,888,880 | ||||||||||||||||
Cash recognised as of acquisition date | $ 5,896,800 | 4,786,000 | ||||||||||||||||
Equity loss pick-up | (2,079,800) | |||||||||||||||||
Gain on deemed disposal of investment | 2,079,800 | |||||||||||||||||
Gain recognized in excess of fair value of non-controlling interest and purchase price paid | 352,000 | |||||||||||||||||
Sales and net loss attributable to parent interest [Abstract] | ||||||||||||||||||
Sales | [1] | 16,377,000 | ||||||||||||||||
Net loss attributable to the parent interest | [1],[2] | $ 12,850,000 | ||||||||||||||||
Pro forma sales | 292,134,000 | |||||||||||||||||
Pro forma net loss attributable to the parent interest | 18,768,000 | |||||||||||||||||
Acquisition related deferred revenue fair value adjustment | 2,095,000 | |||||||||||||||||
Amortization of acquired intangible assets | $ 5,077,000 | |||||||||||||||||
Assets acquired [Abstract] | ||||||||||||||||||
Accounts receivable | $ 16,374,000 | |||||||||||||||||
Income taxes and tax credits recoverable | 11,259,000 | |||||||||||||||||
Inventories | 3,045,000 | |||||||||||||||||
Prepaid expenses | 1,229,000 | |||||||||||||||||
Property, plant and equipment | 1,944,000 | |||||||||||||||||
Core technologies | 12,869,000 | |||||||||||||||||
Customer relationships | 8,381,000 | |||||||||||||||||
Brand name | 846,000 | |||||||||||||||||
Other intangible assets | 498,000 | |||||||||||||||||
Other assets | 1,402,000 | |||||||||||||||||
Total assets acquired | 57,847,000 | |||||||||||||||||
Liability assumed [Abstract] | ||||||||||||||||||
Accounts payable and accrued liabilities | 11,068,000 | |||||||||||||||||
Deferred revenue | 4,748,000 | |||||||||||||||||
Long-term debt (note 12) | 8,888,000 | |||||||||||||||||
Deferred income tax liabilities | 2,692,000 | |||||||||||||||||
Other liabilities | 6,715,000 | |||||||||||||||||
Net identifiable assets acquired | 23,736,000 | |||||||||||||||||
Goodwill | 2,505,000 | |||||||||||||||||
Fair value of the total consideration transferred, net of cash acquired | 26,241,000 | € 21,102,880 | ||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Cash paid net of cash acquired | 9,580,000 | |||||||||||||||||
Fair value of shares held | 12,967,000 | |||||||||||||||||
Non-controlling interest (purchased in February 2018) | 3,694,000 | |||||||||||||||||
Estimated fair value of accounts receivable | 16,374,000 | |||||||||||||||||
Gross contractual amounts receivable for acquired receivables | 18,758,000 | |||||||||||||||||
Gross contractual cash flows not expected to be collected | $ 2,384,000 | |||||||||||||||||
EXFO Solutions [Member] | Brand Name [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 1 | |||||||||||||||||
EXFO Solutions [Member] | Bottom of Range [Member] | Core Technologies [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 4 | |||||||||||||||||
EXFO Solutions [Member] | Bottom of Range [Member] | Customer Relationships [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 2 | |||||||||||||||||
EXFO Solutions [Member] | Top of Range [Member] | Core Technologies [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 8 | |||||||||||||||||
EXFO Solutions [Member] | Top of Range [Member] | Customer Relationships [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 5 | |||||||||||||||||
[1] | Includes acquisition-related deferred revenue fair value adjustment of $ 2,095,000. | |||||||||||||||||
[2] | Includes amortization of acquired intangible assets of $ 5,077,000. |
Business Combinations, Yenista
Business Combinations, Yenista Optics S.A.S (Details) | 12 Months Ended | ||||
Aug. 31, 2019USD ($)yrmo | Aug. 31, 2018USD ($) | Oct. 02, 2017USD ($) | Oct. 02, 2017EUR (€) | Aug. 31, 2017USD ($) | |
Liability assumed [Abstract] | |||||
Goodwill | $ 38,648,000 | $ 39,892,000 | $ 35,077,000 | ||
EXFO Optics S.A.S. [Member] | |||||
Business Combinations [Abstract] | |||||
Total consideration | $ 11,052,000 | € 9,400,000 | |||
Cash recognised as of acquisition date | 1,512,000 | 1,286,000 | |||
Assets acquired [Abstract] | |||||
Accounts receivable | 1,889,000 | ||||
Inventories | 2,384,000 | ||||
Property, plant and equipment | 1,424,000 | ||||
Core technologies | 3,686,000 | ||||
Customer relationships | 811,000 | ||||
In-process research and development | 305,000 | ||||
Other intangible assets | 132,000 | ||||
Prepaid expenses | 171,000 | ||||
Total assets acquired | 10,802,000 | ||||
Liability assumed [Abstract] | |||||
Accounts payable and accrued liabilities | 1,035,000 | ||||
Long-term debt (note 12) | 2,143,000 | ||||
Deferred income tax | 1,510,000 | ||||
Net identifiable assets acquired | 6,114,000 | ||||
Goodwill | 3,426,000 | ||||
Fair value of the total consideration transferred, net of cash acquired | $ 9,540,000 | € 8,114,000 | |||
EXFO Optics S.A.S. [Member] | Core Technologies [Member] | Bottom of Range [Member] | |||||
Liability assumed [Abstract] | |||||
Estimated useful life of intangible assets | yr | 2 | ||||
EXFO Optics S.A.S. [Member] | Core Technologies [Member] | Top of Range [Member] | |||||
Liability assumed [Abstract] | |||||
Estimated useful life of intangible assets | yr | 5 | ||||
EXFO Optics S.A.S. [Member] | Customer Relationships [Member] | |||||
Liability assumed [Abstract] | |||||
Estimated useful life of intangible assets | mo | 3 | ||||
Aggregated Business Combinations [Member] | |||||
Liability assumed [Abstract] | |||||
Acquisition related cost | 2,484,000 | ||||
Selling and administrative expenses | 2,236,000 | ||||
Interest and other expenses | $ 248,000 |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2018USD ($) | Aug. 31, 2019USD ($)Building | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Restructuring provision [Abstract] | ||||
Restructuring charges, net of tax | $ 3,242 | $ 3,409 | $ 5,079 | |
Restructuring charges payable [Abstract] | ||||
Balance - Beginning of year | 3,167 | |||
Balance - End of year | $ 3,167 | 1,133 | 3,167 | |
Net proceeds from sale of building | 3,318 | 0 | 0 | |
Pre-tax gain from sale of building | 1,732 | 0 | 0 | |
Deferred income tax recovery recognized | 2,103 | (1,368) | ||
Fiscal 2018 Plan [Member] | ||||
Restructuring provision [Abstract] | ||||
Severance expenses | 2,072 | |||
Remaining non-cancelable operating lease | 1,137 | |||
Income tax credits writeoffs of research and development | 1,200 | |||
Impairment of long-lived assets | 150 | |||
Related income taxes | 1,150 | 63 | ||
Restructuring charges, net of tax | 3,409 | 3,242 | ||
Restructuring charges payable [Abstract] | ||||
Balance - Beginning of year | 3,167 | 2,477 | ||
Addition | 3,305 | 3,209 | ||
Payments | (5,339) | (2,052) | ||
Reversal | 0 | (467) | ||
Balance - End of year | $ 3,167 | $ 1,133 | $ 3,167 | 2,477 |
Number of buildings sold | Building | 1 | |||
Net proceeds from sale of building | $ 3,318 | |||
Pre-tax gain from sale of building | 1,732 | |||
Deferred income tax recovery recognized | $ 2,383 | |||
Fiscal 2017 Plan [Member] | ||||
Restructuring provision [Abstract] | ||||
Severance expenses | 4,049 | |||
Inventory write-offs | 1,030 | |||
Restructuring charges, net of tax | $ 5,079 |
Capital Disclosures (Details)
Capital Disclosures (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Capital Disclosures [Abstract] | ||
Capital amount | $ 224,075 | $ 225,271 |
Financial Instruments, Financia
Financial Instruments, Financial Instruments by Category (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Bank Loan [Member] | ||
Financial liabilities [Abstract] | ||
Amortized cost | $ 5,000 | |
Fair value through other comprehensive income | 0 | |
Financial liabilities | 5,000 | $ 10,692 |
Accounts Payable and Accrued Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Amortized cost | 49,945 | |
Fair value through other comprehensive income | 0 | |
Financial liabilities | 49,945 | 47,308 |
Other Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Amortized cost | 1,606 | |
Fair value through other comprehensive income | 0 | |
Financial liabilities | 1,606 | 3,197 |
Long-term Debt [Member] | ||
Financial liabilities [Abstract] | ||
Amortized cost | 5,742 | |
Fair value through other comprehensive income | 0 | |
Financial liabilities | 5,742 | 8,828 |
Forward Exchange Contracts [Member] | ||
Financial liabilities [Abstract] | ||
Amortized cost | 0 | |
Fair value through other comprehensive income | 1,057 | |
Financial liabilities | 1,057 | 807 |
Cash [Member] | ||
Financial assets [Abstract] | ||
Amortized cost | 16,518 | |
Fair value through other comprehensive income | 0 | |
Financial assets | 16,518 | 12,758 |
