Chase (CCF) 10-Q 6 Jul 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May 31, 2018	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	CHASE CORP
Entity Central Index Key	830,524
Document Type	10-Q
Document Period End Date	May 31, 2018
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		9,396,262
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	May 31, 2018	Aug. 31, 2017
Current Assets
Cash and cash equivalents	$ 33,107	$ 47,354
Accounts receivable, less allowance for doubtful accounts of $702 and $456	46,351	38,051
Inventory	35,825	25,618
Prepaid expenses and other current assets	2,876	3,112
Due from sale of businesses	557
Prepaid income taxes	373
Total current assets	119,089	114,135
Property, plant and equipment, less accumulated depreciation of $47,743 and $44,277	35,570	34,760
Other Assets
Goodwill	85,976	50,784
Intangible assets, less accumulated amortization of $50,849 and $42,206	64,480	46,846
Cash surrender value of life insurance	4,530	4,530
Restricted investments	1,019	964
Funded pension plan	514	566
Deferred income taxes	2,763	1,614
Other assets	108	539
Total assets	314,049	254,738
Current Liabilities
Accounts payable	14,809	14,455
Accrued payroll and other compensation	4,976	6,500
Accrued expenses	4,943	4,052
Accrued income taxes		2,333
Total current liabilities	24,728	27,340
Long-term debt	35,000
Deferred compensation	1,034	979
Accumulated pension obligation	11,258	12,666
Other liabilities	1,588	1,567
Accrued income taxes	2,977	1,257
Commitments and Contingencies (Note 10)
Equity
First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued
Common stock, $.10 par value: Authorized 20,000,000 shares; 9,396,262 shares at May 31, 2018 and 9,354,136 shares at August 31, 2017 issued and outstanding	940	935
Additional paid-in capital	14,370	14,060
Accumulated other comprehensive loss	(11,732)	(13,469)
Retained earnings	233,886	209,403
Total equity	237,464	210,929
Total liabilities and equity	$ 314,049	$ 254,738

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	May 31, 2018	Aug. 31, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 702	$ 456
Property, plant and equipment, accumulated depreciation (in dollars)	47,743	44,277
Intangible assets, accumulated amortization (in dollars)	$ 50,849	$ 42,206
First Serial Preferred Stock, par value (in dollars per share)	$ 1	$ 1
First Serial Preferred Stock, Authorized shares	100,000	100,000
First Serial Preferred Stock, issued shares	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, Authorized shares	20,000,000	20,000,000
Common stock, shares issued	9,396,262	9,354,136
Common stock, shares outstanding	9,396,262	9,354,136

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Revenue
Sales	$ 77,653	$ 63,641	$ 202,965	$ 180,198
Royalties and commissions	1,265	1,260	3,745	3,368
Total revenues	78,918	64,901	206,710	183,566
Costs and Expenses
Cost of products and services sold	48,252	37,511	127,138	105,658
Selling, general and administrative expenses	13,705	12,297	37,902	35,567
Acquisition-related costs (Note 14)			393	584
Exit costs related to idle facility (Note 15)				50
Operating income	16,961	15,093	41,277	41,707
Interest expense	(389)	(158)	(874)	(711)
Gain on sale of real estate (Note 9)				860
Gain on sale of license (Note 18)			1,085
Gain on sale of businesses (Note 8)	1,480	2,013	1,480	2,013
Other income (expense)	600	164	23	536
Income before income taxes	18,652	17,112	42,991	44,405
Income taxes (Note 19)	5,109	5,257	11,011	13,804
Net income	$ 13,543	$ 11,855	$ 31,980	$ 30,601
Net income available to common shareholders, per common and common equivalent share (Note 4)
Basic (in dollars per share)	$ 1.44	$ 1.27	$ 3.41	$ 3.27
Diluted (in dollars per share)	$ 1.43	$ 1.26	$ 3.38	$ 3.24
Weighted average shares outstanding
Basic (in shares)	9,306,498	9,258,219	9,292,647	9,244,237
Diluted (in shares)	9,373,183	9,336,725	9,362,370	9,331,470
Annual cash dividends declared per share			$ 0.80	$ 0.70

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 13,543	$ 11,855	$ 31,980	$ 30,601
Other comprehensive income:
Net unrealized gain (loss) on restricted investments, net of tax	5	41	(13)	87
Change in funded status of pension plans, net of tax	92	147	277	441
Foreign currency translation adjustment	(2,197)	1,504	1,473	(631)
Total other comprehensive income (loss)	(2,100)	1,692	1,737	(103)
Comprehensive income	$ 11,443	$ 13,547	$ 33,717	$ 30,498

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - 9 months ended May 31, 2018 - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at Aug. 31, 2017	$ 935	$ 14,060	$ (13,469)	$ 209,403	$ 210,929
Balance (in shares) at Aug. 31, 2017	9,354,136
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 2	(2)
Restricted stock grants, net of forfeitures (in shares)	15,900
Amortization of restricted stock grants		1,228			1,228
Amortization of stock option grants		336			336
Exercise of stock options	$ 5	917			922
Exercise of stock options (in shares)	46,843
Common stock received for payment of stock option exercises	$ (1)	(779)			(780)
Common stock received for payment of stock option exercises (in shares)	(7,656)
Common stock retained to pay statutory minimum withholding taxes on common stock	$ (1)	(1,390)			(1,391)
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares)	(12,961)
Cash dividend paid, $0.80 per share				(7,497)	(7,497)
Change in funded status of pension plan, net of tax $89			277		277
Foreign currency translation adjustment			1,473		1,473
Net unrealized gain (loss) on restricted investments, net of tax $5			(13)		(13)
Net income				31,980	31,980
Balance at May. 31, 2018	$ 940	$ 14,370	$ (11,732)	$ 233,886	$ 237,464
Balance (in shares) at May. 31, 2018	9,396,262

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) $ in Thousands	9 Months Ended
	May 31, 2018USD ($)$ / shares
CONDENSED CONSOLIDATED STATEMENT OF EQUITY
Annual cash dividends declared per share | $ / shares	$ 0.80
Change in funded status of pension plans, tax	$ 89
Net unrealized gain (loss) on restricted investments, tax	$ 5

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	May 31, 2018	May 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 31,980	$ 30,601
Adjustments to reconcile net income to net cash provided by operating activities
Gain on sale of real estate		(860)
Gain on sale of license	(1,085)
Gain on sale of businesses	(1,480)	(2,013)
Depreciation	3,870	3,859
Amortization	8,450	6,816
Cost of sale of inventory step-up	1,530	190
Provision (recovery) of allowance for doubtful accounts	245	(129)
Stock-based compensation	1,564	1,659
Realized gain on restricted investments	(92)	(55)
Deferred taxes	1,072	8
Increase (decrease) from changes in assets and liabilities
Accounts receivable	(4,830)	1,448
Inventory	(4,897)	(2,550)
Prepaid expenses and other assets	286	(1,003)
Accounts payable	(47)	409
Accrued compensation and other expenses	(1,784)	(1,369)
Accrued income taxes	(3,132)	1,325
Net cash provided by operating activities	31,650	38,336
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(2,908)	(2,198)
Cost to acquire intangible assets	(79)	(81)
Payments for acquisitions	(73,469)	(30,270)
Proceeds from sale of real estate		2,122
Proceeds from sale of license	1,000
Net proceeds from sale of businesses	2,075	3,687
Changes in restricted investments	19	(123)
Proceeds from settlement of life insurance policies		1,504
Net cash used in investing activities	(73,362)	(25,359)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on debt	65,000
Payments of principal on debt	(30,000)	(23,400)
Dividend paid	(7,497)	(6,532)
Proceeds from exercise of common stock options	142	95
Payments of taxes on stock options and restricted stock	(1,391)	(2,014)
Net cash provided by (used in) financing activities	26,254	(31,851)
INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS	(15,458)	(18,874)
Effect of foreign exchange rates on cash	1,211	(407)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	47,354	73,411
CASH AND CASH EQUIVALENTS, END OF PERIOD	33,107	54,130
Non-cash Investing and Financing Activities
Common stock received for payment of stock option exercises	780	1,158
Property, plant and equipment additions included in accounts payable	$ 66	$ 65

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	9 Months Ended
	May 31, 2018
Basis of Financial Statement Presentation
Basis of Financial Statement Presentation	Note 1 — Basis of Financial Statement Presentatio Description of Business Chase Corporation (the “Company,” “Chase,” “we,” or “us”), a global specialty chemicals company founded in 1946, is a leading manufacturer of protective materials for high-reliability applications. Our strategy is to maximize the performance of our core businesses and brands while seeking future opportunities through strategic acquisitions. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting, and instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Therefore, they do not include all information and footnote disclosures necessary for a complete presentation of Chase Corporation’s financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Chase Corporation filed audited consolidated financial statements, which included all information and notes necessary for such a complete presentation, for the three years ended August 31, 2017, in conjunction with its 2017 Annual Report on Form 10-K. Certain immaterial reclassifications have been made to the prior year amounts to conform to the current year’s presentation. The results of operations for the interim period ended May 31, 2018 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended August 31, 2017, which are contained in the Company’s 2017 Annual Report on Form 10-K. The accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring items) that are, in the opinion of management, necessary for a fair statement of the Company’s financial position as of May 31, 2018, the results of its operations, comprehensive income and cash flows for the interim periods ended May 31, 2018 and 2017, and changes in equity for the interim period ended May 31, 2018. The financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company uses the U.S. dollar as the reporting currency for financial reporting. The financial position and results of operations of the Company’s U.K.-based operations are measured using the British pound as the functional currency. The financial position and results of operations of the Company’s operations based in France are measured using the euro as the functional currency. The financial position and results of the Company’s HumiSeal India Private Limited business are measured using the Indian rupee as the functional currency. The functional currency for all our other operations is the U.S. dollar. Foreign currency translation gains and losses are determined using current exchange rates for monetary items and historical exchange rates for other balance sheet items, and are recorded as a change in other comprehensive income. Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of each applicable operation are included in other income (expense) on the condensed consolidated statements of operations, and were $546 and ($131) for the three- and nine-month periods ended May 31, 2018, respectively, and ($188) and $173 for the three- and nine-month periods ended May 31, 2017, respectively. Other Business Developments On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacturing of products previously produced in the Pawtucket, RI facility will be moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. The Company estimates total pre-tax charges of approximately $300 associated with facility closing activities. Of this amount, employee transition bonuses and other employee-related costs are estimated to be $275. The Company expects the transition to be substantially completed and the majority of these cash expenditures to be incurred in the fourth quarter of fiscal 2018. On April 20, 2018, Chase finalized an agreement with an unrelated party to sell all inventory, operational machinery and equipment and intangible assets of the Company’s structural composites rod business, as well as a license related to the production and sale of rod, for proceeds of $2,232, net of transaction costs and following certain working capital adjustments. This business, which was part of the structural composites product line within the Industrial Materials segment, had limited growth and profitability prospects as part of the Company, and was outside the areas Chase has identified for strategic emphasis. The resulting pre-tax gain on sale of $1,480 was recognized in the third quarter of fiscal 2018 as a gain on sale of businesses within the condensed consolidated statement of operations. Chase received $2,075, net of transaction costs, in the third quarter of fiscal 2018, with the remaining $157 received in the fourth quarter of fiscal 2018 as a result of a working capital true-up. In relation to this transaction, the purchaser entered into a royalty agreement with the Company. The purchaser will make royalty payments to Chase based on future sales of certain structural composite material manufactured by the purchaser. On December 29, 2017, Chase entered an agreement to acquire Stewart Superabsorbents, LLC (“SSA, LLC”), an advanced superabsorbent polymer (SAP) formulator and solutions provider, with operations located in Hickory and McLeansville, NC. The transaction closed on December 31, 2017. In the most recently completed fiscal year, SSA, LLC, and its recently-acquired Zappa-Tec business (collectively “Zappa Stewart”) had combined revenue in excess of $24,000. Chase expects this acquisition to be immediately accretive to its earnings, after adjusting for nonrecurring costs associated with the transaction and financing cost. The business was acquired for a purchase price of $73,469, after final working capital adjustments and excluding acquisition-related costs. As part of this transaction, Chase acquired all assets of the business, and entered multiyear leases at both locations. The Company expensed $393 of acquisition-related costs associated with this acquisition during the second quarter of fiscal 2018. The purchase was funded from a combination of Chase’s existing revolving credit facility and available cash on hand. Zappa Stewart’s protective materials technology complements Chase’s current specialty chemicals offerings. This acquisition is aligned with the Company’s core strategies and extends its reach into growing medical, environmental and consumer applications. The Company is currently in the process of finalizing purchase accounting, with regard to a calculation of a deferred tax balance and a final allocation of the purchase price to tangible and identifiable intangible assets assumed, and anticipates completion within fiscal 2018. Following the effective date of the acquisition the financial results of Zappa Stewart’s operations have been included in the Company’s financial statements in the specialty chemical intermediates product line, contained within the Industrial Materials operating segment. See Note 14 to the condensed consolidated financial statements for additional information on the acquisition of Zappa Stewart. On April 3, 2017, Chase executed an agreement with an unrelated third party to sell all inventory, machinery and equipment and intangible assets of the Company’s fiber optic cable components product line for proceeds of $3,858, net of transaction costs and following certain working capital adjustments. The resulting pre-tax gain on sale of $2,013 was recognized in the third quarter of fiscal 2017 as gain on sale of businesses within the condensed consolidated statement of operations. Further, the purchaser entered a multiyear lease for a portion of the manufacturing space at the Company’s Granite Falls, NC facility. Chase will provide ongoing manufacturing and administrative support to the purchaser for which the Company will receive additional consideration upon the performance of services. The Company’s fiber optic cable components product line was formerly a part of the Company’s Industrial Materials operating segment. See Note 8 to the condensed consolidated financial statements for additional information on the sale of the fiber optic cable components product line. On September 30, 2016, the Company acquired certain assets of Resin Designs, LLC (“Resin Designs”), an advanced adhesives and sealants manufacturer, with locations in Woburn, MA and Newark, CA. The business was acquired for a purchase price of $30,270, after final working capital adjustments and excluding acquisition-related costs. As part of this transaction, Chase acquired all working capital and fixed assets of the business and entered multiyear leases at both locations. The Company expensed $584 of acquisition-related costs associated with this acquisition during the first quarter of fiscal 2017. The purchase was funded entirely with available cash on hand. Resin Designs is a formulator of customized adhesive and sealant systems used in high-reliability electronic applications. The acquisition broadens the Company’s adhesives and sealants product offering and manufacturing capabilities and expands its market reach. Since the effective date of the acquisition, the financial results of Resin Designs’ operations have been included in the Company’s financial statements in the electronic and industrial coatings product line, contained within the Industrial Materials operating segment. See Note 14 to the condensed consolidated financial statements for additional information on the acquisition of the assets and operations of Resin Designs.

