ZEP (ZEP) Inactive 10-Q10 Jul 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	31-May-14	Jul. 07, 2014
Document and Entity Information	'	'
Entity Registrant Name	'Zep Inc.	'
Entity Central Index Key	'0001408287	'
Document Type	'10-Q	'
Document Period End Date	31-May-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	'	22,981,818
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	31-May-14	Aug. 31, 2013
In Thousands, unless otherwise specified	31-May-14	Aug. 31, 2013
ASSETS	'	'
Cash and cash equivalents	$3,278	$2,402
Accounts receivable, less reserve for doubtful accounts of $4,727 at May 31, 2014 and $3,941 at August 31, 2013	110,376	104,476
Inventories, net	75,375	68,633
Prepayments and other current assets	13,674	13,051
Deferred income taxes	6,149	8,002
Total Current assets	208,852	196,564
Property, plant and equipment, net of accumulated depreciation of $114,740 at May 31, 2014 and $108,032 at August 31, 2013	77,130	82,328
Goodwill	121,118	121,102
Identifiable intangible assets, net	123,846	129,929
Other long-term assets	14,457	17,835
Total Assets	545,403	547,758
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Current maturities of long-term debt	10,000	25,000
Accounts payable	59,477	56,366
Accrued compensation	17,105	25,226
Other accrued liabilities	33,900	41,167
Total Current liabilities	120,482	147,759
Long-term debt, less current maturities	201,812	184,908
Deferred income taxes	15,314	12,782
Other long-term liabilities	17,330	18,340
Total Liabilities	354,938	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; 22,378,788 issued and outstanding at May 31, 2014, and 22,065,059 issued and outstanding at August 31, 2013	224	221
Paid-in capital	107,516	102,573
Retained earnings	70,204	69,023
Accumulated other comprehensive income	12,521	12,152
Total Stockholders' equity	190,465	183,969
Total Liabilities and Stockholders' equity	$545,403	$547,758

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	31-May-14	Aug. 31, 2013
In Thousands, except Share data, unless otherwise specified	31-May-14	Aug. 31, 2013
CONDENSED CONSOLIDATED BALANCE SHEETS	'	'
Accounts receivable, reserve for doubtful accounts (in dollars)	$4,727	$3,941
Property, plant and equipment, accumulated depreciation (in dollars)	$114,740	$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	22,378,788	22,065,059
Common stock, shares outstanding	22,378,788	22,065,059

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	31-May-14	31-May-13	31-May-14	31-May-13
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	'	'	'	'
Net sales	$187,023	$185,988	$509,667	$507,400
Cost of products sold	100,144	99,095	269,484	268,105
Gross profit	86,879	86,893	240,183	239,295
Selling, distribution, and administrative expenses	74,082	74,479	216,358	210,432
Acquisition and integration costs	60	60	1,091	2,938
Fire related charges, net	1,067	'	1,067	'
Restructuring charges	129	'	129	'
Operating profit	11,541	12,354	21,538	25,925
Other expense (income):	'	'	'	'
Interest expense, net	2,455	2,963	8,207	6,483
Provision for loan loss	5,670	'	5,670	'
Loss on foreign currency transactions	81	60	251	141
Miscellaneous expense, net	-237	-279	-50	50
Total other expense	7,969	2,744	14,078	6,674
Income before income taxes	3,572	9,610	7,460	19,251
Income tax provision	1,421	3,355	2,894	6,724
Net income	$2,151	$6,255	$4,566	$12,527
Earnings per share:	'	'	'	'
Basic earnings per share (in dollars per share)	$0.10	$0.28	$0.20	$0.57
Diluted earnings per share (in dollars per share)	$0.09	$0.28	$0.20	$0.56
Shares used for computation:	'	'	'	'
Basic (in shares)	22,373	22,021	22,282	21,943
Diluted (in shares)	22,959	22,512	22,896	22,394
Dividends declared per share (in dollars per share)	$0.05	$0.04	$0.15	$0.12