Short-term Investments [Member] | ||
Financial assets [Abstract] | ||
Amortized cost | 0 | |
Fair value through other comprehensive income | 2,918 | |
Financial assets | 2,918 | 2,282 |
Accounts Receivables [Member] | ||
Financial assets [Abstract] | ||
Amortized cost | 54,834 | |
Fair value through other comprehensive income | 0 | |
Financial assets | 54,834 | 46,955 |
Other Assets [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 352 | |
Forward Exchange Contracts [Member] | ||
Financial assets [Abstract] | ||
Amortized cost | 0 | |
Fair value through other comprehensive income | 79 | |
Financial assets | $ 79 | 318 |
Other Financial Liabilities [Member] | Bank Loan [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 10,692 | |
Other Financial Liabilities [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 47,308 | |
Other Financial Liabilities [Member] | Other Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 3,197 | |
Other Financial Liabilities [Member] | Long-term Debt [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 8,828 | |
Other Financial Liabilities [Member] | Forward Exchange Contracts [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Bank Loan [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Other Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Long-term Debt [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Forward Exchange Contracts [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 807 | |
Loans and Receivables [Member] | Cash [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 12,758 | |
Loans and Receivables [Member] | Short-term Investments [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Loans and Receivables [Member] | Accounts Receivables [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 46,955 | |
Loans and Receivables [Member] | Other Assets [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 352 | |
Loans and Receivables [Member] | Forward Exchange Contracts [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Available for Sale [Member] | Cash [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Available for Sale [Member] | Short-term Investments [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 2,282 | |
Available for Sale [Member] | Accounts Receivables [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Available for Sale [Member] | Other Assets [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Available for Sale [Member] | Forward Exchange Contracts [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Derivatives Used for Hedging [Member] | Cash [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Derivatives Used for Hedging [Member] | Short-term Investments [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Derivatives Used for Hedging [Member] | Accounts Receivables [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Derivatives Used for Hedging [Member] | Other Assets [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | |
Derivatives Used for Hedging [Member] | Forward Exchange Contracts [Member] | ||
Financial assets [Abstract] | ||
Financial assets | $ 318 |
Financial Instruments, Fair Val
Financial Instruments, Fair Value (Details) - Fair Value [Member] - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Forward Exchange Contracts [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | $ 0 | $ 0 |
Forward Exchange Contracts [Member] | Level 2 [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 1,057 | 807 |
Long-term Debt [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 5,644 | 8,879 |
Short-term Investments [Member] | Level 1 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 2,918 | 2,282 |
Short-term Investments [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Forward Exchange Contracts [Member] | Level 1 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Forward Exchange Contracts [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | $ 79 | $ 318 |
Financial Instruments, Market R
Financial Instruments, Market Risk (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2019USD ($)$ / sharesCAD ($) | Aug. 31, 2018USD ($)$ / sharesCAD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2019EUR (€)CAD ($) | Aug. 31, 2018EUR (€)CAD ($) | |
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Reclassified from accumulated other comprehensive income to net earnings over the next 12 months | $ 599 | ||||
Foreign Exchange Gains (Losses) on Foreign Exchange Contracts [Abstract] | |||||
Gain (losses) on forward exchange contracts | (591) | $ 875 | $ (468) | ||
Financial liabilities [Abstract] | |||||
Nominal value of outstanding financial liabilities | $ 61,400 | 45,800 | |||
Interest rate risk [Abstract] | |||||
Percentage of change in interest rate would not have insignificant impact | 1.00% | ||||
Short-term investments [Abstract] | |||||
Short-term investments | $ 2,918 | 2,282 | |||
Current Assets [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, assets | 79 | 318 | |||
Long-term Assets [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, assets | 561 | ||||
Other Accounts Receivable [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, assets | 64 | ||||
Forward exchange contracts recognized in earnings | 64 | ||||
Other Accounts Payable and Accrued Liabilities [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts recognized in earnings | 167 | ||||
Forward exchange contracts, liabilities | 167 | ||||
Current Liabilities [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, liabilities | 845 | 590 | |||
Long-term Liabilities [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, liabilities | 212 | 217 | |||
Accounts Payable and Accrued Liabilities [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 49,945 | 47,308 | |||
Forward Exchange Contracts [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 1,057 | 807 | |||
Cash [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 16,518 | 12,758 | |||
Accounts Receivables [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 54,834 | 46,955 | |||
Currency Risk [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 35,982 | 33,096 | € 9,518 | € 7,139 | |
Financial liabilities [Abstract] | |||||
Financial liabilities | 23,363 | 25,214 | 2,218 | 5,107 | |
Net exposure | 12,619 | 7,882 | 7,300 | 2,032 | |
Currency Risk [Member] | Bank Loan [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 5,000 | 7,197 | 0 | 3,000 | |
Currency Risk [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 12,563 | 13,017 | 2,218 | 2,107 | |
Currency Risk [Member] | Forward Exchange Contracts [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 5,800 | 5,000 | 0 | 0 | |
Currency Risk [Member] | Cash [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 5,531 | 2,790 | 3,129 | 3,352 | |
Currency Risk [Member] | Accounts Receivables [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 30,451 | 30,306 | € 6,389 | € 3,787 | |
Indian Rupees [Member] | September 2019 to August 2020 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 3,500 | ||||
Weighted average contractual forward rates | $ / shares | 71.48 | ||||
Indian Rupees [Member] | September 2018 to May 2019 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 4,600 | ||||
Weighted average contractual forward rates | $ / shares | 67.68 | ||||
US Dollars [Member] | |||||
Financial liabilities [Abstract] | |||||
Foreign currency comparison rate | 1.3294 | 1.3055 | 1.3294 | 1.3055 | |
Canadian Dollars [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 61,400 | $ 45,800 | |||
Weighted average contractual forward rates | $ / shares | 1.3063 | 1.2909 | |||
Financial liabilities [Abstract] | |||||
Percentage of increase (decrease) period-end value Canadian dollars comparison on net earnings | 10.00% | 10.00% | |||
Increase (decrease) period-end value Canadian dollars comparison on net earnings | $ 1,166 | $ 844 | |||
Increase (decrease) period-end value Canadian dollars comparison on net earnings per diluted share (in dollars per share) | $ / shares | $ 0.02 | $ 0.02 | |||
Percentage of increase (decrease) period-end value Canadian dollars comparison on other comprehensive income | 10.00% | 10.00% | |||
Increase (decrease) period-end value Canadian dollars comparison on other comprehensive income | $ 4,072 | $ 2,956 | |||
Canadian Dollars [Member] | September 2018 to August 2019 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 26,400 | ||||
Weighted average contractual forward rates | $ / shares | 1.3029 | ||||
