Chase (CCF) 10-Q 9 Apr 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Feb. 29, 2020	Mar. 31, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Feb. 29, 2020
Entity Registrant Name	CHASE CORP
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,448,620
Entity Central Index Key	0000830524
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Current Assets
Cash and cash equivalents	$ 67,664	$ 47,771
Accounts receivable, less allowance for doubtful accounts of $822 and $739	38,243	39,324
Inventory	39,185	42,354
Prepaid expenses and other current assets	2,815	2,418
Assets held for sale	1,064	1,064
Prepaid income taxes	1,913	1,451
Total current assets	150,884	134,382
Property, plant and equipment, less accumulated depreciation of $51,655 and $49,730	27,375	29,326
Other Assets
Goodwill	82,175	81,986
Intangible assets, less accumulated amortization of $72,163 and $65,862	46,932	52,704
Cash surrender value of life insurance	4,450	4,450
Restricted investments	1,325	1,260
Deferred income taxes	3,837	3,804
Operating lease right-of-use asset (Note 8)	9,256
Other assets	35	56
Total assets	326,269	307,968
Current Liabilities
Accounts payable	14,681	12,105
Accrued payroll and other compensation	4,357	6,300
Accrued expenses	4,868	4,035
Total current liabilities	23,906	22,440
Operating lease long-term liabilities (Note 8)	6,648
Deferred compensation	1,338	1,275
Accumulated pension obligation	9,879	10,485
Other liabilities		217
Accrued income taxes	2,381	2,324
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; 9,448,620 shares at February 29, 2020 and 9,400,748 shares at August 31, 2019 issued and outstanding	945	940
Additional paid-in capital	15,882	14,351
Accumulated other comprehensive loss	(14,060)	(14,324)
Retained earnings	279,350	270,260
Total equity	282,117	271,227
Total liabilities and equity	$ 326,269	$ 307,968

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 822	$ 739
Property, plant and equipment, accumulated depreciation (in dollars)	51,655	49,730
Intangible assets, accumulated amortization (in dollars)	$ 72,163	$ 65,862
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	9,448,620	9,400,748
Common stock, shares outstanding	9,448,620	9,400,748

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Revenue
Revenue	$ 65,582	$ 66,631	$ 132,384	$ 139,134
Costs and Expenses
Cost of products and services sold	40,666	43,213	82,449	89,788
Selling, general and administrative expenses	13,810	13,086	27,450	26,448
Operations optimization costs (Note 15)	60		709	260
Loss on impairment of goodwill (Note 7)		2,410		2,410
Operating income	11,046	7,922	21,776	20,228
Interest expense	(56)	(162)	(111)	(366)
Other income (expense)	(185)	(828)	(789)	(1,122)
Income before income taxes	10,805	6,932	20,876	18,740
Income taxes (Note 17)	2,926	1,659	5,635	4,644
Net income	$ 7,879	$ 5,273	$ 15,241	$ 14,096
Net income available to common shareholders, per common and common equivalent share (Note 4)
Basic	$ 0.83	$ 0.56	$ 1.62	$ 1.50
Diluted	$ 0.83	$ 0.56	$ 1.60	$ 1.49
Weighted average shares outstanding
Basic	9,355,821	9,332,288	9,353,985	9,330,929
Diluted	9,444,211	9,373,030	9,439,215	9,377,167
Annual cash dividends declared per share			$ 0.80	$ 0.80
Product
Revenue
Revenue	$ 64,626	$ 65,442	$ 130,383	$ 136,806
Royalties and commissions
Revenue
Revenue	$ 956	$ 1,189	$ 2,001	$ 2,328

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 7,879	$ 5,273	$ 15,241	$ 14,096
Other comprehensive (loss) income:
Net unrealized (loss) gain on restricted investments, net of tax	(43)	13	(2)	(8)
Change in funded status of pension plans, net of tax	128	291	259	527
Foreign currency translation adjustment	(142)	1,144	1,395	538
Total other comprehensive (loss) income	(57)	1,448	1,652	1,057
Comprehensive income	$ 7,822	$ 6,721	$ 16,893	$ 15,153

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at Aug. 31, 2018	$ 939	$ 13,104	$ (12,336)	$ 245,049	$ 246,756
Balance (in shares) at Aug. 31, 2018	9,396,947
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 1	(1)
Restricted stock grants, net of forfeitures (in shares)	9,308
Amortization of restricted stock grants		795			795
Amortization of stock option grants		249			249
Exercise of stock options	$ 1	301			302
Exercise of stock options (in shares)	7,022
Common stock received for payment of stock option exercises		(120)			(120)
Common stock received for payment of stock option exercises (in shares)	(954)
Cash dividend on common stock				(7,522)	(7,522)
Change in funded status of pension plans, net of tax			527		527
Foreign currency translation adjustment			538		538
Net unrealized gain (loss) on restricted investments, net of tax			(8)		(8)
Net income				14,096	14,096
Balance at Feb. 28, 2019	$ 941	14,328	(11,279)	251,645	255,635
Balance (in shares) at Feb. 28, 2019	9,412,323
Balance at Nov. 30, 2018	$ 940	13,608	(12,727)	246,372	248,193
Balance (in shares) at Nov. 30, 2018	9,402,706
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures (in shares)	4,599
Amortization of restricted stock grants		415			415
Amortization of stock option grants		124			124
Exercise of stock options	$ 1	181			182
Exercise of stock options (in shares)	5,018
Change in funded status of pension plans, net of tax			291		291
Foreign currency translation adjustment			1,144		1,144
Net unrealized gain (loss) on restricted investments, net of tax			13		13
Net income				5,273	5,273
Balance at Feb. 28, 2019	$ 941	14,328	(11,279)	251,645	255,635
Balance (in shares) at Feb. 28, 2019	9,412,323
Increase (Decrease) in Stockholders' Equity
Adoption of new accounting standard | ASU 2014-09				22	22
Balance at Aug. 31, 2019	$ 940	14,351	(14,324)	270,260	271,227
Balance (in shares) at Aug. 31, 2019	9,400,748
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 5	(5)
Restricted stock grants, net of forfeitures (in shares)	45,311
Amortization of restricted stock grants		1,080			1,080
Amortization of stock option grants		456			456
Exercise of stock options		123			123
Exercise of stock options (in shares)	3,618
Common stock received for payment of stock option exercises		(123)			(123)
Common stock received for payment of stock option exercises (in shares)	(1,057)
Cash dividend on common stock				(7,539)	(7,539)
Change in funded status of pension plans, net of tax			259		259
Foreign currency translation adjustment			1,395		1,395
Net unrealized gain (loss) on restricted investments, net of tax			(2)		(2)
Net income				15,241	15,241
Balance at Feb. 29, 2020	$ 945	15,882	(14,060)	279,350	282,117
Balance (in shares) at Feb. 29, 2020	9,448,620
Balance at Nov. 30, 2019	$ 942	15,063	(14,003)	271,471	273,473
Balance (in shares) at Nov. 30, 2019	9,423,946
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 3	(3)
Restricted stock grants, net of forfeitures (in shares)	24,674
Amortization of restricted stock grants		594			594
Amortization of stock option grants		228			228
Change in funded status of pension plans, net of tax			128		128
Foreign currency translation adjustment			(142)		(142)
Net unrealized gain (loss) on restricted investments, net of tax			(43)		(43)
Net income				7,879	7,879
Balance at Feb. 29, 2020	$ 945	$ 15,882	(14,060)	279,350	$ 282,117
Balance (in shares) at Feb. 29, 2020	9,448,620
Increase (Decrease) in Stockholders' Equity
Adoption of new accounting standard | ASU 2018-02			(1,388)	$ 1,388
Adoption of new accounting standard			$ (1,388)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
STATEMENTS OF EQUITY
Change in funded status of pension plans, tax	$ 47	$ 101	$ 91	$ 184
Net unrealized gain (loss) on restricted investments, tax	$ (15)	$ 3	$ (1)	$ (4)
Cash dividend on common stock per share (in dollars per share)			$ 0.80	$ 0.80

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 15,241	$ 14,096
Adjustments to reconcile net income to net cash provided by operating activities
Loss on impairment of goodwill (Note 7)		2,410
Depreciation	2,041	2,491
Amortization	5,826	6,225
Provision (recovery) for allowance for doubtful accounts	81	(11)
Stock-based compensation	1,536	1,044
Realized (loss) gain on restricted investments	(28)	4
Pension curtailment and settlement loss		473
Deferred taxes		(581)
Increase (decrease) from changes in assets and liabilities
Accounts receivable	1,169	3,003
Inventory	3,338	(5,651)
Prepaid expenses and other assets	(356)	(1,864)
Accounts payable	2,425	(2,764)
Accrued compensation and other expenses	(3,375)	(2,847)
Accrued income taxes	(437)	1,275
Net cash provided by operating activities	27,461	17,303
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(827)	(1,304)
Cost to acquire intangible assets		(30)
Proceeds from sale of businesses		400
Changes in restricted investments	(40)	(41)
Net cash used in investing activities	(867)	(975)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of principal on debt		(19,000)
Dividend paid	(7,539)	(7,522)
Proceeds from exercise of common stock options		182
Net cash used in financing activities	(7,539)	(26,340)
INCREASE IN CASH & CASH EQUIVALENTS	19,055	(10,012)
Effect of foreign exchange rates on cash	838	272
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	47,771	34,828
CASH AND CASH EQUIVALENTS, END OF PERIOD	67,664	25,088
Non-cash Investing and Financing Activities
Common stock received for payment of stock option exercises	123	120
Property, plant and equipment additions included in accounts payable	$ 154	$ 113