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	31-May-14	31-May-13	31-May-14	31-May-13
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'
Net income	$2,151	$6,255	$4,566	$12,527
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustment	544	-363	368	-985
Other comprehensive income (loss)	544	-363	368	-985
Comprehensive income	$2,695	$5,892	$4,934	$11,542

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	31-May-14	31-May-13
Operating Activities	'	'
Net income	$4,566	$12,527
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	16,579	14,475
Provision for loan loss	5,670	'
Fire related charges, net	1,067	'
Gain on disposal of fixed assets	'	-22
Excess tax benefits from share-based payments	-201	72
Other non-cash charges	2,671	2,812
Deferred income taxes	4,207	4,148
Change in assets and liabilities, net of effect of acquisitions and divestitures:	'	'
Accounts receivable	-849	-7,347
Inventories	-8,569	-3,238
Prepayments and other current assets	-1,089	-4,798
Accounts payable	2,055	3,821
Accrued compensation and other current liabilities	-16,069	-2,020
Self insurance and other long-term liabilities	-1,010	-2,998
Other assets	-1,530	582
Net cash provided by operating activities	7,498	18,014
Investing Activities	'	'
Purchases of property, plant, and equipment	-7,384	-8,534
Acquisitions, net of cash acquired	'	-116,827
Principal payment from innovation partner	300	'
Proceeds from sale of property, plant, and equipment	1,325	22
Net cash used in investing activities	-5,759	-125,339
Financing Activities	'	'
Proceeds from credit facility borrowings	253,000	338,608
Repayments of borrowings from credit facility	-251,238	-238,438
Securitized borrowings	-1,518	8,001
Employee stock issuances	2,072	1,070
Excess tax benefits from share-based payments	201	-72
Dividend payments	-3,385	-2,652
Net cash provided by (used in) financing activities	-868	106,517
Effect of exchange rate changes on cash	5	49
Net change in Cash and cash equivalents	876	-759
Cash and cash equivalents - beginning of period	2,402	3,513
Cash and cash equivalents - end of period	$3,278	$2,754

DESCRIPTION_OF_BUSINESS_AND_BA

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	31-May-14
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, including estimates as to the recoverability of insurance receivables; (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 nine months ended May 31, 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.

	Recent Accounting Pronouncements

	In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” This standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that revenue is recognized when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. Transfer of control is not the same as transfer of risks and rewards, as it is considered in current guidance. ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 (fiscal year 2018 for the Company) and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company has not yet determined the potential effects of the adoption of ASU 2014-09 on its consolidated financial statements.

FIRE_AT_AEROSOL_MANUFACTURING_

FIRE AT AEROSOL MANUFACTURING FACILITY	9 Months Ended
	31-May-14
FIRE AT AEROSOL MANUFACTURING FACILITY	'
FIRE AT AEROSOL MANUFACTURING FACILITY	'
	2. FIRE AT AEROSOL MANUFACTURING FACILITY

	On May 23, 2014, a fire occurred at our aerosol manufacturing facility located in Marietta, Georgia (the “Aerosol Facility”). The products manufactured at the Aerosol Facility included cleaning and maintenance chemicals, lubricants and automotive brake cleaner. Approximately 19% of our fiscal 2013 revenue was attributable to products manufactured at the Aerosol Facility.

	The fire, the origin of which is unknown, destroyed our chemical raw material warehouse and damaged other supporting infrastructure that contains our production equipment. Some of the work in process, raw material and finished goods inventory located there was also destroyed or damaged. We are evaluating the extent of the damage resulting from the fire and the full extent of the loss is not yet known. In the third quarter of fiscal 2014, we wrote down inventory by $2.1 million and fixed assets by $2.7 million as a result of the fire. At this time, we do not know when or if we will resume production at the Aerosol Facility, at a newly constructed facility or continue to outsource the production.