Canadian Dollars [Member] | September 2019 to August 2020 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 35,500 | $ 15,700 | |||
Weighted average contractual forward rates | $ / shares | 1.3013 | 1.2756 | |||
Canadian Dollars [Member] | September 2020 to May 2021 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 3,700 | ||||
Weighted average contractual forward rates | $ / shares | 1.2703 | ||||
Canadian Dollars [Member] | September 2020 to August 2021 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 19,900 | ||||
Weighted average contractual forward rates | $ / shares | 1.3107 | ||||
Canadian Dollars [Member] | September 2021 to July 2022 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 6,000 | ||||
Weighted average contractual forward rates | $ / shares | 1.3216 | ||||
Euro [Member] | |||||
Financial liabilities [Abstract] | |||||
Foreign currency comparison rate | 1.4672 | 1.5210 | 1.4672 | 1.5210 | |
Percentage of increase (decrease) period-end value Canadian dollars comparison on net earnings | 10.00% | 10.00% | |||
Increase (decrease) period-end value Canadian dollars comparison on net earnings | $ 769 | $ 335 | |||
Increase (decrease) period-end value Canadian dollars comparison on net earnings per diluted share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Term Deposits [Member] | Indian Rupees [Member] | |||||
Short-term investments [Abstract] | |||||
Short-term investments | $ 2,548 | $ 1,909 | |||
Term Deposits [Member] | Indian Rupees [Member] | Bottom of Range [Member] | |||||
Short-term investments [Abstract] | |||||
Annual interest rate | 5.10% | 5.00% | |||
Maturity date | September 30, 2019 | October 31, 2018 | |||
Term Deposits [Member] | Indian Rupees [Member] | Top of Range [Member] | |||||
Short-term investments [Abstract] | |||||
Annual interest rate | 7.00% | 6.80% | |||
Maturity date | May 31, 2020 | August 31, 2019 | |||
Other [Member] | |||||
Short-term investments [Abstract] | |||||
Short-term investments | $ 370 | $ 373 |
Financial Instruments, Credit R
Financial Instruments, Credit Risk (Details) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019USD ($)Customer | Aug. 31, 2018USD ($)Customer | Aug. 31, 2017USD ($)Customer | |
Financial Instruments [Abstract] | |||
Period of payment profiles of sales used in calculating expected loss rates | 60 months | ||
Percentage of total sales represent for top customer | 10.10% | ||
Number of customers representing more than 10% of total sales | Customer | 0 | 0 | 1 |
Trade account receivable [Abstract] | |||
Trade accounts receivable | $ 51,517 | $ 47,273 | |
Changes in allowance for doubtful accounts [Abstract] | |||
Balance - Beginning of year | 772 | 2,960 | |
IFRS 9 adoption initial adjustment (note 2) | 303 | 0 | |
Addition charged to earnings | 864 | 834 | |
Writeoff of uncollectible accounts and reversal | (404) | (3,022) | |
Balance - End of year | 1,535 | 772 | $ 2,960 |
Current [Member] | |||
Trade account receivable [Abstract] | |||
Trade accounts receivable | 39,054 | 34,344 | |
Past Due, 0 to 30 days [Member] | |||
Trade account receivable [Abstract] | |||
Trade accounts receivable | 3,529 | 6,011 | |
Past Due, 31 to 60 days [Member] | |||
Trade account receivable [Abstract] | |||
Trade accounts receivable | 2,006 | 2,556 | |
Past Due, More than 60 days [Member] | |||
Trade account receivable [Abstract] | |||
Trade accounts receivable | $ 6,928 | $ 4,362 |
Financial Instruments, Liquidit
Financial Instruments, Liquidity Risk (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Derivative and non-derivative financial liabilities [Abstract] | ||
Bank loan | $ 5,000 | $ 10,692 |
Accounts payable and accrued liabilities | 50,790 | 47,898 |
Forward exchange contracts [Abstract] | ||
Long-term debt | 3,293 | 5,907 |
Other liabilities | 318 | 421 |
Cash and short-term investments | 19,436 | |
Accounts receivable | 54,913 | |
Unused available lines of credit for working capital and other general corporate purposes | 56,496 | |
Unused lines of credit for foreign currency exposure | 21,948 | |
Liquidity Risk [Member] | No Later than One Year [Member] | ||
Derivative and non-derivative financial liabilities [Abstract] | ||
Bank loan | 5,000 | 10,692 |
Accounts payable and accrued liabilities | 49,945 | 47,308 |
Forward exchange contracts [Abstract] | ||
Outflow | 39,000 | 31,000 |
Inflow | (38,252) | (30,738) |
Long-term debt | 2,449 | 2,921 |
Other liabilities | 1,606 | 3,197 |
Financial liabilities | 59,748 | 64,380 |
Liquidity Risk [Member] | Later than 1 Year and no Later than 5 Years [Member] | ||
Derivative and non-derivative financial liabilities [Abstract] | ||
Bank loan | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Forward exchange contracts [Abstract] | ||
Outflow | 25,900 | 19,400 |
Inflow | (25,585) | (18,940) |
Long-term debt | 3,237 | 5,745 |
Other liabilities | 0 | 0 |
Financial liabilities | 3,552 | 6,205 |
Liquidity Risk [Member] | Later than 5 Years [member] | ||
Derivative and non-derivative financial liabilities [Abstract] | ||
Bank loan | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 |
Forward exchange contracts [Abstract] | ||
Outflow | 0 | 0 |
Inflow | 0 | 0 |
Long-term debt | 56 | 162 |
Other liabilities | 0 | 0 |
Financial liabilities | $ 56 | $ 162 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Inventories [Abstract] | |||
Raw materials | $ 24,115 | $ 24,561 | |
Work in progress | 1,009 | 869 | |
Finished goods | 12,893 | 13,159 | |
Inventories | 38,017 | 38,589 | |
Inventory recognized as an expense | 127,725 | 116,923 | $ 98,503 |
Inventory writedown | $ 3,270 | $ 2,541 | $ 3,259 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Beginning balance | $ 44,310 | |
Ending balance | 39,364 | $ 44,310 |
Unpaid additions to property, plant and equipment | 894 | 1,788 |
Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 78,841 | 75,095 |
Additions | 4,980 | 8,788 |
Business combinations | 3,368 | |
Disposals | (8,357) | (5,239) |
Foreign currency translation adjustment | (2,150) | (3,171) |
Ending balance | 73,314 | 78,841 |
Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 34,531 | 34,963 |
Depreciation | 5,469 | 5,444 |
Disposals | (5,239) | (4,464) |
Foreign currency translation adjustment | (811) | (1,412) |
Ending balance | 33,950 | 34,531 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 3,069 | |
Ending balance | 2,807 | 3,069 |
Land and Land Improvements [Member] | Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 4,359 | 4,522 |
Additions | 0 | 17 |
Business combinations | 0 | |
Disposals | (192) | 0 |
Foreign currency translation adjustment | (76) | (180) |
Ending balance | 4,091 | 4,359 |
Land and Land Improvements [Member] | Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 1,290 | 1,295 |
Depreciation | 47 | 48 |
Disposals | 0 | 0 |
Foreign currency translation adjustment | (53) | (53) |
Ending balance | 1,284 | 1,290 |
Buildings [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 25,685 | |
Ending balance | 23,736 | 25,685 |
Buildings [Member] | Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 32,346 | 31,951 |
Additions | 1,116 | 3,048 |
Business combinations | 0 | |
Disposals | (3,378) | (1,413) |
Foreign currency translation adjustment | (592) | (1,240) |
Ending balance | 29,492 | 32,346 |
Buildings [Member] | Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 6,661 | 7,333 |
Depreciation | 667 | 604 |
Disposals | (1,452) | (994) |
Foreign currency translation adjustment | (120) | (282) |
Ending balance | 5,756 | 6,661 |
Equipment [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 13,925 | |
Ending balance | 11,557 | 13,925 |
Equipment [Member] | Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 39,088 | 35,574 |
Additions | 3,700 | 5,677 |
Business combinations | 3,105 | |
Disposals | (4,623) | (3,651) |
Foreign currency translation adjustment | (1,329) | (1,617) |
Ending balance | 36,836 | 39,088 |
Equipment [Member] | Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 25,163 | 25,207 |
Depreciation | 4,391 | 4,420 |
Disposals | (3,673) | (3,440) |
Foreign currency translation adjustment | (602) | (1,024) |
Ending balance | 25,279 | 25,163 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 1,631 | |
Ending balance | 1,264 | 1,631 |
Leasehold Improvements [Member] | Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 3,048 | 3,048 |
Additions | 164 | 46 |
Business combinations | 263 | |
Disposals | (164) | (175) |
Foreign currency translation adjustment | (153) | (134) |
Ending balance | 2,895 | 3,048 |
