ZEP (ZEP) Inactive 10-Q7 Apr 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Feb. 28, 2014	Apr. 02, 2014
Document and Entity Information	'	'
Entity Registrant Name	'Zep Inc.	'
Entity Central Index Key	'0001408287	'
Document Type	'10-Q	'
Document Period End Date	28-Feb-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--08-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	22,988,926
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Feb. 28, 2014	Aug. 31, 2013
In Thousands, unless otherwise specified	Feb. 28, 2014	Aug. 31, 2013
ASSETS	'	'
Cash and cash equivalents	$2,528	$2,402
Accounts receivable, less reserve for doubtful accounts of $4,329 at February 28, 2014 and $3,941 at August 31, 2013	96,646	104,476
Inventories, net	79,122	68,633
Prepayments and other current assets	12,580	13,051
Deferred income taxes	8,911	8,002
Total Current assets	199,787	196,564
Property, plant and equipment, net of accumulated depreciation of $112,374 at February 28, 2014 and $108,032 at August 31, 2013	80,994	82,328
Goodwill	121,082	121,102
Identifiable intangible assets, net	125,828	129,929
Other long-term assets	17,406	17,835
Total Assets	545,097	547,758
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Current maturities of long-term debt	25,000	25,000
Accounts payable	62,089	56,366
Accrued compensation	17,736	25,226
Other accrued liabilities	28,379	41,167
Total Current liabilities	133,204	147,759
Long-term debt, less current maturities	190,919	184,908
Deferred income taxes	14,655	12,782
Other long-term liabilities	18,451	18,340
Total Liabilities	357,229	363,789
Commitments and Contingencies (Note 6)	'	'
Stockholders' equity:	'	'
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued and outstanding	'	'
Common stock, $0.01 par value; 500,000,000 shares authorized; 22,361,565 issued and outstanding at February 28, 2014, and 22,065,059 issued and outstanding at August 31, 2013	224	221
Paid-in capital	106,491	102,573
Retained earnings	69,176	69,023
Accumulated other comprehensive income	11,977	12,152
Total Stockholders' equity	187,868	183,969
Total Liabilities and Stockholders' equity	$545,097	$547,758

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Feb. 28, 2014	Aug. 31, 2013
In Thousands, except Share data, unless otherwise specified	Feb. 28, 2014	Aug. 31, 2013
CONDENSED CONSOLIDATED BALANCE SHEETS	'	'
Accounts receivable, reserve for doubtful accounts (in dollars)	$4,329	$3,941
Property, plant and equipment, accumulated depreciation (in dollars)	$112,374	$108,032
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	22,361,565	22,065,059
Common stock, shares outstanding	22,361,565	22,065,059

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Feb. 28, 2014	Feb. 28, 2013	Feb. 28, 2014	Feb. 28, 2013
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	'	'	'	'
Net sales	$157,752	$163,386	$322,644	$321,412
Cost of products sold	83,709	85,946	169,340	169,010
Gross profit	74,043	77,440	153,304	152,402
Selling, distribution, and administrative expenses	70,889	69,162	142,276	135,953
Acquisition and integration costs	417	1,633	1,031	2,878
Operating profit	2,737	6,645	9,997	13,571
Other expense (income):	'	'	'	'
Interest expense, net	3,441	2,275	5,752	3,520
Loss on foreign currency transactions	120	63	170	81
Miscellaneous expense, net	125	191	187	329
Total other expense	3,686	2,529	6,109	3,930
Income (loss) before income taxes	-949	4,116	3,888	9,641
Income tax provision (benefit)	-267	1,325	1,473	3,369
Net income (loss)	($682)	$2,791	$2,415	$6,272
Earnings (loss) per share:	'	'	'	'
Basic earnings (loss) per share (in dollars per share)	($0.03)	$0.13	$0.11	$0.29
Diluted earnings (loss) per share (in dollars per share)	($0.03)	$0.12	$0.11	$0.28
Shares used for computation:	'	'	'	'
Basic (in shares)	22,320	21,941	22,242	21,907
Diluted (in shares)	22,320	22,351	22,871	22,327
Dividends Declared per Share (in dollars per share)	$0.05	$0.04	$0.10	$0.08

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Feb. 28, 2014	Feb. 28, 2013	Feb. 28, 2014	Feb. 28, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)	'	'	'	'
Net income (loss)	($682)	$2,791	$2,415	$6,272
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustment	-1,118	-1,447	-176	-622
Other comprehensive income (loss)	-1,118	-1,447	-176	-622
Comprehensive income (loss)	($1,800)	$1,344	$2,239	$5,650

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Feb. 28, 2014	Feb. 28, 2013
Operating Activities	'	'
Net income	$2,415	$6,272
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	11,042	9,067
Gain on disposal of fixed assets	-68	-15
Excess tax benefits from share-based payments	-201	22
Other non-cash charges	1,735	1,450
Deferred income taxes	843	3,233
Change in assets and liabilities, net of effect of acquisitions and divestitures:	'	'
Accounts receivable	8,263	2,397
Inventories	-10,286	-8,889
Prepayments and other current assets	617	-4,895
Accounts payable	5,593	-1,205
Accrued compensation and other current liabilities	-18,954	-5,745
Self insurance and other long-term liabilities	111	-1,965
Other assets	-555	-135
Net cash provided by (used in) operating activities	555	-408
Investing Activities	'	'
Purchases of property, plant, and equipment	-5,269	-6,356
Acquisitions, net of cash acquired	'	-116,827
Principal payment from innovation partner	300	'
Proceeds from sale of property, plant, and equipment	67	15
Net cash used in investing activities	-4,902	-123,168
Financing Activities	'	'
Proceeds from credit facility borrowings	176,900	274,308
Repayments of borrowings from credit facility	-171,025	-151,825
Securitized borrowings	-1,342	'
Employee stock issuances	1,981	733
Excess tax benefits from share-based payments	201	-22
Dividend payments	-2,262	-1,770
Net cash provided by financing activities	4,453	121,424
Effect of exchange rate changes on cash	20	67
Net change in Cash and cash equivalents	126	-2,085
Cash and cash equivalents - beginning of period	2,402	3,513
Cash and cash equivalents - end of period	$2,528	$1,428