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	6 Months Ended
	Feb. 29, 2020
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 across diverse market sectors. Our strategy is to maximize the performance of our core businesses and brands while seeking future opportunities through strategic acquisitions. Through investments in facilities, systems and organizational consolidation we seek to improve performance and gain economies of scale. 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 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, 2019 in conjunction with its 2019 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 February 29, 2020 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, 2019 which are contained in the Company’s 2019 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 February 29, 2020, and the results of its operations, comprehensive income, changes in equity and cash flows for the interim periods ended February 29, 2020 and February 28, 2019. 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 ($105) and ($606) for the three- and six-month periods ended February 29, 2020, respectively, and ($468) and ($416) for the three- and six-month periods ended February 28, 2019, respectively.   Other Business Developments During the first quarter of fiscal 2020, third-party-led studies regarding the potential upgrading of the Company’s current worldwide ERP system were conducted. Chase is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around our facilities rationalization and consolidation initiative. The Company recognized $150 in expense related to these services in the first quarter of fiscal 2020, with no expense recognized in the second fiscal quarter. Given the ongoing nature of the review, an estimate of future costs, including those that may be capitalized, cannot currently be determined. During the third quarter of fiscal 2019, Chase began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. At the time, the pulling and detection operations were the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving, including moving internal research and development capabilities, was substantially completed during the second quarter of fiscal 2020. The Company recognized $60 and $559 in expense related to the move in the three-month and six-month periods ended February 29, 2020, respectively, having recognized $526 in expense during the second half of fiscal 2019. Future costs related to this move are not anticipated to be significant to the condensed consolidated financial statements. 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 manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018, with no additional expense recognized in the remainder of fiscal 2019 or in 2020. Future costs related to this move are not anticipated to be significant to the condensed consolidated financial statements. The Company completed the sale of its Pawtucket, RI location to a third party in April 2020, subsequent to the second fiscal quarter, for net proceeds totaling $1,810. Significant Accounting Policies The Company’s significant accounting policies are detailed in Note 1 — “Summary of Significant Accounting Policies” within Item 8 of the Company’s Annual Report on Form 10-K for the year ended August 31, 2019. Management believes that there have been no material changes during the six months ended February 29, 2020 to the critical accounting policies reported in our Annual Report on Form 10-K for the fiscal year ended August 31, 2019.

Recent Accounting Standards

Recent Accounting Standards	6 Months Ended
	Feb. 29, 2020
Recent Accounting Standards
Recent Accounting Standards	Note 2 — Recent Accounting Standards Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-03, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which modifies the measurement approach for credit losses on financial assets measured on an amortized cost basis from an 'incurred loss' method to an 'expected loss' method. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” ASU 2019-11 is an accounting pronouncement that amends ASU 2016-10. The ASU 2019-11 amendment provides clarity and improves the codification to ASU 2016-03. The pronouncements are concurrently effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years (effective fiscal 2021). The Company is currently evaluating the effects of this pronouncement on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements 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. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements.” The updated guidance provided an optional transition method, which allows for the application of the standard as of the adoption date with no restatement of prior period amounts. We adopted the standard on September 1, 2019 (start of fiscal 2020) under the optional transition method described above. Consequently, historical financial information was not updated, and the disclosures required under the new standard are not provided for dates and periods prior to September 1, 2019. The new standard provides several optional practical expedients in transition. The Company has elected to apply the “package of practical expedients” which allows us to not reassess i) whether existing or expired arrangements contain a lease, ii) the lease classification of existing or expired leases, or iii) whether previous initial direct costs would qualify for capitalization under the new lease standard. In preparation for adoption of the standard, the Company enhanced its internal controls to enable the preparation of financial information including the assessment of the impact of the standard. The initial adoption of the ASU resulted in the recognition of additional lease liabilities of $9,644 ($2,071 short-term and $7,573 long-term) and right-of-use assets of $10,200 as of September 1, 2019 on the condensed consolidated balance sheet as it relates to the Company’s operating leases. The new standard did not have a material impact on the Company’s condensed consolidated statement of operations or cash flows. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the current enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. Therefore, the Company adopted ASU 2018-02 in the first quarter of the year ending August 31, 2020, and has elected to reclassify the income tax effects related to its pension funding of the Tax Reform from accumulated other comprehensive loss to retained earnings.

Inventory

Inventory	6 Months Ended
	Feb. 29, 2020
Inventory
Inventory	Note 3 — Inventory Inventory consisted of the following as of February 29, 2020 and August 31, 2019: February 29, August 31, 2020 2019 Raw materials $ 18,671 $ 20,325 Work in process 7,332 8,748 Finished goods 13,182 13,281 Total Inventory $ 39,185 $ 42,354

Net Income Per Share

Net Income Per Share	6 Months Ended
	Feb. 29, 2020
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 Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Basic Earnings per Share Net income $ 7,879 $ 5,273 $ 15,241 $ 14,096 Less: Allocated to participating securities Net income available to common shareholders $ 7,810 $ 5,232 $ 15,123 $ 13,986 Basic weighted average shares outstanding Net income per share - Basic $ 0.83 $ 0.56 $ 1.62 $ 1.50 Diluted Earnings per Share Net income $ 7,879 $ 5,273 $ 15,241 $ 14,096 Less: Allocated to participating securities Net income available to common shareholders $ 7,810 $ 5,232 $ 15,123 $ 13,986 Basic weighted average shares outstanding Additional dilutive common stock equivalents Diluted weighted average shares outstanding Net income per share - Diluted $ 0.83 $ 0.56 $ 1.60 $ 1.49 For both the three- and six-month periods ended February 29, 2020, stock options to purchase 8,805 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. For the three- and six-month periods ended February 28, 2019, stock options to purchase 15,625 and 14,022 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. 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	6 Months Ended
	Feb. 29, 2020
Stock-Based Compensation
Stock-Based Compensation	Note 5 — Stock-Based Compensation In August 2018, the Board of Directors of the Company approved the fiscal year 2019 Long Term Incentive Plan (“2019 LTIP”) for the executive officers and other members of management. The 2019 LTIP is an equity-based plan with a grant date of September 1, 2018 and contains a performance and service-based restricted stock grant of 6,609 shares in the aggregate, subject to adjustment (as discussed below), with a vesting date of August 31, 2021. During the fourth quarter of fiscal 2019, an additional grant of restricted stock was made related to the 2019 LTIP grant in conjunction with an amendment to the equity compensation program for a promoted employee. The additional grant contains the following restricted stock components: (a) a performance and service-based restricted stock grant of 211 shares in the aggregate, subject to adjustment based on fiscal 2019 results, with a vesting date of August 31, 2021, for which 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 132 shares in the aggregate, with a vesting date of August 31, 2021, for which compensation expense is recognized on a ratable basis over the vesting period. In August 2019, restricted stock in the amount of 833 shares related to the 2019 LTIP grant was forfeited in conjunction with an amendment in the equity compensation agreement of an employee. Based on the fiscal year 2019 financial results, 2,694 shares of restricted stock already granted were forfeited subsequent to the end of fiscal year 2019 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 2019, the Board of Directors of the Company approved the fiscal year 2020 Long Term Incentive Plan (“2020 LTIP”) for the executive officers and other members of management. The 2020 LTIP is an equity-based plan with a grant date of September 1, 2019 and contains the following equity components: Restricted Shares — (a) a performance and service-based restricted stock grant of 3,697 shares in the aggregate, subject to adjustment based on fiscal 2020 results, with a vesting date of August 31, 2022. 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 3,689 shares in the aggregate, with a vesting date of August 31, 2022. Compensation expense is recognized on a ratable basis over the vesting period. Stock options — options to purchase 13,418 shares of common stock in the aggregate with an exercise price of $100.22 per share. The options will vest in three equal annual installments beginning on August 31, 2020 and ending on August 31, 2022. Of the options granted, 6,218 options will expire on August 31, 2029, and 7,200 options will expire on September 1, 2029. Compensation expense is recognized over the period of the award consistent with the vesting terms. In August 2019, the Board of Directors of the Company approved equity retention agreements with certain executive officers. The equity-based retention agreements have a grant date of September 1, 2019 and contain the following equity components: (a) time-based restricted stock grant of 15,945 shares in the aggregate, and having a vesting date of August 31, 2022; and (b) options to purchase 53,642 shares of common stock in the aggregate with an exercise price of $100.22 per share. The options will cliff vest on August 31, 2022 and will expire on August 31, 2029. Compensation expense for both the restricted stock and the stock option components of the equity retention agreements is recognized on a ratable basis over the vesting period. During the second quarter of fiscal 2020, additional grants of 18,720, 616 and 432 shares of restricted stock were issued to non-executive members of management with vesting dates of December 31, 2021, 2022 and 2024, respectively. Compensation expense is being recognized on a ratable basis over the vesting period. In February 2020, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 4,906 shares of restricted stock for service for the period from January 31, 2020 through January 31, 2021. The shares of restricted stock will vest at the conclusion of this service period. Compensation is being recognized on a ratable basis over the twelve-month vesting period.