Leasehold Improvements [Member] | Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 1,417 | 1,128 |
Depreciation | 364 | 372 |
Disposals | (114) | (30) |
Foreign currency translation adjustment | (36) | (53) |
Ending balance | $ 1,631 | $ 1,417 |
Intangible Assets and Goodwill,
Intangible Assets and Goodwill, Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Intangible Assets [Abstract] | ||
Beginning balance | $ 29,866 | |
Additions | 2,082 | $ 3,138 |
Business combinations (note 3) | 27,528 | |
Disposal | (542) | (2,534) |
Foreign currency translation adjustment | (2,858) | (2,518) |
Ending balance | 21,654 | 29,866 |
Cost [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 52,097 | 26,483 |
Ending balance | 50,779 | 52,097 |
Accumulated Amortization [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 22,231 | 15,300 |
Amortization | 9,012 | 10,327 |
Disposal | (238) | (2,507) |
Foreign currency translation adjustment | (1,880) | (889) |
Ending balance | 29,125 | 22,231 |
Core Technology [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 18,448 | |
Additions | 363 | 89 |
Business combinations (note 3) | 16,555 | |
Disposal | (27) | (60) |
Foreign currency translation adjustment | (1,955) | (1,419) |
Ending balance | $ 13,002 | 18,448 |
Remaining amortization period, end of period | 4 years | |
Core Technology [Member] | Cost [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | $ 28,058 | 12,893 |
Ending balance | 26,439 | 28,058 |
Core Technology [Member] | Accumulated Amortization [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 9,610 | 5,130 |
Amortization | 4,926 | 4,878 |
Disposal | (19) | (45) |
Foreign currency translation adjustment | (1,080) | (353) |
Ending balance | 13,437 | 9,610 |
Customer Relationships [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 6,358 | |
Additions | 0 | 0 |
Business combinations (note 3) | 9,192 | |
Disposal | 0 | 0 |
Foreign currency translation adjustment | (618) | (590) |
Ending balance | $ 3,792 | 6,358 |
Remaining amortization period, end of period | 2 years | |
Customer Relationships [Member] | Cost [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | $ 10,291 | 1,689 |
Ending balance | 9,673 | 10,291 |
Customer Relationships [Member] | Accumulated Amortization [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 3,933 | 169 |
Amortization | 2,372 | 3,949 |
Disposal | 0 | 0 |
Foreign currency translation adjustment | (424) | (185) |
Ending balance | 5,881 | 3,933 |
In-process Research and Development [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 292 | |
Additions | 0 | 0 |
Business combinations (note 3) | 305 | |
Disposal | (293) | 0 |
Foreign currency translation adjustment | 1 | (13) |
Ending balance | $ 0 | 292 |
Remaining amortization period, end of period | 0 years | |
In-process Research and Development [Member] | Cost [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | $ 292 | 0 |
Ending balance | 0 | 292 |
In-process Research and Development [Member] | Accumulated Amortization [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 0 | 0 |
Amortization | 0 | 0 |
Disposal | 0 | 0 |
Foreign currency translation adjustment | 0 | 0 |
Ending balance | 0 | 0 |
Brand Name [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 284 | |
Additions | 0 | 0 |
Business combinations (note 3) | 846 | |
Disposal | 0 | 0 |
Foreign currency translation adjustment | (46) | (50) |
Ending balance | $ 0 | 284 |
Remaining amortization period, end of period | 0 years | |
Brand Name [Member] | Cost [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | $ 796 | 0 |
Ending balance | 750 | 796 |
Brand Name [Member] | Accumulated Amortization [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 512 | 0 |
Amortization | 284 | 519 |
Disposal | 0 | 0 |
Foreign currency translation adjustment | (46) | (7) |
Ending balance | 750 | 512 |
Software [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 4,484 | |
Additions | 1,719 | 3,049 |
Business combinations (note 3) | 630 | |
Disposal | (222) | (2,474) |
Foreign currency translation adjustment | (240) | (446) |
Ending balance | $ 4,860 | 4,484 |
Remaining amortization period, end of period | 3 years | |
Software [Member] | Cost [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | $ 12,660 | 11,901 |
Ending balance | 13,917 | 12,660 |
Software [Member] | Accumulated Amortization [Member] | ||
Intangible Assets [Abstract] | ||
Beginning balance | 8,176 | 10,001 |
Amortization | 1,430 | 981 |
Disposal | (219) | (2,462) |
Foreign currency translation adjustment | (330) | (344) |
Ending balance | $ 9,057 | $ 8,176 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Goodwill [Abstract] | ||
Balance - Beginning of year | $ 39,892 | $ 35,077 |
Business combinations (note 3) | 0 | 5,931 |
Foreign currency translation adjustment | (1,244) | (1,116) |
Balance - End of year | $ 38,648 | $ 39,892 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill, Goodwill Allocated to CGUs (Details) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($)CashGeneratingUnit | Aug. 31, 2017USD ($) | |
Goodwill CGUs [Abstract] | |||
Goodwill | $ 38,648 | $ 39,892 | $ 35,077 |
Number of separate CGUs for goodwill impairment testing | CashGeneratingUnit | 3 | ||
Market Approach [Member] | Bottom of Range [Member] | Revenue multiple, measurement input [member] | |||
Goodwill CGUs [Abstract] | |||
Estimating recoverable amounts, sales multiple | 1 | ||
Market Approach [Member] | Top of Range [Member] | Revenue multiple, measurement input [member] | |||
Goodwill CGUs [Abstract] | |||
Estimating recoverable amounts, sales multiple | 7.6 | ||
EXFO CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | $ 12,949 | $ 13,185 | |
EXFO Optics CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | 3,376 | 3,562 | |
Service Assurance, Systems and Services CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | $ 22,323 | 0 | |
Service Assurance, Systems and Services CGU [Member] | Liquidation approach [Member] | |||
Goodwill CGUs [Abstract] | |||
Period of liquidation approach | P2Y | ||
Brix CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | $ 0 | 13,327 | |
Ontology CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | 0 | 7,471 | |
EXFO Solutions CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | $ 0 | $ 2,347 |
Credit Facilities (Details)
Credit Facilities (Details) - Aug. 31, 2019 € in Thousands, ₨ in Thousands, $ in Thousands, $ in Thousands | USD ($) | EUR (€) | CAD ($) | INR (₨) |
Canadian Revolving Line of Credit [Member] | ||||
Credit Facilities [Abstract] | ||||
Line of credit maximum borrowing capacity | $ 52,655 | $ 70,000 | ||
US Dollar Revolving Line of Credit [Member] | ||||
Credit Facilities [Abstract] | ||||
Line of credit maximum borrowing capacity | 9,000 | |||
Revolving Line of Credit [Member] | ||||
Credit Facilities [Abstract] | ||||
Amount drawn from lines of credit | 5,433 | |||
Revolving Line of Credit [Member] | Bank Loan [Member] | ||||
Credit Facilities [Abstract] | ||||
Amount drawn from lines of credit | 5,000 | |||
Revolving Line of Credit [Member] | Letters of Guarantee [Member] | ||||
Credit Facilities [Abstract] | ||||
Amount drawn from lines of credit | 433 | |||
Line of Credit, Foreign Currency Risk [Member] | ||||
Credit Facilities [Abstract] | ||||
Line of credit maximum borrowing capacity | 26,179 | |||
Amount reserved from line of credit | 5,818 | |||
INR Line of Credit, Foreign Currency Risk [Member] | ||||
Credit Facilities [Abstract] | ||||
Line of credit maximum borrowing capacity | 1,800 | ₨ 128,571 | ||
Amount reserved from line of credit | 213 | ₨ 15,214 | ||
Euro Dollar Revolving Line of Credit [Member] | ||||
Credit Facilities [Abstract] | ||||
Line of credit maximum borrowing capacity | 552 | € 500 | ||
Euro Dollar Revolving Line of Credit [Member] | Letters of Guarantee [Member] | ||||
Credit Facilities [Abstract] | ||||
Amount drawn from lines of credit | $ 277 | € 251 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities and Provisions (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Accounts payable and accrued liabilities [Abstract] | ||
Trade | $ 27,996 | $ 26,052 |
Salaries and social benefits | 19,716 | 18,101 |
Forward exchange contracts (note 6) | 845 | 590 |
Other | 2,233 | 3,155 |
Accounts payable and accrued liabilities | 50,790 | 47,898 |
Provisions [Abstract] | ||
Warranty | 356 | 417 |
Restructuring charges (note 4) | 1,133 | 3,167 |
Other | 2,313 | 1,717 |
Provisions | $ 3,802 | $ 5,301 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Long-term Debt [Abstract] | ||
Total long-term debt | $ 5,742 | $ 8,828 |