Recent Accounting Standards

Recent Accounting Standards	9 Months Ended
	May 31, 2018
Recent Accounting Standards
Recent Accounting Standards	Note 2 — Recent Accounting Standards Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which will replace most of the existing revenue recognition guidance under U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. In March, April and May 2016, the FASB issued ASU 2016-08 “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10 “Identifying Performance Obligations and Licensing,” and ASU 2016-12, “Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients,” all of which provide further clarification to be considered when implementing ASU 2014-09. The ASU will be effective for the Company beginning September 1, 2018 (fiscal 2019), including interim periods in its fiscal year 2019, and allows for either retrospective or modified retrospective methods of adoption. Given the scope of work required to implement the recognition and disclosure requirements under the ASU, we began our assessment process during fiscal 2017. Chase continues to evaluate the impact of ASU No. 2014-09 on our consolidated financial statements and anticipates the new disclosure requirements and changes to process and controls will be significant. We expect revenue recognition for most of our products, which are shipments to OEMs based on individual purchase orders received, to remain largely unchanged. From a timing of revenue recognition standpoint (point in time versus over time), it is anticipated that certain products will be more affected than other products sold, since these certain products contain assets that a customer controls. Chase has considered customized products sold to customers having no alternative use and enforceable right to payment relating to those sales, and expects minimal impact on these types of orders. Guided by our scoping and risk assessment, we continue to conduct a comprehensive contract review in applying the guidance in Topic 606 focusing on the major steps in the five-step model outlined in the ASU. During the remainder of fiscal 2018, Chase will continue assessing system impacts, enhancing internal controls and financial reporting policies to address this standard’s requirements and risks, and finalizing our understanding of the financial impact of this standard on our consolidated financial statements, including the cumulative effect adjustment to be recorded upon implementation of this standard. The Company expects to utilize the modified retrospective method of adoption, coinciding with the start of fiscal 2019. We expect to finalize the evaluation and quantify the impact in upcoming quarters and will provide updates on its progress in future filings. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The ASU will be effective for the Company beginning September 1, 2019 (fiscal 2020). Early application is permitted. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of the application of this ASU on our consolidated financial statements and disclosures thereto. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230).” This ASU provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The effective date for adoption of this guidance will be our fiscal year beginning September 1, 2018 (fiscal 2019), with early adoption permitted. The Company is currently evaluating the effect that ASU No. 2016-15 will have on its financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance dictates that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The guidance will be effective for the fiscal year beginning on September 1, 2018 (fiscal 2019), including interim periods within that year, with early adoption permitted. In March 2017, the FASB issued ASU No. 2017-07, “Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715, Compensation — Retirement Benefits. The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The ASU also allows only the service cost component to be eligible for capitalization when applicable (e.g., as a cost of internally manufactured inventory or a self-constructed asset). The required effective date for adoption of this guidance for the Company will be our fiscal year beginning September 1, 2018 (fiscal 2019), including interim periods within that annual period. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. The Company is currently evaluating the effect that ASU No. 2017-07 will have on its financial statements and related disclosures. In May 2017, the FASB issued ASU No. 2017-09, "Scope of Modification Accounting." This ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 (our fiscal year 2019), including interim periods within that reporting period. In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Under previously existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amendments in this ASU also require certain disclosures about stranded tax effects. The guidance is required for fiscal years beginning after December 15, 2018 (our fiscal year 2020), and interim periods within those fiscal years. Early adoption in any period is permitted. The Company is currently evaluating the effect that ASU No. 2018-02 will have on its financial statements and related disclosures. See Note 19 to the condensed consolidated financial statements for additional information on the effects of the Tax Act on our financial position and result of operations, including provisional transitional adjustments that were recorded during fiscal 2018 related to the Tax Act.

Inventory

Inventory	9 Months Ended
	May 31, 2018
Inventory
Inventory	Note 3 — Inventory Inventory consisted of the following as of May 31, 2018 and August 31, 2017: May 31, August 31, 2018 2017 Raw materials $ 17,842 $ 11,636 Work in process 7,315 6,877 Finished goods 10,668 7,105 Total Inventory $ 35,825 $ 25,618

Net Income Per Share

Net Income Per Share	9 Months Ended
	May 31, 2018
Net Income Per Share
Net Income Per Share	Note 4 — Net Income Per Share The Company has unvested share-based payment awards with a right to receive nonforfeitable dividends which are considered participating securities under ASC Topic 260, “Earnings Per Share.” The Company allocates earnings to participating securities and computes earnings per share using the two-class method. The determination of earnings per share under the two-class method is as follows: Three Months Ended May 31, Nine Months Ended May 31, 2018 2017 2018 2017 Basic Earnings per Share Net income $ 13,543 $ 11,855 $ 31,980 $ 30,601 Less: Allocated to participating securities Net income available to common shareholders $ 13,415 $ 11,728 $ 31,676 $ 30,269 Basic weighted average shares outstanding Net income per share - Basic $ 1.44 $ 1.27 $ 3.41 $ 3.27 Diluted Earnings per Share Net income $ 13,543 $ 11,855 $ 31,980 $ 30,601 Less: Allocated to participating securities Net income available to common shareholders $ 13,415 $ 11,728 $ 31,676 $ 30,269 Basic weighted average shares outstanding Additional dilutive common stock equivalents Diluted weighted average shares outstanding Net income per share - Diluted $ 1.43 $ 1.26 $ 3.38 $ 3.24 For both the three and nine months ended May 31, 2018, stock options to purchase 6,416 shares of common stock were outstanding but were not included in the calculation of diluted income per share because their inclusion would be anti-dilutive; no shares were excluded for either the three-month or nine-month periods ended May 31, 2017. Included in the calculation of dilutive common stock equivalents are the unvested portion of restricted stock and stock options.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	May 31, 2018
Stock Based Compensation
Stock Based Compensation	Note 5 — Stock-Based Compensation In August 2016, the Board of Directors of the Company approved the fiscal year 2017 Long Term Incentive Plan (“2017 LTIP”) for the executive officers and other members of management. The 2017 LTIP is an equity-based plan with a grant date of September 1, 2016 and contains a performance and service-based restricted stock grant of 5,399 shares in the aggregate, subject to adjustment, with a vesting date of August 31, 2019. Based on the fiscal year 2017 financial results, 5,399 additional shares of restricted stock (total of 10,798 shares) were earned and granted subsequent to the end of fiscal year 2017 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award. Compensation expense is being recognized on a ratable basis over the vesting period. In August 2017, the Board of Directors of the Company approved the fiscal year 2018 Long Term Incentive Plan (“2018 LTIP”) for the executive officers and other members of management. The 2018 LTIP is an equity-based plan with a grant date of September 1, 2017 and contains the following equity components: Restricted Shares — (a) a performance and service-based restricted stock grant of 4,249 shares in the aggregate, subject to adjustment based on fiscal 2018 results, with a vesting date of August 31, 2020. Compensation expense is recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,473 shares in the aggregate, with a vesting date of August 31, 2020. Compensation expense is recognized on a ratable basis over the vesting period. Stock options — options to purchase 9,622 shares of common stock in the aggregate with an exercise price of $93.50 per share. The options will vest in three equal annual installments beginning on August 31, 2018 and ending on August 31, 2020. Of the options granted, 4,591 options will expire on August 31, 2027, and 5,031 options will expire on September 1, 2027. Compensation expense is recognized over the period of the award consistent with the vesting terms. In February 2018, as part of their standard compensation for board service, non-employee members of the Board of Directors received a total grant of 2,779 shares of restricted stock ($281 grant date value) for service for the period from January 31, 2018 through January 31, 2019. The shares of restricted stock will vest at the conclusion of this service period. Compensation is recognized on a ratable basis over the twelve-month vesting period.

