Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Oct. 31, 2020 | Feb. 29, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Period End Date | Aug. 31, 2020 | ||
Entity Registrant Name | CHASE CORP | ||
Title of 12(b) Security | Common stock, $.10 par value | ||
Trading Symbol | CCF | ||
Security Exchange Name | NYSE | ||
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 | 9,445,474 | ||
Entity Central Index Key | 0000830524 | ||
Current Fiscal Year End Date | --08-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 465,871,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 99,068 | $ 47,771 |
Accounts receivable, less allowance for doubtful accounts of $438 and $739 | 36,993 | 39,324 |
Inventory | 39,058 | 42,354 |
Prepaid expenses and other current assets | 2,470 | 2,418 |
Assets held for sale | 1,064 | |
Prepaid income taxes | 231 | 1,451 |
Total current assets | 177,820 | 134,382 |
Property, plant and equipment, less accumulated depreciation of $52,283 and $49,730 | 25,574 | 29,326 |
Other Assets | ||
Goodwill | 82,402 | 81,986 |
Intangible assets, less accumulated amortization of $78,351 and $65,862 | 41,200 | 52,704 |
Cash surrender value of life insurance | 4,450 | 4,450 |
Restricted investments | 1,619 | 1,260 |
Deferred income taxes | 4,929 | 3,804 |
Operating lease right-of-use asset (Note 8) | 8,821 | |
Other assets | 15 | 56 |
Total assets | 346,830 | 307,968 |
Current Liabilities | ||
Accounts payable | 12,525 | 12,105 |
Accrued payroll and other compensation | 5,751 | 6,300 |
Accrued expenses | 4,867 | 4,035 |
Total current liabilities | 23,143 | 22,440 |
Operating lease long-term liabilities (Note 8) | 6,395 | |
Deferred compensation | 1,629 | 1,275 |
Accumulated pension obligation | 10,930 | 10,485 |
Other liabilities | 217 | |
Accrued income taxes | 1,941 | 2,324 |
Commitments and contingencies (Notes 6, 8, 21) | ||
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; 9,439,082 shares at August 31, 2020 and 9,400,748 shares at August 31, 2019 issued and outstanding | 944 | 940 |
Additional paid-in capital | 16,674 | 14,351 |
Accumulated other comprehensive loss | (13,092) | (14,324) |
Retained earnings | 298,266 | 270,260 |
Total equity | 302,792 | 271,227 |
Total liabilities and equity | $ 346,830 | $ 307,968 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 438 | $ 739 |
Property, plant and equipment, accumulated depreciation (in dollars) | 52,283 | 49,730 |
Intangible assets, accumulated amortization (in dollars) | $ 78,351 | $ 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 | 9,439,082 | 9,400,748 |
Common stock, shares outstanding | 9,439,082 | 9,400,748 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenue | |||
Revenue | $ 261,162 | $ 281,351 | $ 284,188 |
Costs and Expenses | |||
Cost of products and services sold | 161,615 | 180,163 | 175,136 |
Selling, general and administrative expenses | 49,364 | 48,707 | 47,703 |
Research and product development costs | 4,007 | 4,021 | 3,940 |
Operations optimization costs (Note 20) | 807 | 986 | 1,272 |
Acquisition-related costs (Note 14) | 274 | 393 | |
Gain on sale of real estate (Note 19) | (2,551) | ||
Write-down of certain assets under construction (Note 20) | 405 | ||
Loss on impairment of goodwill (Note 4) | 2,410 | ||
Operating income | 47,241 | 45,064 | 55,744 |
Interest expense | (246) | (519) | (1,172) |
Gain on sale of license (Note 15) | 1,085 | ||
Gain on sale of businesses (Note 18) | 1,480 | ||
Other income (expense) | (1,675) | (992) | (172) |
Income before income taxes | 45,320 | 43,553 | 56,965 |
Income taxes (Note 7) | 11,163 | 10,842 | 13,822 |
Net income | $ 34,157 | $ 32,711 | $ 43,143 |
Net income available to common shareholders, per common and common equivalent share (Note 17) | |||
Basic | $ 3.62 | $ 3.48 | $ 4.60 |
Diluted | $ 3.59 | $ 3.46 | $ 4.56 |
Weighted average shares outstanding | |||
Basic | 9,359,940 | 9,334,232 | 9,296,648 |
Diluted | 9,439,750 | 9,379,207 | 9,366,071 |
Cash dividends paid per share (in dollars per share) | $ 0.80 | $ 0.80 | $ 0.80 |
Annual cash dividends declared per share | $ 0.80 | $ 0.80 | $ 0.80 |
Product | |||
Revenue | |||
Revenue | $ 257,742 | $ 276,839 | $ 278,962 |
Royalties and commissions | |||
Revenue | |||
Revenue | $ 3,420 | $ 4,512 | $ 5,226 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 34,157 | $ 32,711 | $ 43,143 |
Other comprehensive income (loss): | |||
Net unrealized gain on restricted investments, net of tax | 115 | 28 | 5 |
Change in funded status of pension plans, net of tax | (658) | (475) | 385 |
Foreign currency translation adjustment | 3,163 | (1,541) | 743 |
Total other comprehensive income (loss) | 2,620 | (1,988) | 1,133 |
Comprehensive income | $ 36,777 | $ 30,723 | $ 44,276 |
CONSOLIDATED STATEMENTS OF EQUI
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, 2017 | $ 935 | $ 14,060 | $ (13,469) | $ 209,403 | $ 210,929 |
Balance (in shares) at Aug. 31, 2017 | 9,354,136 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Restricted stock grants, net of forfeitures | $ 2 | (2) | |||
Restricted stock grants, net of forfeitures (in shares) | 16,701 | ||||
Amortization of restricted stock grants | 1,669 | 1,669 | |||
Amortization of stock option grants | 459 | 459 | |||
Exercise of stock options | $ 6 | 1,214 | 1,220 | ||
Exercise of stock options (in shares) | 64,012 | ||||
Common stock received for payment of stock option exercises | $ (1) | (1,027) | (1,028) | ||
Common stock received for payment of stock option exercises (in shares) | (9,693) | ||||
Common stock retained to pay statutory minimum withholding taxes on common stock | $ (3) | (3,269) | (3,272) | ||
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares) | (28,209) | ||||
Cash dividend on common stock | (7,497) | (7,497) | |||
Change in funded status of pension plans, net of tax | 385 | 385 | |||
Foreign currency translation adjustment | 743 | 743 | |||
Net unrealized gain (loss) on restricted investments, net of tax | 5 | 5 | |||
Net income | 43,143 | 43,143 | |||
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) | 8,818 | ||||
Amortization of restricted stock grants | 1,673 | 1,673 | |||
Amortization of stock option grants | 503 | 503 | |||
Exercise of stock options | $ 1 | 300 | 301 | ||
Exercise of stock options (in shares) | 7,022 | ||||
Common stock received for payment of stock option exercises | (119) | (119) | |||
Common stock received for payment of stock option exercises (in shares) | (954) | ||||
Common stock retained to pay statutory minimum withholding taxes on common stock | $ (1) | (1,109) | (1,110) | ||
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares) | (11,085) | ||||
Cash dividend on common stock | (7,522) | (7,522) | |||
Change in funded status of pension plans, net of tax | (475) | (475) | |||
Foreign currency translation adjustment | (1,541) | (1,541) | |||
Net unrealized gain (loss) on restricted investments, net of tax | 28 | 28 | |||
Net income | 32,711 | 32,711 | |||
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 | |||||
Adoption of new accounting standard | ASU 2014-09 | 22 | 22 | |||
Restricted stock grants, net of forfeitures | $ 5 | (5) | |||
Restricted stock grants, net of forfeitures (in shares) | 45,621 | ||||
Amortization of restricted stock grants | 2,290 | 2,290 | |||
Amortization of stock option grants | 918 | 918 | |||
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) | ||||
Common stock retained to pay statutory minimum withholding taxes on common stock | $ (1) | (880) | (881) | ||
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares) | (9,848) | ||||
Cash dividend on common stock | (7,539) | (7,539) | |||
Change in funded status of pension plans, net of tax | (658) | (658) | |||
Foreign currency translation adjustment | 3,163 | 3,163 | |||
Net unrealized gain (loss) on restricted investments, net of tax | 115 | 115 | |||
Net income | 34,157 | 34,157 | |||
Balance at Aug. 31, 2020 | $ 944 | $ 16,674 | (13,092) | 298,266 | $ 302,792 |
Balance (in shares) at Aug. 31, 2020 | 9,439,082 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of new accounting standard | ASU 2018-02 | (1,388) | $ 1,388 | |||
Adoption of new accounting standard | $ (1,388) |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
STATEMENTS OF EQUITY | |||
Cash dividends paid per share (in dollars per share) | $ 0.80 | $ 0.80 | $ 0.80 |
Change in funded status of pension plans, tax | $ (215) | $ 218 | $ 130 |
Net unrealized gain (loss) on restricted investments, tax | $ 40 | $ (5) | $ 2 |
Cash dividend on common stock per share (in dollars per share) | $ 0.80 | $ 0.80 | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 34,157 | $ 32,711 | $ 43,143 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Gain on sale of real estate | (2,551) | ||
Gain on sale of license | (1,085) | ||
Loss on impairment of goodwill | 2,410 | ||
Write-down of certain assets under construction | 405 | ||
Gain on sale of businesses | (1,480) | ||
Depreciation | 4,015 | 4,762 | 5,817 |
Amortization | 11,576 | 12,445 | 11,807 |
Cost of sale of inventory step-up | 1,070 | ||
(Recovery) provision for allowance for doubtful accounts | (307) | 183 | 101 |
Stock-based compensation | 3,208 | 2,176 | 2,128 |
Realized gain on restricted investments | (37) | (11) | (97) |
Pension curtailment and settlement loss | 155 | 511 | |
Deferred taxes | (769) | (2,312) | (2,473) |
Increase (decrease) from changes in assets and liabilities | |||
Accounts receivable | 3,092 | 4,858 | (2,968) |
Inventory | 3,562 | (2,864) | (8,845) |
Prepaid expenses and other assets | 43 | 356 | 569 |