DESCRIPTION_OF_BUSINESS_AND_BA

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	6 Months Ended
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	Feb. 28, 2014
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	'
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	'
	1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

	Description of the Business

	Zep Inc. (“Zep” or “we” or “our” or “us” or the “Company”) is a leading consumable chemical packaged goods company, providing a wide variety of high performance chemicals and related products and services that help professionals maintain, clean and protect their assets. We market our products and services under well recognized brand names, including Zep®, Zep Professional®, Zep Commercial®, Zep Automotive® and other Zep Inc. brands. Our common stock is listed on the New York Stock Exchange under the ticker symbol “ZEP.”

	Basis of Presentation

	The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our Annual Report on Form 10-K for the year ended August 31, 2013 filed with the United States Securities and Exchange Commission (SEC) on November 5, 2013. Management believes that all adjustments necessary for the fair statement of results, consisting of normal recurring items, have been included in the unaudited condensed consolidated financial statements.

	The preparation of our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. The principal areas of judgment relate to (1) accounts receivable; (2) long-lived and definite-lived intangible assets; (3) goodwill and indefinite-lived intangibles; (4) inventories; (5) self-insurance reserves; (6) share-based compensation expense; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements will change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluation. Actual results could differ from the estimates we have used.

	The results of operations for the three and six months ended February 28, 2014 are not necessarily indicative of the results we expect for the full fiscal year because our net sales and net income are generally higher in the second half of our fiscal year. More specifically, due to the seasonal nature of a portion of our business and the number of available selling days, sales in the third and fourth quarters of our fiscal year have historically exceeded those generated in the first half of the fiscal year. Certain reclassifications of prior period amounts and the presentation of such amounts have been made to conform to the current year presentation.

	Consolidation Policy

	We consolidate all entities that we control. The general condition for control is ownership of a majority of the voting interests of an entity. Control may also exist in arrangements where we are the primary beneficiary of a variable interest entity (“VIE”). An entity that will have both the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb the losses or receive the benefits significant to the VIE is considered a primary beneficiary of that entity. We have determined that we are not a primary beneficiary in any material VIE. We eliminate all significant intercompany accounts and transactions from our condensed consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
ACQUISITIONS	Feb. 28, 2014
ACQUISITIONS	'
ACQUISITIONS	'
	2. ACQUISITIONS

	Vehicle Care division of Ecolab Inc.

	We completed the acquisition of Ecolab’s Vehicle Care division (“EVC”), effective December 1, 2012 (“Closing Date”), for $116.8 million in cash. The combination of EVC, our existing North American Sales and Service vehicle wash operations, and our Niagara division created a new platform that we refer to as “Zep Vehicle Care.” Zep Vehicle Care, which is based in Minnesota, is a leading provider of vehicle care products, including soaps, polishes, sealants, wheel and tire treatments and air fresheners to professional car washes, convenience stores, auto detailers, and commercial fleet wash customers. Zep Vehicle Care provides car, truck and fleet wash operators with high efficacy products for their wash tunnels and facilities. We financed the acquisition using existing debt capacity under the 2010 Credit Facility, as amended (see Note 5 — Debt Obligations). We incurred acquisition and integration-related costs associated with advisory, legal and other services during the three and six months ended February 28, 2013, of $1.6 million and $2.9 million, respectively. In addition, we entered into a transition services agreement under which Ecolab continued to provide certain services to us until December 1, 2013. During the three and six months ended February 28, 2014, we incurred $0.4 million and $1.0 million in acquisition and integration costs associated with EVC and our previous acquisitions.

	The operating results of EVC were included in our consolidated financial statements as of the Closing Date. Under the acquisition method of accounting, we made an allocation of the acquisition price to EVC’s net tangible and intangible assets based on their estimated fair values as of the Closing Date. The excess of the acquisition price over the net tangible and identifiable intangible assets was recorded as Goodwill within the condensed consolidated balance sheets. This goodwill is not deductible for income tax purposes. A summary of the purchase price allocation is as follows:

	Tangible assets and liabilities
	Accounts receivable, and other current assets	$	6,248
	Property, plant and equipment	2,882
	Other assets	228
	Other liabilities assumed	(931		)
	Total net tangible assets	8,427

	Identifiable intangible assets
	Customer relationships	56,000
	Technology (patents and formulations)	4,700
	Trademarks	11,000
	Goodwill	36,700
	Total purchase price allocation	$	116,827

	Of the total purchase price, $71.7 million was allocated to identifiable intangible assets. The value allocated to customer relationships is being amortized on a straight-line basis over a period of 15 years. The value allocated to technology is being amortized on a straight-line basis over a period of nine years. We determined that acquired trademarks have an indefinite useful life. The amortization expense associated with acquired definite-lived intangible assets is expected to be approximately $4.3 million during each of the next five years.

	The following unaudited pro forma combined results of operations give effect to the acquisition of EVC as if it had occurred at the beginning of the period presented. The unaudited pro forma combined results of operations are provided for informational purposes only and do not purport to represent our actual consolidated results of operations had the acquisition occurred on the dates assumed, nor are these financial statements necessarily indicative of our future consolidated results of operations. We expect to incur costs and realize benefits associated with integrating our operations and EVC. The unaudited pro forma combined results of operations do not reflect the costs of any integration activities, nonrecurring charges directly attributable to purchase accounting, or any benefits that may result from operating efficiencies or revenue synergies. Therefore, the unaudited pro forma results do not include the EVC-related acquisition and integration costs reflected in the condensed consolidated statements of operations for the six months ended February 28, 2013.