Segment Data and Foreign Operat

Segment Data and Foreign Operations	9 Months Ended
	May 31, 2018
Segment Data and Foreign Operations
Segment Data and Foreign Operations	Note 6 — Segment Data and Foreign Operations The Company is organized into two reportable operating segments, an Industrial Materials segment and a Construction Materials segment. The segments are distinguished by the nature of the products and how they are delivered to their respective markets. The Industrial Materials segment includes specified products that are used in, or integrated into, another company’s product, with demand typically dependent upon general economic conditions. Industrial Materials products include insulating and conducting materials for wire and cable manufacturers, moisture protective coatings and customized sealant and adhesive systems for electronics, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing services, pulling and detection tapes used in the installation, measurement and location of fiber optic cables and water and natural gas lines, cover tapes essential to delivering semiconductor components via tape and reel packaging, composite materials and elements, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning September 30, 2016 and December 31, 2017, the Industrial Materials segment includes the acquired operations of Resin Designs, LLC and Zappa Stewart, respectively. Each were obtained through acquisition and are included in the Company’s electronic and industrial coatings product line and specialty chemicals intermediates product line, respectively. Prior to the April 3, 2017 sale of the business, the segment’s products also included glass-based strength elements, designed to allow fiber optic cables to withstand mechanical and environmental strain and stress. Following the April 20, 2018 sale of the structural composites rod business, future product sales of composite materials and elements are not anticipated to be significant to the condensed consolidated financial statements. The Construction Materials segment is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. Construction Materials products include protective coatings for pipeline applications, coating and lining systems for use in liquid storage and containment applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion and control joint systems for use in the transportation and architectural markets. The following tables summarize information about the Company’s reportable segments: Three Months Ended May 31, Nine Months Ended May 31, 2018 2017 2018 2017 Revenue Industrial Materials $ 65,389 $ 53,292 $ 170,641 $ 149,708 Construction Materials 13,529 11,609 36,069 33,858 Total $ 78,918 $ 64,901 $ 206,710 $ 183,566 Income before taxes Industrial Materials $ 20,907 (a) $ 20,259 (c) $ 52,433 (d) $ 52,364 (e) Construction Materials 5,341 3,647 11,959 12,411 Total for reportable segments 26,248 23,906 64,392 64,775 Corporate and common costs (7,596) (b) (6,794) (21,401) (b) (20,370) (f) Total $ 18,652 $ 17,112 $ 42,991 $ 44,405 Includes the following costs by segment: Industrial Materials Interest $ 311 $ 119 $ 699 $ 533 Depreciation 816 959 2,521 3,023 Amortization 2,887 1,990 7,465 5,859 Construction Materials Interest $ 78 $ 39 $ 175 $ 178 Depreciation 177 209 554 560 Amortization 330 320 985 957 (a) Includes $1,480 gain on sale of business related to the April 2018 structural composites rod business (b) Includes $393 in acquisition-related expenses attributable to the December 2017 acquisition of Zappa Stewart (c) Includes a $2,013 gain on sale of our fiber optic cable components business (d) Includes $1,530 of expenses related to inventory step-up in fair value attributable to the December 2017 acquisition of Zappa Stewart, $1,085 on the gain on sale of license related to the structural composites product line recorded in the second quarter of fiscal 2018 and $1,480 gain on sale of business related to the April 2018 sale of the structural composites rod business (e) Includes a $2,013 gain on sale of our fiber optic cable components business and $190 of expenses related to inventory step-up in fair value attributable to the September 2016 acquisition of certain assets of Resin Designs, LLC (f) Includes $584 in acquisition-related expenses attributable to the September 2016 acquisition of certain assets of Resin Designs, LLC, facility exit and demolition costs of $50 related to the Company’s Randolph, MA location, a $792 gain related to the November 2016 sale of the Company’s Paterson, NJ location and a $68 gain related to the December 2016 sale of the Company’s former corporate headquarters in Bridgewater, MA Total assets for the Company’s reportable segments as of May 31, 2018 and August 31, 2017 were: May 31, August 31, 2018 2017 Total Assets Industrial Materials $ 230,587 $ 156,263 Construction Materials 36,547 38,162 Total for reportable segments 267,134 194,425 Corporate and common assets 46,915 60,313 Total $ 314,049 $ 254,738 The Company’s products are sold worldwide. Revenue for the three- and nine-month periods ended May 31, 2018 and 2017 are attributed to operations located in the following countries: Three Months Ended May 31, Nine Months Ended May 31, 2018 2017 2018 2017 Revenue United States $ 67,732 $ 56,281 $ 176,187 $ 158,379 United Kingdom 6,353 4,230 16,142 11,923 All other foreign (1) 4,833 4,390 14,381 13,264 Total $ 78,918 $ 64,901 $ 206,710 $ 183,566 (1) Comprises sales originated from our Paris, France location, royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations. As of May 31, 2018 and August 31, 2017, the Company had long-lived assets ( defined as tangible assets providing the Company with a future economic benefit beyond the current year or operating period, including buildings, equipment and leasehold improvements) and goodwill and intangible assets, less accumulated amortization, in the following countries: May 31, August 31, 2018 2017 Long-Lived Assets United States Property, plant and equipment, net $ 31,346 $ 30,253 Goodwill and Intangible assets, less accumulated amortization 143,748 90,673 United Kingdom Property, plant and equipment, net 3,033 3,184 Goodwill and Intangible assets, less accumulated amortization 5,467 5,685 All other foreign Property, plant and equipment, net 1,191 1,323 Goodwill and Intangible assets, less accumulated amortization 1,241 1,272 Total Property, plant and equipment, net $ 35,570 $ 34,760 Goodwill and Intangible assets, less accumulated amortization $ 150,456 $ 97,630

Goodwill and Other Intangibles

Goodwill and Other Intangibles	9 Months Ended
	May 31, 2018
Goodwill and Other Intangibles
Goodwill and Other Intangibles	Note 7 — Goodwill and Other Intangibles The changes in the carrying value of goodwill are as follows: Industrial Construction Materials Consolidated Balance at August 31, 2017 $ 40,091 $ 10,693 $ 50,784 Acquisition of Zappa Stewart 35,352 — 35,352 Sale of structural composites rod business (231) — (231) Foreign currency translation adjustment 65 6 71 Balance at May 31, 2018 $ 75,277 $ 10,699 $ 85,976 The Company’s goodwill is allocated to each reporting unit based on the nature of the products manufactured by the respective business combinations that originally created the goodwill. The Company has identified twelve reporting units within its two operating segments that are used to evaluate the possible impairment of goodwill. Goodwill impairment exists when the carrying value of goodwill exceeds its fair value. Assessments of possible impairment of goodwill are made when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable through future operations. Additionally, testing for possible impairment of recorded goodwill and certain intangible asset balances is required annually. The amount and timing of any impairment charges based on these assessments require the estimation of future cash flows and the fair market value of the related assets based on management’s best estimates of certain key factors, including future selling prices and volumes; operating, raw material and energy costs; and various other projected operating and economic factors. When testing, fair values of the reporting units and the related implied fair values of their respective goodwill are established using discounted cash flows. The Company evaluates the possible impairment of goodwill annually during the fourth quarter, and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable. Intangible assets subject to amortization consisted of the following as of May 31, 2018 and August 31, 2017: Weighted Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value May 31, 2018 Patents and agreements years $ 1,903 $ 1,679 $ 224 Formulas and technology years 10,244 6,372 3,872 Trade names years 8,570 6,703 1,867 Customer lists and relationships years 94,612 36,095 58,517 $ 115,329 $ 50,849 $ 64,480 August 31, 2017 Patents and agreements years $ 1,845 $ 1,671 $ 174 Formulas and technology years 9,318 5,387 3,931 Trade names years 7,709 5,813 1,896 Customer lists and relationships years 70,180 29,335 40,845 $ 89,052 $ 42,206 $ 46,846 Aggregate amortization expense related to intangible assets for the nine months ended May 31, 2018 and 2017 was $8,450 and $6,816 respectively. Estimated amortization expense for the remainder of fiscal year 2018 and for the next five years is as follows: Years ending August 31, 2018 (remaining 3 months) $ 3,066 2019 12,042 2020 11,174 2021 10,644 2022 9,615 2023 6,347

Sale of Business

Sale of Business	9 Months Ended
	May 31, 2018
Sale of Business
Sale of Business	Note 8 — Sale of Business Sale of Structural Composites Rod Business On April 20, 2018, Chase finalized an agreement with an unrelated party to sell all inventory, operational machinery and equipment and intangible assets of the Company’s structural composites rod business, as well as a license related to the production and sale of rod, for proceeds of $2,232, net of transaction costs and following certain working capital adjustments. This business, which was part of the structural composites product line within the Industrial Materials segment, had limited growth and profitability prospects as part of the Company, and was outside the areas Chase has identified for strategic emphasis. The divestiture was accounted for under ASC Topic 360, “Disclosure - Impairment or Disposal of Long-Lived Assets.” In accordance with this accounting standard, the resulting pre-tax gain on sale of $1,480 was recognized in the third quarter of fiscal 2018 as a gain on sale of businesses within the condensed consolidated statement of operations. Chase received $2,075, net of transaction costs, in the third quarter of fiscal 2018, with the remaining $157 received in the fourth quarter of fiscal 2018 as a result of a working capital true-up. Related to this transaction, the purchaser entered into a royalty agreement with the Company. The purchaser will make royalty payments to Chase based on future sales of certain structural composite material manufactured by the purchaser. Royalty revenue recognized in the third fiscal quarter of 2018 related to this agreement was not material. The sale of the structural components rod business follows the Company’s sale of the RodPack® wind blade components business in November 2015, and the licensing of certain composite technologies during the second quarter of fiscal 2018. Subsequent to the third quarter of fiscal 2018, Chase will include the results of its remaining structural composites wind energy business (inclusive of the royalties and the custom manufacturing services noted below) within the specialty products product line. See Note 18 to the condensed consolidated financial statements for additional information on the royalty agreements related to the structural composites business. Sale of Fiber Optic Cable Components Product Line On April 3, 2017, Chase executed an agreement with an unrelated party to sell all inventory, machinery and equipment and intangible assets of the Company’s fiber optic cable components product line for proceeds of $3,858, net of transaction costs and following certain working capital adjustments. Given its low-growth and low-margin prospects, and a customer, supplier and equipment base separate from our other businesses, the fiber optic cable components product line, which was formerly part of the Company’s Industrial Materials segment, was determined to not be part of Chase’s long-term strategy. The divestiture was accounted for under ASC Topic 360, “Disclosure - Impairment or Disposal of Long-Lived Assets.” In accordance with this accounting standard, the resulting pre-tax gain on sale of $2,013 was recognized in the third quarter of fiscal 2017 as a gain on sale of businesses within the condensed consolidated statement of operations. Chase received $3,458, net of transaction costs, in the third quarter of fiscal 2017, with the remaining $400 placed in escrow; the portion of the sale price held in escrow was recorded as a non-current asset within other assets as of August 31, 2017 and as a current asset (Due from sale of business) as of May 31, 2018, and is available to resolve any submitted claims or adjustments up to 18 months from the closing date of the sale. Post-Sale Services Provided to the Buyer of the Structural Composites Rod Business and the Fiber Optic Cable Components Product Line The structural composites rod business and the fiber optic cable components product line, which both operated out of the Company’s Granite Falls, NC facility, were both sold to the same otherwise unrelated purchaser. Subsequent to the sales, Chase will provide certain transitional manufacturing and administrative support to the purchaser for which the Company will receive additional consideration upon the performance of services. In the three- and nine-month periods ended May 31, 2018, Chase charged the purchaser $497 and $1,418, respectively, for manufacturing services, which the Company recognized as revenue within the Industrial Materials segment, and $71 and $191, respectively, for selling and administrative services, which the Company recognized as an offset to selling, general and administrative expenses. In both the three- and nine-month periods ended May 31, 2017, Chase charged the purchaser $301 for manufacturing services, and $40 for selling and administrative services. Further, the purchaser entered a multiyear lease for a portion of the manufacturing space at the Company’s Granite Falls, NC facility. Chase received $65 and $98, respectively, in rental income during the three- and nine-month periods ended May 31, 2018 and $22 in rental income during both the three- and nine-month periods ended May 31, 2017 related to this lease, which the Company recognized within other income (expense) on the condensed consolidated statements of operations

Sale of Real Estate

Sale of Real Estate	9 Months Ended
	May 31, 2018
Sale of Real Estate
Sale of Real Estate	Note 9 — Sale of Real Estate Sale of Paterson, NJ Location In November 2016, the Company finalized the sale of its Paterson, NJ property for cash proceeds in the amount of $1,382. This transaction resulted in a gain of $792, which was recorded in the Company’s condensed consolidated statement of operations as a gain on sale of real estate during the fiscal quarter ended November 30, 2016. Sale of Former Corporate Headquarters in Bridgewater, MA In October 2016, Chase entered into an agreement to sell its former corporate headquarters and executive offices in Bridgewater, MA. In December 2016, during the second quarter of fiscal 2017, the sale was finalized for gross cash proceeds in the amount of $740, resulting in a gain on sale of $68. See Note 16 to the condensed consolidated financial statements for additional information on the sale of the Bridgewater, MA location.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	May 31, 2018
Commitments and Contingencies
Commitments and Contingencies	Note 10 — Commitments and Contingencies The Company is involved from time to time in litigation incidental to the conduct of its business. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition, results of operations or cash flows, litigation is inherently unpredictable. Therefore, judgments could be rendered, or settlements agreed to that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where we assess the likelihood of loss as probable.