Current portion of long-term debt | 2,449 | 2,921 |
Long-term Debt | 3,293 | 5,907 |
Unsecured Non-interest-bearing Loans Maturing in March 2024 and March 2025 [Member] | Euro [Member] | ||
Long-term Debt [Abstract] | ||
Total long-term debt | $ 866 | 883 |
Unsecured Non-interest-bearing Loans Maturing in March 2024 and March 2025 [Member] | Euro [Member] | Bottom of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, maturity | March 2024 | |
Unsecured Non-interest-bearing Loans Maturing in March 2024 and March 2025 [Member] | Euro [Member] | Top of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, maturity | March 2025 | |
Unsecured Loans Maturing Between December 2018 and September 2023 [Member] | Euro [Member] | ||
Long-term Debt [Abstract] | ||
Total long-term debt | $ 3,111 | $ 4,853 |
Unsecured Loans Maturing Between December 2018 and September 2023 [Member] | Euro [Member] | Bottom of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 0.00% | |
Long-term debt, maturity | March 2020 | December 2018 |
Unsecured Loans Maturing Between December 2018 and September 2023 [Member] | Euro [Member] | Top of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 5.00% | |
Long-term debt, maturity | September 2023 | September 2023 |
Secured Loans Maturing Between December 2018 and August 2022 [Member] | Euro [Member] | ||
Long-term Debt [Abstract] | ||
Total long-term debt | $ 459 | $ 828 |
Secured Loans Maturing Between December 2018 and August 2022 [Member] | Euro [Member] | Bottom of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 0.70% | |
Long-term debt, maturity | April 2020 | December 2018 |
Secured Loans Maturing Between December 2018 and August 2022 [Member] | Euro [Member] | Top of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 2.00% | |
Long-term debt, maturity | August 2022 | August 2022 |
Secured Loans Maturing Between March 2020 and July 2022 [Member] | Euro [Member] | ||
Long-term Debt [Abstract] | ||
Total long-term debt | $ 1,306 | $ 2,264 |
Secured Loans Maturing Between March 2020 and July 2022 [Member] | Euro [Member] | Bottom of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 1.10% | |
Long-term debt, maturity | March 2020 | |
Secured Loans Maturing Between March 2020 and July 2022 [Member] | Euro [Member] | Top of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 2.90% | |
Long-term debt, maturity | July 2022 |
Long-Term Debt, Principal Repay
Long-Term Debt, Principal Repayments of Long-term Debt (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Principal repayments of long-term debt [Abstract] | ||
Long-term debt | $ 5,742 | $ 8,828 |
No Later than One Year [Member] | ||
Principal repayments of long-term debt [Abstract] | ||
Long-term debt | 2,449 | |
Later than One Year and No Later than Five Years [Member] | ||
Principal repayments of long-term debt [Abstract] | ||
Long-term debt | 3,237 | |
Later than Five Years [Member] | ||
Principal repayments of long-term debt [Abstract] | ||
Long-term debt | $ 56 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Minimum rentals payable under operating leases [Abstract] | |||
Rental expenses under operating leases | $ 4,026 | $ 3,884 | $ 2,945 |
Premises and Equipment [Member] | |||
Minimum rentals payable under operating leases [Abstract] | |||
Minimum rentals payments payable under operating leases | 9,241 | 13,386 | |
Intellectual Property [Member] | |||
License Agreements for Intellectual Property [Abstract] | |||
Minimum payments under license agreements | 4,733 | 3,474 | |
No Later than 1 Year [Member] | Premises and Equipment [Member] | |||
Minimum rentals payable under operating leases [Abstract] | |||
Minimum rentals payments payable under operating leases | 2,895 | 3,365 | |
No Later than 1 Year [Member] | Intellectual Property [Member] | |||
License Agreements for Intellectual Property [Abstract] | |||
Minimum payments under license agreements | 2,289 | 1,492 | |
Later than 1 Year and not Later than 5 Years [Member] | Premises and Equipment [Member] | |||
Minimum rentals payable under operating leases [Abstract] | |||
Minimum rentals payments payable under operating leases | 6,323 | 9,519 | |
Later than 1 Year and not Later than 5 Years [Member] | Intellectual Property [Member] | |||
License Agreements for Intellectual Property [Abstract] | |||
Minimum payments under license agreements | 2,444 | 1,982 | |
Later than 5 Years [Member] | Premises and Equipment [Member] | |||
Minimum rentals payable under operating leases [Abstract] | |||
Minimum rentals payments payable under operating leases | $ 23 | $ 502 |
Share Capital (Details)
Share Capital (Details) $ in Thousands | Jan. 08, 2019shares | Aug. 31, 2019USD ($)Voteshares | Aug. 31, 2018USD ($)shares | Aug. 31, 2017USD ($)shares |
Share Capital [Abstract] | ||||
Balance, beginning of period | $ 177,921 | $ 196,790 | $ 181,401 | |
Issuance of share capital | 92,706 | 91,937 | ||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | 0 | 0 | 0 | |
Balance, end of period | 172,564 | 177,921 | 196,790 | |
Share Capital [Member] | ||||
Share Capital [Abstract] | ||||
Balance, beginning of period | 91,937 | 90,411 | 85,516 | |
Issuance of share capital | 3,490 | |||
Redemption of restricted share units (note 16) | 0 | 0 | 0 | |
Redemption of deferred share units (note 16) | 0 | 0 | ||
Redemption of share capital | (337) | |||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | 1,106 | 1,526 | 1,405 | |
Balance, end of period | $ 92,706 | $ 91,937 | $ 90,411 | |
Top of Range [Member] | ||||
Share Capital [Abstract] | ||||
Percentage on the open market for issued and outstanding subordinate voting shares | 6.30% | |||
Multiple Voting Shares [Member] | ||||
Share Capital [Abstract] | ||||
Number of votes per share | Vote | 10 | |||
Conversion ratio | 1 | |||
Multiple Voting Shares [Member] | Share Capital [Member] | ||||
Share Capital [Abstract] | ||||
Balance, beginning of period (in shares) | shares | 31,643,000 | 31,643,000 | 31,643,000 | |
Balance, beginning of period | $ 1 | $ 1 | $ 1 | |
Issuance of share capital (in shares) | shares | 0 | |||
Issuance of share capital | $ 0 | |||
Redemption of restricted share units (note 16) (in shares) | shares | 0 | 0 | 0 | |
Redemption of restricted share units (note 16) | $ 0 | $ 0 | $ 0 | |
Redemption of deferred share units (note 16) (in shares) | shares | 0 | 0 | ||
Redemption of deferred share units (note 16) | $ 0 | $ 0 | ||
Redemption of share capital (in shares) | shares | 0 | |||
Redemption of share capital | $ 0 | |||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | $ 0 | $ 0 | $ 0 | |
Balance, end of period (in shares) | shares | 31,643,000 | 31,643,000 | 31,643,000 | |
Balance, end of period | $ 1 | $ 1 | $ 1 | |
Subordinate Voting Shares [Member] | ||||
Share Capital [Abstract] | ||||
Subordinate voting shares under share repurchase program (in shares) | shares | 1,200,000 | |||
Subordinate Voting Shares [Member] | Share Capital [Member] | ||||
Share Capital [Abstract] | ||||
Balance, beginning of period (in shares) | shares | 23,472,995 | 23,068,777 | 21,917,942 | |
Balance, beginning of period | $ 91,936 | $ 90,410 | $ 85,515 | |
Issuance of share capital (in shares) | shares | 793,070 | |||
Issuance of share capital | $ 3,490 | |||
Redemption of restricted share units (note 16) (in shares) | shares | 317,072 | 345,883 | 327,859 | |
Redemption of restricted share units (note 16) | $ 0 | $ 0 | $ 0 | |
Redemption of deferred share units (note 16) (in shares) | shares | 58,335 | 29,906 | ||
Redemption of deferred share units (note 16) | $ 0 | $ 0 | ||
Redemption of share capital (in shares) | shares | (86,392) | |||
Redemption of share capital | $ (337) | |||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | $ 1,106 | $ 1,526 | $ 1,405 | |
Balance, end of period (in shares) | shares | 23,703,675 | 23,472,995 | 23,068,777 | |
Balance, end of period | $ 92,705 | $ 91,936 | $ 90,410 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Changes in accumulated other comprehensive loss [Abstract] | |||
Balance, beginning of period | $ (47,350) | ||
Foreign currency translation adjustment | (4,177) | $ (6,491) | $ 8,262 |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | 16 | (1,894) | 1,347 |
Balance, end of period | (51,511) | (47,350) | |
Foreign Currency Translation Adjustment [Member] | |||
Changes in accumulated other comprehensive loss [Abstract] | |||
Balance, beginning of period | (47,365) | (40,874) | (49,136) |
Foreign currency translation adjustment | (4,177) | (6,491) | 8,262 |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | 0 | 0 | 0 |