		Six Months Ended
		February 28,
		2014			2013
	Net sales	$	322,644		$	337,829
	Net income	$	2,415		$	7,934
	Basic earnings per share	$	0.11		$	0.36
	Diluted earnings per share	$	0.11		$	0.36

RESTRUCTURING_CHARGES

RESTRUCTURING CHARGES	6 Months Ended
	Feb. 28, 2014
RESTRUCTURING CHARGES	'
RESTRUCTURING CHARGES	'
	3. RESTRUCTURING CHARGES

	In fiscal year 2013, we began executing a variety of complexity-reduction activities, including facilities consolidation, process simplification, product-line and customer rationalization, and headcount reductions related to such activities. During the fourth quarter of fiscal year 2013, we recorded a $5.2 million restructuring charge in connection with these efforts. As of February 28, 2014, the restructuring reserve was classified as short-term and included in Accrued compensation and Other accrued liabilities on the accompanying condensed consolidated balance sheet:

		Severance			Facility Exit
		Costs			Costs
	Balance as of August 31, 2013	$	4,304		$	436
	Cash payments	(2,189		)	(176		)
	Balance as of February 28, 2014	$	2,115		$	260

INVENTORIES

INVENTORIES	6 Months Ended
	Feb. 28, 2014
INVENTORIES	'
INVENTORIES	'
	4. INVENTORIES

	Inventories include materials, direct labor, and related manufacturing overhead and are stated at the lower of cost (approximate costs determined on a first-in, first-out or average cost basis) or market, and consisted of the following:

		February 28, 2014			August 31, 2013
	Raw materials and supplies	$	18,994		$	17,963
	Work in process	1,583			1,711
	Finished goods	60,416			50,755
		80,993			70,429
	Less: Reserves	(1,871		)	(1,796		)
	Inventories, net	$	79,122		$	68,633

DEBT_OBLIGATIONS

DEBT OBLIGATIONS	6 Months Ended
	Feb. 28, 2014
DEBT OBLIGATIONS	'
DEBT OBLIGATIONS	'
	5. DEBT OBLIGATIONS

	Our indebtedness and credit arrangements consisted of the following:

		February 28, 2014			August 31, 2013
	Revolving credit facility	$	165,644		$	154,008
	Term loan	43,125			48,750
	Industrial revenue bonds	7,150			7,150
		215,919			209,908
	Less: Current maturities of long-term debt	(25,000		)	(25,000		)
	Long term debt, less current maturities	$	190,919		$	184,908

	On July 15, 2010, the Company entered into a $320 million five-year senior, secured credit facility, as amended (the “2010 Credit Facility”). As of February 28, 2014, $183.8 million of the total $208.8 million in borrowings outstanding under the 2010 Credit Facility were reflected within Long-term debt, less current maturities on the condensed consolidated balance sheets given our current intent and ability to settle $183.8 million of those borrowings in periods subsequent to February 28, 2015. The short- and long-term classification of debt on the condensed consolidated balance sheets may fluctuate not only in response to repayment of amounts borrowed under the 2010 Credit Facility, but also concurrent with changes in our projected cash flow for the 12-month period subsequent to the balance sheet date. The base interest rate associated with borrowings made under the 2010 Credit Facility approximated 0.2% for both the three and six months ended February 28, 2014. In addition to this base interest rate, our effective interest rate includes an applicable margin that adjusts in accordance with our leverage ratio. During the three and six months ended February 28, 2014, this applicable margin averaged 3.50%.

	As of February 28, 2014, our credit availability under the 2010 Credit Facility totaled $24.3 million. We remained in compliance with our debt covenants as of February 28, 2014 and we believe that, during the next twelve months, our liquidity and capital resources will be sufficient to meet our working capital, capital expenditure and other anticipated cash requirements, excluding acquisitions that we may choose to execute in pursuit of our strategic initiatives. Given current utilization of the existing 2010 Credit Facility, we will evaluate alternative sources of capital we deem appropriate to support our long-term strategy. Our obligations under the 2010 Credit Facility, as amended, will become current during fiscal year 2014, and as such, we will be reviewing refinancing alternatives which could affect our interest expense during future fiscal quarters.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Feb. 28, 2014
COMMITMENTS AND CONTINGENCIES	'
COMMITMENTS AND CONTINGENCIES	'
	6. COMMITMENTS AND CONTINGENCIES

	Litigation

	We are subject to various legal claims arising in the normal course of business. We are self-insured up to specified limits for certain types of claims, including product liability, and are fully self-insured for certain other types of claims, including environmental, product recall, and patent infringement. Based on information currently available, it is the opinion of management that the ultimate resolution of pending and threatened legal proceedings will not have a material adverse effect on our results of operations, financial position, or cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of such matters, if unfavorable, could have a material adverse effect on our results of operations, financial position, or cash flows.

	We establish accruals for legal claims when the costs associated with the claims become probable and can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts accrued for such claims. However, we cannot make a meaningful estimate of actual costs or a range of reasonably possible losses that could possibly be higher or lower than the amounts accrued. In addition, from time to time we may incur expense associated with efforts to enforce our non-compete agreements.

	California Sales Representative Litigation

	In December 2010, two of our California-based sales representatives filed suit against us on behalf of themselves and on behalf of all other sales representatives who were employed by Acuity Specialty Products, Inc. in the State of California and similarly situated. Approximately 171 persons were members of the putative class proposed by the plaintiffs. Plaintiffs asserted two primary causes of action against us for (i) failure to reimburse work-related expenses (the “Expense Reimbursement Claim”) and (ii) failure to pay wages by reason of unlawful deductions from wages (the “Wage Deduction Claim”), as well as derivative claims under the California Labor Code Private Attorney General Act of 2004 (“PAGA”) for civil penalties and under the California Business and Professions Code for unfair business practices. The court denied the plaintiff’s motion for class certification. In fiscal 2013, we settled the original two plaintiffs’ claims for $48,000 plus interest. In addition, the Company paid State of California PAGA fees of approximately $275,000. The Court awarded the plaintiffs’ lawyers legal fees in the amount of $1,162,000 with respect to the lawsuit filed by the two California sales representatives. The Company believes that the award is excessive and intends to appeal.