Segment Data and Foreign Operat

Segment Data and Foreign Operations	6 Months Ended
	Feb. 29, 2020
Segment Data and Foreign Operations
Segment Data and Foreign Operations	Note 6 — Segment Data and Foreign Operations The Company is organized into three reportable operating segments: Adhesives, Sealants and Additives; Industrial Tapes; and Corrosion Protection and Waterproofing. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets. In the fourth quarter of our fiscal year 2019, we reorganized from two into three reportable operating segments; prior year quarter and year-to-date period amounts have been recast to reflect this change. The Adhesives, Sealants and Additives segment offers innovative and specialized product offerings consisting of both end-use products and intermediates that are used in, or integrated into, another company’s product. Demand for the segment’s product offerings is typically dependent upon general economic conditions. The Adhesives, Sealants and Additives segment leverages the core specialty chemical competencies of the Company, and serves diverse markets and applications. The segment sells predominantly into the transportation, appliances, medical, general industrial and environmental market verticals. The segment’s products include moisture protective coatings and customized sealant and adhesive systems for electronics, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. The Industrial Tapes segment features legacy wire and cable materials, specialty tapes and other laminated and coated products. The segment derives its competitive advantage through its proven chemistries, diverse specialty offerings and the reliability its supply chain offers to end customers. These products are generally used in the assembly of other manufacturers’ products, with demand typically dependent upon general economic conditions. The Industrial Tapes segment sells mostly to established markets, with some exposure to growth opportunities through further development of existing products. Markets served include cable manufacturing, utilities and telecommunications, and electronics packaging. The segment’s offerings include insulating and conducting materials for wire and cable manufacturers, 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 and cover tapes essential to delivering semiconductor components via tape-and-reel packaging. The Corrosion Protection and Waterproofing segment is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. End markets include new and existing infrastructure projects on oil, gas, water and wastewater pipelines, highways and bridge decks, water and wastewater containment systems, and commercial buildings. The segment’s products include protective coatings for pipeline applications, coating and lining systems for waterproofing and liquid storage applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion joint systems for waterproofing applications in transportation and architectural markets. With sales generally dependent on outdoor project work, the segment experiences highly seasonal sales patterns. The following tables summarize information about the Company’s reportable segments: Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Revenue Adhesives, Sealants and Additives $ 24,440 $ 26,107 $ 50,262 $ 52,805 Industrial Tapes 30,055 31,158 60,179 64,620 Corrosion Protection and Waterproofing 11,087 9,366 21,943 21,709 Total $ 65,582 $ 66,631 $ 132,384 $ 139,134 Income before income taxes Adhesives, Sealants and Additives $ 6,750 $ 4,756 (b) $ 14,232 $ 13,021 (b) Industrial Tapes 8,402 (a) 7,513 15,039 (d) 14,051 (f) Corrosion Protection and Waterproofing 4,127 2,384 8,091 6,850 Total for reportable segments 19,279 14,653 37,362 33,922 Corporate and common costs (8,474) (7,721) (c) (16,486) (e) (15,182) (g) Total $ 10,805 $ 6,932 $ 20,876 $ 18,740 Includes the following costs by segment: Adhesives, Sealants and Additives Interest $ 21 $ 59 $ 42 $ 138 Depreciation 278 382 592 765 Amortization 2,356 2,339 4,693 4,679 Industrial Tapes Interest $ 29 $ 71 $ 54 $ 155 Depreciation 418 438 819 894 Amortization 450 450 900 900 Corrosion Protection and Waterproofing Interest $ 6 $ 32 $ 15 $ 73 Depreciation 151 164 305 339 Amortization 106 323 233 646 (a) Includes $60 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first quarter of fiscal 2020 (b) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business (c) Includes $273 of pension-related settlement costs due to the timing of lump-sum distributions (d) Includes $559 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first six months of fiscal 2020 (e) Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to our companywide ERP system (f) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first six months of fiscal 2019 (g) Includes $473 of pension-related settlement costs due to the timing of lump-sum distributions Total assets for the Company’s reportable segments as of February 29, 2020 and August 31, 2019 were: February 29, August 31, 2020 2019 Total Assets Adhesives, Sealants and Additives $ 139,992 $ 135,583 Industrial Tapes 70,600 77,085 Corrosion Protection and Waterproofing 32,537 32,478 Total for reportable segments 243,129 245,146 Corporate and common assets 83,140 62,822 Total $ 326,269 $ 307,968 The Company’s products are sold worldwide. Revenue for the three-month and six-month periods ended February 29, 2020 and February 28, 2019 were attributed to operations located in the following countries: Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Revenue United States $ 57,236 $ 57,942 $ 115,597 $ 122,293 United Kingdom 4,788 4,428 9,419 8,444 All other foreign (1) 3,558 4,261 7,368 8,397 Total $ 65,582 $ 66,631 $ 132,384 $ 139,134 (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 February 29, 2020 and August 31, 2019 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: February 29, August 31, 2020 2019 Long-Lived Assets United States Property, plant and equipment, net $ 24,041 $ 24,993 Goodwill and Intangible assets, less accumulated amortization 123,466 129,057 United Kingdom Property, plant and equipment, net 2,425 2,493 Goodwill and Intangible assets, less accumulated amortization 4,457 4,446 All other foreign Property, plant and equipment, net 909 1,840 Goodwill and Intangible assets, less accumulated amortization 1,184 1,187 Total Property, plant and equipment, net $ 27,375 $ 29,326 Goodwill and Intangible assets, less accumulated amortization $ 129,107 $ 134,690

Goodwill and Other Intangibles

Goodwill and Other Intangibles	6 Months Ended
	Feb. 29, 2020
Goodwill and Other Intangibles
Goodwill and Other Intangibles	Note 7 — Goodwill and Other Intangibles The changes in the carrying value of goodwill were as follows: Adhesives, Sealants and Additives Industrial Tapes Corrosion Protection and Waterproofing Consolidated Balance at August 31, 2019 $ 50,090 $ 21,215 $ 10,681 $ 81,986 Foreign currency translation adjustment 178 — 11 189 Balance at February 29, 2020 $ 50,268 $ 21,215 $ 10,692 $ 82,175 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 a total of three reporting units within its three 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. During the three-month period ended February 28, 2019, the ordering patterns of our polyurethane dispersions reporting unit’s customers, especially those in the automotive industry, combined with a decrease in the reporting unit’s backlog of customer orders believed to be firm as of February 28, 2019, indicated that an impairment in the carrying value of the reporting unit might have occurred. We performed an impairment test on our indefinite-lived and long-lived assets related to our polyurethane dispersions reporting unit, now part of the Adhesives, Sealants and Additives operating segment and reporting unit (part of the former Industrial Materials segment during the second fiscal quarter of 2019), in accordance with ASC Topic 350, “Intangibles — Goodwill and Other” and ASC Topic 360, “Disclosure — Impairment or Disposal of Long-Lived Assets.” As a result of impairment testing, which included first testing long-lived assets other than goodwill for impairment under applicable guidance, the Company recorded a charge of $2,410 to loss on impairment of goodwill within the consolidated statement of operations during the quarter ended February 28, 2019. Our polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method). In fiscal 2017, the Company early adopted ASU No. 2017-04 “Intangibles - Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” We assess goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. If the fair value of a reporting unit is less than its carrying value, an impairment loss, limited to the amount of goodwill allocated to that reporting unit, is recorded. Intangible assets subject to amortization consisted of the following as of February 29, 2020 and August 31, 2019: Weighted Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value February 29, 2020 Patents and agreements years $ 1,760 $ 1,699 $ 61 Formulas and technology years 10,222 8,594 1,628 Trade names years 8,545 7,527 1,018 Customer lists and relationships years 98,568 54,343 44,225 $ 119,095 $ 72,163 $ 46,932 August 31, 2019 Patents and agreements years $ 1,760 $ 1,693 $ 67 Formulas and technology years 10,164 7,969 2,195 Trade names years 8,503 7,261 1,242 Customer lists and relationships years 98,139 48,939 49,200 $ 118,566 $ 65,862 $ 52,704 Aggregate amortization expense related to intangible assets for the six months ended February 29, 2020 and February 28, 2019 was $5,826 and $6,225 respectively. Estimated amortization expense for the remainder of fiscal year 2020 and for the next five years is as follows: Years ending August 31, 2020 (remaining 6 months) $ 5,737 2021 11,049 2022 10,030 2023 6,768 2024 5,659 2025 5,552

Leases

Leases	6 Months Ended
	Feb. 29, 2020
Leases
Leases	Note 8 — Leases Effective September 1, 2019 (the start of fiscal 2020), the Company adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective approach and utilizing the effective date as its date of initial application. As a result, prior periods are presented in accordance with the previous guidance in ASC 840, Leases (“ASC 840”). The Company has elected to apply the ‘package of practical expedients’ which allows us to not reassess i) whether existing or expired arrangements contain a lease, ii) the lease classification of existing or expired leases, or iii) whether previous initial direct costs would qualify for capitalization under the new lease standard. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets and short-term and long-term lease liabilities, as applicable. The Company does not have any financing leases that are material in nature. Operating lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company believes it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. The Company has elected not to recognize leases with an original term of one year or less on the balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The following table presents the right-of-use asset and short-term and long-term lease liabilities amounts recorded on the condensed consolidated balance sheet as of February 29, 2020: February 29, 2020 Assets Operating lease right-of-use asset $ 9,256 Liabilities Current (accrued expense) $ 2,053 Operating lease long-term liabilities 6,648 Total lease liability $ 8,701 Lease cost The components of lease costs for the three and six months ended February 29, 2020 are as follows: Three Months Ended Six Months Ended February 29, 2020 February 29, 2020 Operating lease cost (a) $ 919 $ 1,850 (a) Includes short-term leases and variable lease costs (e.g. common area maintenance), which are immaterial. Maturity of lease liability The maturity of the Company's lease liabilities at February 29, 2020 were as follows: Future Operating Year ending August 31, Lease Payments 2020 (remaining 6 months) $ 1,294 2021 1,989 2022 1,344 2023 1,190 2024 1,204 2025 and thereafter 2,613 Less: Interest (933) Present value of lease liabilities $ 8,701 The weighted average remaining lease term and discount rates are as follows: February 29, 2020 Lease Term and Discount Rate Weighted average remaining lease term (years) Operating leases 5.7 Weighted average discount rate (percentage) Operating leases 3.1 % Other Information Supplemental cash flow information related to leases is as follows: Six Months Ended February 29, 2020 Operating cash outflows from operating leases $ 1,217 Total cash paid for amounts included in the measurement of lease liabilities $ 1,217 Minimum lease payments under operating leases prior to adoption of ASU 2016-02 were as follows: Future Operating Year ending August 31, Lease Payments 2020 $ 2,468 2021 2,059 2022 1,371 2023 1,187 2024 1,200 2025 and thereafter 2,608 Total future minimum lease payments $ 10,893