Accounts payable | 260 | (5,493) | 2,847 |
Accrued compensation and other expenses | (1,865) | (1,536) | (501) |
Accrued income taxes | 790 | 1,339 | (3,962) |
Net cash provided by operating activities | 55,734 | 49,535 | 46,071 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (1,371) | (2,488) | (3,488) |
Cost to acquire intangible assets | (36) | (18) | |
Payments for acquisitions | (73,469) | ||
Proceeds from sale of real estate | 3,615 | ||
Proceeds from sale of license | 1,000 | ||
Proceeds from sale of businesses | 400 | 2,232 | |
Changes in restricted investments | (167) | (122) | (23) |
Proceeds from settlement of life insurance policies | 80 | ||
Net cash provided by (used in) investing activities | 2,077 | (2,166) | (73,766) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Borrowings on debt | 65,000 | ||
Payments of principal on debt | (25,000) | (40,000) | |
Dividend paid | (7,539) | (7,522) | (7,497) |
Proceeds from exercise of common stock options | 182 | 192 | |
Payments of taxes on stock options and restricted stock | (881) | (1,110) | (3,272) |
Net cash (used in) provided by financing activities | (8,420) | (33,450) | 14,423 |
INCREASE IN CASH & CASH EQUIVALENTS | 49,391 | 13,919 | (13,272) |
Effect of foreign exchange rates on cash | 1,906 | (976) | 746 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 47,771 | 34,828 | 47,354 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 99,068 | $ 47,771 | $ 34,828 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Not The principal accounting policies of Chase Corporation (the “Company”) and its subsidiaries are as follows: Products and Markets Our principal products are specialty tapes, laminates, adhesives, sealants, coatings and chemical intermediates that are sold by our salespeople, manufacturers' representatives and distributors. In our Adhesives, Sealants and Additives segment, these products consist of: (i) moisture protective coatings, which are sold to the electronics industry for circuitry manufacturing, including circuitry used in automobiles, industrial controls and home appliances; (ii) advanced adhesives, sealants, and coatings for automotive and industrial applications that require specialized bonding, encapsulating, environmental protection, or thermal management functionality; (iii) polymeric microspheres utilized by various industries to allow for weight and density reduction and sound dampening; (iv) polyurethane dispersions utilized for various coating products; and (v) superabsorbent polymers, which are utilized for water and liquid management, remediation and protection in diverse markets including wire and cable, medical, environmental, infrastructure, energy and consumer products. In our Industrial Tapes segment, these products consist of: (i) (ii) (iii) industrial coated or laminate products and custom manufacturing services sold into medical, consumer, automotive, packaging, energy, telecommunications and other specialized markets; (iv) laminated durable papers, including laminated paper with an inner security barrier used in personal and mail‑stream privacy protection, which are sold primarily to the envelope converting and commercial printing industries; (v) pulling and detection tapes used in the installation, measurement and location of fiber optic cable, water and natural gas lines, and power, data and video cable for commercial buildings; and (vi) cover tapes with reliable adhesive and anti‑static properties essential to delivering semiconductor components via tape and reel packaging. In our Corrosion Protection and Waterproofing segment, these products consist of: (i) protective coatings, tapes and protectants for pipelines, valves, casings and other metals, which are sold to oil companies, gas companies and water/wastewater utilities for use in both the construction and maintenance of oil, gas, water and wastewater pipelines; (ii) fluid applied coating and lining systems for use in the water and wastewater industry; (iii) waterproofing tapes and coatings used in waterproofing of the exterior of both commercial and industrial structures; (iv) waterproofing membranes for highway bridge deck metal supported surfaces, which are sold to municipal transportation authorities, and high-performance polymeric asphalt additives; and (v) expansion and control joint systems designed for roads, bridges, stadiums and airport runways. Basis of Presentation 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 functional currency for financial reporting. Certain reclassifications have been made to the prior year amounts to conform to the current year’s presentation. Other Business Developments On September 1, 2020 (subsequent to fiscal 2020), the Company acquired all the capital stock of ABchimie for €18,000 (approximately $21,420 at the time of the transaction) net of cash and marketable securities acquired, subject to final working capital adjustment, excluding acquisition-related costs of $274 and with a potential earn out based on performance potentially worth an additional €7,000 (approximately $8,330 at the time of the transaction). ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and the protection of electronic assemblies, with further formulation, production, and research and development capabilities. The transaction was funded 100% with cash on hand. The financial results of the business will be included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company is currently in the process of finalizing purchase accounting, regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed and anticipates completion within fiscal 2021. The ABchimie acquisition does not represent a significant business combination so pro forma financial information is not provided. The second, third and fourth fiscal quarters of 2020 saw the global spread of the coronavirus pandemic (COVID-19), which grew to create significant volatility, uncertainty and global economic disruption. During the third fiscal quarter, the Company implemented changes to its cost structure designed to address market changes brought on by COVID-19 and demonstrate its commitment to fiscal prudence: (a) the Company made a targeted reduction in its global workforce, contemplated pre-pandemic but catalyzed by COVID-19, which resulted in the recognition of $183 in severance costs during the period; and (b) the Company also instituted a temporary 20% reduction in the base salaries of its named executive officers and select members of senior management, as well as the cash compensation of the non-employee members of its Board of Directors. The reduction in force, which impacted operations in the Company’s U.S. facilities, and the adjustments in compensation, were both effective May 2020. During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase Corporation 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 the 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, third or fourth fiscal quarters. 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, the Company 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 $559 in expense related to the move in the six-month periods ended February 29, 2020, having recognized $526 in expense during the second half of fiscal 2019. No costs were recognized in the six months ended August 31, 2020, and future costs related to this move are not anticipated to be significant to the consolidated financial statements. During the fourth quarter of fiscal 2019 (prior year), Chase Corporation commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s ongoing facility rationalization and consolidation initiative. Chase completed its review of the data and recommendations provided by the study in the fourth quarter of fiscal 2020 (current year). The Company recognized $200 in expense related to these services in fiscal 2019, and a gain of $170 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Also in the fourth quarter of fiscal 2020 and related to the recommendations of the commissioned engineering studies, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405 related to the machinery. Chase may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined. 