Balance, end of period | (51,542) | (47,365) | (40,874) |
Cash-flow Hedge [Member] | |||
Changes in accumulated other comprehensive loss [Abstract] | |||
Balance, beginning of period | 15 | 1,909 | 562 |
Foreign currency translation adjustment | 0 | 0 | 0 |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | 16 | (1,894) | 1,347 |
Balance, end of period | 31 | 15 | 1,909 |
Accumulated Other Comprehensive Loss [Member] | |||
Changes in accumulated other comprehensive loss [Abstract] | |||
Balance, beginning of period | (47,350) | (38,965) | (48,574) |
Balance, end of period | $ (51,511) | $ (47,350) | $ (38,965) |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Stock-based compensation costs recognized for employee services [Abstract] | |||
Stock-based compensation costs arising from equity-settled awards | $ 1,849 | $ 1,770 | $ 1,439 |
Stock-based compensation costs arising from cash-settled awards | (18) | (22) | 38 |
Share-based compensation costs | $ 1,831 | $ 1,748 | $ 1,477 |
Top of Range [Member] | |||
Stock-Based Compensation Plans [Abstract] | |||
Number of additional subordinate voting shares issuable under the Long-Term Incentive Plan and the Deferred Share Unit Plan (in shares) | 11,792,893 | ||
Number of subordinate voting shares that may be granted to any individual on an annual basis, percentage | 5.00% |
Stock-Based Compensation Plans,
Stock-Based Compensation Plans, Long-Term Incentive Plan (Details) | 12 Months Ended | ||||
Aug. 31, 2019shares$ / shares | Aug. 31, 2018shares$ / shares | Aug. 31, 2017shares$ / shares | Aug. 31, 2019shares | Aug. 31, 2018shares | |
Stock Options [Member] | |||||
Stock Options [Abstract] | |||||
Expiry period | P10Y | ||||
Vesting period | P4Y | ||||
Annual vesting percentage | 25.00% | ||||
Number of Share Options [Abstract] | |||||
Outstanding (in shares) | 0 | 0 | |||
Exercisable (in shares) | 0 | 0 | |||
Restricted Stock Units [Member] | |||||
RSU Activity [Abstract] | |||||
Outstanding - Beginning of year (in shares) | 1,615,152 | 1,611,330 | 1,551,555 | ||
Granted (in shares) | 632,931 | 420,621 | 527,143 | ||
Redeemed (in shares) | (317,072) | (345,883) | (327,859) | ||
Forfeited (in shares) | (94,565) | (70,916) | (139,509) | ||
Outstanding - End of year (in shares) | 1,836,446 | 1,615,152 | 1,611,330 | ||
Outstanding units redeemable (in shares) | 0 | 0 | |||
Outstanding units (in shares) | 1,615,152 | 1,611,330 | 1,551,555 | 1,836,446 | 1,615,152 |
Weighted average grant-date fair value (in dollars per share) | $ / shares | $ 3.30 | $ 4.22 | $ 4.54 | ||
Weighted-average market price of redeemed shares (in dollars per share) | $ / shares | $ 3.20 | $ 4.19 | $ 4.55 | ||
Restricted Stock Units [Member] | Bottom of Range [Member] | |||||
Stock Options [Abstract] | |||||
Vesting period | P3Y | ||||
Restricted Stock Units [Member] | Top of Range [Member] | |||||
Stock Options [Abstract] | |||||
Vesting period | P10Y | ||||
Performance Share Units [Member] | |||||
RSU Activity [Abstract] | |||||
Outstanding - End of year (in shares) | 0 | ||||
Outstanding units (in shares) | 0 | 0 | |||
Performance Share Units [Member] | Bottom of Range [Member] | |||||
Stock Options [Abstract] | |||||
Vesting period | P3Y | ||||
Performance Share Units [Member] | Top of Range [Member] | |||||
Stock Options [Abstract] | |||||
Vesting period | P10Y |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans, Deferred Share Unit Plan (Details) - Deferred Share Unit Plan [Member] | 12 Months Ended | ||
Aug. 31, 2019shares$ / shares | Aug. 31, 2018shares$ / shares | Aug. 31, 2017shares$ / shares | |
Deferred Share Unit Plan [Abstract] | |||
Number of subordinate voting share to receive by directors against each DSU (in shares) | 1 | ||
DSU Activity [Abstract] | |||
Outstanding - Beginning of year (in shares) | 181,689 | 174,279 | 159,127 |
Granted (in shares) | 69,818 | 65,745 | 45,058 |
Redeemed (in shares) | 0 | (58,335) | (29,906) |
Outstanding - End of year (in shares) | 251,507 | 181,689 | 174,279 |
Outstanding units redeemable (in shares) | 0 | 0 | 0 |
Weighted average grant-date fair value (in dollars per share) | $ / shares | $ 3.64 | $ 4.10 | $ 4.53 |
Weighted-average market price of redeemed shares (in dollars per share) | $ / shares | $ 4.29 | $ 5.02 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans, Stock Appreciation Rights Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Stock Appreciation Rights Plan [Abstract] | ||
Accounts payable and accrued liabilities | $ 50,790 | $ 47,898 |
Stock Appreciation Rights Plan [Member] | ||
Stock Appreciation Rights Plan [Abstract] | ||
Expiry period | P10Y | |
Vesting period | P4Y | |
Accounts payable and accrued liabilities | $ 77 | $ 93 |
Related-Party Disclosures (Deta
Related-Party Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Related-Party Disclosures [Abstract] | |||
Salaries and short-term employee benefits | $ 4,029 | $ 3,985 | $ 3,715 |
Stock-based compensation costs | 1,175 | 1,047 | 775 |
Total | $ 5,204 | $ 5,032 | $ 4,490 |
Statements of Earnings (Details
Statements of Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Sales [Abstract] | |||
Test and measurement | $ 204,693 | $ 197,423 | $ 193,863 |
Service assurance, systems and services | 82,788 | 71,248 | 49,906 |
Foreign exchange gains (losses) on forward exchange contracts | (591) | 875 | (468) |
Total sales for the year | 286,890 | 269,546 | 243,301 |
Net research and development expenses [Abstract] | |||
Gross research and development expenses | 57,972 | 65,243 | 53,124 |
Research and development tax credits and grants | (7,419) | (8,089) | (5,956) |
Net research and development expenses for the year | 50,553 | 57,154 | 47,168 |
Cost of sales [Abstract] | |||
Depreciation of property, plant and equipment | 1,862 | 2,077 | 1,522 |
Amortization of intangible assets | 7,186 | 9,212 | 2,652 |
Total depreciation and amortization expense | 9,048 | 11,289 | 4,174 |
Selling and administrative expenses [Abstract] | |||
Depreciation of property, plant and equipment | 1,354 | 902 | 530 |
Amortization of intangible assets | 1,043 | 592 | 251 |
Total depreciation and amortization expenses for the year | 2,397 | 1,494 | 781 |
Net research and development expenses [Abstract] | |||
Depreciation of property, plant and equipment | 2,253 | 2,465 | 1,850 |
Amortization of intangible assets | 783 | 523 | 386 |
Total depreciation and amortization expenses for the year | 3,036 | 2,988 | 2,236 |
Depreciation of property, plant and equipment | 5,469 | 5,444 | 3,902 |
Amortization of intangible assets | 9,012 | 10,327 | 3,289 |
Total depreciation and amortization expenses for the year | 14,481 | 15,771 | 7,191 |
Employee compensation [Abstract] | |||
Salaries and benefits | 136,059 | 134,453 | 115,832 |
Restructuring charges | 3,305 | 2,072 | 3,509 |
Stock-based compensation costs | 1,831 | 1,748 | 1,414 |
Total employee compensation for the year | 141,195 | 138,273 | 120,755 |
Restructuring charges [Abstract] | |||
Cost of sales | 304 | 517 | 1,697 |
Selling and administrative expenses | 495 | 673 | 1,150 |
Net research and development costs | 2,506 | 3,219 | 2,232 |
Interest and other expense | 0 | 150 | 0 |
Income taxes | (63) | (1,150) | 0 |
Total restructuring charges for the year | 3,242 | 3,409 | 5,079 |
Stock-based compensation costs [Abstract] | |||
Cost of sales | 136 | 143 | 121 |
Selling and administrative expenses | 1,375 | 1,217 | 1,052 |
Net research and development expenses | 320 | 388 | 304 |
Total stock-based compensation costs for the year | $ 1,831 | $ 1,748 | $ 1,477 |
Other Disclosures (Details)
Other Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Other assets [Abstract] | |||
Carrying value of contract assets | $ 3,083 | $ 2,279 | |
Deferred revenue [Abstract] | |||
Deferred revenue | 33,478 | ||
Deferred revenue to be recognized during next 12 months | 24,422 | 16,556 | |
Deferred revenue to be recognized thereafter | 9,056 | 6,947 | |
Canadian Defined Contribution Pension Plan [Member] | |||
Defined contribution pension plans [Abstract] | |||
Cash contributions | $ 1,592 | 1,610 | $ 1,571 |
Canadian Defined Contribution Pension Plan [Member] | Top of Range [Member] | |||
Defined contribution pension plans [Abstract] | |||
Maximum matching percentage of employee's gross pay | 4.00% | ||
US Defined Contribution Pension Plan (401K plan) [Member] | |||
Defined contribution pension plans [Abstract] | |||
Cash contributions | $ 460 | $ 591 | $ 630 |
Percentage of employer contribution to employee | 3.00% | ||