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Feb. 29, 2020
Revenue from Contracts with Customers
Revenue from Contracts with Customers	Note 9 — Revenue from Contracts with Customers The Company accounts for revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” This revenue is generated from the manufacture of specialty chemical products including coatings, linings, adhesives, sealants, specialty tapes, polymers and laminates. Certain of these manufactured products can incorporate customer-owned materials. The Company also recognizes, to a lesser extent, revenue through royalties and commissions from licensed manufacturers and from providing custom manufacturing-related services. The Company’s revenue recognition policies require the Company to make significant judgments and estimates. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers, which can be either at a point in time or over time based on contractual terms with customers. Revenue is generally recognized at a point in time when control passes upon either shipment to or receipt by the customer of the Company’s products, while revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition. Contract Balances The Company’s contract assets primarily relate to unbilled revenue for products currently in production at the Company’s facilities and which incorporate customer-owned material. Revenue is recognized in advance of billing to the customer in these specific circumstances, whereas billing is typically performed at the time of shipment to or receipt by the customer. Contract assets are included in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheet. The following table presents contract assets by reportable operating segment as of February 29, 2020 and August 31, 2019: February 29, August 31, 2020 2019 Contract Assets Adhesives, Sealants and Additives $ 46 $ 42 Industrial Tapes 19 26 Corrosion Protection and Waterproofing 45 79 Total $ 110 $ 147 The Company did not have any contract liabilities as of February 29, 2020 and August 31, 2019. Disaggregated Revenue The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the three and six months ended February 29, 2020 and February 28, 2019 was as follows: Three Months Ended February 29, 2020 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 16,335 $ 26,661 $ 8,932 $ 51,928 Asia 4,284 1,712 1,592 7,588 Europe 3,642 805 500 4,947 All other foreign 179 877 63 1,119 Total Revenue $ 24,440 $ 30,055 $ 11,087 $ 65,582 Six Months Ended February 29, 2020 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 34,041 $ 53,674 $ 17,688 $ 105,403 Asia 8,727 3,403 2,682 14,812 Europe 7,221 1,546 1,451 10,218 All other foreign 273 1,556 122 1,951 Total Revenue $ 50,262 $ 60,179 $ 21,943 $ 132,384 Three Months Ended February 28, 2019 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 17,566 $ 27,889 $ 7,519 $ 52,974 Asia 4,678 1,897 1,376 7,951 Europe 3,778 737 437 4,952 All other foreign 85 635 34 754 Total Revenue $ 26,107 $ 31,158 $ 9,366 $ 66,631 Six Months Ended February 28, 2019 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 36,113 $ 57,981 $ 17,204 $ 111,298 Asia 9,910 3,914 3,272 17,096 Europe 6,556 1,540 1,150 9,246 All other foreign 226 1,185 83 1,494 Total Revenue $ 52,805 $ 64,620 $ 21,709 $ 139,134

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Feb. 29, 2020
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	6 Months Ended
	Feb. 29, 2020
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 six months ended February 29, 2020 and February 28, 2019 were as follows: Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Components of net periodic benefit cost Service cost $ 74 $ 73 $ 147 $ 146 Interest cost 113 178 226 356 Expected return on plan assets (98) (109) (196) (221) Amortization of prior service cost 1 1 2 2 Amortization of accumulated loss 174 119 348 237 Curtailment and settlement loss — 273 — 473 Net periodic benefit cost $ 264 $ 535 $ 527 $ 993 When funding is required, the Company’s policy is to contribute amounts that are deductible for federal income tax purposes. The Company has made contributions of $785 in the six months ended February 29, 2020 to fund its obligations under its pension plans, and plans to make the necessary contributions over the remainder of fiscal 2020 to ensure the qualified plans continue to be adequately funded given the current market conditions, including conditions related to the coronavirus disease 2019 (COVID-19) pandemic. The Company made contributions of $784 in the six months ended February 28, 2019.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Feb. 29, 2020
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 February 29, 2020 and August 31, 2019 represent investments that are restricted for use in 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 February 29, 2020 and August 31, 2019: 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 February 29, 2020 $ 1,325 $ 1,118 $ 207 $ — Restricted investments August 31, 2019 $ 1,260 $ 1,091 $ 169 $ — The following table presents the fair value of the Company’s long-term debt (including any current portion of long-term debt) as of February 29, 2020 and August 31, 2019, 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 February 29, 2020 $ — $ — $ — $ — Long-term debt August 31, 2019 $ — $ — $ — $ — The long-term debt had no outstanding balance as of February 29, 2020 and August 31, 2019. 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. See Note 16 to the condensed consolidated financial statements for additional information on long-term debt.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
	Feb. 29, 2020
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 Plans Adjustment Total Balance at August 31, 2018 $ 126 $ (5,796) $ (6,666) $ (12,336) Other comprehensive gains (losses) before reclassifications (1) (11) — 538 527 Reclassifications to net income of previously deferred (gains) losses (2) 3 527 — 530 Other comprehensive income (loss) (8) 527 538 1,057 Balance at February 28, 2019 $ 118 $ (5,269) $ (6,128) $ (11,279) Balance at August 31, 2019 $ 154 $ (6,271) $ (8,207) $ (14,324) Other comprehensive gains (losses) before reclassifications (3) 19 — 1,395 1,414 Reclassifications to net income of previously deferred (gains) losses (4) (21) 259 — 238 Other comprehensive income (loss) (2) 259 1,395 1,652 Adoption of ASU 2018-02 (5) — (1,388) — (1,388) Balance at February 29, 2020 $ 152 $ (7,400) $ (6,812) $ (14,060) (1) Net of tax expense of $5, $0 and $0, respectively. (2) Net of tax benefit of $1, $184 and $0, respectively. (3) Net of tax benefit of $7, $0 and $0, respectively. (4) Net of tax expense of $8, tax benefit of $91 and $0, respectively. (5) See Note 2 for further information related to the adoption of ASU 2018-02. 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 Six Months Ended Location of Gain (Loss) Reclassified from Accumulated February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized loss (gain) on sale of restricted investments $ (23) $ (13) $ (28) $ 4 Selling, general and administrative expenses Tax expense (benefit) 6 3 7 (1) Gain net of tax $ (17) $ (10) $ (21) $ 3 Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ 175 $ 119 $ 350 $ 238 Other income (expense) Settlement and curtailment loss — 273 — 473 Other income (expense) Tax expense (benefit) (47) (101) (91) (184) Loss net of tax $ 128 $ 291 $ 259 $ 527 Total net loss reclassified for the period $ 111 $ 281 $ 238 $ 530

Assets Held for Sale

Assets Held for Sale	6 Months Ended
	Feb. 29, 2020
Assets Held for Sale
Assets Held for Sale	Note 14 — Assets Held for Sale The Company periodically reviews long-lived assets against its plans to retain or ultimately dispose of these assets. If the Company decides to dispose of an asset and commits to a plan to actively market and sell the asset, it will be moved to assets held for sale. The Company analyzes market conditions each reporting period, and, if applicable, records additional impairments due to declines in market values of like assets. The fair value of the asset is determined by observable inputs such as appraisals and prices of comparable assets in active markets for assets like the Company's. Gains are not recognized until the assets are sold. Assets held for sale as of February 29, 2020 and August 31, 2019 were: February 29, 2020 August 31, 2019 Pawtucket, RI - Property, plant and equipment $ 1,050 $ 1,050 Randolph, MA - Property 14 14 Total $ 1,064 $ 1,064 See Note 15 to the condensed consolidated financial statements for additional information on the Pawtucket, RI location assets held as of February 29, 2020. The Company completed the sale of its Pawtucket, RI location to a third-party in April 2020, subsequent to the second fiscal quarter, for net proceeds totaling $1,810.

Operations Optimization Costs

Operations Optimization Costs	6 Months Ended
	Feb. 29, 2020
Operations Optimization Costs
Operations Optimization Costs	Note 15 — Operations Optimization Costs IT Studies Related to the Upgrade of the Company’s Worldwide ERP System During the first quarter of fiscal 2020, third-party-led studies regarding the potential upgrading of the Company’s current worldwide ERP system were conducted. Chase is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around our facilities rationalization and consolidation initiative. The Company recognized $150 in expense related to these services in the first quarter of fiscal 2020, with no expense recognized in the second fiscal quarter. Given the ongoing nature of the review, an estimate of future costs, including those that may be capitalized, cannot currently be determined. Relocation of Pulling and Detection Manufacturing to Hickory, NC During the third quarter of fiscal 2019, Chase began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. At the time, the pulling and detection operations were the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving, including moving internal research and development capabilities, was substantially completed during the second quarter of fiscal 2020. The Company recognized $60 and $559 in expense related to the move in the three-month and six-month periods ended February 29, 2020, respectively, having recognized $526 in expense during the second half of fiscal 2019. Future costs related to this move are not anticipated to be significant to the condensed consolidated financial statements. Closure of Pawtucket, RI Facility 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 manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018, with no additional expense recognized in the remainder of fiscal 2019 or in fiscal 2020. Future costs related to this move are not anticipated to be significant to the condensed consolidated financial statements.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Feb. 29, 2020
Long-Term Debt
Long-Term Debt	Note 16 — Long-Term Debt On December 15, 2016, the Company entered into 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 facility matures December 15, 2021. The Credit Agreement contains customary affirmative and negative covenants that, among other things, restrict our ability to incur additional indebtedness and require 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 February 29, 2020. The Credit Agreement is guaranteed by all of Chase’s direct and indirect domestic subsidiaries, which collectively had a carrying value of $250,785 at February 29, 2020. The Company entered into the Credit Agreement 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 February 29, 2020, there was no outstanding principal balance, and therefore no applicable interest rate. 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 December 2017 (fiscal 2018), the Company utilized $65,000 of the Credit Agreement to finance the majority of the acquisition cost of Zappa Stewart. The Company paid down $40,000 of the outstanding balance in fiscal 2018, and made additional principal payments of $10,000, $9,000 and $6,000 in the first, second and third quarters of fiscal 2019, respectively, resulting in an outstanding balance of $0 at August 31, 2019 and February 29, 2020.