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. The Company completed the sale of its Pawtucket, RI location to a third party in the third quarter of fiscal 2020 for net proceeds totaling $1,810, recognizing a gain on sale of real estate of $760. Also, during the third quarter of fiscal 2020, the Company recognized $85 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods. On April 20, 2018, Chase Corporation finalized an agreement with an unrelated party to sell all inventory, operational machinery and equipment and intangible assets of the Company’s structural composites rod business, as well as a license related to the production and sale of rod, for proceeds of $2,232, net of transaction costs and following certain working capital adjustments. This business, which was part of the structural composites product line within the Industrial Tapes segment, had limited growth and profitability prospects as part of the Company, and was outside the areas Chase has identified for strategic emphasis. The resulting pre-tax gain on sale of $1,480 was recognized in the third quarter of fiscal 2018 as a gain on sale of businesses within the consolidated statement of operations. Chase received $2,075, net of transaction costs, in the third quarter of fiscal 2018, with the remaining $157 received in the fourth quarter of fiscal 2018 as a result of a working capital true-up. Chase Corporation will provide certain transitional manufacturing and administrative support to the purchaser for which the Company will receive additional consideration upon the performance of services. On December 29, 2017, Chase Corporation entered an agreement to acquire Stewart Superabsorbents, LLC (“SSA, LLC”), an advanced superabsorbent polymer (SAP) formulator and solutions provider, with operations located in Hickory and McLeansville, NC. The transaction closed on December 31, 2017. In its final fiscal year before its acquisition, SSA, LLC, and its then recently-acquired Zappa-Tec business (collectively “Zappa Stewart”) had combined revenue in excess of $24,000. This acquisition proved to be immediately accretive to the Company’s earnings in the period of acquisition, after adjusting for nonrecurring costs associated with the transaction and financing. The business was acquired for a purchase price of $73,469 after final working capital adjustments and excluding acquisition-related costs. As part of this transaction, Chase Corporation acquired all assets of the business, and entered multiyear leases at both locations. The Company expensed $393 of acquisition-related costs during the second quarter of fiscal 2018. The purchase was funded from a combination of Chase’s existing revolving credit facility and available cash on hand. Zappa Stewart’s protective materials technology complements Chase’s current specialty chemicals offerings. This acquisition is aligned with the Company’s core strategies and extends its reach into growing medical, environmental and consumer applications. The Company finalized purchase accounting in the first quarter of fiscal 2019, without any adjustment to amounts recorded at August 31, 2018. Following the effective date of the acquisition the financial results of Zappa Stewart’s operations have been included in the Company’s financial statements in the specialty chemical intermediates product line, contained within the Adhesives, Sealants and Additives operating segment. The Company has evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, and other than: (a) the cash dividend announced on November 12, 2020 of $0.80 per share to shareholders of record on November 27, 2020 and payable on December 7, 2020; and (b) the acquisition of ABchimie discussed in Note 14, the Company is not aware of any other events or transactions that occurred subsequent to the balance sheet date, but prior to filing, that would require recognition or disclosure in its consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist primarily of demand deposit accounts or investment instruments that meet high credit quality standards such as money market funds, government securities, or commercial paper. The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents. Accounts Receivable The Company evaluates the collectability of accounts receivable balances based on a combination of factors. In cases where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations to it, a specific allowance against amounts due to the Company is recorded, and thereby reduces the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, industry and geographic factors, the current business environment and its historical experience. Receivables are written off against these reserves in the period they are determined to be uncollectable. Inventory The Company values inventory at the lower of cost or net realizable value using the first in, first out (FIFO) method. Management assesses the recoverability of inventory based on types and levels of inventory held, forecasted demand and changes in technology. These assessments require management judgments and estimates, and valuation adjustments for excess and obsolete inventory may be recorded based on these assessments. The Company estimates excess and obsolescence exposures based upon assumptions about future demand, product transitions and market conditions, and records adjustments to reduce inventories to their estimated net realizable value. The failure to accurately forecast demand may lead to additional excess and obsolete inventory and future charges. Goodwill The Company accounts for goodwill in accordance with ASC Topic 350, “Intangibles — Goodwill and Other.” The Company performs impairment reviews annually each 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 the 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. The Company performed an impairment test on the indefinite-lived and long-lived assets related to the 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. The polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method). In fiscal 2017, we early adopted Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles — Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” When evaluating the potential impairment of goodwill, we first assess a range of qualitative factors, including but not limited to, industry conditions, the competitive environment, changes in the market for our products and services, entity-specific factors such as strategy and changes in key personnel, and the overall financial performance for each of our reporting units relative to historical or projected future operating results. If after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then 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. Fair values for reporting units are determined based on the income approach (discounted cash flow method). For the annual fiscal 2020 fourth quarter review, no goodwill impairment, nor at-risk reporting units, was indicated as of August 31, 2020. For the annual fiscal 2020 goodwill impairment test, we performed a qualitative assessment of goodwill impairment and concluded that it was more likely than not that our reporting units' fair values exceeded their carrying values (i.e. indicated no impairment of goodwill). Accordingly, it was not necessary for us to perform the quantitative analysis. Intangible Assets Intangible assets consist of patents, formulas, trade names, customer relationships and trademarks. The Company capitalizes costs related to patent applications and technology agreements. The costs of these assets are amortized over the lesser of the useful life of the asset or its statutory life. Capitalized costs are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight‑line method over the assets’ estimated useful lives. Expenditures for maintenance repairs and minor renewals are charged to expense as incurred. Betterments and major renewals are capitalized. Upon retirement or other disposition of assets, related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is included in the determination of income or loss. The estimated useful lives of property, plant and equipment are as follows: Buildings and improvements 15 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements are depreciated over the lesser of the useful life or the term of the lease. Restricted Investments and Deferred Compensation The Company has a non-qualified deferred savings plan that covers its Board of Directors and a separate plan covering selected employees. Participants may elect to defer a portion of their compensation for payment in a future tax year. The plans are funded by trusteed assets that are restricted to the payment of deferred compensation or satisfaction of the Company’s general creditors. The Company’s restricted investments under the plans were $1,619 and $1,260 at August 31, 2020 and 2019, respectively, and corresponding deferred compensation liabilities were $1,629 and $1,275 at August 31, 2020 and 2019, respectively. The Company accounts for the restricted investments as available for sale by recording net unrealized gains or losses in other comprehensive income as a component of stockholders’ equity. Revenue Effective September 1, 2018, the Company adopted accounting standard ASU No. 2014-09, “Revenue from Contracts with Customers” (ASC 606) using the modified retrospective method for contracts that were not completed as of August 31, 2018. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, whereby the cumulative impact of all prior periods is recorded in retained earnings or other impacted balance sheet line items upon adoption. The comparative information (for all periods prior to September 1, 2018) has not been adjusted and continues to be reported under ASU No. 2009-13 “Revenue Recognition” (ASC 605). The impact on the Company’s consolidated balance sheets, and statements of operations, equity or cash flows as of the adoption date as a result of applying ASC 606 have been reflected within those respective financial statements. The Company’s accounting policy has been updated to align with ASC 606. The adoption of ASC 606 represents a change in accounting principle that provides enhanced revenue recognition disclosures. The Company accounts for revenue from contracts with customers when: (a) there is approval and commitment from both parties; (b) the rights of the parties are identified; (c) payment terms are identified; (d) the contract has commercial substance; and (e) collectability of consideration is probable. Revenue is primarily derived from customer purchase orders, master sales agreements, and negotiated contracts, all of which represent contracts with customers. See Note 26 to the consolidated financial statements for more information on our accounting for revenue. Research and Product Development Costs Research and product development costs are expensed as incurred and include primarily engineering salaries, overhead and materials