	On June 2, 2014, we resumed production of certain aerosol products manufactured by the Aerosol Facility through a contract manufacturer. We are assisting the contract manufacturer to accommodate our production demands by loaning it equipment and by assigning some of our associates to work at its facilities. We expect the rate of production by the contract manufacturer to increase as it adds production capacity to its facilities. Furthermore, we are exploring the possibility of having additional contract manufacturers supply certain of our products. It is unlikely that all the individual products produced at the Aerosol Facility will be transitioned to third-party manufacturers and this will result in revenue loss. Any material loss of revenue resulting from the fire and its aftermath could have a material impact on our financial condition and results of operations.

	We maintain casualty and business-interruption insurance (“first-party insurance”) that we believe will cover the losses resulting from the fire after the first $1 million of losses, which is the Company’s deductible under such policies. Our first-party insurance covers the costs to repair, rebuild or replace the damaged portions of the Aerosol Facility (without deduction for depreciation) at the same or another site, the gross earnings (defined as income minus variable expenses during the time when production is suspended at the Aerosol Facility) and the increased costs during the disruption of production. We have reflected the full $1 million deductible in the quarter ended May 31, 2014 as our property losses exceed the deductible. The timing of our receipt of insurance proceeds from losses relating to the fire may be materially different from when those losses are incurred

	We also maintain commercial liability insurance, subject to a $1.5 million deductible. We have received and recorded notice of the assertion of $42,000 in claims against us as a result of the fire related to damage to vehicles that were parked in the area of the fire. A claim has not yet been received related to an adjacent property that we believe was completely destroyed by the fire. We cannot estimate the total amount of the claims that will be asserted against us as a result of the fire at the Aerosol Facility.

	We maintain workers’ compensation insurance, subject to a $500,000 per claim deductible. One workers’ compensation claim has been asserted against us as a result of the fire at the Aerosol Facility.

	Our insurance coverage may not fully compensate us for all losses we incur as a result of the fire, which in turn, could have a material adverse impact on our financial condition and results of operations. The timing of receipt of insurance proceeds from losses related to the fire is out of our control and may be materially different from when those losses are incurred.

	The following table reflects the items included in Fire related charges, net for the three and nine months ended May 31, 2014:

	Loss on property, plant & equipment	$	2,700
	Loss on inventory	2,066
	Third party liability claims	42
	Other fire related costs	872
		5,680
	Less: Fire related recoveries	(4,613		)
	Fire related charges, net	$	1,067

	Based on the provision of the Company’s insurance policies and management’s estimates, the charges incurred have been reduced by the estimated insurance recovery taking into consideration associated deductibles. The Company has determined that recovery of these losses is probable and recorded a $4.6 million receivable as of May 31, 2014. In June 2014, we received $5.0 million of first-party insurance proceeds, representing advancement of funds to defray the expenses we incurred to begin cleaning the property, to evaluate the extent of the damage and to outsource the production of our products to the contract manufacturer.

RESTRUCTURING_CHARGES

RESTRUCTURING CHARGES	9 Months Ended
	31-May-14
RESTRUCTURING CHARGES	'
RESTRUCTURING CHARGES	'
	3. RESTRUCTURING CHARGES

	In fiscal 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 2013, we recorded a $5.2 million restructuring charge in connection with these efforts. As of May 31, 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
	Restructuring charges	—			129
	Cash payments	(2,694		)	(197		)
	Balance as of May 31, 2014	$	1,610		$	368

INVENTORIES

INVENTORIES	9 Months Ended
	31-May-14
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:

		May 31, 2014			August 31, 2013
	Raw materials and supplies	$	16,381		$	17,963
	Work in process	1,568			1,711
	Finished goods	59,277			50,755
		77,226			70,429
	Less: Reserves	(1,851		)	(1,796		)
	Inventories, net	$	75,375		$	68,633