Income Taxes

Income Taxes	6 Months Ended
	Feb. 29, 2020
Income Taxes
Income Taxes	Note 17 — Income Taxes For the three months ended February 29, 2020 and February 28, 2019, the Company recorded income taxes of $2,926 and $1,659 on income before income taxes of $10,805 and $6,932, respectively. For the six months ended February 29, 2020 and February 28, 2019, the Company recorded income taxes of $5,635 and $4,644 on income before income taxes of $20,876 and $18,740, respectively. The effective tax rate for the three months ended February 29, 2020 and February 28, 2019 was 27.1% and 23.9%, respectively. The effective tax rate for the six months ended February 29, 2020 and February 28, 2019 was 27.0% and 24.8%, respectively. On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act impacted the U.S. statutory Federal tax rate that the Company will be subject to going forward, reducing it from 35% to 21%. The Company applied this U.S. statutory Federal rate of 21% for both the quarters and six-month periods ended February 29, 2020 and February 28, 2019. During the quarter ended November 30, 2018 (the first quarter of fiscal 2019), the Company began recognizing an additional component of total Federal tax expense, the tax on Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Act, which became applicable to the Company in fiscal 2019. The Company elected to account for GILTI as a period cost, and therefore included GILTI expense in the effective tax rate calculation. This provision did not have a material effect on the effective tax rate for the quarters and six-month periods ended February 29, 2020 and February 28, 2019. The Company concluded that the Base Erosion and Anti Abuse Tax (“BEAT”) provision of the Tax Act, which also became applicable to the Company in fiscal 2019, had no effect on our effective tax rate for the first two quarters of fiscal year 2020 and 2019. Additionally, the Company is deferring the application of Foreign-Derived Intangible Income (“FDII”) for the current period, in anticipation of further guidance and the establishment of industry standards by the U.S. Treasury Department and trade associations.

Subsequent Events

Subsequent Events	6 Months Ended
	Feb. 29, 2020
Subsequent Events
Subsequent Events	Note 18 — Subsequent Events The Coronavirus Disease 2019 (COVID-19) Pandemic The global spread of the coronavirus disease 2019 (COVID-19) has created significant volatility, uncertainty and economic disruption. The locus of these effects in the second quarter has quickly grown from one Chinese province to a worldwide pandemic affecting the markets we serve in North America and Europe, as well as Asia. The effects of the COVID-19 were not believed to be significant on a companywide basis to our second quarter of fiscal 2020 results, affecting only certain product lines in the latter part of the quarter. However, effects on our results in our third fiscal quarter and other future periods could be significant and cannot currently be quantified given potential unknowns at this time. The extent to which the COVID-19 pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic; governmental, business and individuals’ actions that have been and continue to be taken in response to the pandemic; the impact of the pandemic on economic activity and actions taken in response; the effect on our customers’ demand for our goods and services and our vendors ability to supply us with raw materials; our ability to sell and provide our goods and services, including as a result of travel restrictions and people working from home; the ability of our customers to pay for our goods and services; and any further closures of our and our customers’ offices and facilities. Customers may also slow down decision-making, delay planned work or seek to terminate existing agreements. Any of these events could materially adversely affect our business, financial condition, results of operations and/or stock price. Sale of Pawtucket, RI Location The Company completed the sale of its Pawtucket, RI location to a third-party in April 2020, subsequent to the second fiscal quarter, for net proceeds totaling $1,810. The location was recorded as an asset held for sale as of February 29, 2020.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Feb. 29, 2020
Inventory
Schedule of inventory	February 29, August 31, 2020 2019 Raw materials $ 18,671 $ 20,325 Work in process 7,332 8,748 Finished goods 13,182 13,281 Total Inventory $ 39,185 $ 42,354

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Feb. 29, 2020
Net Income Per Share
Schedule of determination of earnings per share under the two-class method	Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Basic Earnings per Share Net income $ 7,879 $ 5,273 $ 15,241 $ 14,096 Less: Allocated to participating securities Net income available to common shareholders $ 7,810 $ 5,232 $ 15,123 $ 13,986 Basic weighted average shares outstanding Net income per share - Basic $ 0.83 $ 0.56 $ 1.62 $ 1.50 Diluted Earnings per Share Net income $ 7,879 $ 5,273 $ 15,241 $ 14,096 Less: Allocated to participating securities Net income available to common shareholders $ 7,810 $ 5,232 $ 15,123 $ 13,986 Basic weighted average shares outstanding Additional dilutive common stock equivalents Diluted weighted average shares outstanding Net income per share - Diluted $ 0.83 $ 0.56 $ 1.60 $ 1.49

Segment Data and Foreign Oper_2

Segment Data and Foreign Operations (Tables)	6 Months Ended
	Feb. 29, 2020
Segment Data and Foreign Operations
Summary of information about the Company's reportable segments	Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Revenue Adhesives, Sealants and Additives $ 24,440 $ 26,107 $ 50,262 $ 52,805 Industrial Tapes 30,055 31,158 60,179 64,620 Corrosion Protection and Waterproofing 11,087 9,366 21,943 21,709 Total $ 65,582 $ 66,631 $ 132,384 $ 139,134 Income before income taxes Adhesives, Sealants and Additives $ 6,750 $ 4,756 (b) $ 14,232 $ 13,021 (b) Industrial Tapes 8,402 (a) 7,513 15,039 (d) 14,051 (f) Corrosion Protection and Waterproofing 4,127 2,384 8,091 6,850 Total for reportable segments 19,279 14,653 37,362 33,922 Corporate and common costs (8,474) (7,721) (c) (16,486) (e) (15,182) (g) Total $ 10,805 $ 6,932 $ 20,876 $ 18,740 Includes the following costs by segment: Adhesives, Sealants and Additives Interest $ 21 $ 59 $ 42 $ 138 Depreciation 278 382 592 765 Amortization 2,356 2,339 4,693 4,679 Industrial Tapes Interest $ 29 $ 71 $ 54 $ 155 Depreciation 418 438 819 894 Amortization 450 450 900 900 Corrosion Protection and Waterproofing Interest $ 6 $ 32 $ 15 $ 73 Depreciation 151 164 305 339 Amortization 106 323 233 646 (a) Includes $60 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first quarter of fiscal 2020 (b) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business (c) Includes $273 of pension-related settlement costs due to the timing of lump-sum distributions (d) Includes $559 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first six months of fiscal 2020 (e) Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to our companywide ERP system (f) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first six months of fiscal 2019 (g) Includes $473 of pension-related settlement costs due to the timing of lump-sum distributions Total assets for the Company’s reportable segments as of February 29, 2020 and August 31, 2019 were: February 29, August 31, 2020 2019 Total Assets Adhesives, Sealants and Additives $ 139,992 $ 135,583 Industrial Tapes 70,600 77,085 Corrosion Protection and Waterproofing 32,537 32,478 Total for reportable segments 243,129 245,146 Corporate and common assets 83,140 62,822 Total $ 326,269 $ 307,968
Schedule of revenue by country	Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Revenue United States $ 57,236 $ 57,942 $ 115,597 $ 122,293 United Kingdom 4,788 4,428 9,419 8,444 All other foreign (1) 3,558 4,261 7,368 8,397 Total $ 65,582 $ 66,631 $ 132,384 $ 139,134 (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	February 29, August 31, 2020 2019 Long-Lived Assets United States Property, plant and equipment, net $ 24,041 $ 24,993 Goodwill and Intangible assets, less accumulated amortization 123,466 129,057 United Kingdom Property, plant and equipment, net 2,425 2,493 Goodwill and Intangible assets, less accumulated amortization 4,457 4,446 All other foreign Property, plant and equipment, net 909 1,840 Goodwill and Intangible assets, less accumulated amortization 1,184 1,187 Total Property, plant and equipment, net $ 27,375 $ 29,326 Goodwill and Intangible assets, less accumulated amortization $ 129,107 $ 134,690

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	6 Months Ended
	Feb. 29, 2020
Goodwill and Other Intangibles
Schedule of changes in the carrying value of goodwill	Adhesives, Sealants and Additives Industrial Tapes Corrosion Protection and Waterproofing Consolidated Balance at August 31, 2019 $ 50,090 $ 21,215 $ 10,681 $ 81,986 Foreign currency translation adjustment 178 — 11 189 Balance at February 29, 2020 $ 50,268 $ 21,215 $ 10,692 $ 82,175
Schedule of intangible assets subject to amortization	Weighted Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value February 29, 2020 Patents and agreements years $ 1,760 $ 1,699 $ 61 Formulas and technology years 10,222 8,594 1,628 Trade names years 8,545 7,527 1,018 Customer lists and relationships years 98,568 54,343 44,225 $ 119,095 $ 72,163 $ 46,932 August 31, 2019 Patents and agreements years $ 1,760 $ 1,693 $ 67 Formulas and technology years 10,164 7,969 2,195 Trade names years 8,503 7,261 1,242 Customer lists and relationships years 98,139 48,939 49,200 $ 118,566 $ 65,862 $ 52,704
Schedule of estimated amortization expense	Years ending August 31, 2020 (remaining 6 months) $ 5,737 2021 11,049 2022 10,030 2023 6,768 2024 5,659 2025 5,552

Leases (Tables)