used in connection with research and development projects. Research and development expense amounted to $4,007, $4,021 and $3,940 for the years ended August 31, 2020, 2019 and 2018, respectively, and was recorded within Research and product development costs on the consolidated statements of operations. Pension Plans The Company accounts for its pension plans following the requirements of ASC Topic 715, “Compensation —Retirement Benefits” (“ASC 715”). ASC 715 requires an employer to: (a) recognize in its statement of financial position the funded status of a benefit plan; (b) measure defined benefit plan assets and obligations as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise but are not recognized as components of net periodic benefit costs pursuant to prior existing guidance. Stock-Based Compensation In accordance with the accounting for stock-based compensation guidance, ASC Topic 718 “Compensation – Stock Compensation” (“ASC 718”), the Company measures and recognizes compensation expense for all share‑based payment awards made to employees and directors based on estimated fair values. This includes restricted stock, restricted stock units and stock options. The guidance allows for the continued use of the simplified method as the Company has concluded that its historical share option exercise experience does not provide a reasonable basis for estimating expected term. Stock‑based compensation expense recognized in fiscal years 2020, 2019 and 2018 was $3,208, $2,176 and $2,128, respectively. The fair value of options granted was estimated on the date of grant using the Black‑Scholes option pricing model with the following weighted average assumptions for the years ending August 31, 2020, 2019 and 2018: 2020 2019 2018 Expected dividend yield % % % Expected life years 6.0 years 6.0 years Expected volatility % % % Risk-free interest rate % 2.7 % 1.9 % Expected volatility is determined by looking at a combination of historical volatility over the past six years as well as implied future volatility. Translation of Foreign Currency The financial position and results of operations of the Company’s HumiSeal Europe Ltd and Chase Protective Coatings Ltd businesses are measured using the British pound as the functional currency. The financial position and results of operations of the Company’s HumiSeal Europe SARL business in France are measured using euros as the functional currency. The financial position and results of the Company’s HumiSeal India Private Limited business in India are measured using the Indian rupee as the functional currency. The functional currency for all our other operations is the U.S. dollar. Revenue and expenses of these international businesses have been translated at average exchange rates. 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 (a component of stockholders’ equity). Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of these international operations are included in other income (expense) on the consolidated statements of operations and were gains (losses) of ($911), ($48) and $85 for the fiscal years ended August 31, 2020, 2019 and 2018, respectively. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, a deferred tax asset or liability is determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Tax credits are recorded as a reduction in income taxes. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company estimates contingent income tax liabilities based on the guidance for accounting for uncertain tax positions as prescribed in ASC Topic 740, “Income Taxes.” See Note 7 for more information on the Company’s income taxes, including information on the effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on our financial position and results of operations, including adjustments that were recorded during fiscal 2018 and 2019 related to the Tax Act. 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” (“ASC 260”). The Company allocates earnings to participating securities and computes earnings per share using the two-class method. Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non‑owner sources, including foreign currency translation adjustments, unrealized gains and losses on marketable securities and adjustments related to the change in the funded status of the pension plans. Segments ASC Topic 280 “Segment Reporting” of the Financial Accounting Standards Board (“FASB”) codification establishes standards for reporting information about operating segments. In the fourth quarter of its 2019 fiscal year (prior year), the Company reorganized into three reportable operating segments, an Adhesives, Sealants and Additives segment, an Industrial Tapes segment and a Corrosion Protection and Waterproofing segment. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets. 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 products. 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. Beginning December 31, 2017, the Adhesives, Sealants and Additives segment includes the acquired operations of Zappa Stewart, within the specialty chemical intermediates product line. 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 cable 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. Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, “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 Top |
Inventory
Inventory | 12 Months Ended |
Aug. 31, 2020 | |
Inventory | |
Inventory | Note 2—Inventory Inventory consisted of the following as of August 31, 2020 and 2019: August 31, August 31, 2020 2019 Raw materials $ 18,993 $ 20,325 Work in process 7,761 8,748 Finished goods 12,304 13,281 Total Inventory $ 39,058 $ 42,354 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 3—Property, Plant and Equipment Property, plant and equipment consisted of the following as of August 31, 2020 and 2019: 2020 2019 Land and improvements $ 4,997 $ 6,079 Buildings 17,992 17,900 Machinery and equipment 51,942 51,934 Leasehold improvements 2,212 1,828 Construction in progress 714 1,315 77,857 79,056 Accumulated depreciation (52,283) (49,730) Property, plant and equipment, net $ 25,574 $ 29,326 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Aug. 31, 2020 | |
Goodwill and Other Intangibles | |
Goodwill and Other Intangibles | Note 4—Goodwill and Intangible Assets The changes in the carrying value of goodwill, by operating segment, were as follows: Adhesives, Sealants and Additives Industrial Tapes Corrosion Protection and Waterproofing Consolidated Balance at August 31, 2018 $ $ $ $ Loss on impairment of polyurethane dispersions business (2,410) — — (2,410) Foreign currency translation adjustment (287) — (13) (300) Balance at August 31, 2019 $ 50,090 $ 21,215 $ 10,681 $ 81,986 Foreign currency translation adjustment 397 — 19 416 Balance at August 31, 2020 $ 50,487 $ 21,215 $ 10,700 $ 82,402 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, corresponding to its three reportable operating segments that are used to evaluate the possible impairment of goodwill. Goodwill impairment exists when the carrying amount 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, including the anticipated future impact of the coronavirus disease 2019 (COVID-19) pandemic. When testing, fair values of the reporting units and the related implied fair values of their respective goodwill are established using discounted cash flows. In fiscal 2017, we early adopted Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles — Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” When evaluating the potential impairment of goodwill, we first assess a range of qualitative factors, including but not limited to, industry conditions, the competitive environment, changes in the market for our products and services, entity-specific factors such as strategy and changes in key personnel, and the overall financial performance for each of our reporting units relative to historical or projected future operating results. If after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then 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. Fair values for reporting units are determined based on the income approach (discounted cash flow method). During the three-month period ended February 28, 2019, the ordering patterns of the 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. The Company performed an impairment test on the indefinite-lived and long-lived assets related to the 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. The polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method). The Company performs impairment reviews annually each fourth quarter and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable. For the annual fiscal 2020 goodwill impairment test, we performed a qualitative assessment of goodwill impairment and concluded that it was more likely than not that our reporting units' fair values exceeded their carrying values (i.e. indicated no impairment of goodwill). Accordingly, it was not necessary for us to perform the quantitative analysis. As of August 31, 2020 and 2019, the Company had a total goodwill balance of $82,402 and $81,986, respectively, related to its acquisitions, of which $31,591 and $34,778, respectively, remained deductible for income taxes. Intangible assets subject to amortization consisted of the following as of August 31, 2020 and 2019: Weighted Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value August 31, 2020 Patents and agreements years $ 1,760 $ 1,705 $ 55 Formulas and technology years 10,250 9,121 1,129 Trade names years 8,575 7,781 794 Customer lists and relationships years 98,966 59,744 39,222 $ 119,551 $ 78,351 $ 41,200 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 years ended August 31, 2020, 2019 and 2018 was $11,576, $12,445 and $11,807, respectively. As of August 31, 2020 estimated amortization expense for the next five fiscal years is as follows: Years ending August 31, 2021 11,066 2022 10,036 2023 6,768 2024 5,560 2025 3,961 |