DEBT_OBLIGATIONS

DEBT OBLIGATIONS	9 Months Ended
	31-May-14
DEBT OBLIGATIONS	'
DEBT OBLIGATIONS	'
	5. DEBT OBLIGATIONS

	Our indebtedness and credit arrangements consisted of the following:

		May 31, 2014			August 31, 2013
	Revolving credit facility	$	164,349		$	154,008
	Term loan	40,313			48,750
	Industrial revenue bonds	7,150			7,150
		211,812			209,908
	Less: Current maturities of long-term debt	(10,000		)	(25,000		)
	Long term debt, less current maturities	$	201,812		$	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 May 31, 2014, $194.7 million of the total $204.7 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 $194.7 million of those borrowings in periods subsequent to May 31, 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 nine months ended May 31, 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 nine months ended May 31, 2014, this applicable margin averaged 3.5%.

	As of May 31, 2014, our credit availability under the 2010 Credit Facility totaled $24.6 million. We remained in compliance with our debt covenants as of May 31, 2014. Our obligations under the 2010 Credit Facility, as amended, will become current during fiscal year 2014, and as such, we are reviewing refinancing alternatives and intend to refinance our Credit Facility during the fourth quarter, which could affect our interest expense during future fiscal quarters. Our ability to satisfy our working capital, capital expenditure and other anticipated cash requirements will depend on refinancing our capital structure.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	31-May-14
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. 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. In many cases, we are unable to 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 has appealed.

	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. To date, the Company has settled the claims of 44 and arbitrated the claims of eight of the 55 plaintiffs for approximately $4.1 million, including interest, costs and attorneys’ fees. The amounts of interest and attorneys’ fees of two of the arbitration plaintiffs are yet to be decided by their respective arbitrators. The Company believes it will be able to resolve the remaining three cases for an amount that will not be material to the Company’s results of operations.

	The plaintiffs’ lawyers have petitioned the court for an award of approximately $1.6 million of fees for their work on 24 of the settlements, which amount primarily is comprised of approximately $776,000 of fees subject to a multiplier of two. The Company has filed its objection to such award. That matter will be resolved by the court. The schedule for resolving the matter is not yet established.

	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.

	For the nine months ended May 31, 2014, we recorded $5.4 million of expenses associated with legal defense and settlement costs. Of the $5.4 million, $1.0 million is classified as interest expense, net and $4.4 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 $11 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 $2.8 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 our Aerosol Facility. With regard to the Aerosol Facility, we are 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. As of May 31, 2014, and without regard to the May 23, 2014 fire at the Aerosol Facility, we recorded liabilities related to the remediation of the Aerosol Facility site in the condensed consolidated balance sheets in an undiscounted, pre-tax amount of $6.4 million, which represented 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. We have not yet been able to fully assess the impact of the fire on the environmental conditions that are the focus of our remediation efforts at the site.

	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 May 31, 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 Aerosol Facility, Seaboard 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 $6.8 million.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	31-May-14
EARNINGS PER SHARE	'
EARNINGS PER SHARE	'
	7. EARNINGS 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 nine-month periods ended May 31, 2013 or 2014.

	Basic earnings 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 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 per share:

		Three Months Ended					Nine Months Ended
		May 31					May 31,
		2014		2013			2014			2013
	Basic earnings per share:
	Net income	$	2,151	$	6,255		$	4,566		$	12,527
	Less: Allocation of earnings and dividends to participating securities	—		(8		)	(1		)	(17		)
	Net income available to common shareholders—basic	$	2,151	$	6,247		$	4,565		$	12,510
	Basic weighted average shares outstanding	22,373		22,021			22,282			21,943
	Basic earnings per share	$	0.1	$	0.28		$	0.2		$	0.57
	Diluted earnings per share:
	Net income available to common shareholders—basic	$	2,151	$	6,247		$	4,565		$	12,510
	Add: Undistributed earnings reallocated to unvested shareholders	—		—			—			—
	Net income available to common shareholders—diluted	$	2,151	$	6,247		$	4,565		$	12,510
	Basic weighted average shares outstanding	22,373		22,021			22,282			21,943
	Common stock equivalents (stock options and restricted stock)	586		491			614			451
	Diluted weighted average shares outstanding	22,959		22,512			22,896			22,394
	Diluted earnings per share	$	0.09	$	0.28		$	0.2		$	0.56