Percentage of participants current compensation | 6.00% | ||
US Defined Contribution Pension Plan (401K plan) [Member] | Top of Range [Member] | |||
Defined contribution pension plans [Abstract] | |||
Percentage of employees additional statutorily prescribed annual limit | 1.00% | ||
Percentage of first 6% of participant's current compensation | 50.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2017 | ||
Reconciliation of Income Tax Provision (Recovery) [Abstract] | ||||||
Income tax provision (recovery) at combined Canadian federal and provincial statutory tax rate (27%) | $ 774 | $ (1,775) | $ 2,014 | |||
Increase (decrease) due to [Abstract] | ||||||
Foreign income/loss taxed at different rates | 13 | 452 | (900) | |||
Non-deductible loss (non-taxable income) | 10 | (69) | (245) | |||
Non-deductible expenses | 594 | 1,285 | 981 | |||
Change in tax rates | 0 | 167 | (10) | |||
Effect of the US tax reform | [1] | 0 | 1,528 | 0 | ||
Foreign exchange effect of translation of foreign subsidiaries in the functional currency | 63 | (16) | 176 | |||
Recognition of previously unrecognized deferred income tax assets (note 4) | (2,383) | (560) | 0 | |||
Utilization of previously unrecognized deferred income tax assets | (964) | (627) | (46) | |||
Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses | 5,761 | 6,100 | 4,659 | |||
Other | 1,478 | (807) | (21) | |||
Income tax provision for the year | $ 5,346 | $ 5,678 | $ 6,608 | |||
Canada [Member] | ||||||
Applicable Tax Rate [Abstract] | ||||||
Statutory tax rate | 27.00% | 27.00% | 27.00% | |||
US [Member] | ||||||
Applicable Tax Rate [Abstract] | ||||||
Statutory tax rate | 35.00% | |||||
Change In Tax Rates Enacted [Member] | US [Member] | ||||||
Applicable Tax Rate [Abstract] | ||||||
Statutory tax rate | 21.00% | |||||
[1] | On December 22, 2017, the US tax reform ("Tax Cuts and Jobs Act") was substantively enacted and reduces the maximum corporate income tax rate from 35% to 21%, effective January 1, 2018. Based on management's estimate of deferred tax assets expected to be used in fiscal 2018 and beyond against taxable income in the United States, the company recorded a deferred income tax expense of $1,528,000 in the consolidated statement of earnings for the year ended August 31, 2018 to account for the effect of this substantively enacted tax rate. |
Income Taxes, Income Tax Provis
Income Taxes, Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Current [Abstract] | |||
Current income taxes | $ 7,449 | $ 4,310 | $ 5,554 |
Deferred [Abstract] | |||
Deferred income taxes relating to the origination and reversal of temporary differences | (4,517) | (3,545) | (3,559) |
Benefit arising from previously unrecognized tax losses and deductible temporary differences | (2,383) | (560) | 0 |
Utilization of previously unrecognized deferred income tax assets | (964) | (627) | (46) |
Total | (7,864) | (4,732) | (3,605) |
Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses | 5,761 | 6,100 | 4,659 |
Deferred income taxes | (2,103) | 1,368 | 1,054 |
Income tax provision for the year | $ 5,346 | $ 5,678 | $ 6,608 |
Income Taxes, Changes in Deferr
Income Taxes, Changes in Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | $ (1,196) | $ 3,439 |
Credited (charged) to the statement of earnings | 2,103 | (1,368) |
Credited (charged) to shareholders' equity | 67 | 554 |
Business combinations | (4,202) | |
Foreign currency translation adjustment | 249 | 381 |
Deferred tax assets (liability), end of year | 1,223 | (1,196) |
Deferred Income Tax Assets [Member] | Long-Lived Assets [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 1,925 | 1,802 |
Credited (charged) to the statement of earnings | 2,695 | 200 |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 0 | |
Foreign currency translation adjustment | (52) | (77) |
Deferred tax assets (liability), end of year | 4,568 | 1,925 |
Deferred Income Tax Assets [Member] | Provisions and Accruals [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 3,963 | 3,772 |
Credited (charged) to the statement of earnings | 446 | (250) |
Credited (charged) to shareholders' equity | 67 | 554 |
Business combinations | 0 | |
Foreign currency translation adjustment | 15 | (113) |
Deferred tax assets (liability), end of year | 4,491 | 3,963 |
Deferred Income Tax Assets [Member] | Deferred Revenue [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 2,716 | 2,890 |
Credited (charged) to the statement of earnings | 490 | (101) |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 0 | |
Foreign currency translation adjustment | (36) | (73) |
Deferred tax assets (liability), end of year | 3,170 | 2,716 |
Deferred Income Tax Assets [Member] | Research and Development Expenses [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 2,524 | 2,731 |
Credited (charged) to the statement of earnings | (149) | (101) |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 0 | |
Foreign currency translation adjustment | (45) | (106) |
Deferred tax assets (liability), end of year | 2,330 | 2,524 |
Deferred Income Tax Assets [Member] | Losses Carried Forward [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 5,073 | 4,241 |
Credited (charged) to the statement of earnings | (2,751) | (2,633) |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 3,687 | |
Foreign currency translation adjustment | (176) | (222) |
Deferred tax assets (liability), end of year | 2,146 | 5,073 |
Deferred Income Tax Liabilities [Member] | Long-Lived Assets [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | (6,461) | (1,002) |
Credited (charged) to the statement of earnings | 1,710 | 1,903 |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | (7,889) | |
Foreign currency translation adjustment | 345 | 527 |
Deferred tax assets (liability), end of year | (4,406) | (6,461) |
Deferred Income Tax Liabilities [Member] | Research and Development Tax Credits [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | (10,936) | (10,995) |
Credited (charged) to the statement of earnings | (338) | (386) |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 0 | |
Foreign currency translation adjustment | 198 | 445 |
Deferred tax assets (liability), end of year | $ (11,076) | $ (10,936) |
Income Taxes, Changes in Defe_2
Income Taxes, Changes in Deferred Income Tax Assets and Liabilities Classified as Follows (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Classified as follows [Abstract] | |||
Deferred income tax assets | $ 4,821 | $ 4,714 | $ 6,555 |
Deferred income tax liabilities | (3,598) | (5,910) | (3,116) |
Deferred income tax assets net | $ 1,223 | $ (1,196) | $ 3,439 |
Income Taxes, Unrecognized Defe
Income Taxes, Unrecognized Deferred Income Tax Assets on Temporary Deductible Differences and Unused Tax Losses (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Unrecognized deferred income tax assets [Abstract] | ||
Unrecognized deferred income tax assets | $ 39,962 | $ 43,796 |
Temporary Deductible Differences [Member] | ||
Unrecognized deferred income tax assets [Abstract] | ||
Unrecognized deferred income tax assets | 241 | 1,435 |
Losses Carried Forward [Member] | ||
Unrecognized deferred income tax assets [Abstract] | ||
Unrecognized deferred income tax assets | $ 39,721 | $ 42,361 |
Income Taxes, Operating Losses
Income Taxes, Operating Losses for Which no Deferred Income Tax Assets Recognized (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019USD ($) | Aug. 31, 2019CAD ($) | Aug. 31, 2019CAD ($) | |
Research and Development Tax Credits [Abstract] | |||
Non-refundable research and development tax credits | $ 38,947 | ||
Taxable temporary differences | 23,111 | ||
Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 41,891 | ||
France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 35,839 | ||
Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 6,100 | ||
United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 60,344 | ||
United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 4,461 | ||
Canada Federal Level [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Capital losses for which no deferred tax asset recognized | 49,363 | $ 65,622 | |
Research and Development Tax Credits [Abstract] | |||
Pre-tax earnings required for recovery | $ 260,000 | $ 345,000 | |
Estimated recovery period for pre-tax earnings | P16Y | P16Y | |
Pre-tax earnings compound annual growth rate | 1.00% | 1.00% | |
Carried forward period | P20Y | P20Y | |