Leases (Tables)	6 Months Ended
	Feb. 29, 2020
Leases
Schedule of Lessee's balance sheet disclosure	February 29, 2020 Assets Operating lease right-of-use asset $ 9,256 Liabilities Current (accrued expense) $ 2,053 Operating lease long-term liabilities 6,648 Total lease liability $ 8,701
Schedule of components of lease costs	Three Months Ended Six Months Ended February 29, 2020 February 29, 2020 Operating lease cost (a) $ 919 $ 1,850
Schedule of Maturity of lease liability	Future Operating Year ending August 31, Lease Payments 2020 (remaining 6 months) $ 1,294 2021 1,989 2022 1,344 2023 1,190 2024 1,204 2025 and thereafter 2,613 Less: Interest (933) Present value of lease liabilities $ 8,701 Future Operating Year ending August 31, Lease Payments 2020 $ 2,468 2021 2,059 2022 1,371 2023 1,187 2024 1,200 2025 and thereafter 2,608 Total future minimum lease payments $ 10,893
Schedule of weighted average remaining lease term and discount rates	February 29, 2020 Lease Term and Discount Rate Weighted average remaining lease term (years) Operating leases 5.7 Weighted average discount rate (percentage) Operating leases 3.1 %
Schedule of supplemental cash flow information	Six Months Ended February 29, 2020 Operating cash outflows from operating leases $ 1,217 Total cash paid for amounts included in the measurement of lease liabilities $ 1,217

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Feb. 29, 2020
Revenue from Contracts with Customers
Schedule of contract assets by reportable operating segment	February 29, August 31, 2020 2019 Contract Assets Adhesives, Sealants and Additives $ 46 $ 42 Industrial Tapes 19 26 Corrosion Protection and Waterproofing 45 79 Total $ 110 $ 147
Schedule of disaggregation of revenue	Three Months Ended February 29, 2020 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 16,335 $ 26,661 $ 8,932 $ 51,928 Asia 4,284 1,712 1,592 7,588 Europe 3,642 805 500 4,947 All other foreign 179 877 63 1,119 Total Revenue $ 24,440 $ 30,055 $ 11,087 $ 65,582 Six Months Ended February 29, 2020 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 34,041 $ 53,674 $ 17,688 $ 105,403 Asia 8,727 3,403 2,682 14,812 Europe 7,221 1,546 1,451 10,218 All other foreign 273 1,556 122 1,951 Total Revenue $ 50,262 $ 60,179 $ 21,943 $ 132,384 Three Months Ended February 28, 2019 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 17,566 $ 27,889 $ 7,519 $ 52,974 Asia 4,678 1,897 1,376 7,951 Europe 3,778 737 437 4,952 All other foreign 85 635 34 754 Total Revenue $ 26,107 $ 31,158 $ 9,366 $ 66,631 Six Months Ended February 28, 2019 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 36,113 $ 57,981 $ 17,204 $ 111,298 Asia 9,910 3,914 3,272 17,096 Europe 6,556 1,540 1,150 9,246 All other foreign 226 1,185 83 1,494 Total Revenue $ 52,805 $ 64,620 $ 21,709 $ 139,134

Pensions and Postretirement Ben

Pensions and Postretirement Benefits (Tables)	6 Months Ended
	Feb. 29, 2020
Pensions and Other Postretirement Benefits
Schedule of components of net periodic benefit cost	Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Components of net periodic benefit cost Service cost $ 74 $ 73 $ 147 $ 146 Interest cost 113 178 226 356 Expected return on plan assets (98) (109) (196) (221) Amortization of prior service cost 1 1 2 2 Amortization of accumulated loss 174 119 348 237 Curtailment and settlement loss — 273 — 473 Net periodic benefit cost $ 264 $ 535 $ 527 $ 993

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Feb. 29, 2020
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 February 29, 2020 $ 1,325 $ 1,118 $ 207 $ — Restricted investments August 31, 2019 $ 1,260 $ 1,091 $ 169 $ —
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 February 29, 2020 $ — $ — $ — $ — Long-term debt August 31, 2019 $ — $ — $ — $ —

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Feb. 29, 2020
Accumulated Other Comprehensive Income
Schedule of changes in accumulated other comprehensive income (loss), net of tax	Change in Funded Foreign Currency Restricted Status of Translation Investments Pension Plans Adjustment Total Balance at August 31, 2018 $ 126 $ (5,796) $ (6,666) $ (12,336) Other comprehensive gains (losses) before reclassifications (1) (11) — 538 527 Reclassifications to net income of previously deferred (gains) losses (2) 3 527 — 530 Other comprehensive income (loss) (8) 527 538 1,057 Balance at February 28, 2019 $ 118 $ (5,269) $ (6,128) $ (11,279) Balance at August 31, 2019 $ 154 $ (6,271) $ (8,207) $ (14,324) Other comprehensive gains (losses) before reclassifications (3) 19 — 1,395 1,414 Reclassifications to net income of previously deferred (gains) losses (4) (21) 259 — 238 Other comprehensive income (loss) (2) 259 1,395 1,652 Adoption of ASU 2018-02 (5) — (1,388) — (1,388) Balance at February 29, 2020 $ 152 $ (7,400) $ (6,812) $ (14,060) (1) Net of tax expense of $5, $0 and $0, respectively. (2) Net of tax benefit of $1, $184 and $0, respectively. (3) Net of tax benefit of $7, $0 and $0, respectively. (4) Net of tax expense of $8, tax benefit of $91 and $0, respectively. (5) See Note 2 for further information related to the adoption of ASU 2018-02.
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 Six Months Ended Location of Gain (Loss) Reclassified from Accumulated February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized loss (gain) on sale of restricted investments $ (23) $ (13) $ (28) $ 4 Selling, general and administrative expenses Tax expense (benefit) 6 3 7 (1) Gain net of tax $ (17) $ (10) $ (21) $ 3 Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ 175 $ 119 $ 350 $ 238 Other income (expense) Settlement and curtailment loss — 273 — 473 Other income (expense) Tax expense (benefit) (47) (101) (91) (184) Loss net of tax $ 128 $ 291 $ 259 $ 527 Total net loss reclassified for the period $ 111 $ 281 $ 238 $ 530

Assets Held for Sale (Tables)

Assets Held for Sale (Tables)	6 Months Ended
	Feb. 29, 2020
Assets Held for Sale
Summary of assets held for sale	February 29, 2020 August 31, 2019 Pawtucket, RI - Property, plant and equipment $ 1,050 $ 1,050 Randolph, MA - Property 14 14 Total $ 1,064 $ 1,064

Basis of Financial Statement _2

Basis of Financial Statement Presentation (Details) - USD ($) $ in Thousands	Apr. 09, 2020	Jun. 25, 2018	Feb. 29, 2020	Nov. 30, 2019	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2018	Feb. 29, 2020	Aug. 31, 2019	Feb. 28, 2019	Aug. 31, 2019
Exit costs related to facilities			$ 60					$ 709		$ 260
Pawtucket, RI manufacturing facility
Proceeds from the sale of property	$ 1,810
Transition period		2 months
Exit costs related to facilities						$ 260	$ 1,272	0		0	$ 0
Pawtucket, RI manufacturing facility | Subsequent Events
Proceeds from the sale of property	$ 1,810
Granite Falls Location
Exit costs related to facilities			60					559	$ 526
Other income (expense)
Foreign currency translation gain (loss)			(105)		$ (468)			(606)		$ (416)
Engineering Studies related to Facility Consolidation and Rationalization Initiative
Business development cost			$ 0	$ 150				$ 150

Recent Accounting Standards (De

Recent Accounting Standards (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2017	Feb. 29, 2020	Feb. 28, 2019	Sep. 01, 2019
Recently Adopted Accounting Pronouncements
Package of practical expedients			true
Operating lease liability			$ 8,701
Operating lease liability, short-term			2,053
Operating Lease, Liability, Noncurrent			6,648
Operating Lease, Right-of-Use Asset			$ 9,256
Statutory tax rate (as a percent)	21.00%	35.00%	21.00%	21.00%
ASU 2016-02
Recently Adopted Accounting Pronouncements
Operating lease liability					$ 9,644
Operating lease liability, short-term					2,071
Operating Lease, Liability, Noncurrent					7,573
Operating Lease, Right-of-Use Asset					$ 10,200

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Inventory
Raw materials	$ 18,671	$ 20,325
Work in process	7,332	8,748
Finished goods	13,182	13,281
Total Inventory	$ 39,185	$ 42,354

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Basic Earnings per Share
Net income	$ 7,879	$ 5,273	$ 15,241	$ 14,096
Less: Allocated to participating securities	69	41	118	110
Available to common shareholders	$ 7,810	$ 5,232	$ 15,123	$ 13,986
Basic weighted average shares outstanding	9,355,821	9,332,288	9,353,985	9,330,929
Net income per share - Basic (in dollars per share)	$ 0.83	$ 0.56	$ 1.62	$ 1.50
Diluted Earnings per Share
Net income	$ 7,879	$ 5,273	$ 15,241	$ 14,096
Less: Allocated to participating securities	69	41	118	110
Net income available to common shareholders	$ 7,810	$ 5,232	$ 15,123	$ 13,986
Basic weighted average shares outstanding	9,355,821	9,332,288	9,353,985	9,330,929
Additional dilutive common stock equivalents (in shares)	88,390	40,742	85,230	46,238
Diluted weighted average shares outstanding	9,444,211	9,373,030	9,439,215	9,377,167
Net income per share - Diluted (in dollars per share)	$ 0.83	$ 0.56	$ 1.60	$ 1.49
Antidilutive securities
Antidilutive stock options excluded from computation of earnings per share amount (in shares)	8,805	15,625	8,805	14,022