Cash Surrender Value of Life In
Cash Surrender Value of Life Insurance | 12 Months Ended |
Aug. 31, 2020 | |
Cash Surrender Value of Life Insurance. | |
Cash Surrender Value of Life Insurance | Note 5—Cash Surrender Value of Life Insurance The Company recognized cash surrender value of a life insurance policy with the following carrier as of August 31, 2020 and 2019: 2020 2019 John Hancock $ 4,450 $ 4,450 Cash surrender value of life insurance policies $ 4,450 $ 4,450 The policy is subject to periodic review. The Company currently intends to maintain the policy through the life or retirement of the insured, and records at the premium paid balance. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Aug. 31, 2020 | |
Long-Term Debt | |
Long-Term Debt | Note 6—Long-Term Debt Long‑term debt consisted of the following at August 31, 2020 and 2019: 2020 2019 All-revolving credit facility with a borrowing capacity of $150,000 $ — $ — Long-term debt $ — $ — On December 15, 2016, the Company entered an Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, acting as administrative agent, and with participation from Citizens Bank and JPMorgan Chase Bank (collectively with Bank of America, the “Lenders”). The Credit Agreement is initially an all-revolving credit facility with a borrowing capacity of $150,000, which can be increased by an additional $50,000 at the request of the Company and the individual or collective option of any of the Lenders. The Credit Agreement contains customary affirmative and negative covenants that, among other things, restrict our ability to incur additional indebtedness and require certain lender approval for acquisitions by the Company and its subsidiaries over a certain size. It also requires us to maintain certain financial ratios on a consolidated basis, including a consolidated net leverage ratio (as defined in the facility) of no more than 3.25 to 1.00, and a consolidated fixed charge coverage ratio (as defined in the facility) of at least 1.25 to 1.00. We were in compliance with our debt covenants as of August 31, 2020 and 2019. The Credit Agreement is guaranteed by all of Chase Corporation’s direct and indirect domestic subsidiaries, which collectively had a carrying value of $246,096 at August 31, 2020. The Credit Agreement was entered both to refinance our previously existing term loan and revolving line of credit, and to provide for additional liquidity to finance potential acquisitions, working capital, capital expenditures, and for other general corporate purposes. The applicable interest rate for the revolver portion of the Credit Agreement (the “Revolving Facility”) and any Term Loan (defined below) is based on the effective London Interbank Offered Rate (LIBOR) plus an additional amount in the range of 1.00% to 1.75%, depending on the consolidated net leverage ratio of Chase Corporation and its subsidiaries. At August 31, 2020 and 2019, 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. 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 year 2018), the Company utilized $65,000 of the Credit Agreement to finance the majority of the acquisition cost of Zappa Stewart. See Note 14 to the consolidated financial statements for additional information on this acquisition. The Company paid down $40,000 of the outstanding balance in fiscal 2018, and made additional principal payments totaling $25,000 in fiscal 2019, resulting in an outstanding balance of $0 at August 31, 2020 and 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2020 | |
Income Taxes | |
Income Taxes | Note 7—Income Taxes On December 22, 2017 (fiscal 2018), President Trump signed into law the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). The Tax Act impacted the U.S. statutory Federal tax rate that the Company will use going forward, reducing it from 35% to 21%. As the Company has an August 31 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory Federal rate of 25.7% for our fiscal year ended August 31, 2018, and a rate of 21% for fiscal 2019 and 2020. To transition to the reduced U.S. corporate tax rate, we were required to make an adjustment to our net U.S. deferred tax assets. During fiscal 2018, predominantly in the three months ended February 28, 2018 (the second fiscal quarter of 2018), the Company recorded initial provisional adjustments to the U.S. deferred tax assets and liabilities and uncertain tax positions resulting in a net discrete tax expense of $681 recorded to the consolidated statement of operations. This net discrete tax expense recorded in fiscal 2018 is the result of the following: (a) a $379 tax benefit resulting from the remeasurement and reclassification of our then existing deferred tax liability related to unrepatriated foreign earnings to accrued income tax balance (discussed in more detail below); (b) a $917 tax expense for the remeasurement of the remaining net U.S. deferred tax assets in recognition of the new lower Federal rate; and (c) a $143 tax expense recorded as the result of remeasuring the Federal benefit on our uncertain tax positions. During fiscal 2019, no additional transitional adjustments were made related to the adoption of the Tax Act in the quarters ended November 30, 2018, May 31, 2019 and August 31, 2019, and only immaterial adjustments were made in the quarter ended February 28, 2019. During fiscal 2020, no additional transitional adjustments were made. The Tax Act includes a transition tax or “toll charge,” which is a one-time tax charge on unrepatriated foreign earnings. The calculation of accumulated foreign earnings requires an analysis of each foreign entity’s financial results going back to 1986. During fiscal 2018, the Company recorded a provisional transition tax adjustment associated with its accumulated unrepatriated foreign earnings reducing long-term deferred tax liabilities by $2,298 and increasing short and long-term accrued income taxes by $153 and $1,766, respectively (the short-term payable representing eight percent of the total amount due, the amount payable within the first year as per the Tax Act). The difference between the decrease in the deferred tax liabilities for unrepatriated foreign earnings and the increase in accrued income taxes, $379, was recorded as a discrete tax benefit in fiscal 2018. During fiscal 2019 (prior year), the Company paid the entire long-term and short-term toll charge balances that had been accrued at August 31, 2018. Under the guidance set forth in the SEC's Staff Accounting Bulletin No. 118 (“SAB 118”), the Company may record provisional amounts for the impact of the Tax Act. For the second quarter of fiscal 2018, the Company made a provisional and reasonable estimate of the effects of the Tax Act on its existing deferred tax balances, including a provisional adjustment for the toll charge, and made provisional adjustments to these initially recorded amounts in the third and fourth quarters of fiscal 2018. The Company made complete and final adjustments during the quarter ended February 28, 2019 (the second quarter of fiscal 2019), which were not material in nature. In 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 years ended August 31, 2020 and 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 fiscal 2019 or 2020. Additionally, the Company has deferred the application of Foreign-Derived Intangible Income (“FDII”) for 2019 and 2020, in anticipation of further guidance and the establishment of industry standards by the U.S. Treasury Department and trade associations. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, included a technical correction to the Tax Act which will allow accelerated deductions for qualified improvement property. The Company is currently evaluating the impact of the CARES Act, but at present does not expect that the qualified improvement property correction nor other provisions of the CARES Act would result in a material tax benefit to us in future periods. The CARES Act had no material effect on the effective tax rate for fiscal 2020. Domestic and foreign pre‑tax income for the years ended August 31, 2020, 2019 and 2018 was: Year Ended August 31, 2020 2019 2018 United States $ 42,027 $ 37,088 $ 48,962 Foreign 3,293 6,465 8,003 $ 45,320 $ 43,553 $ 56,965 The provision (benefit) for income taxes for the years ended August 31, 2020, 2019 and 2018 was: Year Ended August 31, 2020 2019 2018 Current: Federal $ 9,157 $ 9,880 $ 12,872 State 1,813 1,699 1,662 Foreign 962 1,575 1,761 Total current income tax provision 11,932 13,154 16,295 Deferred: Federal (520) (1,699) (2,214) State (184) (529) (263) Foreign (65) (84) 4 Total deferred income tax benefit (769) (2,312) (2,473) Total income tax provision $ 11,163 $ 10,842 $ 13,822 The provision (benefit) for income taxes differs from the amount computed by applying the Federal statutory income tax rate to income before income taxes. The Company’s combined federal, state and foreign effective tax rate as a percentage of income before taxes for fiscal 2020, 2019 and 2018, net of offsets generated by federal, state and foreign tax benefits, was 24.6%, 24.9% and 24.3%, respectively. The following is a reconciliation of the effective income tax rate with the