Pensions and Other Postretireme

Pensions and Other Postretirement Benefits	9 Months Ended
	May 31, 2018
Pensions and Other Postretirement Benefits
Pensions and Other Postretirement Benefits	Note 11 — Pensions and Other Postretirement Benefits The components of net periodic benefit cost for the three and nine months ended May 31, 2018 and 2017 are as follows: Three Months Ended May 31, Nine Months Ended May 31, 2018 2017 2018 2017 Components of net periodic benefit cost Service cost $ 71 $ 72 $ 213 $ 216 Interest cost 157 170 471 510 Expected return on plan assets (116) (132) (348) (396) Amortization of prior service cost 1 1 3 3 Amortization of accumulated loss 121 224 363 672 Net periodic benefit cost $ 234 $ 335 $ 702 $ 1,005 When funding is required, the Company’s policy is to contribute amounts that are deductible for federal income tax purposes. As of May 31, 2018, the Company has made contributions of $1,682 in the current fiscal year to fund its obligations under its pension plans, and plans to make the necessary contributions over the remainder of fiscal 2018 to ensure the qualified plans continue to be adequately funded given the current market conditions. The Company made contributions of $127 in the first nine months of the prior year.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	May 31, 2018
Fair Value Measurements
Fair Value Measurements	Note 12 — Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers are: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company utilizes the best available information in measuring fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The financial assets classified as Level 1 and Level 2 as of May 31, 2018 and August 31, 2017 represent investments that are restricted for use in a nonqualified retirement savings plans for certain key employees and directors. The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of May 31, 2018 and August 31, 2017: Fair value measurement category Quoted prices Significant other Significant Fair value in active markets observable inputs unobservable inputs measurement date Total (Level 1) (Level 2) (Level 3) Assets: Restricted investments May 31, 2018 $ 1,019 $ 899 120 — Restricted investments August 31, 2017 $ 964 $ 926 38 — The following table presents the fair value of the Company’s long-term debt (including the current portion of long-term debt) as of May 31, 2018 and August 31, 2017, which is recorded at its carrying value: Fair value measurement category Quoted prices Significant other Significant Fair value in active markets observable inputs unobservable inputs measurement date Total (Level 1) (Level 2) (Level 3) Liabilities: Long-term debt May 31, 2018 $ 35,000 $ — 35,000 — Long-term debt August 31, 2017 $ — $ — — — The carrying value of the long-term debt approximates its fair value, as the interest rate is set based on the movement of the underlying market rates. In December 2016, Chase refinanced its term debt with a new credit agreement. See Note 17 to the condensed consolidated financial statements for additional information on long-term debt.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	May 31, 2018
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	Note 13 — Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income (loss), net of tax, were as follows: Change in Funded Foreign Currency Restricted Status of Translation Investments Pension Plan Adjustment Total Balance at August 31, 2016 $ 54 $ (7,336) $ (8,197) $ (15,479) Other comprehensive gains (losses) before reclassifications (1) 123 — (631) (508) Reclassifications to net income of previously deferred (gains) losses (2) (36) 441 — 405 Other comprehensive income (loss) 87 441 (631) (103) Balance at May 31, 2017 $ 141 $ (6,895) $ (8,828) $ (15,582) Balance at August 31, 2017 $ 121 $ (6,181) $ (7,409) $ (13,469) Other comprehensive gains (losses) before reclassifications (3) 55 — 1,473 1,528 Reclassifications to net income of previously deferred (gains) losses (4) (68) 277 — 209 Other comprehensive income (loss) (13) 277 1,473 1,737 Balance at May 31, 2018 $ 108 $ (5,904) $ (5,936) $ (11,732) (1) Net of tax benefit of $64, $0 and $0, respectively. (2) Net of tax expense of $16, tax benefit of $234 and $0, respectively. (3) Net of tax benefit of $19, tax expense of $0 and $0, respectively. (4) Net of tax expense of $24, tax benefit of $89 and $0, respectively. The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the unaudited condensed consolidated statements of income: Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended May 31, Nine Months Ended May 31, Location of Gain (Loss) Reclassified from Accumulated 2018 2017 2018 2017 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized gain on sale of restricted investments $ (1) $ (1) $ (92) $ (55) Selling, general and administrative expenses Tax expense (benefit) — 1 24 19 Gain net of tax $ (1) $ — $ (68) $ (36) Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ 28 $ 26 $ 84 $ 78 Cost of products and services sold Amortization of prior pension service costs and unrecognized losses 94 199 282 597 Selling, general and administrative expenses Tax expense (benefit) (30) (78) (89) (234) Loss net of tax $ 92 $ 147 $ 277 $ 441 Total net loss reclassified for the period $ 91 $ 147 $ 209 $ 405

Acquisitions

Acquisitions	9 Months Ended
	May 31, 2018
Acquisitions
Acquisitions	Note 14 — Acquisitions Acquisition of Zappa Stewart On December 31, 2017, the Company acquired Zappa Stewart, an advanced superabsorbent polymer (SAP) formulator and solutions provider, with operations located in Hickory and McLeansville, NC. The business was acquired for a purchase price of $73,469, after final working capital adjustments and excluding acquisition-related costs. Chase acquired all equity of the business and entered multiyear leases at both locations. The purchase was funded by a combination of a $65,000 draw on Chase’s existing revolving credit facility and available cash on hand. Zappa Stewart’s protective materials technology is complementary to Chase’s current specialty chemicals offerings. This acquisition is in line with our core strategies and extends our reach into growing medical and consumer applications. Since the effective date for this acquisition, December 31, 2017, the financial results of the acquired business have been included in the Company’s financial statements within the Industrial Materials operating segment, in the specialty chemicals intermediates product line. The acquisition was accounted for as a business combination under ASC Topic 805, “Business Combinations.” In accordance with this accounting standard, the Company expensed $393 of acquisition-related costs during the second quarter of 2018 to acquisition-related costs. The Company is currently in the process of finalizing purchase accounting, with regard to a calculation of a deferred tax balance and a final allocation of the purchase price to tangible and identifiable intangible assets assumed and anticipates completion within fiscal 2018. In the third quarter of fiscal 2018, an adjustment to increase goodwill by $2,035 was made to the initial amounts recorded at the end of the second fiscal quarter; the increase relates to additional consideration paid by the Company to the seller as part of the final working capital adjustment. The purchase price has been initially allocated to the acquired tangible and identifiable intangible assets assumed, based on their fair values as of the date of the acquisition: Assets & Liabilities Amount Accounts receivable $ 3,670 Inventory 7,256 Prepaid expenses and other current assets 12 Property, plant & equipment 1,872 Goodwill 35,352 Intangible assets 25,940 Accounts payable and accrued liabilities (633) Total purchase price $ 73,469 The excess of the purchase price over the net tangible and intangible assets acquired resulted in goodwill of $35,352 that is largely attributable to the synergies and economies of scale from combining the operations, technologies and research and development capabilities of Zappa Stewart and Chase, particularly as it pertains to the expansion of the Company's product and service offerings, the established workforce and marketing efforts. A portion of this goodwill ($25,453 or 72%) is deductible for income tax purposes. All assets, including goodwill, acquired as part of the Zappa Stewart acquisition are included in the Industrial Materials operating segment. Identifiable intangible assets purchased with this transaction are as follows: Weighted Average Intangible Asset Amount Useful life Customer relationships $ 24,200 7.5 years Technology 900 7 years Trade names 840 4 years Total intangible assets $ 25,940 Supplemental Pro Forma Data The following table presents the pro forma results of the Company for the three- and nine-month periods ended May 31, 2018 and 2017 as though the Zappa Stewart acquisition described above occurred on September 1, 2016 (the first day of fiscal 2017). The actual revenue and expenses for the acquired business are included in the Company’s consolidated results beginning on December 31, 2017. From the date of acquisition (December 31, 2017) through May 31, 2018, revenue and net income for the Zappa Stewart operations included in the condensed consolidated statement of operations were $10,004 and $327, respectively, with results inclusive of sale of inventory step-up cost, amortization expense, and acquisition-related costs, but not inclusive of any interest or financing costs. The pro forma results include adjustments for the estimated amortization of intangibles, acquisition-related costs, sale of inventory step-up cost, interest expense assuming the entire $65,000 draw remained outstanding through December 31, 2017 (at the interest rate effective at the date of borrowing) and the income tax impact of the pro forma adjustments at the statutory rate of 35% for fiscal 2017 and 26% for fiscal 2018. The following pro forma information is not necessarily indicative of the results that would have been achieved if the acquisition had been effective on September 1, 2016. Three Months Ended May 31, Nine Months Ended May 31, 2017 2018 2017 Revenue $ 71,217 $ $ Net income 12,188 Net income available to common shareholders, per common and common equivalent share Basic earnings per share $ 1.31 $ 3.62 $ 3.19 Diluted earnings per share $ 1.30 $ 3.58 $ 3.16 Acquisition of Resin Designs, LLC On September 30, 2016, the Company acquired certain assets of Resin Designs, LLC (“Resin Designs”), an advanced adhesives and sealants manufacturer, with locations in Woburn, MA and Newark, CA. This business was acquired for a purchase price of $30,270, after final working capital adjustments and excluding acquisition-related costs. As part of this transaction, Chase acquired all working capital and fixed assets of the business and entered into multiyear leases at both locations. Resin Designs is a formulator of customized adhesive and sealant systems used in high-reliability electronic applications. The acquisition broadens the Company’s adhesives and sealants product offering and manufacturing capabilities and expands its market reach. The purchase was funded entirely with available cash on hand. Since the effective date for this acquisition, September 30, 2016, the financial results of the acquired business have been included in the Company’s financial statements within the Industrial Materials operating segment, in the electronic and industrial coatings product line. The acquisition was accounted for as a business combination under ASC Topic 805, “Business Combinations.” In accordance with this accounting standard, the Company expensed $584 of acquisition-related costs during the first fiscal quarter of 2017 to acquisition-related costs. The purchase price has been allocated to the acquired tangible and identifiable intangible assets assumed, based on their fair values as of the date of the acquisition: Assets & Liabilities Amount Accounts receivable $ 1,877 Inventory 1,300 Prepaid expenses and other current assets 63 Property, plant & equipment 623 Goodwill 7,592 Intangible assets 19,450 Accounts payable and accrued liabilities (635) Total purchase price $ 30,270 The excess of the purchase price over the net tangible and intangible assets acquired resulted in goodwill of $7,592 that is largely attributable to the synergies and economies of scale from combining the operations, technologies and research and development capabilities of Resin Designs and Chase, particularly as it pertains to the expansion of the Company's product and service offerings, the established workforce and marketing efforts. This goodwill is deductible for income tax purposes. All assets, including goodwill, acquired as part of the Resin Designs acquisition are included in the Industrial Materials operating segment. Identifiable intangible assets purchased with this transaction are as follows: Intangible Asset Amount Useful life Customer relationships $ 17,500 10 years Technology 1,200 4 years Trade names 750 7 years Total intangible assets $ 19,450

Exit Costs Related to Idle Faci

Exit Costs Related to Idle Facility	9 Months Ended
	May 31, 2018
Exit Costs Related to Idle Facility
Exit Costs Related to Idle Facility	Note 15 — Exit Costs Related to Idle Facility In the nine-month period ended May 31, 2017, the Company recognized $50 in expenses to raze and exit its Randolph, MA facility, which had been idle regarding production for several years; no expense was recognized in the quarter ended May 31, 2017 or the quarter or year-to-date period ended May 31, 2018. The Company began marketing the site for sale in the second quarter of fiscal 2016. These actions were taken as part of the Company’s ongoing facility consolidation and rationalization initiative. The Company substantially completed the demolition of the structure in the fourth fiscal quarter of 2016 and completed other environmental aspects of the project during fiscal 2017. The sale of the property is anticipated to follow in a subsequent period, and any future expenses related to the project are anticipated to not be material. The carrying value of the Randolph, MA property is not material, and is contained within Prepaid expenses and other current assets on the condensed consolidated balance sheet at both May 31, 2018 and August 31, 2017.