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	Sep. 01, 2019item$ / sharesshares	Sep. 01, 2018shares	Feb. 29, 2020shares	Aug. 31, 2019shares	Feb. 29, 2020shares	Aug. 31, 2019shares	Feb. 29, 2020shares	Feb. 28, 2019shares
Restricted stock
Stock-Based Compensation
Shares forfeited							2,694
Restricted stock | Non-employee members of BOD
Stock-Based Compensation
Shares granted			4,906
Vesting period			12 years
Time-based restricted stock | Executive officers | Equity Retention Agreement | August 31, 2022 vesting date
Stock-Based Compensation
Shares granted	15,945
Stock options | Executive officers | Equity Retention Agreement | August 31, 2022 vesting date
Stock-Based Compensation
Shares granted	53,642
Exercise price (in dollars per share) | $ / shares	$ 100.22
2018 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted		6,609
2019 LTIP | Restricted stock
Stock-Based Compensation
Shares forfeited				833
2019 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted								211
2019 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted						132
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2021 vesting date
Stock-Based Compensation
Shares granted					18,720
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2022 vesting date
Stock-Based Compensation
Shares granted					616
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2024 vesting date
Stock-Based Compensation
Shares granted					432
2020 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2022 vesting date
Stock-Based Compensation
Shares granted	3,697
2020 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2022 vesting date
Stock-Based Compensation
Shares granted	3,689
2020 LTIP | Stock options | Executive officers and other members of management
Stock-Based Compensation
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 100.22
Number of equal annual allotments in which awards will vest | item	3
Stock options expiring earlier (in shares)	6,218
Stock options expiring later (in shares)	7,200
Shares authorized	13,418

Segment Data and Foreign Oper_3

Segment Data and Foreign Operations (Details) $ in Thousands	3 Months Ended						6 Months Ended			9 Months Ended
	Feb. 29, 2020USD ($)segment	Nov. 30, 2019USD ($)	Aug. 31, 2019USD ($)segment	Feb. 28, 2019USD ($)	Nov. 30, 2018USD ($)	Aug. 31, 2018USD ($)	Feb. 29, 2020USD ($)segment	Aug. 31, 2019USD ($)	Feb. 28, 2019USD ($)	Aug. 31, 2019USD ($)
Segment data
Number of operating segments | segment	3		2				3
Revenue	$ 65,582			$ 66,631			$ 132,384		$ 139,134
Income before income taxes	10,805			6,932			20,876		18,740
Interest	56			162			111		366
Depreciation							2,041		2,491
Amortization							5,826		6,225
Exit costs related to facilities	60						709		260
Impairment of goodwill				2,410					2,410
Curtailment and settlement loss				273					473
Total assets	326,269		$ 307,968				326,269	$ 307,968		$ 307,968
Granite Falls Location
Segment data
Exit costs related to facilities	60						559	526
Pawtucket, RI manufacturing facility
Segment data
Exit costs related to facilities					$ 260	$ 1,272	0		0	0
Adhesives, Sealants and Additives
Segment data
Revenue	24,440			26,107			50,262		52,805
Income before income taxes	6,750			4,756			14,232		13,021
Interest	21			59			42		138
Depreciation	278			382			592		765
Amortization	2,356			2,339			4,693		4,679
Impairment of goodwill				2,410
Total assets	139,992		135,583				139,992	135,583		135,583
Industrial Tapes
Segment data
Revenue	30,055			31,158			60,179		64,620
Income before income taxes	8,402			7,513			15,039		14,051
Interest	29			71			54		155
Depreciation	418			438			819		894
Amortization	450			450			900		900
Total assets	70,600		77,085				70,600	77,085		77,085
Corrosion Protection and Waterproofing
Segment data
Revenue	11,087			9,366			21,943		21,709
Income before income taxes	4,127			2,384			8,091		6,850
Interest	6			32			15		73
Depreciation	151			164			305		339
Amortization	106			323			233		646
Total assets	32,537		32,478				32,537	32,478		32,478
Industrial Materials | Pawtucket, RI manufacturing facility
Segment data
Exit costs related to facilities									260
Reportable segments
Segment data
Income before income taxes	19,279			14,653			37,362		33,922
Total assets	243,129		245,146				243,129	245,146		245,146
Corporate and common costs
Segment data
Income before income taxes	(8,474)			(7,721)			(16,486)		(15,182)
Curtailment and settlement loss				$ 273					$ 473
Total assets	83,140		$ 62,822				83,140	$ 62,822		$ 62,822
Engineering Studies related to Facility Consolidation and Rationalization Initiative
Segment data
Business development cost	$ 0	$ 150					$ 150

Segment Data and Foreign Oper_4

Segment Data and Foreign Operations - Revenue and Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019	Aug. 31, 2019
Concentration risk
Revenue	$ 65,582	$ 66,631	$ 132,384	$ 139,134
Property, plant and equipment, net	27,375		27,375		$ 29,326
Goodwill and Intangible assets, less accumulated amortization	129,107		129,107		134,690
United States
Concentration risk
Revenue	57,236	57,942	115,597	122,293
Property, plant and equipment, net	24,041		24,041		24,993
Goodwill and Intangible assets, less accumulated amortization	123,466		123,466		129,057
United Kingdom
Concentration risk
Revenue	4,788	4,428	9,419	8,444
Property, plant and equipment, net	2,425		2,425		2,493
Goodwill and Intangible assets, less accumulated amortization	4,457		4,457		4,446
All other Foreign
Concentration risk
Revenue	3,558	$ 4,261	7,368	$ 8,397
Property, plant and equipment, net	909		909		1,840
Goodwill and Intangible assets, less accumulated amortization	$ 1,184		$ 1,184		$ 1,187

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Goodwill (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Feb. 29, 2020USD ($)segment	Aug. 31, 2019USD ($)segment	Feb. 28, 2019USD ($)	Feb. 29, 2020USD ($)segmentitem	Feb. 28, 2019USD ($)
Changes in the carrying value of goodwill
Balance at the beginning of the period				$ 81,986
Foreign currency translation adjustment				189
Balance at the end of the period	$ 82,175	$ 81,986		$ 82,175
Number of operating segments | segment	3	2		3
Number of reporting units | item				3
Loss on impairment of goodwill (Note 7)			$ 2,410		$ 2,410
Adhesives, Sealants and Additives
Changes in the carrying value of goodwill
Balance at the beginning of the period				$ 50,090
Foreign currency translation adjustment				178
Balance at the end of the period	$ 50,268	$ 50,090		50,268
Loss on impairment of goodwill (Note 7)			$ 2,410
Industrial Tapes
Changes in the carrying value of goodwill
Balance at the beginning of the period				21,215
Balance at the end of the period	21,215	21,215		21,215
Corrosion Protection and Waterproofing
Changes in the carrying value of goodwill
Balance at the beginning of the period				10,681
Foreign currency translation adjustment				11
Balance at the end of the period	$ 10,692	$ 10,681		$ 10,692

Goodwill and Other Intangible_3

Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Aug. 31, 2019
Goodwill and Other Intangibles
Gross Carrying Value	$ 119,095		$ 118,566
Accumulated Amortization	72,163		65,862
Net Carrying Value	46,932		$ 52,704
Aggregate amortization expense	5,826	$ 6,225
Estimated amortization expense
2020 (remaining 6 months)	5,737
2021	11,049
2022	10,030
2023	6,768
2024	5,659
2025	$ 5,552
Patents and agreements
Goodwill and Other Intangibles
Weighted-Average Amortization Period	14 years 7 months 6 days		14 years 7 months 6 days
Gross Carrying Value	$ 1,760		$ 1,760
Accumulated Amortization	1,699		1,693
Net Carrying Value	$ 61		$ 67
Formulas and technology
Goodwill and Other Intangibles
Weighted-Average Amortization Period	7 years 9 months 18 days		7 years 9 months 18 days
Gross Carrying Value	$ 10,222		$ 10,164
Accumulated Amortization	8,594		7,969
Net Carrying Value	$ 1,628		$ 2,195
Trade names
Goodwill and Other Intangibles
Weighted-Average Amortization Period	5 years 9 months 18 days		5 years 9 months 18 days
Gross Carrying Value	$ 8,545		$ 8,503
Accumulated Amortization	7,527		7,261
Net Carrying Value	$ 1,018		$ 1,242
Customer lists and relationships
Goodwill and Other Intangibles
Weighted-Average Amortization Period	9 years 1 month 6 days		9 years 1 month 6 days
Gross Carrying Value	$ 98,568		$ 98,139
Accumulated Amortization	54,343		48,939
Net Carrying Value	$ 44,225		$ 49,200

Leases (Details)

Leases (Details) $ in Thousands	6 Months Ended
	Feb. 29, 2020USD ($)
Leases
Package of practical expedients	true
Assets
Operating lease right-of-use asset (Note 8)	$ 9,256
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Us-gaap:OtherNoncurrentAssetsMember
Current (accrued expense)	$ 2,053
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Us-gaap:AccruedLiabilitiesMember
Other non-current liabilities	$ 6,648
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Us-gaap:OtherNoncurrentLiabilitiesMember
Present value of lease liabilities	$ 8,701

Leases - Components Of Lease Co

Leases - Components Of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Feb. 29, 2020	Feb. 29, 2020
Leases
Operating lease cost	$ 919	$ 1,850

Leases - Maturity Of Lease Liab

Leases - Maturity Of Lease Liability (Details) $ in Thousands	Feb. 29, 2020USD ($)
Maturity of lease liability
2020 (remaining 6 months)	$ 1,294
2021	1,989
2022	1,344
2023	1,190
2024	1,204
2025 and thereafter	2,613
Less: Interest	(933)
Present value of lease liabilities	$ 8,701

Leases - Weighted Average Remai

Leases - Weighted Average Remaining Lease Term (Details) $ in Thousands	6 Months Ended
	Feb. 29, 2020USD ($)
Operating lease
Operating leases, Weighted average remaining lease term (years)	5 years 8 months 12 days
Operating leases, Weighted average discount rate (percentage)	3.10%
Operating cash outflows from operating leases	$ 1,217
Total cash paid for amounts included in the measurement of lease liabilities	$ 1,217

Leases - Minimum Lease Payments

Leases - Minimum Lease Payments Prior to ASU 2016-02 (Details) $ in Thousands	Aug. 31, 2019USD ($)
Future minimum payments due under operating leases
2020	$ 2,468
2021	2,059
2022	1,371
2023	1,187
2024	1,200
2025 and thereafter	2,608
Total future minimum lease payments	$ 10,893