	In December 2012, 55 of the current and former sales representatives who were members of the putative class alleged in the first lawsuit filed a lawsuit against the Company in which they asserted the Expense Reimbursement Claim, the Wage Deduction Claim and an additional claim for improper wage statements on behalf of themselves individually. Between the date this suit was filed and January 23, 2014, we settled the claims of 19 of the plaintiffs and arbitrated the claims of another five. On January 23, 2014 we settled the claims against the Company of all but six of the remaining plaintiffs. Pursuant to the terms of the January 23, 2014 settlement agreement, we paid $1.7 million in cash, plus pre-judgment interest of approximately $826,000 to settle the claims. The January 23, 2014 settlement does not resolve the issue of the amount of fees to which the plaintiffs’ lawyers are entitled. That matter will be resolved by the court. The schedule for resolving the matter is not yet established. There are six remaining plaintiffs who were not covered by the January 23, 2014 settlement. The Company believes it will be able to resolve those cases for an amount that will not be material to the Company’s results of operations.

	The ultimate resolution of the plaintiffs’ attorney fees associated with the California Sales Representative Litigation is uncertain. When the amount is determined, it may be material to the Company’s results of operations. The Company has reserved for this liability at the low end of the range.

	During the second quarter of our fiscal 2014, we recorded a charge of $3.8 million against earnings associated with legal defense and settlement costs. Of the $3.8 million, $1.0 million is classified as interest expense, net and $2.8 million is classified as selling, distribution and administrative expenses on the condensed consolidated statement of operations. Since the inception of this case in fiscal 2011, the Company has incurred total costs associated with the California Sales Representative Litigation of approximately $10 million. Except for the issue associated with plaintiffs’ attorney fees which will be resolved by the courts, all significant matters have been resolved and we do not anticipate material expense in future periods.

	Environmental Matters

	General

	Our operations are subject to federal, state, local, and foreign laws and regulations relating to the generation, storage, handling, transportation, and disposal of hazardous substances and solid and hazardous waste, and the remediation of contaminated sites. Permits and environmental controls are required for certain of our operations to limit air and water pollution, and these permits are subject to modification, renewal, and revocation by the issuing authorities. We will incur capital and operating costs relating to environmental compliance on an ongoing basis. Environmental laws and regulations have generally become stricter in recent years, and the cost of responding to future changes may be substantial. While management believes that we are currently in substantial compliance with all material environmental laws and regulations, and have taken reasonable steps to ensure such compliance, there can be no assurance that we will not incur significant costs to remediate violations of such laws and regulations, particularly in connection with acquisitions of existing operating facilities, or to comply with changes in, or stricter or different interpretations of, existing laws and regulations. Such costs could have a material adverse effect on our results of operations.

	Superfund Sites

	Certain of our subsidiaries are currently a party to federal and state administrative proceedings arising under federal and state laws enacted for the protection of the environment where a state or federal agency or a private party alleges that hazardous substances generated by our subsidiary have been discharged into the environment and a state or federal agency is requiring a cleanup of soil and/or groundwater pursuant to federal or state superfund laws. In each of these proceedings in which our subsidiary has been named as a party that allegedly generated hazardous substances that were transported to a waste site owned and operated by another party, either: (1) our subsidiary is one of many other identified generators who have reached an agreement regarding the allocation of costs for cleanup among the various generators and our potential liability is not material; (2) our subsidiary has been identified as a potential generator and the sites have been remediated by the Environmental Protection Agency or by a state for a cost that is not material; (3) other generators have cleaned up the site and have not pursued a claim against our subsidiary and our liability, if any, would not be material; or (4) our subsidiary has been identified as a potential generator but has been indemnified by its waste broker and transporter.

	Environmental Remediation Orders

	One of our subsidiaries has been named as a responsible party with respect to the facility located on Seaboard Industrial Boulevard in Atlanta, Georgia that it owns and currently uses in the manufacture of our products. Our subsidiary and the current and former owners of adjoining properties have agreed to share the expected costs and responsibilities of remediation. Further, our subsidiary has executed a Consent Order with the Georgia Environmental Protection Division (“EPD”) covering this remediation, and is operating under an EPD approved Corrective Action Plan, which may be amended from time to time based on the progression of our remediation. In May 2007, we accrued an undiscounted pre-tax liability of $5.0 million representing our best estimate of costs associated with subsurface remediation, primarily to remove, or secure, contaminants from soil underlying this property, and other related environmental issues. While it is reasonably possible that the total remediation cost could range up to $10.0 million, management’s best estimate of the probable total remediation costs continues to be $5.0 million. To date, we have expended $2.7 million of the $5.0 million accrual established in May 2007. Further sampling, engineering studies, and/or changes in regulatory requirements could cause us to revise the current estimate. We arrived at the current estimate based on studies prepared by independent third party environmental consulting firms.

	One of our subsidiaries has been named as a responsible party with respect to its primary manufacturing location in Marietta, Georgia. With regard to this location, our subsidiary is responsible for the expected costs of implementing an Amended Corrective Action Plan that was conditionally approved by the EPD in June 2012 under the Georgia Hazardous Response Act. The State of Georgia has introduced a Voluntary Remediation Program (‘‘VRP’’) that provides for a risk-based approach toward environmental remediation. We believe the provisions of the VRP are applicable to the Marietta site. As of February 28, 2014, liabilities related to the remediation of the Marietta site presented within the condensed consolidated balance sheets reflect an undiscounted, pre-tax liability of $6.6 million, which represents our best estimate of remaining remediation costs for this site. We arrived at the current estimates based on studies prepared by independent third party environmental consulting firms. In the future, we plan to submit an application to enter the Marietta, Georgia site into the VRP.