Related Party Agreements

Related Party Agreements	9 Months Ended
	May 31, 2018
Related Party Agreements
Related Party Agreements	Note 16 — Related Party Agreements Reimbursements Related to Life Insurance Policy During the first quarter of fiscal 2017, the Edward L. Chase Trust (the “Trust”), owner of an insurance policy on the life of Claire E. Chase, reimbursed the Company for premiums paid on the policy in exchange for the Company’s release of any claims on the policy. In September 2016 (the first quarter of fiscal 2017), the Company received $1,504 related to the Metropolitan Life Insurance policy, its then cash surrender value, plus an additional prepaid premium related to the policy. Claire E. Chase is the spouse of a former executive of the Company, Edward L. Chase (deceased), and who in each case are the parents of Peter R. Chase (the Executive Chairman of the Company) and Mary Claire Chase (Director) and the grandparents of Adam P. Chase (the President and CEO of the Company). The Trust is the beneficial owner of more than 5% of the Company’s common stock. Terms and conditions of this transaction were reviewed and approved by the independent members of the Company's Board of Directors in advance. Sale of Former Corporate Headquarters in Bridgewater, MA In October 2016, Chase entered an agreement to sell its former corporate headquarters and executive offices in Bridgewater, MA. In December 2016, the sale was finalized for gross proceeds of $740, resulting in a gain on sale of $68, which was recognized in the second quarter of fiscal 2017. The buyer, Bridgewater State University Foundation, Inc., was deemed a related party because of previously existing professional connections between it and two members of the Company’s Board of Directors, Peter R. Chase (the Executive Chairman of the Company) and Dana Mohler-Faria (Director). The terms and conditions of the proposed transaction were reviewed and approved by all members of the Company's Board of Directors who were not parties related to the potential buyer, prior to entering the October 2016 agreement. They concluded that the sale price was appropriate, after considering a recent market appraisal of the land and building performed by an independent third-party valuation firm.

Long-Term Debt

Long-Term Debt	9 Months Ended
	May 31, 2018
Long-Term Debt.
Long-Term Debt	Note 17 — Long-Term Debt On December 15, 2016, the Company entered an Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, acting as administrative agent, and with participation from Citizens Bank and JPMorgan Chase Bank (collectively with Bank of America, the “Lenders”). The Credit Agreement is initially an all-revolving credit facility with a borrowing capacity of $150,000, which can be increased by an additional $50,000 at the request of the Company and the individual or collective option of any of the Lenders. The Credit Agreement contains customary affirmative and negative covenants that, among other things, restrict our ability to incur additional indebtedness and require certain lender approval for acquisitions by the Company and its subsidiaries over a certain size. It also requires us to maintain certain financial ratios on a consolidated basis, including a consolidated net leverage ratio (as defined in the facility) of no more than 3.25 to 1.00, and a consolidated fixed charge coverage ratio (as defined in the facility) of at least 1.25 to 1.00. We were in compliance with our debt covenants as of May 31, 2018. The Credit Agreement is guaranteed by all of Chase’s direct and indirect domestic subsidiaries, including NEPTCO, which collectively had a carrying value of $194,123 at May 31, 2018. The Credit Agreement was entered both to refinance our previously existing term loan and revolving line of credit, and to provide for additional liquidity to finance potential acquisitions, working capital, capital expenditures, and for other general corporate purposes. The applicable interest rate for the revolver portion of the Credit Agreement (the “Revolving Facility”) and any Term Loan (defined below) is based on the effective London Interbank Offered Rate (LIBOR) plus an additional amount in the range of 1.00% to 1.75%, depending on the consolidated net leverage ratio of Chase and its subsidiaries. At May 31, 2018, the applicable interest rate was 3.0% per annum and the outstanding principal amount was $35,000. The Credit Agreement has a five-year term with interest payments due at the end of the applicable LIBOR period (but in no event less frequently than the three-month anniversary of the commencement of such LIBOR period) and principal payment due at the expiration of the agreement, December 15, 2021. In addition, the Company may elect a base rate option for all or a portion of the Revolving Facility, in which case, interest payments shall be due with respect to such portion of the Revolving Facility on the last business day of each quarter. Subject to certain conditions set forth in the Credit Agreement, the Company may elect to convert all or a portion of the outstanding Revolving Facility into a term loan (each, a “Term Loan”), which shall be payable quarterly in equal installments sufficient to amortize the original principal amount of such Term Loan on a seven year amortization schedule; provided, however, that the final principal repayment installment shall be repaid on December 15, 2021 and in any event shall be in an amount equal to the aggregate principal amount of all Term Loans outstanding on such date. Prepayment is allowed by the Credit Agreement at any time during the term of the agreement, subject to customary notice requirements. In connection with entry into the Credit Agreement, Chase applied proceeds to refinance in full the outstanding principal balance of its preexisting term debt, simultaneously terminating both our previously existing term loan agreement and the previously existing revolving line of credit, which was fully available as of December 15, 2016. In December 2017, the Company utilized $65,000 of the Credit Agreement to finance the majority of the acquisition cost of Zappa Stewart. See Note 14 to the condensed consolidated financial statements for additional information on this acquisition. During the second fiscal quarter, and subsequent to the borrowing, the Company paid down $10,000 of the outstanding balance. In the third fiscal quarter of 2018, the Company made additional debt payments of $20,000, resulting in a principal debt balance of $35,000 at May 31, 2018.

Sale of License

Sale of License	9 Months Ended
	May 31, 2018
Sale of License
Sale of License	Note 18 — Sale of License In November 2017, the Company entered a license agreement with an unrelated party to sell a license, including intellectual property, and certain construction in process assets, with a net book value of $26 and all related to the manufacturing of certain structural composite materials. In the second fiscal quarter of 2018, the transaction was finalized for gross consideration of $1,111 comprising cash proceeds of $1,000 and $111 in foreign tax consideration paid by the buyer on Chase’s behalf. This transaction resulted in a gain of $1,085, which was recorded in the Company’s condensed consolidated statement of operations as a gain on sale of license during the fiscal quarter ended February 28, 2018. In relation to this license agreement, the purchaser also entered into a royalty agreement with the Company. The purchaser will make royalty payments to Chase based on the volume of future sales of certain structural composite material manufactured by the purchaser. No revenue related to this royalty agreement was recognized in fiscal 2018.

Income Taxes

Income Taxes	9 Months Ended
	May 31, 2018
Income Taxes
Income Taxes	Note 19 — Income Taxes On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). The Tax Act impacted the U.S. statutory Federal tax rate that the Company will use going forward, reducing it from 35% to 21%. As the Company has an August 31 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory Federal rate of 25.7% for our fiscal year ending August 31, 2018, and 21% for subsequent fiscal years. The Tax Act also includes items that the Company expects could increase its tax expense in future periods such as the elimination of the domestic production deduction (Section 199) and increased limitations on executive compensation. In addition, the actual effective tax rate may be materially different than the statutory Federal tax rate (including being higher) based on the availability and impact of various other adjustments such as state taxes, Federal research and development credits, discrete tax benefits related to stock compensation, and the inclusion or exclusion of various items in taxable income which may differ from U.S. GAAP income. To transition to the reduced U.S. corporate tax rate, an adjustment was required to be made to our net U.S. deferred tax assets. During the three months ended February 28, 2018 (the second fiscal quarter of 2018), the Company recorded a provisional adjustment to the U.S. deferred tax assets and liabilities and uncertain tax position resulting in a net discrete tax expense of $548 recorded to the condensed consolidated statement of operations. This net discrete tax expense is the result of the following: (a) a $708 tax benefit resulting from the remeasurement and reclassification of our existing deferred tax liability related to unrepatriated foreign earnings to accrued income tax balance (discussed in more detail below); (b) a $1,069 tax expense for the remeasurement of the remaining net U.S. deferred tax assets in recognition of the new lower Federal rate; and (c) a $187 tax expense recorded as the result of remeasuring the Federal benefit on our uncertain tax positions. The Tax Act includes a transition tax or “toll charge”, which is a one-time tax charge on unrepatriated foreign earnings. The calculation of accumulated foreign earnings requires an analysis of each foreign entity’s financial results going back to 1986. During the second quarter of fiscal 2018, the Company recorded a provisional transition tax adjustment associated with its accumulated unrepatriated foreign earnings reducing long-term deferred tax liabilities by $2,299 and increasing short and long-term accrued income taxes by $127 and $1,464, respectively (the short-term payable representing eight percent of the total amount due, the amount payable within the first year as per the Tax Act). The difference between the decrease in the deferred tax liabilities for unrepatriated foreign earnings and the increase in accrued income taxes, $708, was recorded as a discrete tax benefit in the second quarter of fiscal 2018 (ended February 28, 2018). Under the guidance set forth in the SEC's Staff Accounting Bulletin No. 118 (“SAB 118”), the Company may record provisional amounts for the impact of the Tax Act. For the second quarter of fiscal 2018, the Company made a provisional and reasonable estimate of the effects of the Tax Act on its existing deferred tax balances, including a provisional adjustment for the toll charge. No material changes to these provisional and reasonable estimates were made in the quarter ended May 31, 2018 (the third fiscal quarter of 2018). The final impact of the Tax Act may differ from this estimate, possibly materially, due to, among other things, changes in interpretations and assumptions the Company has made and guidance that may be issued. In accordance with SAB 118, future adjustments to the provisional numbers will be recorded as discrete adjustments to income tax expense in the period in which those adjustments become estimable and finalized. The Company continues to examine the potential impact of certain other provisions of the Tax Act that will become applicable in fiscal year 2019, including tax on global intangible low-taxed income (“GILTI”) and Base Erosion and Anti Abuse Tax (“BEAT”) that could affect its effective tax rate in the future. During the second quarter of 2018, the Company provisionally recorded all known and estimable impacts of the Tax Act that are effective for fiscal year 2018, and no material adjustments were made to these provisionally recorded amounts during the third fiscal quarter of 2018. During the three months ended May 31, 2017, the Company recognized a discrete tax benefits of $78, related to excess tax benefits on stock-based compensation; no similar benefit was recognized in the three months ended May 31, 2018. During the nine months ended May 31, 2018 and 2017, the Company recognized discrete tax benefits of $977 and $1,655, respectively, related to excess tax benefits on stock-based compensation. These excess tax benefits on stock-based compensation were recorded following the Company’s adoption of ASU No. 2016-09 in the first quarter of fiscal 2017 (the prior year). The Company advises that the size and occurrence of future similar discrete items may not match that observed in the noted periods and anticipates the potential for increased volatility in future effective tax rates based on the continued application of ASU No. 2016-09. For the three months ended May 31, 2018 and 2017, the Company recorded income taxes of $5,109 and $5,257 on income before income taxes of $18,652 and $17,112, respectively. For the nine months ended May 31, 2018 and 2017, the Company recorded income taxes of $11,011 and $13,804 on income before income taxes of $42,991 and $44,405, respectively. The effective tax rate for the three months ended May 31, 2018 and 2017 was 27.4% and 30.7%, respectively and for the nine months ended May 31, 2018 and 2017 was 25.6% and 31.1%, respectively.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	May 31, 2018
Inventory
Schedule of inventory	May 31, August 31, 2018 2017 Raw materials $ 17,842 $ 11,636 Work in process 7,315 6,877 Finished goods 10,668 7,105 Total Inventory $ 35,825 $ 25,618