U.S. Federal statutory income tax rate for the years ended August 31, 2020, 2019 and 2018: Year Ended August 31, 2020 2019 2018 Federal statutory rates 21.0 % 21.0 % 25.7 % Adjustment resulting from the tax effect of: State and local taxes, net of federal benefit % % % Domestic production deduction % % % Foreign tax rate differential % % % Adjustment to uncertain tax position % % % Transaction costs not deductible % % % Research credit generated % % % Stock Compensation % % % Permanent items % % % Tax effect of undistributed earnings % % % Other % % % Change in valuation allowance % % % Deferred income tax remeasurement % % % Effective income tax rate 24.6 % 24.9 % 24.3 % The following table summarizes the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities: As of August 31, 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 309 $ 432 Inventories 994 1,193 Accruals 504 541 Warranty reserve 14 22 Pension accrual 2,749 2,623 Deferred compensation 391 300 Foreign currency loss on previously taxed income 96 96 Loan finance costs 7 34 Restricted stock grants 823 456 Non-qualified stock options 211 258 Right-of-use asset 2,354 — Foreign net operating loss, net of valuation allowance 247 — Other 572 353 9,271 6,308 Deferred tax liabilities: Prepaid liabilities (16) (8) Lease liability (2,693) — Depreciation and amortization (1,633) (2,496) (4,342) (2,504) Net deferred tax assets (liabilities) $ 4,929 $ 3,804 As of August 31, 2020, the Company had $727 of gross foreign operating loss carry forwards to offset future taxable income, the net balance of which was included within deferred income taxes. The net operating losses will begin to expire in fiscal year ending August 31, 2027. Chase Corporation is required to apply a valuation allowance to reduce the deferred tax assets reported if based on the weight of the evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of August 31, 2020, the Company determined that a valuation allowance was not needed. Consistent with the Company’s practice prior to the passage of the Tax Act, we do not currently take the position that undistributed foreign subsidiaries’ earnings are considered to be permanently reinvested. A summary of the Company’s adjustments to its uncertain tax positions, included within long-term accrued income taxes on the consolidated balance sheet, in fiscal years ended August 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Balance, at beginning of the year $ 2,324 $ 1,889 $ 1,257 Increase for tax positions related to the current year 101 55 47 (Decrease) increase for tax positions related to prior years (609) 300 595 Increase for interest and penalties 125 106 71 Decrease for lapses of statute of limitations — (26) (81) Balance, at end of year $ 1,941 $ 2,324 $ 1,889 The unrecognized tax benefits mentioned above include an aggregate of $1,002 of accrued interest and penalty balances related to uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. An increase in accrued interest and penalty charges of approximately $125, net of Federal tax expense, was recorded as a tax expense during the current fiscal year. The Company does not anticipate that its accrual for uncertain tax positions will change by a material amount over the next twelve-month period, as it does not expect to settle any potential disputed items with the appropriate taxing authorities nor does it expect the statute of limitations to expire for any material items. The Company is subject to U.S. Federal income tax, as well as to income tax of multiple state, local and foreign tax jurisdictions. The statute of limitations for all material U.S. Federal, state, and local tax filings remains open for fiscal years subsequent to 2016. For foreign jurisdictions, the statute of limitations remains open in the U.K. for fiscal years subsequent to 2016 and in France for fiscal years subsequent to 2019. |
Leases
Leases | 12 Months Ended |
Aug. 31, 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 it 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 consolidated balance sheet as of August 31, 2020: August 31, 2020 Assets Operating lease right-of-use asset $ 8,821 Liabilities Current (accrued expense) $ 1,865 Operating lease long-term liabilities 6,395 Total lease liability $ 8,260 Lease cost The components of lease costs for the year ended August 31, 2020 are as follows: Year Ended August 31, 2020 Operating lease cost (a) $ 3,783 (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 on August 31, 2020 was as follows: Future Operating Year ending August 31, Lease Payments 2021 $ 2,085 2022 1,500 2023 1,346 2024 1,360 2025 and thereafter 2,687 Less: Interest (718) Present value of lease liabilities $ 8,260 The weighted average remaining lease term and discount rates are as follows: August 31, 2020 Lease Term and Discount Rate Weighted average remaining lease term (years) Operating leases 5.5 Weighted average discount rate (percentage) Operating leases 3.1 % Other Information Supplemental cash flow information related to leases is as follows: Year Ended August 31, 2020 Operating cash outflows from operating leases $ 2,444 Total cash paid for amounts included in the measurement of lease liabilities $ 2,444 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 Total rental expense for all operating leases amounted to $3,783, $3,734 and $3,114 for the years ended August 31, 2020, 2019 and 2018, respectively. |
Benefits and Pension Plans
Benefits and Pension Plans | 12 Months Ended |
Aug. 31, 2020 | |
Benefits and Pension Plans | |
Benefits and Pension Plans | Note 9—Benefits and Pension Plans 401(k) Plans The Company has a defined contribution plan adopted pursuant to section 401(k) of the Internal Revenue Code of 1986 (the “Chase 401(k) Plan”). Any qualified employee who has attained age 21 and has been employed by the Company for at least six months may contribute a portion of his or her salary to the plan and the Company will match 100% of the first one percent of salary contributed and 50% thereafter, up to an amount equal to three and one-half percent of such employee’s annual salary. Through our wholly-owned subsidiary NEPTCO, the Company had two additional 401(k) savings plans, one for union employees and one for nonunion employees. Under these plans, substantially all employees of NEPTCO were eligible to participate by making pre‑tax contributions to these plans. Participants could elect to defer between 1% and 10% of their annual compensation. The Company could contribute $0.75 for each $1.00 of participant deferrals up to 6% of the nonunion participant’s compensation. The Company could match union employee contributions by $0.50 for each $1.00 of participant deferrals up to 6% of the participant’s compensation. The nonunion plan was merged into the Chase 401(k) Plan effective January 1, 2018 and the union plan was merged into the Chase 401(k) Plan effective November 15, 2018. The Company’s contribution expense for all 401(k) plans was $852, $787 and $702 for the years ended August 31, 2020, 2019 and 2018, respectively. Non-Qualified Deferred Savings Plans The Company has a non-qualified deferred savings plan covering the Board of Directors and a separate plan covering selected employees. Participants may elect to defer a portion of their compensation for future payment. The plans are funded by trusteed assets that are restricted to the payment of deferred compensation or satisfaction of the Company’s general creditors. The Company’s liability under the plans was $1,629 and $1,275 on August 31, 2020 and 2019, respectively. Pension Plans The Company has noncontributory defined benefit pension plans covering employees of certain divisions of the Company. The Company has a funded, qualified plan (“Qualified Plan”) and an unfunded supplemental plan (“Supplemental Plan”) designed to maintain benefits for certain employees at the plan formula level. The plans provide for pension benefits determined by a participant’s years of service and final average compensation. The Qualified Plan assets consist of separate pooled investment accounts with a trust company. The measurement date for the plans is August 31, 2020. Effective December 1, 2008, a “soft freeze” in the Qualified Plan was adopted whereby no new employees hired would be admitted to the Qualified Plan, with the exception of employees who were members of the International Association of Machinists and Aerospace Workers Union whose contract was amended in June 2012 to include a soft freeze with an effective date of July 15, 2012. All eligible participants who were admitted to the plan prior to the applicable soft freeze dates continue to accrue benefits as detailed in the plan agreements. Through our wholly-owned subsidiary NEPTCO, the Company had a third defined benefit pension plan (“NEPTCO Pension Plan”) covering our union employees at our Pawtucket facility. This plan was frozen effective October 31, 2006, and as a result, no new participants could enter the plan and the benefits of current participants were frozen as of that date. The benefits were based on years of service and the employee’s average compensation during the earlier of five years before retirement, or October 31, 2006. The NEPTCO Pension Plan assets consisted of separate pooled investment accounts with a trust company. The measurement date for the NEPTCO Pension Plan was historically the same as the Company’s fiscal year end. In August 2019, the Board of Directors approved a plan to terminate the NEPTCO Pension Plan. The Company established November 15, 2019 as the plan