	Additionally, one of our subsidiaries previously conducted manufacturing operations at a facility in Cartersville, Georgia that has since been sold and where sub-surface contamination exists. Pursuant to the terms of the sale, the subsidiary retained environmental exposure that might arise from its previous use of this property. Management is preparing a plan to address sub-surface contamination at this location. Based on recent data, the contamination has migrated off site and is present at a greater depth than originally anticipated. In the future, we will submit an application to enter the Cartersville, Georgia site into the VRP. As of February 28, 2014, liabilities related to the remediation of the Cartersville site presented within the condensed consolidated balance sheets reflect an undiscounted, pre-tax liability of $0.4 million, which represents our best estimate of remaining remediation costs for this site. We arrived at the current estimates based on studies prepared by independent third party environmental consulting firms.

	The actual cost of remediation of the Marietta and Cartersville sites could vary depending upon the results of additional testing and geological studies, the rate at which site conditions may change, the success of initial remediation designed to address the most significant areas of contamination, and changes in regulatory requirements. While it is reasonably possible that the total costs incurred by us in connection with these matters could range up to an aggregate of $16.0 million, management’s best estimate of total remaining remediation costs for these two sites combined is $7.1 million.

EARNINGS_LOSS_PER_SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
EARNINGS (LOSS) PER SHARE	Feb. 28, 2014
EARNINGS (LOSS) PER SHARE	'
EARNINGS (LOSS) PER SHARE	'
	7. EARNINGS (LOSS) PER SHARE

	On September 1, 2009, we retrospectively adopted an accounting pronouncement that provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and should be included in the computation of earnings per share. This guidance is applicable to us due to a dividend protection feature inherent within certain of our historical equity awards. Awards issued under the fiscal years 2011, 2012 and 2013 annual grants did not include a dividend protection feature, and we do not currently intend to reinstate this provision. Therefore, we expect the impact of this guidance on our earnings per share calculations to diminish over time. In fact, earnings per share calculated using the two-class method did not differ from that calculated under the treasury method for the three- and six-month periods ended February 28, 2013 or February 28, 2014.

	Basic earnings (loss) per share is computed by dividing net income adjusted for presumed dividend payments on unvested shares by the weighted average number of common shares outstanding during the period. We exclude unvested shares of restricted stock from basic shares outstanding. Diluted earnings (loss) per share is computed similarly, but reflects the potential dilution that would occur if dilutive options were exercised and restricted stock awards were vested.

	The following table shows the computation of basic and diluted earnings (loss) per share:

		Three Months Ended						Six Months Ended
		February 28,						February 28,
		2014			2013			2014		2013
	Basic earnings (loss) per share:
	Net (loss) income	$	(682	)	$	2,791		$	2,415	$	6,272
	Less: Allocation of earnings and dividends to participating securities	—			(4		)	—		(10		)
	Net income (loss) available to common shareholders—basic	$	(682	)	$	2,787		$	2,415	$	6,262
	Basic weighted average shares outstanding	22,320			21,941			22,242		21,907
	Basic earnings (loss) per share	$	(0.03	)	$	0.13		$	0.11	$	0.29
	Diluted earnings (loss) per share:
	Net income (loss) available to common shareholders—basic	$	(682	)	$	2,787		$	2,415	$	6,262
	Add: Undistributed earnings reallocated to unvested shareholders	—			—			—		—
	Net income (loss) available to common shareholders—diluted	$	(682	)	$	2,787		$	2,415	$	6,262
	Basic weighted average shares outstanding	22,320			21,941			22,242		21,907
	Common stock equivalents (stock options and restricted stock)	—			410			629		420
	Diluted weighted average shares outstanding	22,320			22,351			22,871		22,327
	Diluted earnings (loss) per share	$	(0.03	)	$	0.12		$	0.11	$	0.28

	For the three month period ended February 28, 2013, we excluded 0.9 million common stock equivalents from our earnings per share calculation because of their anti-dilutive effect on this calculation. For the six month periods ended February 28, 2014 and February 28, 2013, we excluded from our earnings per share calculation 0.3 million and 0.7 million common stock equivalents, respectively, because of their anti-dilutive effect on this calculation.

SECURITIZATION_OF_CERTAIN_ACCO

SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE	6 Months Ended
SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE	Feb. 28, 2014
SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE	'
SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE	'
	8. SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE

	On May 31, 2013, we entered into a Master Receivables Purchase Agreement with Bank of America N.A. (“BAML”), whereby BAML may periodically purchase certain accounts receivables from us. Proceeds received from these transfers will be discounted at a rate of LIBOR plus 225 basis points, which is currently less than our cost of borrowing. We receive the majority of those proceeds immediately upon our transfer of qualifying receivable balances to BAML, whereas the billing terms associated with accounts receivable that we may subject to this program can range up to one year. We believe these transfers represent an economical means to manage operating working capital. We will continue to administer the collection of the accounts receivable that are securitized under this agreement. Therefore, we account for the transfer of these receivables as securitized borrowing transactions rather than a true sale of accounts receivable. Accounts receivable subject to this agreement remain classified as Accounts Receivable, less reserve for doubtful accounts on the condensed consolidated balance sheets. As of February 28, 2014, the amount of securitized borrowings reflected within Other accrued liabilities in the condensed consolidated balance sheets totaled $8.0 million. The expense that we recorded in connection with the discount incurred on the transfer of these receivables totaled less than $0.1 million, which is reflected within interest expense, net on the condensed consolidated statements of operations. The proceeds received from these transfers are reflected as Securitized borrowings on our condensed consolidated statements of cash flows.

FAIR_VALUE_DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
FAIR VALUE DISCLOSURES	Feb. 28, 2014
FAIR VALUE DISCLOSURES	'
FAIR VALUE DISCLOSURES	'
	9. FAIR VALUE DISCLOSURES

	Our financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, and debt. The net book values of cash and cash equivalents, trade receivables, and trade payables are representative of their respective fair values due to their short-term nature. We estimate that the carrying value of all of our outstanding debt obligations approximates fair value based on the variable nature of our effective interest rate associated with the indebtedness, which is a Level 2 estimate based on a market approach.