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Contract Assets
Contract assets	$ 110	$ 147
Contract liabilities	0	0
Adhesives, Sealants and Additives
Contract Assets
Contract assets	46	42
Industrial Tapes
Contract Assets
Contract assets	19	26
Corrosion Protection and Waterproofing
Contract Assets
Contract assets	$ 45	$ 79

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Revenue from Contracts with Customers
Revenue	$ 65,582	$ 66,631	$ 132,384	$ 139,134
North America
Revenue from Contracts with Customers
Revenue	51,928	52,974	105,403	111,298
Asia
Revenue from Contracts with Customers
Revenue	7,588	7,951	14,812	17,096
Europe
Revenue from Contracts with Customers
Revenue	4,947	4,952	10,218	9,246
All other foreign
Revenue from Contracts with Customers
Revenue	1,119	754	1,951	1,494
Adhesives, Sealants and Additives
Revenue from Contracts with Customers
Revenue	24,440	26,107	50,262	52,805
Adhesives, Sealants and Additives | North America
Revenue from Contracts with Customers
Revenue	16,335	17,566	34,041	36,113
Adhesives, Sealants and Additives | Asia
Revenue from Contracts with Customers
Revenue	4,284	4,678	8,727	9,910
Adhesives, Sealants and Additives | Europe
Revenue from Contracts with Customers
Revenue	3,642	3,778	7,221	6,556
Adhesives, Sealants and Additives | All other foreign
Revenue from Contracts with Customers
Revenue	179	85	273	226
Industrial Tapes
Revenue from Contracts with Customers
Revenue	30,055	31,158	60,179	64,620
Industrial Tapes | North America
Revenue from Contracts with Customers
Revenue	26,661	27,889	53,674	57,981
Industrial Tapes | Asia
Revenue from Contracts with Customers
Revenue	1,712	1,897	3,403	3,914
Industrial Tapes | Europe
Revenue from Contracts with Customers
Revenue	805	737	1,546	1,540
Industrial Tapes | All other foreign
Revenue from Contracts with Customers
Revenue	877	635	1,556	1,185
Corrosion Protection and Waterproofing
Revenue from Contracts with Customers
Revenue	11,087	9,366	21,943	21,709
Corrosion Protection and Waterproofing | North America
Revenue from Contracts with Customers
Revenue	8,932	7,519	17,688	17,204
Corrosion Protection and Waterproofing | Asia
Revenue from Contracts with Customers
Revenue	1,592	1,376	2,682	3,272
Corrosion Protection and Waterproofing | Europe
Revenue from Contracts with Customers
Revenue	500	437	1,451	1,150
Corrosion Protection and Waterproofing | All other foreign
Revenue from Contracts with Customers
Revenue	$ 63	$ 34	$ 122	$ 83

Pensions and Other Postretire_2

Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Components of net periodic benefit cost
Service cost	$ 74	$ 73	$ 147	$ 146
Interest cost	113	178	226	356
Expected return on plan assets	(98)	(109)	(196)	(221)
Amortization of prior service cost	1	1	2	2
Amortization of accumulated loss	174	119	348	237
Curtailment and settlement loss		273		473
Net periodic benefit cost	$ 264	$ 535	527	993
Employer contribution			$ 785	$ 784

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Fair value measurements
Long term debt outstanding	$ 0	$ 0
Recurring basis
Fair value measurements
Restricted investments	1,325	1,260
Recurring basis | Quoted prices in active markets (Level 1)
Fair value measurements
Restricted investments	1,118	1,091
Recurring basis | Significant other observable inputs (Level 2)
Fair value measurements
Restricted investments	$ 207	$ 169

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Accumulated other comprehensive income
Balance	$ 273,473	$ 248,193	$ 271,227	$ 246,756
Total other comprehensive (loss) income	(57)	1,448	1,652	1,057
Balance	282,117	255,635	282,117	255,635
Restricted investments, other comprehensive gains (losses) before reclassifications, tax benefit				5
Restricted investments, other comprehensive gains (losses) before reclassifications, tax expense			7
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			8	1
Change in funded status of pension plan, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit			91	184
Foreign currency translation adjustment, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit			0	0
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income
Balance	(14,003)	(12,727)	(14,324)	(12,336)
Other comprehensive gains (losses) before reclassifications			1,414	527
Reclassifications to net income of previously deferred (gains) losses			238	530
Adoption of ASU 2018-02	(1,388)		(1,388)
Total other comprehensive (loss) income			1,652	1,057
Balance	(14,060)	(11,279)	(14,060)	(11,279)
Restricted investments
Accumulated other comprehensive income
Balance			154	126
Other comprehensive gains (losses) before reclassifications			19	(11)
Reclassifications to net income of previously deferred (gains) losses			(21)	3
Total other comprehensive (loss) income			(2)	(8)
Balance	152	118	152	118
Change in funded status of pension plans
Accumulated other comprehensive income
Balance			(6,271)	(5,796)
Reclassifications to net income of previously deferred (gains) losses			259	527
Adoption of ASU 2018-02	(1,388)		(1,388)
Total other comprehensive (loss) income			259	527
Balance	(7,400)	(5,269)	(7,400)	(5,269)
Foreign currency translation adjustment
Accumulated other comprehensive income
Balance			(8,207)	(6,666)
Other comprehensive gains (losses) before reclassifications			1,395	538
Total other comprehensive (loss) income			1,395	538
Balance	$ (6,812)	$ (6,128)	$ (6,812)	$ (6,128)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Accumulated other comprehensive income
Selling, general and administrative expenses	$ (13,810)	$ (13,086)	$ (27,450)	$ (26,448)
Amortization of prior pension service costs and unrecognized losses	1	1	2	2
Settlement and curtailment loss		(273)		(473)
Tax expense (benefit)	(2,926)	(1,659)	(5,635)	(4,644)
Net income (loss)	7,879	5,273	15,241	14,096
Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Net income (loss)	111	281	238	530
Restricted investments | Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Selling, general and administrative expenses	(23)	(13)	(28)	4
Tax expense (benefit)	6	3	7	(1)
Net income (loss)	(17)	(10)	(21)	3
Change in funded status of pension plans | Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Tax expense (benefit)	(47)	(101)	(91)	(184)
Net income (loss)	128	291	259	527
Change in funded status of pension plans | Reclassification out of accumulated other comprehensive income (loss) | Other income (expense)
Accumulated other comprehensive income
Amortization of prior pension service costs and unrecognized losses	$ 175	119	$ 350	238
Settlement and curtailment loss		$ 273		$ 473

Assets Held for Sale (Details)

Assets Held for Sale (Details) - USD ($) $ in Thousands	Apr. 09, 2020	Feb. 29, 2020	Aug. 31, 2019
Assets held for sale
Assets held for sale		$ 1,064	$ 1,064
Pawtucket, RI manufacturing facility
Assets held for sale
Assets held for sale		1,050	1,050
Proceeds from the sale of property	$ 1,810
Randolph, MA - Property
Assets held for sale
Assets held for sale		$ 14	$ 14

Operations Optimization Costs (

Operations Optimization Costs (Details) - USD ($) $ in Thousands	Jun. 25, 2018	Feb. 29, 2020	Nov. 30, 2019	Nov. 30, 2018	Aug. 31, 2018	Feb. 29, 2020	Aug. 31, 2019	Feb. 28, 2019	Aug. 31, 2019
Operations Optimization Costs
Exit costs related to facilities		$ 60				$ 709		$ 260
Granite Falls Location
Operations Optimization Costs
Exit costs related to facilities		60				559	$ 526
Pawtucket, RI manufacturing facility
Operations Optimization Costs
Restructuring Period	2 months
Exit costs related to facilities				$ 260	$ 1,272	0		$ 0	$ 0
Engineering Studies related to Facility Consolidation and Rationalization Initiative
Operations Optimization Costs
Business Development		$ 0	$ 150			$ 150

Long-Term Debt (Details)

Long-Term Debt (Details) $ in Thousands	Dec. 15, 2016USD ($)	Dec. 31, 2017USD ($)	May 31, 2019USD ($)	Feb. 28, 2019USD ($)	Nov. 30, 2018USD ($)	Feb. 29, 2020USD ($)	Feb. 28, 2019USD ($)	Aug. 31, 2018USD ($)	Aug. 31, 2019USD ($)
Long-term debt
Principal payment							$ 19,000
New Credit Agreement
Long-term debt
Maximum borrowing capacity	$ 150,000
Additional borrowing capacity	$ 50,000
Carrying value of direct and indirect domestic subsidiaries						$ 250,785
Applicable interest rate (as a percent)						0.00%
Term of debt						5 years
Amount drawn remained outstanding						$ 0			$ 0
Term of potential debt						7 years
Amount drew in relation to acquisition		$ 65,000
Principal payment			$ 6,000	$ 9,000	$ 10,000			$ 40,000
New Credit Agreement | Minimum
Long-term debt
Consolidated fixed charge coverage ratio	1.25
New Credit Agreement | Maximum
Long-term debt
Net leverage ratio	3.25
New Credit Agreement | London Interbank Offered Rate (LIBOR)
Long-term debt
Interest payment due						3 months
New Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum
Long-term debt
Interest rate margin on variable rate basis (as a percent)						1.00%
New Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum
Long-term debt
Interest rate margin on variable rate basis (as a percent)						1.75%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2017	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Effective income tax rate
Income taxes			$ 2,926	$ 1,659	$ 5,635	$ 4,644
Income before income taxes			$ 10,805	$ 6,932	$ 20,876	$ 18,740
Effective income tax rate			27.10%	23.90%	27.00%	24.80%
Statutory tax rate (as a percent)	21.00%	35.00%			21.00%	21.00%

Subsequent Events (Details)

Subsequent Events (Details) - Pawtucket, RI manufacturing facility $ in Thousands	Apr. 09, 2020USD ($)
Subsequent Events
Proceeds from the sale of property	$ 1,810
Subsequent Events
Subsequent Events
Proceeds from the sale of property	$ 1,810