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	May 31, 2018
Net Income Per Share
Schedule of determination of earnings per share under the two-class method	Three Months Ended May 31, Nine Months Ended May 31, 2018 2017 2018 2017 Basic Earnings per Share Net income $ 13,543 $ 11,855 $ 31,980 $ 30,601 Less: Allocated to participating securities Net income available to common shareholders $ 13,415 $ 11,728 $ 31,676 $ 30,269 Basic weighted average shares outstanding Net income per share - Basic $ 1.44 $ 1.27 $ 3.41 $ 3.27 Diluted Earnings per Share Net income $ 13,543 $ 11,855 $ 31,980 $ 30,601 Less: Allocated to participating securities Net income available to common shareholders $ 13,415 $ 11,728 $ 31,676 $ 30,269 Basic weighted average shares outstanding Additional dilutive common stock equivalents Diluted weighted average shares outstanding Net income per share - Diluted $ 1.43 $ 1.26 $ 3.38 $ 3.24

Segment Data and Foreign Oper30

Segment Data and Foreign Operations (Tables)	9 Months Ended
	May 31, 2018
Segment Data and Foreign Operations
Summary of information about the Company's reportable segments	Three Months Ended May 31, Nine Months Ended May 31, 2018 2017 2018 2017 Revenue Industrial Materials $ 65,389 $ 53,292 $ 170,641 $ 149,708 Construction Materials 13,529 11,609 36,069 33,858 Total $ 78,918 $ 64,901 $ 206,710 $ 183,566 Income before taxes Industrial Materials $ 20,907 (a) $ 20,259 (c) $ 52,433 (d) $ 52,364 (e) Construction Materials 5,341 3,647 11,959 12,411 Total for reportable segments 26,248 23,906 64,392 64,775 Corporate and common costs (7,596) (b) (6,794) (21,401) (b) (20,370) (f) Total $ 18,652 $ 17,112 $ 42,991 $ 44,405 Includes the following costs by segment: Industrial Materials Interest $ 311 $ 119 $ 699 $ 533 Depreciation 816 959 2,521 3,023 Amortization 2,887 1,990 7,465 5,859 Construction Materials Interest $ 78 $ 39 $ 175 $ 178 Depreciation 177 209 554 560 Amortization 330 320 985 957 (a) Includes $1,480 gain on sale of business related to the April 2018 structural composites rod business (b) Includes $393 in acquisition-related expenses attributable to the December 2017 acquisition of Zappa Stewart (c) Includes a $2,013 gain on sale of our fiber optic cable components business (d) Includes $1,530 of expenses related to inventory step-up in fair value attributable to the December 2017 acquisition of Zappa Stewart, $1,085 on the gain on sale of license related to the structural composites product line recorded in the second quarter of fiscal 2018 and $1,480 gain on sale of business related to the April 2018 sale of the structural composites rod business (e) Includes a $2,013 gain on sale of our fiber optic cable components business and $190 of expenses related to inventory step-up in fair value attributable to the September 2016 acquisition of certain assets of Resin Designs, LLC (f) Includes $584 in acquisition-related expenses attributable to the September 2016 acquisition of certain assets of Resin Designs, LLC, facility exit and demolition costs of $50 related to the Company’s Randolph, MA location, a $792 gain related to the November 2016 sale of the Company’s Paterson, NJ location and a $68 gain related to the December 2016 sale of the Company’s former corporate headquarters in Bridgewater, MA Total assets for the Company’s reportable segments as of May 31, 2018 and August 31, 2017 were: May 31, August 31, 2018 2017 Total Assets Industrial Materials $ 230,587 $ 156,263 Construction Materials 36,547 38,162 Total for reportable segments 267,134 194,425 Corporate and common assets 46,915 60,313 Total $ 314,049 $ 254,738 The Company’s products are sold worldwide. Revenue for the three- and nine-month periods ended May 31, 2018 and 2017 are attributed to operations located in the following countries: Three Months Ended May 31, Nine Months Ended May 31, 2018 2017 2018 2017 Revenue United States $ 67,732 $ 56,281 $ 176,187 $ 158,379 United Kingdom 6,353 4,230 16,142 11,923 All other foreign (1) 4,833 4,390 14,381 13,264 Total $ 78,918 $ 64,901 $ 206,710 $ 183,566 (1) Comprises sales originated from our Paris, France location, royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations.
Schedule of total assets for the Company's reportable segments	May 31, August 31, 2018 2017 Long-Lived Assets United States Property, plant and equipment, net $ 31,346 $ 30,253 Goodwill and Intangible assets, less accumulated amortization 143,748 90,673 United Kingdom Property, plant and equipment, net 3,033 3,184 Goodwill and Intangible assets, less accumulated amortization 5,467 5,685 All other foreign Property, plant and equipment, net 1,191 1,323 Goodwill and Intangible assets, less accumulated amortization 1,241 1,272 Total Property, plant and equipment, net $ 35,570 $ 34,760 Goodwill and Intangible assets, less accumulated amortization $ 150,456 $ 97,630

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	9 Months Ended
	May 31, 2018
Goodwill and Other Intangibles
Schedule of changes in the carrying value of goodwill	Industrial Construction Materials Consolidated Balance at August 31, 2017 $ 40,091 $ 10,693 $ 50,784 Acquisition of Zappa Stewart 35,352 — 35,352 Sale of structural composites rod business (231) — (231) Foreign currency translation adjustment 65 6 71 Balance at May 31, 2018 $ 75,277 $ 10,699 $ 85,976
Schedule of intangible assets subject to amortization	Weighted Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value May 31, 2018 Patents and agreements years $ 1,903 $ 1,679 $ 224 Formulas and technology years 10,244 6,372 3,872 Trade names years 8,570 6,703 1,867 Customer lists and relationships years 94,612 36,095 58,517 $ 115,329 $ 50,849 $ 64,480 August 31, 2017 Patents and agreements years $ 1,845 $ 1,671 $ 174 Formulas and technology years 9,318 5,387 3,931 Trade names years 7,709 5,813 1,896 Customer lists and relationships years 70,180 29,335 40,845 $ 89,052 $ 42,206 $ 46,846
Schedule of estimated amortization expense related to intangible assets	Years ending August 31, 2018 (remaining 3 months) $ 3,066 2019 12,042 2020 11,174 2021 10,644 2022 9,615 2023 6,347

Pensions and Other Postretire32

Pensions and Other Postretirement Benefits (Tables)	9 Months Ended
	May 31, 2018
Pensions and Other Postretirement Benefits
Schedule of components of net periodic benefit cost	Three Months Ended May 31, Nine Months Ended May 31, 2018 2017 2018 2017 Components of net periodic benefit cost Service cost $ 71 $ 72 $ 213 $ 216 Interest cost 157 170 471 510 Expected return on plan assets (116) (132) (348) (396) Amortization of prior service cost 1 1 3 3 Amortization of accumulated loss 121 224 363 672 Net periodic benefit cost $ 234 $ 335 $ 702 $ 1,005

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	May 31, 2018
Fair Value Measurements
Schedule of financial assets that were accounted for at fair value on a recurring basis	Fair value measurement category Quoted prices Significant other Significant Fair value in active markets observable inputs unobservable inputs measurement date Total (Level 1) (Level 2) (Level 3) Assets: Restricted investments May 31, 2018 $ 1,019 $ 899 120 — Restricted investments August 31, 2017 $ 964 $ 926 38 —
Schedule of fair values of the Company's long-term debt	Fair value measurement category Quoted prices Significant other Significant Fair value in active markets observable inputs unobservable inputs measurement date Total (Level 1) (Level 2) (Level 3) Liabilities: Long-term debt May 31, 2018 $ 35,000 $ — 35,000 — Long-term debt August 31, 2017 $ — $ — — —

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	May 31, 2018
Accumulated Other Comprehensive Income
Schedule of components of accumulated other comprehensive income (loss)	Change in Funded Foreign Currency Restricted Status of Translation Investments Pension Plan Adjustment Total Balance at August 31, 2016 $ 54 $ (7,336) $ (8,197) $ (15,479) Other comprehensive gains (losses) before reclassifications (1) 123 — (631) (508) Reclassifications to net income of previously deferred (gains) losses (2) (36) 441 — 405 Other comprehensive income (loss) 87 441 (631) (103) Balance at May 31, 2017 $ 141 $ (6,895) $ (8,828) $ (15,582) Balance at August 31, 2017 $ 121 $ (6,181) $ (7,409) $ (13,469) Other comprehensive gains (losses) before reclassifications (3) 55 — 1,473 1,528 Reclassifications to net income of previously deferred (gains) losses (4) (68) 277 — 209 Other comprehensive income (loss) (13) 277 1,473 1,737 Balance at May 31, 2018 $ 108 $ (5,904) $ (5,936) $ (11,732) (1) Net of tax benefit of $64, $0 and $0, respectively. (2) Net of tax expense of $16, tax benefit of $234 and $0, respectively. (3) Net of tax benefit of $19, tax expense of $0 and $0, respectively. (4) Net of tax expense of $24, tax benefit of $89 and $0, respectively.
Summary of the reclassifications from accumulated other comprehensive income (loss) to the condensed consolidated statements of income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended May 31, Nine Months Ended May 31, Location of Gain (Loss) Reclassified from Accumulated 2018 2017 2018 2017 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized gain on sale of restricted investments $ (1) $ (1) $ (92) $ (55) Selling, general and administrative expenses Tax expense (benefit) — 1 24 19 Gain net of tax $ (1) $ — $ (68) $ (36) Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ 28 $ 26 $ 84 $ 78 Cost of products and services sold Amortization of prior pension service costs and unrecognized losses 94 199 282 597 Selling, general and administrative expenses Tax expense (benefit) (30) (78) (89) (234) Loss net of tax $ 92 $ 147 $ 277 $ 441 Total net loss reclassified for the period $ 91 $ 147 $ 209 $ 405

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	May 31, 2018
Zappa Stewart
Schedule of allocation of acquisition cost to the acquired tangible and identifiable intangible assets and liabilities assumed based on their fair values as of the date of the acquisition	Assets & Liabilities Amount Accounts receivable $ 3,670 Inventory 7,256 Prepaid expenses and other current assets 12 Property, plant & equipment 1,872 Goodwill 35,352 Intangible assets 25,940 Accounts payable and accrued liabilities (633) Total purchase price $ 73,469
Schedule of identifiable intangible assets purchased as part of business acquisition	Weighted Average Intangible Asset Amount Useful life Customer relationships $ 24,200 7.5 years Technology 900 7 years Trade names 840 4 years Total intangible assets $ 25,940
Schedule of pro forma information	Three Months Ended May 31, Nine Months Ended May 31, 2017 2018 2017 Revenue $ 71,217 $ $ Net income 12,188 Net income available to common shareholders, per common and common equivalent share Basic earnings per share $ 1.31 $ 3.62 $ 3.19 Diluted earnings per share $ 1.30 $ 3.58 $ 3.16
Resin Designs
Schedule of allocation of acquisition cost to the acquired tangible and identifiable intangible assets and liabilities assumed based on their fair values as of the date of the acquisition	Assets & Liabilities Amount Accounts receivable $ 1,877 Inventory 1,300 Prepaid expenses and other current assets 63 Property, plant & equipment 623 Goodwill 7,592 Intangible assets 19,450 Accounts payable and accrued liabilities (635) Total purchase price $ 30,270
Schedule of identifiable intangible assets purchased as part of business acquisition	Intangible Asset Amount Useful life Customer relationships $ 17,500 10 years Technology 1,200 4 years Trade names 750 7 years Total intangible assets $ 19,450

Basis of Financial Statement 36

Basis of Financial Statement Presentation (Details) - USD ($) $ in Thousands

Jun. 25, 2018

Apr. 20, 2018

Dec. 31, 2017

Apr. 03, 2017

Sep. 30, 2016

Aug. 31, 2018

May 31, 2018

Feb. 28, 2018

May 31, 2017

Nov. 30, 2016

May 31, 2018

May 31, 2017

Foreign currency translation gain (loss)

$ 546

$ (188)

$ (131)