	During fiscal 2011, in connection with one of our acquisitions, we recorded an earnout liability of $3.75 million whose payment was contingent upon earnings targets. That liability was subsequently reduced in fiscal 2012 and again in fiscal 2013 to a zero balance based on our ongoing assessment of this liability’s probable ultimate payout. In the first quarter of fiscal 2014, this matter was resolved and no payout was made.

LOAN_TO_INNOVATION_PARTNER

LOAN TO INNOVATION PARTNER	6 Months Ended
LOAN TO INNOVATION PARTNER	Feb. 28, 2014
LOAN TO INNOVATION PARTNER	'
LOAN TO INNOVATION PARTNER	'
	10. LOAN TO INNOVATION PARTNER

	On December 19, 2011, we entered into a $12.5 million bridge loan agreement, as lender, with Adco Products, LLC (“Adco”), as borrower (the “Original Loan”). Adco is a specialty chemical manufacturer that provides products and services to customers in the dry-cleaning industry. It is an affiliate of Equinox Chemicals, LLC (“Equinox”), a contract research company with research, innovation, product development and commercialization capabilities that reach both domestic and foreign markets. On February 28, 2013, we entered into an amended and restated loan and security agreement (the “Amended Loan Agreement”) with Adco. We entered into the Amended Loan Agreement to, among other things, (i) convert the term of the Original Loan from one to five years such that the loan now matures on February 28, 2018, and (ii) reduce the outstanding principal amount of the Original Loan by $2.5 million to $10.0 million in exchange for the issuance of warrants in both Adco and Equinox. The warrants issued to us entitle us to purchase equity interests in Equinox and Adco equal to up to 19% of the then economic, beneficial and other equity interests in each company on a fully diluted basis and subject to certain adjustments.

	This loan agreement is considered a variable interest and currently provides the majority of Adco’s financing. In connection with this loan, we also entered into a master service agreement with Equinox, pursuant to which Equinox will provide us with product-development services, and a technology sharing agreement with Equinox for access to new-product technology. The master service agreement and Amended Loan Agreement collectively do not provide us either ownership in or control of Adco’s operations.

DESCRIPTION_OF_BUSINESS_AND_BA1

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Feb. 28, 2014
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	'
Consolidation Policy	'
	Consolidation Policy

	We consolidate all entities that we control. The general condition for control is ownership of a majority of the voting interests of an entity. Control may also exist in arrangements where we are the primary beneficiary of a variable interest entity (“VIE”). An entity that will have both the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb the losses or receive the benefits significant to the VIE is considered a primary beneficiary of that entity. We have determined that we are not a primary beneficiary in any material VIE. We eliminate all significant intercompany accounts and transactions from our condensed consolidated financial statements.

ACQUISITIONS_Tables

ACQUISITIONS (Tables)	6 Months Ended
ACQUISITIONS (Tables)	Feb. 28, 2014
Business acquisitions	'
Schedule of purchase price allocation	'


	Tangible assets and liabilities
	Accounts receivable, and other current assets	$	6,248
	Property, plant and equipment	2,882
	Other assets	228
	Other liabilities assumed	(931		)
	Total net tangible assets	8,427

	Identifiable intangible assets
	Customer relationships	56,000
	Technology (patents and formulations)	4,700
	Trademarks	11,000
	Goodwill	36,700
	Total purchase price allocation	$	116,827
Schedule of unaudited pro forma combined results of operations	'


		Six Months Ended
		February 28,
		2014			2013
	Net sales	$	322,644		$	337,829
	Net income	$	2,415		$	7,934
	Basic earnings per share	$	0.11		$	0.36
	Diluted earnings per share	$	0.11		$	0.36

RESTRUCTURING_CHARGES_Tables

RESTRUCTURING CHARGES (Tables)	6 Months Ended
	Feb. 28, 2014
RESTRUCTURING CHARGES	'
Schedule of changes in restructuring reserve	'
	As of February 28, 2014, the restructuring reserve was classified as short-term and included in Accrued compensation and Other accrued liabilities on the accompanying condensed consolidated balance sheet:

		Severance			Facility Exit
		Costs			Costs
	Balance as of August 31, 2013	$	4,304		$	436
	Cash payments	(2,189		)	(176		)
	Balance as of February 28, 2014	$	2,115		$	260

INVENTORIES_Tables

INVENTORIES (Tables)	6 Months Ended
	Feb. 28, 2014
INVENTORIES	'
Schedule of inventories	'


		February 28, 2014			August 31, 2013
	Raw materials and supplies	$	18,994		$	17,963
	Work in process	1,583			1,711
	Finished goods	60,416			50,755
		80,993			70,429
	Less: Reserves	(1,871		)	(1,796		)
	Inventories, net	$	79,122		$	68,633

DEBT_OBLIGATIONS_Tables

DEBT OBLIGATIONS (Tables)	3 Months Ended
	Nov. 30, 2013
DEBT OBLIGATIONS	'
Schedule of indebtedness and credit arrangements	'


		February 28, 2014			August 31, 2013
	Revolving credit facility	$	165,644		$	154,008
	Term loan	43,125			48,750
	Industrial revenue bonds	7,150			7,150
		215,919			209,908
	Less: Current maturities of long-term debt	(25,000		)	(25,000		)
	Long term debt, less current maturities	$	190,919		$	184,908

EARNINGS_LOSS_PER_SHARE_Tables

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
EARNINGS (LOSS) PER SHARE (Tables)	Feb. 28, 2014
EARNINGS (LOSS) PER SHARE	'
Schedule of basic and diluted earnings (loss) per common share	'