	For the three month period ended May 31, 2014 and 2013, we excluded 0.2 million and 0.6 million common stock equivalents, respectively, from our earnings per share calculation because of their anti-dilutive effect on this calculation. For the nine month periods ended May 31, 2014 and 2013, we excluded 0.3 million and 0.9 million common stock equivalents from our earnings per share calculation, respectively, because of their anti-dilutive effect on this calculation.

SECURITIZATION_OF_CERTAIN_ACCO

SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE	9 Months Ended
SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE	31-May-14
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 May 31, 2014, the amount of securitized borrowings reflected within Other accrued liabilities in the condensed consolidated balance sheets totaled $7.8 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 and payments made related to these transfers are reflected as Securitized borrowings on our condensed consolidated statements of cash flows.

FAIR_VALUE_DISCLOSURES

FAIR VALUE DISCLOSURES	9 Months Ended
FAIR VALUE DISCLOSURES	31-May-14
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	9 Months Ended
LOAN TO INNOVATION PARTNER	31-May-14
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.

	Adco made all interest and principal payments on the loan since inception through June 2014. However, on June 24, 2014, we were informed by Adco that they will not be able to make the required principal payment on June 30, 2014 and requested modifications to the Amended Loan Agreement. As a result, we evaluated the recoverability of the loan receivable and warrants and recorded an impairment of $5.7 million. This impairment has been reflected on the condensed consolidated statement of operations as “Provision for loan loss”.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
ACQUISITIONS	31-May-14
ACQUISITIONS	'
ACQUISITIONS	'
	11. 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 nine months ended May 31, 2013 of $2.9 million. 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 nine months ended May 31, 2014, we incurred $60,000 and $1.1 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 periods 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 nine months ended May 31, 2013.

		Nine Months Ended
		May 31,
		2014			2013
	Net sales	$	509,667		$	523,817
	Net income	$	4,566		$	13,696
	Basic earnings per share	$	0.2		$	0.62
	Diluted earnings per share	$	0.2		$	0.61

DESCRIPTION_OF_BUSINESS_AND_BA1

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	31-May-14
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	'
Basis of Presentation	'
	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, including estimates as to the recoverability of insurance receivables; (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 nine months ended May 31, 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	'
	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.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements

	In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” This standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that revenue is recognized when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. Transfer of control is not the same as transfer of risks and rewards, as it is considered in current guidance. ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 (fiscal year 2018 for the Company) and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company has not yet determined the potential effects of the adoption of ASU 2014-09 on its consolidated financial statements.

FIRE_AT_AEROSOL_MANUFACTURING_1

FIRE AT AEROSOL MANUFACTURING FACILITY (Tables)	9 Months Ended
	31-May-14
FIRE AT AEROSOL MANUFACTURING FACILITY	'
Schedule of Fire related charges, net	'
	The following table reflects the items included in Fire related charges, net for the three and nine months ended May 31, 2014:

	Loss on property, plant & equipment	$	2,700
	Loss on inventory	2,066
	Third party liability claims	42
	Other fire related costs	872
		5,680
	Less: Fire related recoveries	(4,613		)
	Fire related charges, net	$	1,067

RESTRUCTURING_CHARGES_Tables

RESTRUCTURING CHARGES (Tables)	9 Months Ended
	31-May-14
RESTRUCTURING CHARGES	'
Schedule of changes in restructuring reserve	'