$ 173

Net proceeds from sale of businesses

$ 2,075

3,687

Exit costs

$ 50

Resin Designs

Contingent purchase price paid for acquisition

$ 30,270

Purchase price

$ 30,270

Acquisition related expenses

$ 584

Zappa Stewart

Purchase price

$ 73,469

Acquisition related expenses

$ 393

Zappa Stewart | Minimum

Combined revenue

$ 24,000

Fiber Optic Cable Components Product Line

Total proceeds received or to be received

$ 3,858

Gain on assets sold

2,013

Net proceeds from sale of businesses

$ 3,458

Sales price of assets sold

$ 3,858

Structural Composites Rod Business and License

Total proceeds received or to be received

$ 2,232

Gain on assets sold

$ 1,480

Net proceeds from sale of businesses

$ 2,075

Structural Composites Rod Business and License | Forecast

Net proceeds from sale of businesses

$ 157

Pawtucket, RI Manufacturing Facility

Transition period

2 months

Pawtucket, RI Manufacturing Facility | Forecast

Exit costs

300

Employee related costs

$ 275

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	May 31, 2018	Aug. 31, 2017
Inventory
Raw materials	$ 17,842	$ 11,636
Work in process	7,315	6,877
Finished goods	10,668	7,105
Total Inventory	$ 35,825	$ 25,618

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Basic Earnings per Share
Net Income	$ 13,543	$ 11,855	$ 31,980	$ 30,601
Less: Allocated to participating securities	128	127	304	332
Net income available to common shareholders	$ 13,415	$ 11,728	$ 31,676	$ 30,269
Basic weighted average shares outstanding	9,306,498	9,258,219	9,292,647	9,244,237
Net income per share - Basic (in dollars per share)	$ 1.44	$ 1.27	$ 3.41	$ 3.27
Diluted Earnings per Share
Net Income	$ 13,543	$ 11,855	$ 31,980	$ 30,601
Less: Allocated to participating securities	128	127	304	332
Net income available to common shareholders	$ 13,415	$ 11,728	$ 31,676	$ 30,269
Basic weighted average shares outstanding	9,306,498	9,258,219	9,292,647	9,244,237
Additional dilutive common stock equivalents (in shares)	66,685	78,506	69,723	87,233
Diluted weighted average shares outstanding	9,373,183	9,336,725	9,362,370	9,331,470
Net income per share - Diluted (in dollars per share)	$ 1.43	$ 1.26	$ 3.38	$ 3.24
Antidilutive securities
Antidilutive stock options excluded from computation of earnings per share amount (in shares)	6,416	0	6,416	0

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	Sep. 01, 2017item$ / sharesshares	Sep. 01, 2016shares	Feb. 28, 2018USD ($)shares	Aug. 31, 2017shares
2017 LTIP | Performance and service based restricted stock | Executive officers and other members of management
Stock Based Compensation
Shares granted				5,399
Cumulative shares granted				10,798
2017 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2019 vesting date
Stock Based Compensation
Shares granted		5,399
2018 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2020 vesting date
Stock Based Compensation
Shares granted	4,249
2018 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2020 vesting date
Stock Based Compensation
Shares granted	3,473
2018 LTIP | Service based restricted stock | Non-employee members of BOD
Stock Based Compensation
Shares granted			2,779
Grant date value | $			$ 281
Vesting period			12 months
2018 LTIP | Stock options | Executive officers and other members of management
Stock Based Compensation
Number Options Outstanding (in shares)	9,622
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 93.50
Number of equal annual allotments in which awards will vest | item	3
Stock options expiring on August 31, 2026 (in shares)	4,591
Stock options expiring on September 1, 2026 (in shares)	5,031

Segment Data and Foreign Oper40

Segment Data and Foreign Operations (Details) $ in Thousands	3 Months Ended				9 Months Ended
	May 31, 2018USD ($)	Feb. 28, 2018USD ($)	May 31, 2017USD ($)	Nov. 30, 2016USD ($)	May 31, 2018USD ($)segment	May 31, 2017USD ($)	Aug. 31, 2017USD ($)
Segment data
Number of operating segments | segment					2
Revenue	$ 78,918		$ 64,901		$ 206,710	$ 183,566
Income before income taxes	18,652		17,112		42,991	44,405
Total assets	314,049				314,049		$ 254,738
Interest	389		158		874	711
Depreciation					3,870	3,859
Amortization					8,450	6,816
Cost of sale of inventory step-up					1,530	190
Gain on sale of license (Note 18)					1,085
Gain on sale of assets						860
Exit costs						50
Zappa Stewart
Segment data
Acquisition related expenses		$ 393
Resin Designs
Segment data
Acquisition related expenses				$ 584
Paterson NJ
Segment data
Gain on sale of business					792
Bridgewater MA location
Segment data
Gain on sale of assets	68
Industrial Materials
Segment data
Revenue	65,389		53,292		170,641	149,708
Income before income taxes	20,907		20,259		52,433	52,364
Total assets	230,587				230,587		156,263
Interest	311		119		699	533
Depreciation	816		959		2,521	3,023
Amortization	2,887		1,990		7,465	5,859
Gain on sale of license (Note 18)					1,085
Industrial Materials | Zappa Stewart
Segment data
Gain on sale of business					1,480
Industrial Materials | Resin Designs
Segment data
Cost of sale of inventory step-up					1,530	190
Industrial Materials | Structural Composites Rod Business and License
Segment data
Gain on sale of business	1,480
Industrial Materials | Fiber Optic Cable Components Product Line
Segment data
Gain on sale of business			2,013		2,013
Construction Materials
Segment data
Revenue	13,529		11,609		36,069	33,858
Income before income taxes	5,341		3,647		11,959	12,411
Total assets	36,547				36,547		38,162
Interest	78		39		175	178
Depreciation	177		209		554	560
Amortization	330		320		985	957
Reportable segments
Segment data
Income before income taxes	26,248		23,906		64,392	64,775
Total assets	267,134				267,134		194,425
Corporate and common costs
Segment data
Income before income taxes	(7,596)		$ (6,794)		(21,401)	(20,370)
Total assets	46,915				46,915		$ 60,313
Corporate and common costs | Zappa Stewart
Segment data
Acquisition related expenses	$ 393
Corporate and common costs | Resin Designs
Segment data
Acquisition related expenses						584
Corporate and common costs | Bridgewater MA location
Segment data
Gain on sale of business					$ 68
Corporate and common costs | Randolph MA
Segment data
Exit costs						$ 50

Segment Data and Foreign Oper41

Segment Data and Foreign Operations - Revenue and Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017	Aug. 31, 2017
Concentration risk
Revenues	$ 78,918	$ 64,901	$ 206,710	$ 183,566
Property, plant and equipment, net	35,570		35,570		$ 34,760
Goodwill and Intangible assets, less accumulated amortization	150,456		150,456		97,630
United States
Concentration risk
Revenues	67,732	56,281	176,187	158,379
Property, plant and equipment, net	31,346		31,346		30,253
Goodwill and Intangible assets, less accumulated amortization	143,748		143,748		90,673
United Kingdom
Concentration risk
Revenues	6,353	4,230	16,142	11,923
Property, plant and equipment, net	3,033		3,033		3,184
Goodwill and Intangible assets, less accumulated amortization	5,467		5,467		5,685
All other Foreign
Concentration risk
Revenues	4,833	$ 4,390	14,381	$ 13,264
Property, plant and equipment, net	1,191		1,191		1,323
Goodwill and Intangible assets, less accumulated amortization	$ 1,241		$ 1,241		$ 1,272

Goodwill and Other Intangible42

Goodwill and Other Intangibles - Goodwill (Details) $ in Thousands	9 Months Ended
	May 31, 2018USD ($)segment
Changes in the carrying value of goodwill
Balance at the beginning of the period	$ 50,784
Acquisition of Zappa Stewart	35,352
Sale of structural composites rod business	(231)
Foreign currency translation adjustment	71
Balance at the end of the period	$ 85,976
Number of reportable segments | segment	12
Number of operating segments | segment	2
Industrial Materials
Changes in the carrying value of goodwill
Balance at the beginning of the period	$ 40,091
Acquisition of Zappa Stewart	35,352
Sale of structural composites rod business	(231)
Foreign currency translation adjustment	65
Balance at the end of the period	75,277
Construction Materials
Changes in the carrying value of goodwill
Balance at the beginning of the period	10,693
Foreign currency translation adjustment	6
Balance at the end of the period	$ 10,699

Goodwill and Other Intangible43

Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	May 31, 2018	May 31, 2017	Aug. 31, 2017
Goodwill and intangible assets
Gross Carrying Value	$ 115,329		$ 89,052
Accumulated Amortization	50,849		42,206
Net Carrying Value	64,480		$ 46,846
Aggregate amortization expense	8,450	$ 6,816
Estimated amortization expense
2018 (remaining 6 months)	3,066
2,019	12,042
2,020	11,174
2,021	10,644
2,022	9,615
2,023	$ 6,347
Patents and agreements
Goodwill and intangible assets
Weighted-Average Amortization Period	14 years 3 months 18 days		14 years 4 months 24 days
Gross Carrying Value	$ 1,903		$ 1,845
Accumulated Amortization	1,679		1,671
Net Carrying Value	$ 224		$ 174
Formulas and technology
Goodwill and intangible assets
Weighted-Average Amortization Period	7 years 9 months 18 days		7 years 9 months 18 days
Gross Carrying Value	$ 10,244		$ 9,318
Accumulated Amortization	6,372		5,387
Net Carrying Value	$ 3,872		$ 3,931
Trade names
Goodwill and intangible assets
Weighted-Average Amortization Period	5 years 9 months 18 days		6 years
Gross Carrying Value	$ 8,570		$ 7,709
Accumulated Amortization	6,703		5,813
Net Carrying Value	$ 1,867		$ 1,896
Customer lists and relationships
Goodwill and intangible assets
Weighted-Average Amortization Period	9 years 1 month 6 days		9 years 7 months 6 days
Gross Carrying Value	$ 94,612		$ 70,180
Accumulated Amortization	36,095		29,335
Net Carrying Value	$ 58,517		$ 40,845

Sale of Business (Details)

Sale of Business (Details) - USD ($) $ in Thousands	Apr. 03, 2017	Aug. 31, 2018	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017	Apr. 20, 2018	Aug. 31, 2017
Sale of Businesses
Proceeds from the sale of property and assets					$ 2,075	$ 3,687
Revenue related to royalty			$ 1,265	$ 1,260	3,745	3,368
Gain on sale			1,480	2,013	1,480	2,013
Revenue
Sale of Businesses
Manufacturing services			497	301	1,418	301
Selling, General and Administrative Expenses
Sale of Businesses
Administrative expense fees			71	40	191	40
Other Income (Expense)
Sale of Businesses
Rental income			65	22	98	$ 22
Structural Composites Rod Business and License
Sale of Businesses
Total proceeds received or to be received							$ 2,232
Proceeds from the sale of property and assets			2,075
Pre-tax book gain from the sale of property and assets			1,480
Structural Composites Rod Business and License | Forecast
Sale of Businesses
Proceeds from the sale of property and assets		$ 157
Fiber Optic Cable Components Product Line
Sale of Businesses
Total proceeds received or to be received	$ 3,858
Proceeds from the sale of property and assets				3,458
Gain on sale				$ 2,013
Term of Escrow Deposit	18 months
Fiber Optic Cable Components Product Line | Other Noncurrent Asset
Sale of Businesses
Sale price held in escrow								$ 400
Fiber Optic Cable Components Product Line | Other Current Assets
Sale of Businesses
Sale price held in escrow			$ 400		$ 400

Sale of Real Estate (Details)

Sale of Real Estate (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	9 Months Ended
	Dec. 31, 2016	Nov. 30, 2016	May 31, 2018	May 31, 2017
Assets held for sale
Gain on sale of assets				$ 860
Paterson NJ
Assets held for sale
Proceeds from the sale of property		$ 1,382
Gain on sale of assets		$ 792
Bridgewater MA location
Assets held for sale
Proceeds from the sale of property	$ 740
Gain on sale of assets			$ 68

Pensions and Other Postretire46

Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Components of net periodic benefit cost
Service cost	$ 71	$ 72	$ 213	$ 216
Interest cost	157	170	471	510
Expected return on plan assets	(116)	(132)	(348)	(396)
Amortization of prior service cost	1	1	3	3
Amortization of accumulated loss	121	224	363	672
Net periodic benefit cost	$ 234	$ 335	702	1,005
Employer contribution			$ 1,682	$ 127