		Three Months Ended						Six Months Ended
		February 28,						February 28,
		2014			2013			2014		2013
	Basic earnings (loss) per share:
	Net (loss) income	$	(682	)	$	2,791		$	2,415	$	6,272
	Less: Allocation of earnings and dividends to participating securities	—			(4		)	—		(10		)
	Net income (loss) available to common shareholders—basic	$	(682	)	$	2,787		$	2,415	$	6,262
	Basic weighted average shares outstanding	22,320			21,941			22,242		21,907
	Basic earnings (loss) per share	$	(0.03	)	$	0.13		$	0.11	$	0.29
	Diluted earnings (loss) per share:
	Net income (loss) available to common shareholders—basic	$	(682	)	$	2,787		$	2,415	$	6,262
	Add: Undistributed earnings reallocated to unvested shareholders	—			—			—		—
	Net income (loss) available to common shareholders—diluted	$	(682	)	$	2,787		$	2,415	$	6,262
	Basic weighted average shares outstanding	22,320			21,941			22,242		21,907
	Common stock equivalents (stock options and restricted stock)	—			410			629		420
	Diluted weighted average shares outstanding	22,320			22,351			22,871		22,327
	Diluted earnings (loss) per share	$	(0.03	)	$	0.12		$	0.11	$	0.28

ACQUISITIONS_Details

ACQUISITIONS (Details) (USD $)	3 Months Ended		6 Months Ended			0 Months Ended			0 Months Ended
	Feb. 28, 2014	Feb. 28, 2013	Feb. 28, 2014	Feb. 28, 2013	Aug. 31, 2013	Dec. 02, 2012	Feb. 28, 2014	Dec. 02, 2012	Dec. 02, 2012	Dec. 02, 2012
						EVC	EVC	EVC	EVC	EVC
								Trademarks	Customer relationships	Patents and formulations
Business acquisitions	'	'	'	'	'	'	'	'	'	'
Purchase price in cash	'	'	'	'	'	$116,800,000	'	'	'	'
Acquisition and integration costs	417,000	1,633,000	1,031,000	2,878,000	'	'	'	'	'	'
Tangible assets and liabilities	'	'	'	'	'	'	'	'	'	'
Accounts receivable, and other current assets	'	'	'	'	'	6,248,000	'	'	'	'
Property, plant and equipment	'	'	'	'	'	2,882,000	'	'	'	'
Other assets	'	'	'	'	'	228,000	'	'	'	'
Other liabilities assumed	'	'	'	'	'	-931,000	'	'	'	'
Total net tangible assets	'	'	'	'	'	8,427,000	'	'	'	'
Intangible asset amount	'	'	'	'	'	71,700,000	'	'	'	'
Intangible asset amount	'	'	'	'	'	'	'	'	56,000,000	4,700,000
Intangible asset amount	'	'	'	'	'	'	'	11,000,000	'	'
Goodwill	121,082,000	'	121,082,000	'	121,102,000	36,700,000	'	'	'	'
Total purchase price allocation	'	'	'	'	'	116,827,000	'	'	'	'
Weighted average useful life	'	'	'	'	'	'	'	'	'15 years	'9 years
Future amortization expense on finite lived intangible assets	'	'	'	'	'	'	'	'	'	'
Year one	'	'	'	'	'	'	4,300,000	'	'	'
Year two	'	'	'	'	'	'	4,300,000	'	'	'
Year three	'	'	'	'	'	'	4,300,000	'	'	'
Year four	'	'	'	'	'	'	4,300,000	'	'	'
Year five	'	'	'	'	'	'	$4,300,000	'	'	'

ACQUISITIONS_Details_2

ACQUISITIONS (Details 2) (Ecolab's Vehicle Care division, USD $)	6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Feb. 28, 2014	Feb. 28, 2013
Ecolab's Vehicle Care division	'	'
Pro Forma Results of Operations	'	'
Net Sales	$322,644	$337,829
Net Income	$2,415	$7,934
Basic earnings per Share (in dollars per share)	$0.11	$0.36
Diluted earnings per Share (in dollars per share)	$0.11	$0.36

RESTRUCTURING_CHARGES_Details

RESTRUCTURING CHARGES (Details) (USD $)	3 Months Ended	6 Months Ended
	Aug. 31, 2013	Feb. 28, 2014	Feb. 28, 2014
	Aug. 31, 2013	Severance Costs	Facility Exit Costs
RESTRUCTURING CHARGES	'	'	'
Restructuring charge	$5,200,000	'	'
Changes to restructuring reserve	'	'	'
Balance at the beginning of the period	'	4,304,000	436,000
Cash payments	'	-2,189,000	-176,000
Balance at the end of the period	'	$2,115,000	$260,000

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Feb. 28, 2014	Aug. 31, 2013
In Thousands, unless otherwise specified	Feb. 28, 2014	Aug. 31, 2013
Inventories	'	'
Raw materials and supplies	$18,994	$17,963
Work in process	1,583	1,711
Finished goods	60,416	50,755
Inventory gross	80,993	70,429
Less: Reserves	-1,871	-1,796
Inventories, net	$79,122	$68,633

DEBT_OBLIGATIONS_Details

DEBT OBLIGATIONS (Details) (USD $)	Feb. 28, 2014	Aug. 31, 2013
In Thousands, unless otherwise specified	Feb. 28, 2014	Aug. 31, 2013
Long-term borrowings:	'	'
Long-term debt, total	$215,919	$209,908
Less: Current maturities of long-term debt	-25,000	-25,000
Long term debt, less current maturities	190,919	184,908
Revolving credit facility	'	'
Long-term borrowings:	'	'
Long-term debt, total	165,644	154,008
Term loan	'	'
Long-term borrowings:	'	'
Long-term debt, total	43,125	48,750
Industrial revenue bonds	'	'
Long-term borrowings:	'	'
Long-term debt, total	$7,150	$7,150