		Severance			Facility Exit
		Costs			Costs
	Balance as of August 31, 2013	$	4,304		$	436
	Restructuring charges	—			129
	Cash payments	(2,694		)	(197		)
	Balance as of May 31, 2014	$	1,610		$	368

INVENTORIES_Tables

INVENTORIES (Tables)	9 Months Ended
	31-May-14
INVENTORIES	'
Schedule of inventories	'

		May 31, 2014			August 31, 2013
	Raw materials and supplies	$	16,381		$	17,963
	Work in process	1,568			1,711
	Finished goods	59,277			50,755
		77,226			70,429
	Less: Reserves	(1,851		)	(1,796		)
	Inventories, net	$	75,375		$	68,633

DEBT_OBLIGATIONS_Tables

DEBT OBLIGATIONS (Tables)	9 Months Ended
	31-May-14
DEBT OBLIGATIONS	'
Schedule of indebtedness and credit arrangements	'

		May 31, 2014			August 31, 2013
	Revolving credit facility	$	164,349		$	154,008
	Term loan	40,313			48,750
	Industrial revenue bonds	7,150			7,150
		211,812			209,908
	Less: Current maturities of long-term debt	(10,000		)	(25,000		)
	Long term debt, less current maturities	$	201,812		$	184,908

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	31-May-14
EARNINGS PER SHARE	'
Schedule of basic and diluted earnings per common share	'

		Three Months Ended					Nine Months Ended
		May 31					May 31,
		2014		2013			2014			2013
	Basic earnings per share:
	Net income	$	2,151	$	6,255		$	4,566		$	12,527
	Less: Allocation of earnings and dividends to participating securities	—		(8		)	(1		)	(17		)
	Net income available to common shareholders—basic	$	2,151	$	6,247		$	4,565		$	12,510
	Basic weighted average shares outstanding	22,373		22,021			22,282			21,943
	Basic earnings per share	$	0.1	$	0.28		$	0.2		$	0.57
	Diluted earnings per share:
	Net income available to common shareholders—basic	$	2,151	$	6,247		$	4,565		$	12,510
	Add: Undistributed earnings reallocated to unvested shareholders	—		—			—			—
	Net income available to common shareholders—diluted	$	2,151	$	6,247		$	4,565		$	12,510
	Basic weighted average shares outstanding	22,373		22,021			22,282			21,943
	Common stock equivalents (stock options and restricted stock)	586		491			614			451
	Diluted weighted average shares outstanding	22,959		22,512			22,896			22,394
	Diluted earnings per share	$	0.09	$	0.28		$	0.2		$	0.56

ACQUISITIONS_Tables

ACQUISITIONS (Tables)	9 Months Ended
ACQUISITIONS (Tables)	31-May-14
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	'

		Nine Months Ended
		May 31,
		2014			2013
	Net sales	$	509,667		$	523,817
	Net income	$	4,566		$	13,696
	Basic earnings per share	$	0.2		$	0.62
	Diluted earnings per share	$	0.2		$	0.61

FIRE_AT_AEROSOL_MANUFACTURING_2

FIRE AT AEROSOL MANUFACTURING FACILITY (Details) (USD $)	3 Months Ended	9 Months Ended	1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	31-May-14	31-May-14	Jun. 30, 2014	31-May-14	31-May-14	Aug. 31, 2013
			Aerosol Facility	Aerosol Facility	Aerosol Facility	Aerosol Facility
			Fire	Fire	Fire	Revenue
					item
Fire at aerosol manufacturing facility	'	'	'	'	'	'
Percentage of revenue attributable to products manufactured	'	'	'	'	'	19.00%
Losses amount as deductible under first-party insurance	'	'	'	$1,000,000	$1,000,000	'
Property damage deductible under commercial liability insurance	'	'	'	'	1,500,000	'
Insurance assertion claims amount	'	'	'	'	42,000	'
Per claim deductible under workers' compensation insurance	'	'	'	'	500,000	'
Number of workers' compensation claim which has been asserted	'	'	'	'	1	'
Fire related charges, net	'	'	'	'	'	'
Loss on property, plant & equipment	'	'	'	2,700,000	2,700,000	'
Loss on inventory	'	'	'	2,066,000	2,066,000	'
Third party liability claims	'	'	'	42,000	42,000	'
Other fire related costs	'	'	'	872,000	872,000	'
Fire related charges, gross	'	'	'	5,680,000	5,680,000	'
Less: Fire related recoveries	'	'	'	-4,613,000	-4,613,000	'
Fire related charges, net	1,067,000	1,067,000	'	1,067,000	1,067,000	'
Insurance receivable	'	'	'	4,600,000	4,600,000	'
Proceeds from first-party insurance	'	'	$5,000,000	'	'	'