termination date and during fiscal 2020 performed the administrative actions required to carry out the termination. In relation to the Company’s intention to terminate the plan in less than one year following the prior year balance sheet date, the liability associated with the NEPTCO Pension Plan was classified as a current liability, within accrued payroll and other compensation, on the consolidated balance sheet as of August 31, 2019 (prior year). No balance related to the NEPTCO defined benefit plan was carried on the Company’s consolidated balance sheet as of August 31, 2020. The following tables reflect the status of the Company’s pension plans for the years ended August 31, 2020 2019 and 2018: Year Ended August 31, 2020 2019 2018 Change in benefit obligation Projected benefit obligation at beginning of year $ 20,087 $ 21,860 $ 22,673 Service cost 295 283 283 Interest cost 451 696 629 Actuarial (gain) loss 2,253 995 17 Settlements — — — Benefits paid (2,423) (3,747) (1,742) Projected benefit obligation at end of year $ 20,663 $ 20,087 $ 21,860 Change in plan assets Fair value of plan assets at beginning of year $ 7,859 $ 9,855 $ 9,003 Actual return on plan assets 868 181 509 Employer contribution 1,864 1,570 2,085 Settlements — — — Benefits paid (2,423) (3,747) (1,742) Fair value of plan assets at end of year $ 8,168 $ 7,859 $ 9,855 Funded status at end of year $ (12,495) $ (12,228) $ (12,005) Year Ended August 31, 2020 2019 2018 Amounts recognized in consolidated balance sheets Noncurrent assets $ — $ — $ 301 Current liabilities (1,565) (1,743) (1,570) Noncurrent liabilities (10,930) (10,485) (10,736) Net amount recognized in consolidated balance sheets $ (12,495) $ (12,228) $ (12,005) Actuarial present value of benefit obligation and funded status Accumulated benefit obligations $ 18,307 $ 18,244 $ 20,075 Projected benefit obligations $ 20,663 $ 20,087 $ 21,858 Plan assets at fair value $ 8,168 $ 7,859 $ 9,855 Amounts recognized in accumulated other comprehensive income Prior service cost $ 44 $ 47 $ 54 Net actuarial loss 10,595 9,638 9,377 Adjustment to pre-tax accumulated other comprehensive income $ 10,639 $ 9,685 $ 9,431 Year Ended August 31, 2020 2019 2018 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net (gain)/loss $ 711 $ 1,863 $ (704) Amortization of loss (664) (472) (484) Supplemental plan assumption change 1,065 (620) 676 Amortization of prior service cost (3) (3) (3) Effect of settlement on accumulated other comprehensive income (155) (511) — Total recognized in other comprehensive income 954 257 (515) Net periodic pension cost 1,178 1,537 937 Total recognized in net periodic pension cost and other comprehensive income $ 2,132 $ 1,794 $ 422 Estimated amounts that will be amortized from accumulated comprehensive income over the next fiscal year Prior service cost $ 3 $ 3 $ 3 Net actuarial loss 656 500 475 Prior service cost arose from the amendment of the plan’s benefit schedules to comply with the Tax Reform Act of 1986 and adoption of the unfunded supplemental pension plan. Components of net periodic pension cost for the fiscal years ended August 31, 2020, 2019 and 2018 included the following: 2020 2019 2018 Components of net periodic benefit cost Service cost $ 295 $ 283 $ 283 Interest cost 451 696 629 Expected return on plan assets (390) (428) (462) Amortization of prior service cost 3 3 3 Amortization of accumulated loss 664 472 484 Curtailment and settlement loss 155 511 — Net periodic benefit cost $ 1,178 $ 1,537 $ 937 Weighted average assumptions used to determine benefit obligations as of August 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Discount rate Qualified plan 1.92 % 2.58 % 3.80 % Supplemental plan 1.65 % 2.37 % 3.57 % NEPTCO plan — % 2.29 % 3.59 % Rate of compensation increase Qualified and Supplemental plan 3.50 % 3.50 % 3.50 % NEPTCO plan — % — % — % Weighted average assumptions used to determine net periodic benefit cost for the years ended August 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Discount rate Qualified plan 2.58 % 3.80 % 3.30 % Supplemental plan 2.37 % 3.57 % 2.73 % NEPTCO plan 2.29 % 3.59 % 2.95 % Expected long-term return on plan assets Qualified plan 5.60 % 5.40 % 5.40 % Supplemental plan — % — % — % NEPTCO plan 5.60 % 5.40 % 5.20 % Rate of compensation increase Qualified and Supplemental plan 3.50 % 3.50 % 3.50 % NEPTCO plan — % — % — % It is the Company’s policy to evaluate, on an annual basis, the discount rate used to determine the projected benefit obligation to approximate rates on high quality, long-term obligations. The Moody’s Corporate Aa Bond index has generally been used as a benchmark for this purpose, with adjustments made if the duration of the index differed from that of the plan. The discount rate is determined by matching the expected payouts from the respective plans to the spot rates inherent in the FTSE Pension Discount Curve (formerly Citigroup Pension Discount Curve). A single rate is then developed, that when applied to the expected cash flows, results in the same present value as determined using the various spot rates. The Company believes that this approach produces the most appropriate approximation of the plan liability. The Company estimates that each 100-basis point reduction in the discount rate would result in additional (decreased) net periodic pension cost, the Company’s primary pension obligation, of approximately $41 for the Qualified Plan and ($57) for the Supplemental Plan. For the current fiscal year, the NEPTCO Pension Plan expense is insignificant so sensitivity disclosure is not presented. The expected return on plan assets is derived from a periodic study of long-term historical rates of return on the various asset classes included in the Company’s targeted pension plan asset allocation. The Company estimates that each 100-basis point reduction in the expected return on plan assets would result in additional net periodic pension cost of approximately $68 for the Qualified Plan. No rate of return is assumed for the Supplemental Plan since that plan is currently not funded. The rate of compensation increase is also evaluated and is adjusted by the Company, if necessary, periodically. Qualified Plan Assets The investment policy for the Qualified Plan is based on ERISA standards for prudent investing. The fundamental goal underlying the investment policy is to ensure that the assets of the plans are invested in a prudent manner to meet the obligations of the plans as these obligations come due. The primary investment objectives include providing a total return which will promote the goal of benefit security by attaining an appropriate ratio of plan assets to plan obligations, to provide for real asset growth while also tracking plan obligations, to diversify investments across and within asset classes, to reduce the impact of losses in single investments, and to follow investment practices that comply with applicable laws and regulations. The primary policy objectives will be met by investing assets to achieve a reasonable tradeoff between return and risk relative to the plan’s obligations. This includes investing a portion of the assets in funds selected in part to hedge the interest rate sensitivity to plan obligations. The Qualified Plan assets are invested in a diversified mix of both domestic and foreign equity investments and fixed income securities. Asset manager performance is reviewed at least annually and benchmarked against the peer universe for the given investment style. The Company’s expected return for the Qualified Plan is 5.25%. To determine the expected long‑term rate of return on the assets for the Qualified Plan, the Company considered the historical and expected return on the plan assets, as well as the current and expected allocation of the plan assets. Asset allocation is monitored on an ongoing basis relative to the established asset class targets. The interaction between plan assets and benefit obligations is periodically studied to assist in the establishment of strategic asset allocation targets. The investment policy permits variances from the targets within certain parameters. Asset rebalancing occurs when the underlying asset class allocations move outside these parameters, at which time the asset allocation is rebalanced back to the policy target weight. The Qualified Plan has the following target allocation and weighted average asset allocations as of August 31, 2020, 2019 and 2018: Target Allocation Percentage of Plan Assets as of August 31, Asset Category Range 2020 2019 2018 Equity securities 10-80 % 49 % 44 % 46 % Debt securities 20-70 % 51 % 56 % 54 % Other 0-100 % — % — % — % Total 100 % 100 % 100 % 100 % NEPTCO Pension Plan Assets Prior to the NEPTCO Pensions Plan’s termination and full payout in fiscal 2020, the investment policy for the NEPTCO Pension Plan was based on ERISA standards for prudent investing. The fundamental goal underlying the investment policy was to ensure that the assets of the plans were invested in a prudent manner to meet the obligations of the plan as these obligations come due. The primary investment objectives included maximization of return within reasonable and prudent levels of risk, provision of returns comparable to returns for similar investment options, provision of exposure to a wide range of investment opportunities in various asset classes and vehicles, control of administrative and management costs, and provision of appropriate diversification within investment vehicles. The primary policy objectives were met by investing assets to achieve