DEBT_OBLIGATIONS_Details_2

DEBT OBLIGATIONS (Details 2) (USD $)	Feb. 28, 2014	Aug. 31, 2013	Jul. 15, 2010	Feb. 28, 2014	Feb. 28, 2014
DEBT OBLIGATIONS (Details 2) (USD $)	Feb. 28, 2014	Aug. 31, 2013	2010 Credit Facility	2010 Credit Facility	2010 Credit Facility
Debt obligations	'	'	'	'	'
Aggregate principal amount	'	'	$320,000,000	'	'
Term of facility	'	'	'5 years	'	'
Long-term debt, less current maturities	190,919,000	184,908,000	'	183,800,000	183,800,000
Outstanding borrowings	215,919,000	209,908,000	'	208,800,000	208,800,000
Projected time period entity believes sufficient liquidity and capital resources to meet needs	'	'	'	'	'12 months
Base interest rate during the period (as a percent)	'	'	'	'	0.20%
Additional interest margin added to variable rate (as a percent)	'	'	'	3.50%	3.50%
Remaining borrowing capacity	'	'	'	$24,300,000	$24,300,000

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)

6 Months Ended

1 Months Ended

6 Months Ended

12 Months Ended

0 Months Ended

1 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

14 Months Ended

43 Months Ended

3 Months Ended

Feb. 28, 2014

31-May-07

Feb. 28, 2014

Aug. 31, 2013

Feb. 28, 2014

Jan. 23, 2014

Dec. 31, 2012

Dec. 31, 2010

Feb. 28, 2014

Aug. 31, 2013

Jan. 23, 2014

Feb. 28, 2014

Cartesville

Environmental Matters

Subsidiaries

California Sales Representative Litigation

item

Marietta

Maximum

item

Environmental Matters

item

Interest expense, net

Selling, distribution and administrative expenses

item

Marietta

Cartesville

Maximum

Loss contingency information

Number of sales representatives who have filed suit against the entity

Number of putative class members

171

Number of primary causes of action against Zep

Number of plaintiffs with whom claims are settled

Settlement amount paid to plaintiffs

$48,000,000

State of California PAGA fees

275,000,000

Lawyers legal fees awarded to the plaintiff

1,162,000,000

Number of plaintiffs with whom arbitration proceedings occurred

Number of plaintiffs with whom claims are remaining to be settled

Settlement amount paid

1,700,000

Pre-judgment interest

826,000

Legal defense and settlement costs

3,800,000

1,000,000

2,800,000

Litigation total costs

10,000,000

Number of subsidiaries named as a responsible party

Number of subsidiaries previously conducted manufacturing operations

Number of identified generators who have reached an agreement regarding the allocation of costs

Reserve

5,000,000

Aggregate amount expected to be incurred

5,000,000

10,000,000

16,000,000

Amount expended to date

2,700,000

Undiscounted pre-tax liability

6,600,000

400,000

Number of sites in Georgia under environmental remediation

Loss contingency accrual

$7,100,000

EARNINGS_LOSS_PER_SHARE_Detail

EARNINGS (LOSS) PER SHARE (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Feb. 28, 2014	Feb. 28, 2013	Feb. 28, 2014	Feb. 28, 2013
Basic earnings (loss) per share:	'	'	'	'
Net (loss) income	($682)	$2,791	$2,415	$6,272
Less: Allocation of earnings and dividends to participating securities	'	-4	'	-10
Net income (loss) available to common shareholders-basic	-682	2,787	2,415	6,262
Basic weighted average shares outstanding	22,320,000	21,941,000	22,242,000	21,907,000
Basic earnings (loss) per share (in dollars per share)	($0.03)	$0.13	$0.11	$0.29
Diluted earnings (loss) per share:	'	'	'	'
Net income available to common shareholders-basic	-682	2,787	2,415	6,262
Net income available to common shareholders-diluted	($682)	$2,787	$2,415	$6,262
Basic weighted average shares outstanding	22,320,000	21,941,000	22,242,000	21,907,000
Common stock equivalents (stock options and restricted stock) (in shares)	'	410,000	629,000	420,000
Diluted weighted average shares outstanding	22,320,000	22,351,000	22,871,000	22,327,000
Diluted earnings (loss) per share (in dollars per share)	($0.03)	$0.12	$0.11	$0.28
Anti-dilutive common stock equivalents (in shares)	'	900,000	300,000	700,000

SECURITIZATION_OF_CERTAIN_ACCO1

SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE (Details) (USD $)	6 Months Ended
In Millions, unless otherwise specified	Feb. 28, 2014
SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE	'
Variable discounting rate basis	'LIBOR
Basis spread on discounting rate (as a percent)	2.25%
Maximum period under billing terms associated with accounts receivable	'1 year
Amount of securitized borrowings reflected within Other accrued liabilities	$8
Maximum discount expense incurred on the transfer of accounts receivables	$0.10

FAIR_VALUE_DISCLOSURES_Details

FAIR VALUE DISCLOSURES (Details) (Performance-based earnout liability, USD $)	Aug. 31, 2013	Aug. 31, 2011
In Millions, unless otherwise specified		2011 Acquisition
		item
Changes in the fair value of contingent liability	'	'
Number of acquisitions	'	1
Earnout liability	'	$3.75
Fair value of contingent consideration liability	$0	'

LOAN_TO_INNOVATION_PARTNER_Det

LOAN TO INNOVATION PARTNER (Details) (Adco Products, LLC, USD $)	6 Months Ended	0 Months Ended		0 Months Ended
In Millions, unless otherwise specified	Feb. 28, 2014	Feb. 28, 2013	Dec. 19, 2011	Feb. 28, 2013
	Maximum	Bridge loan agreement, as lender	Bridge loan agreement, as lender	Amended Loan Agreement
Loan To Innovation Partner	'	'	'	'
Face amount of loan receivable	'	'	$12.50	$10
Term of loan	'	'1 year	'	'5 years
Warrants accepted as a reduction in outstanding principal amount	'	'	'	$2.50
Percentage of warrants issued to purchase equity interest in each company on fully diluted basis and subject to certain adjustments	19.00%	'	'	'