RESTRUCTURING_CHARGES_Details

RESTRUCTURING CHARGES (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	31-May-14	Aug. 31, 2013	31-May-14
RESTRUCTURING CHARGES	'	'	'
Restructuring charge	$129	$5,200	$129
Changes to restructuring reserve	'	'	'
Restructuring charges	129	5,200	129
Severance Costs	'	'	'
Changes to restructuring reserve	'	'	'
Balance at the beginning of the period	'	'	4,304
Cash payments	'	'	-2,694
Balance at the end of the period	1,610	'	1,610
Facility Exit Costs	'	'	'
RESTRUCTURING CHARGES	'	'	'
Restructuring charge	'	'	129
Changes to restructuring reserve	'	'	'
Balance at the beginning of the period	'	'	436
Restructuring charges	'	'	129
Cash payments	'	'	-197
Balance at the end of the period	$368	'	$368

INVENTORIES_Details

INVENTORIES (Details) (USD $)	31-May-14	Aug. 31, 2013
In Thousands, unless otherwise specified	31-May-14	Aug. 31, 2013
Inventories	'	'
Raw materials and supplies	$16,381	$17,963
Work in process	1,568	1,711
Finished goods	59,277	50,755
Inventory gross	77,226	70,429
Less: Reserves	-1,851	-1,796
Inventories, net	$75,375	$68,633

DEBT_OBLIGATIONS_Details

DEBT OBLIGATIONS (Details) (USD $)	31-May-14	Aug. 31, 2013
In Thousands, unless otherwise specified	31-May-14	Aug. 31, 2013
Long-term borrowings:	'	'
Long-term debt, total	$211,812	$209,908
Less: Current maturities of long-term debt	-10,000	-25,000
Long term debt, less current maturities	201,812	184,908
Revolving credit facility	'	'
Long-term borrowings:	'	'
Long-term debt, total	164,349	154,008
Term loan	'	'
Long-term borrowings:	'	'
Long-term debt, total	40,313	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 $)	31-May-14	Aug. 31, 2013	Jul. 15, 2010	31-May-14	31-May-14
DEBT OBLIGATIONS (Details 2) (USD $)	31-May-14	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	201,812,000	184,908,000	'	194,700,000	194,700,000
Outstanding borrowings	211,812,000	209,908,000	'	204,700,000	204,700,000
Base interest rate during the period (as a percent)	'	'	'	0.20%	0.20%
Additional interest margin added to variable rate (as a percent)	'	'	'	3.50%	3.50%
Remaining borrowing capacity	'	'	'	$24,600,000	$24,600,000

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)

9 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

18 Months Ended

46 Months Ended

9 Months Ended

31-May-14

31-May-07

31-May-14

Aug. 31, 2013

31-May-14

Dec. 31, 2012

Dec. 31, 2010

31-May-14

Aug. 31, 2013

31-May-14

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

$4,100,000

Number of arbitrations plaintiffs whose amounts of interest and attorneys fee is yet to be decided