Canada Provincial Level [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Capital losses for which no deferred tax asset recognized | $ 52,545 | $ 69,853 | |
2020 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 3,397 | ||
2020 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2020 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2020 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2020 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2021 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 6,345 | ||
2021 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2021 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2021 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,958 | ||
2021 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2022 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 11,001 | ||
2022 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2022 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2022 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,435 | ||
2022 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2023 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,127 | ||
2023 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2023 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2023 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,972 | ||
2023 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2024 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 5,502 | ||
2024 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2024 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2024 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,351 | ||
2024 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2025 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 6,859 | ||
2025 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2025 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2025 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,351 | ||
2025 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2026 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 235 | ||
2026 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2026 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2026 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,351 | ||
2026 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2027 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,425 | ||
2027 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2027 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2027 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,351 | ||
2027 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2028 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2028 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2028 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2028 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 2,447 | ||
2028 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2030 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2030 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2030 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2030 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 2,713 | ||
2030 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2031 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2031 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2031 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2031 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 109 | ||
2031 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2033 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2033 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2033 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2033 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 4,681 | ||
2033 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2034 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2034 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2034 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2034 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 4,851 | ||
2034 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2035 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2035 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2035 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2035 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 2,616 | ||
2035 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2036 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2036 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2036 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2036 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 8,501 | ||
2036 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2037 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2037 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2037 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2037 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 9,660 | ||
2037 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2038 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2038 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2038 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2038 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,997 | ||
2038 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
Indefinite [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
Indefinite [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 35,839 | ||
Indefinite [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 6,100 | ||
Indefinite [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
Indefinite [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | $ 4,461 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Earnings per Share [Abstract] | |||
Basic weighted average number of shares outstanding (in shares) | 55,325 | 54,998 | 54,423 |
Plus dilutive effect of [Abstract] | |||
Restricted shares units (in shares) | 0 | 0 | 979 |
Deferred share units (in shares) | 0 | 0 | 153 |
Diluted weighted average number of shares outstanding (in shares) | 55,325 | 54,998 | 55,555 |
Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares (in shares) | 1,701 | 1,799 | 0 |
Segment Information, Informatio
Segment Information, Information by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Sales to external customers by geographic region [Abstract] | |||
Sales | $ 286,890 | $ 269,546 | $ 243,301 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 39,364 | 44,310 | |
Intangible assets | 21,654 | 29,866 | |
Goodwill | 38,648 | 39,892 | 35,077 |
United States [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 106,607 | 100,225 | 97,186 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 7 | 1,677 | |
Intangible assets | 0 | 435 | |
Goodwill | 0 | 13,327 | |
Canada [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 15,913 | 18,425 | 22,586 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 29,517 | 32,107 | |
Intangible assets | 5,675 | 5,668 | |
Goodwill | 17,487 | 4,481 | |
Other [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 21,391 | 16,743 | 14,951 |
Americas [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 143,911 | 135,393 | 134,723 |
Europe, Middle-East and Africa [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 92,723 | 84,677 | 62,101 |
Finland [Member] | |||
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 331 | 473 | |
Intangible assets | 446 | 380 | |
Goodwill | 8,547 | 8,704 | |
France [Member] | |||
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 1,896 | 2,401 | |
Intangible assets | 12,788 | 19,330 | |
Goodwill | 5,600 | 5,909 | |
United Kingdom [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 16,438 | 17,508 | 11,799 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 640 | 755 | |
Intangible assets | 2,706 | 4,005 | |
Goodwill | 7,014 | 7,471 | |
Other [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 76,285 | 67,169 | 50,302 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 57 | 54 | |
Intangible assets | 0 | 0 | |
Goodwill | 0 | 0 | |
India [Member] | |||
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 4,249 | 4,021 | |
Intangible assets | 23 | 28 | |
Goodwill | 0 | 0 | |
China [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 27,620 | 20,724 | 22,312 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 2,667 | 2,822 | |
Intangible assets | 16 | 20 | |
Goodwill | 0 | 0 | |
Other [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 22,636 | 28,752 | 24,165 |
Asia Pacific [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | $ 50,256 | $ 49,476 | $ 46,477 |