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands	May 31, 2018	Aug. 31, 2017
Fair value measurements
Restricted investments	$ 1,019	$ 964
Long-term debt	35,000
Quoted prices in active markets (Level 1)
Fair value measurements
Restricted investments	899	926
Significant other observable inputs (Level 2)
Fair value measurements
Restricted investments	120	$ 38
Long-term debt	$ 35,000

Accumulated Other Comprehensi48

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Accumulated other comprehensive income
Balance at the beginning of the period			$ (13,469)	$ (15,479)
Other comprehensive gains (losses) before reclassifications			1,528	(508)
Reclassifications to net income of previously deferred (gains) losses			209	405
Total other comprehensive income (loss)	$ (2,100)	$ 1,692	1,737	(103)
Balance at the ending of the period	(11,732)	(15,582)	(11,732)	(15,582)
Restricted investments, other comprehensive gains (losses) before reclassifications, tax benefit				64
Restricted investments, other comprehensive gains (losses) before reclassifications, tax expense	19
Change in funded status of pension plan, other comprehensive gains (losses) before reclassifications, tax (expense) benefit	0			0
Foreign currency translation adjustment, other comprehensive gains (losses) before reclassifications, tax (expense) benefit			0	0
Restricted investments, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit	24			16
Change in funded status of pension plan, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit	89			234
Foreign currency translation adjustment, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit			0	0
Restricted investments
Accumulated other comprehensive income
Balance at the beginning of the period			121	54
Other comprehensive gains (losses) before reclassifications			55	123
Reclassifications to net income of previously deferred (gains) losses			(68)	(36)
Total other comprehensive income (loss)			(13)	87
Balance at the ending of the period	108	141	108	141
Change in funded status of pension plan
Accumulated other comprehensive income
Balance at the beginning of the period			(6,181)	(7,336)
Reclassifications to net income of previously deferred (gains) losses			277	441
Total other comprehensive income (loss)			277	441
Balance at the ending of the period	(5,904)	(6,895)	(5,904)	(6,895)
Foreign currency translation adjustment
Accumulated other comprehensive income
Balance at the beginning of the period			(7,409)	(8,197)
Other comprehensive gains (losses) before reclassifications			1,473	(631)
Total other comprehensive income (loss)			1,473	(631)
Balance at the ending of the period	$ (5,936)	$ (8,828)	$ (5,936)	$ (8,828)

Accumulated Other Comprehensi49

Accumulated Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Accumulated other comprehensive income
Selling, general and administrative expenses	$ (13,705)	$ (12,297)	$ (37,902)	$ (35,567)
Cost of products and services sold	(48,252)	(37,511)	(127,138)	(105,658)
Tax expense (benefit)	(5,109)	(5,257)	(11,011)	(13,804)
Net Income	13,543	11,855	31,980	30,601
Net income (loss)	13,543	11,855	31,980	30,601
Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Net Income	91	147	209	405
Restricted investments | Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Selling, general and administrative expenses	(1)	(1)	(92)	(55)
Tax expense (benefit)		1	24	19
Net Income	(1)		(68)	(36)
Change in funded status of pension plan | Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Selling, general and administrative expenses	94	199	282	597
Cost of products and services sold	28	26	84	78
Tax expense (benefit)	(30)	(78)	(89)	(234)
Net Income	$ 92	$ 147	$ 277	$ 441

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2016	Dec. 31, 2017	May 31, 2018	Nov. 30, 2016	May 31, 2018	May 31, 2017	Aug. 31, 2017
Acquisitions
Expenses related to acquisition						$ 393	$ 584
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values
Goodwill				$ 85,976		85,976		$ 50,784
Credit Agreement
Acquisitions
Amount drew in relation to acquisition			$ 65,000	$ 65,000
Percentage of goodwill deductible for income tax purposes				72.00%
Goodwill deductible for income tax purposes				$ 25,453		$ 25,453
Zappa Stewart
Acquisitions
Purchase price	$ 73,469
Amount drew in relation to acquisition			65,000
Expenses related to acquisition				393
Adjustment to initial amount of goodwill				$ 2,035
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values
Accounts receivable	3,670		3,670
Inventory	7,256		7,256
Prepaid expenses and other current assets	12		12
Property, plant and equipment	1,872		1,872
Goodwill	35,352		35,352
Intangible assets	25,940		25,940
Accounts payable and accrued liabilities	(633)		(633)
Total purchase price	$ 73,469		$ 73,469
Resin Designs
Acquisitions
Purchase price		$ 30,270
Expenses related to acquisition					$ 584
Goodwill deductible for income tax purposes		7,592
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values
Accounts receivable		1,877
Inventory		1,300
Prepaid expenses and other current assets		63
Property, plant and equipment		623
Goodwill		7,592
Intangible assets		19,450
Accounts payable and accrued liabilities		(635)
Total purchase price		$ 30,270

Acquisitions - Intangible asset

Acquisitions - Intangible assets purchase transaction (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2016
Zappa Stewart
Identifiable intangible assets purchased
Intangible assets	$ 25,940
Resin Designs
Identifiable intangible assets purchased
Intangible assets		$ 19,450
Customer Relationships | Zappa Stewart
Identifiable intangible assets purchased
Intangible assets	$ 24,200
Useful life	7 years 6 months
Customer Relationships | Resin Designs
Identifiable intangible assets purchased
Intangible assets		$ 17,500
Useful life		10 years
Technology | Zappa Stewart
Identifiable intangible assets purchased
Intangible assets	$ 900
Useful life	7 years
Technology | Resin Designs
Identifiable intangible assets purchased
Intangible assets		$ 1,200
Useful life		4 years
Trade names | Zappa Stewart
Identifiable intangible assets purchased
Intangible assets	$ 840
Useful life	4 years
Trade names | Resin Designs
Identifiable intangible assets purchased
Intangible assets		$ 750
Useful life		7 years

Acquisitions - Supplemental Pro

Acquisitions - Supplemental Pro Forma Data (Details) - USD ($) $ / shares in Units, $ in Thousands	May 31, 2018	Jan. 01, 2018	May 31, 2017	Dec. 31, 2017	May 31, 2018	Aug. 31, 2018	May 31, 2018	May 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Acquisition of Specialty Chemical Intermediates Businesses
Statutory tax rate (as a percent)				35.00%
Forecast
Acquisition of Specialty Chemical Intermediates Businesses
Statutory tax rate (as a percent)						21.00%			25.70%
Zappa Stewart
Acquisition of Specialty Chemical Intermediates Businesses
Revenue since acquisition date	$ 10,004	$ 10,004
Net income (loss) since acquisition date					$ 327
Statutory tax rate (as a percent)										35.00%
Pro Forma Information
Revenue			$ 71,217				$ 215,131	$ 201,336
Net income			$ 12,188				$ 33,908	$ 29,832
Net income available to common shareholders, per common and common equivalent share
Basic earnings per share (in dollars per share)			$ 1.31				$ 3.62	$ 3.19
Diluted earning per share (in dollars per share)			$ 1.30				$ 3.58	$ 3.16
Zappa Stewart | Forecast
Acquisition of Specialty Chemical Intermediates Businesses
Statutory tax rate (as a percent)									26.00%

Exit Costs Related to Idle Fa53

Exit Costs Related to Idle Facility (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	May 31, 2018	May 31, 2018	May 31, 2017
Exit Costs Related to Idle Facility
Exit costs			$ 50
Randolph MA
Exit Costs Related to Idle Facility
Exit costs	$ 0	$ 0	$ 50

Related Party Agreements (Detai

Related Party Agreements (Details) $ in Thousands	1 Months Ended		3 Months Ended	9 Months Ended
	Dec. 31, 2016USD ($)individual	Sep. 30, 2016USD ($)	May 31, 2018USD ($)	May 31, 2017USD ($)	Aug. 31, 2017USD ($)
Related party transactions
Proceeds from settlement of life insurance policies				$ 1,504
Original book value			$ 115,329		$ 89,052
Net book value			$ 64,480		$ 46,846
Gain on sale of assets				$ 860
Metropolitan Life Insurance
Related party transactions
Proceeds from settlement of life insurance policies		$ 1,504
Trust | Minimum
Related party transactions
Ownership interest (as a percent)			5.00%
Bridgewater MA location
Related party transactions
Proceeds from the sale of property	$ 740
Gain on sale of assets			$ 68
Bridgewater MA location | Bridgewater State University Foundation
Related party transactions
Number of board members | individual	2
Proceeds from the sale of property	$ 740
Gain on sale of assets	$ 68

Long-Term Debt (Details)

Long-Term Debt (Details) $ in Thousands	Dec. 15, 2016USD ($)	Dec. 31, 2017USD ($)	May 31, 2018USD ($)	Feb. 28, 2018USD ($)	May 31, 2018USD ($)	May 31, 2017USD ($)
Long-term debt
Principal payment					$ 30,000	$ 23,400
Zappa Stewart
Long-term debt
Amount drew in relation to acquisition		$ 65,000
Credit Agreement
Long-term debt
Maximum borrowing capacity	$ 150,000
Additional borrowing capacity	$ 50,000
Carrying value of direct and indirect domestic subsidiaries			$ 194,123		$ 194,123
Applicable interest rate (as a percent)			3.00%		3.00%
Outstanding balance			$ 35,000		$ 35,000
Term of debt					5 years
Term of potential debt					7 years
Amount drew in relation to acquisition		$ 65,000	65,000
Repayments of debt			$ 20,000	$ 10,000
Credit Agreement | Minimum
Long-term debt
Consolidated fixed charge coverage ratio	1.25
Credit Agreement | Maximum
Long-term debt
Net leverage ratio	3.25
Credit Agreement | London Interbank Offered Rate (LIBOR)
Long-term debt
Interest payment due					3 months
Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum
Long-term debt
Interest rate margin on variable rate basis (as a percent)					1.00%
Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum
Long-term debt
Interest rate margin on variable rate basis (as a percent)					1.75%

Sale of License (Details)

Sale of License (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	May 31, 2018	Feb. 28, 2018	May 31, 2017	May 31, 2018	May 31, 2017	Nov. 30, 2017	Aug. 31, 2017
Sale of License
Net book value	$ 64,480			$ 64,480			$ 46,846
Proceeds from sale of license				1,000
Gain on sale of license				1,085
Revenue related to royalty	1,265		$ 1,260	$ 3,745	$ 3,368
Unrelated Party
Sale of License
Net book value						$ 26
Gross consideration		$ 1,111
Proceeds from sale of license		1,000
Foreign tax consideration paid by buyer		111
Gain on sale of license		$ 1,085
Revenue related to royalty	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			4 Months Ended	8 Months Ended	9 Months Ended		12 Months Ended
	May 31, 2018	Feb. 28, 2018	May 31, 2017	Dec. 31, 2017	Aug. 31, 2018	May 31, 2018	May 31, 2017	Aug. 31, 2018
Effective income tax rate
Statutory tax rate (as a percent)				35.00%
Tax benefit/(expense)		$ 548
Tax benefit resulting from remeasurement and reclassification of existing deferred tax liability		708
Provision tax expenses		1,069
Tax expense recorded as the result of remeasuring the Federal benefit on our uncertain tax positions		187
Transition tax adjustment associated with its accumulated, undistributed foreign earnings	$ 2,299
Short term payable	127
Long taxes payable	$ 1,464
Percentage of short term tax payable	8.00%
Discrete tax benefit		$ 708
Income taxes (Note 19)	$ 5,109		$ 5,257			$ 11,011	$ 13,804
Income before income taxes	$ 18,652		$ 17,112			$ 42,991	$ 44,405
Effective income tax rate	27.40%		30.70%			25.60%	31.10%
ASU No. 2016-09
Effective income tax rate
Discrete tax benefit related to excess tax benefits on stock-based compensation	$ 0		$ 78			$ 977	$ 1,655
Forecast
Effective income tax rate
Statutory tax rate (as a percent)					21.00%			25.70%