Number of plaintiffs with whom claims are remaining to be settled

Lawyers legal fees awarded value

1,600,000

Number of plaintiffs with whom claims are settled by lawyers

Primarily fees amount subject to a multiplier of two

776,000

Multiplier factor to calculate primarily fees amount

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

Number of plaintiffs with whom arbitration proceedings occurred

Legal defense and settlement costs

5,400,000

1,000,000

4,400,000

Litigation total costs

11,000,000

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

2,800,000

Undiscounted pre-tax amount

6,400,000

400,000

Number of sites in Georgia under environmental remediation

Loss contingency accrual

$6,800,000

EARNINGS_PER_SHARE_Details

EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	31-May-14	31-May-13	31-May-14	31-May-13
Basic earnings per share:	'	'	'	'
Net income	$2,151	$6,255	$4,566	$12,527
Less: Allocation of earnings and dividends to participating securities	'	-8	-1	-17
Net income available to common shareholders-basic	2,151	6,247	4,565	12,510
Basic weighted average shares outstanding	22,373,000	22,021,000	22,282,000	21,943,000
Basic earnings per share (in dollars per share)	$0.10	$0.28	$0.20	$0.57
Diluted earnings per share:	'	'	'	'
Net income available to common shareholders-basic	2,151	6,247	4,565	12,510
Net income available to common shareholders-diluted	$2,151	$6,247	$4,565	$12,510
Basic weighted average shares outstanding	22,373,000	22,021,000	22,282,000	21,943,000
Common stock equivalents (stock options and restricted stock) (in shares)	586,000	491,000	614,000	451,000
Diluted weighted average shares outstanding	22,959,000	22,512,000	22,896,000	22,394,000
Diluted earnings per share (in dollars per share)	$0.09	$0.28	$0.20	$0.56
Anti-dilutive common stock equivalents (in shares)	200,000	600,000	300,000	900,000

SECURITIZATION_OF_CERTAIN_ACCO1

SECURITIZATION OF CERTAIN ACCOUNTS RECEIVABLE (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	31-May-14
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	$7.80
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) (USD $)	3 Months Ended	9 Months Ended		0 Months Ended		0 Months Ended
	31-May-14	31-May-14	31-May-14	Feb. 28, 2013	Dec. 19, 2011	Jun. 24, 2014	Feb. 28, 2013
			Adco Products, LLC	Bridge loan agreement, as lender	Bridge loan agreement, as lender	Amended Loan Agreement	Amended Loan Agreement
			Maximum	Adco Products, LLC	Adco Products, LLC	Adco Products, LLC	Adco Products, LLC
Loan To Innovation Partner	'	'	'	'	'	'	'
Face amount of loan receivable	'	'	'	'	$12,500,000	'	$10,000,000
Term of loan	'	'	'	'1 year	'	'	'5 years
Warrants accepted as a reduction in outstanding principal amount	'	'	'	'	'	'	2,500,000
Percentage of warrants issued to purchase equity interest in each company on fully diluted basis and subject to certain adjustments	'	'	19.00%	'	'	'	'
Amount of impairments reflected as provision for loan loss	$5,670,000	$5,670,000	'	'	'	$5,700,000	'

ACQUISITIONS_Details

ACQUISITIONS (Details) (USD $)	3 Months Ended		9 Months Ended			0 Months Ended			0 Months Ended
	31-May-14	31-May-13	31-May-14	31-May-13	Aug. 31, 2013	Dec. 02, 2012	31-May-14	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	60,000	60,000	1,091,000	2,938,000	'	'	'	'	'	'
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	121,118,000	'	121,118,000	'	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 $)	9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	31-May-14	31-May-13
Ecolab's Vehicle Care division	'	'
Pro Forma Results of Operations	'	'
Net Sales	$509,667	$523,817
Net Income	$4,566	$13,696
Basic earnings per Share (in dollars per share)	$0.20	$0.62
Diluted earnings per Share (in dollars per share)	$0.20	$0.61