a reasonable tradeoff between return and risk relative to the plan’s obligations. This included investing a portion of the assets in funds selected in part to hedge the interest rate sensitivity to plan obligations. The NEPTCO Pension Plan assets were invested in a diversified mix of fixed income, and both domestic and foreign equity investments. The ongoing monitoring of investments was a regular and disciplined process and confirmed that the criteria remain satisfied. The process of monitoring investment performance relative to specified guidelines was consistently applied. Historically, to determine the expected long‑term rate of return on the assets for the NEPTCO Pension Plan, the Company considered the historical and expected return on the plan assets, as well as the current and expected allocation of the plan assets. Given the plan’s termination and full payout in 2020, the plan no longer holds assets as of August 31, 2020. The NEPTCO Pension Plan had the following target allocation and weighted average asset allocations as of August 31, 2020, 2019 and 2018: Target Allocation Percentage of Plan Assets as of August 31, Asset Category Range 2020 2019 2018 Equity securities 10-80 % — % 44 % 46 % Debt securities 20-70 % — % 56 % 54 % Other 0-100 % — % — % — % Total 100 % — % 100 % 100 % Fair Market Value of Pension Plan Assets The Company is required to categorize pension plan assets using a three‑tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: 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 following table presents the Company’s pension plan assets at August 31, 2020 and 2019 by asset category: Fair value measurements at Fair value measurements at August 31, 2020 August 31, 2019 Significant Significant Quoted prices other Significant Quoted prices other Significant in active observable unobservable in active observable unobservable August 31, markets inputs inputs August 31, markets inputs inputs 2020 (Level 1) (Level 2) (Level 3) 2019 (Level 1) (Level 2) (Level 3) Asset Category Equity securities $ 3,986 $ 3,986 $ — $ — $ 3,474 $ 3,474 $ — $ — Debt securities 4,182 4,182 — — 4,385 4,385 — — Total $ 8,168 $ 8,168 $ — $ — $ 7,859 $ 7,859 $ — $ — Level 1 Assets: The fair values of the common stocks, corporate bonds and U.S. Government securities included in this tier are based on the closing price reported on the active market where the individual securities are traded. Estimated Future Benefit Payments The following pension benefit payments (which include expected future service) are assumed to be paid in each of the following fiscal years based on the participants’ normal retirement age, and giving consideration to the termination of the NEPTCO Pension plan: Year ending August 31, Pension Benefits 2021 $ 2,996 2022 1,759 2023 2,507 2024 1,948 2025 1,788 2026-2030 $ 5,393 The Company contributed $1,864, $1,570 and $2,085 to fund its obligations under the pension plans for the years ended August 31, 2020, 2019 and 2018, respectively, including final cash outlays related to the termination of the NEPTCO plan in fiscal 2020. The Company plans to make the necessary contributions during fiscal 2021 to ensure its pension plans continue to be adequately funded given the current market conditions and does not anticipate a material change from amounts contributed during the current fiscal year. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Aug. 31, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | Note 10—Stockholders’ Equity 2013 Equity Incentive Plan In October 2012, the Company adopted, and the stockholders subsequently approved, the 2013 Equity Incentive Plan (the “2013 Plan”). The 2013 Plan permits the grant of restricted stock, stock options, deferred stock, stock payments or other awards to employees, participating officers, directors, consultants and advisors who are linked directly to increases in shareholder value. The aggregate number of shares available for grant under the 2013 Plan was initially 1,200,000. Additional shares may become available in connection with share splits, share dividends or similar transactions. As of August 31, 2020, 949,398 shares remained available for future grant under the 2013 Plan. 2005 Incentive Plan In November 2005, the Company adopted, and the stockholders subsequently approved, the 2005 Incentive Plan (the “2005 Plan”). The 2005 Plan permits the grant of restricted stock, stock options, deferred stock, stock payments or other awards to employees, participating officers, directors, consultants and advisors who are linked directly to increases in shareholder value. The aggregate number of shares available for grant under the 2005 Plan was initially 1,000,000. The Company is no longer granting equity awards under the 2005 Plan. Options to purchase 39,473 shares of common stock remained outstanding under the 2005 as of August 31, 2020. Restricted Stock Employees and Executive Management During the third quarter of fiscal 2015, 16,000 restricted shares were issued to non-executive members of management; 15,000 with a vesting date of April 16, 2020 and 1,000 with a vesting date of January 31, 2018. Compensation expense was being recognized on a ratable basis over the vesting period. In August 2015, the Board of Directors of the Company approved the fiscal year 2016 Long Term Incentive Plan (“LTIP”) for the executive officers and other members of management. The 2016 LTIP was an equity-based plan with a grant date of September 1, 2015. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 6,962 shares in the aggregate, subject to adjustment based on fiscal 2016 results, with a vesting date of August 31, 2018 for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 7,683 shares in the aggregate, with a vesting date of August 31, 2018, for which compensation expense was recognized on a ratable basis over the vesting period. Based on the fiscal year 2016 financial results, 6,277 additional shares of restricted stock (total of 13,239 shares) were earned and granted subsequent to the end of fiscal year 2016 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award. During the first quarter of fiscal 2016, an additional grant of 5,000 restricted shares was made to a non-executive member of management with a vesting date of October 20, 2020. Compensation expense is being recognized on a ratable basis over the vesting period. In August 2016, the Board of Directors of the Company approved the fiscal year 2017 LTIP for the executive officers and other members of management. The 2017 LTIP was an equity-based plan with a grant date of September 1, 2016. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 5,399 shares in the aggregate, subject to adjustment based on fiscal 2017 results, with a vesting date of August 31, 2019, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 5,367 shares in the aggregate, with a vesting date of August 31, 2019, for which compensation expense was recognized on a ratable basis over the vesting period. Based on the fiscal year 2017 financial results, 5,399 additional shares of restricted stock (total of 10,798 shares) were earned and granted subsequent to the end of fiscal year 2017 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award. In August 2016, the Board of Directors of the Company approved equity retention agreements with certain executive officers. The equity-based retention agreements had a grant date of September 1, 2016. In addition to the stock option component described below, the equity retention agreements contain a time-based restricted stock grant of 16,312 shares in the aggregate, with 7,768 shares having a vesting date of August 31, 2019, and 8,544 shares initially having a vesting date of August 31, 2021. The latter award was amended in August 2017 to vest in five equal annual installments over the five-year period following the grant date. Compensation expense is being recognized on a ratable basis over the vesting period. During the first quarter of fiscal 2017, additional grants totaling 8,805 shares of restricted stock were issued to non-executive members of management with a vesting date of August 31, 2021. Compensation expense is being recognized on a ratable basis over the vesting period. In August 2017, the Board of Directors of the Company approved the fiscal year 2018 LTIP for the executive officers and other members of management. The 2018 LTIP was an equity-based plan with a grant date of September 1, 2017. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 4,249 shares in the aggregate, subject to adjustment based on fiscal 2018 results, with a vesting date of August 31, 2020, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,473 shares in the aggregate, with a vesting date of August 31, 2020. Compensation expense was recognized on a ratable basis over the vesting period. Based on the fiscal year 2018 financial results, 572 additional shares of restricted stock (total of 4,821 shares) were earned and granted subsequent to the end of fiscal year 2018 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award. During the third quarter of fiscal 2018, an additional grant totaling 192 shares of restricted stock was issued to a non-executive member of management with a vesting date of August 31, 2020. Compensation expense was recognized on a ratable basis over the vesting period. During the fourth quarter of fiscal 2018, an additional grant totaling 609 shares of restricted stock was issued to an executive member of management with a vesting date of August 20, 2019. Compensation expense was recognized on a ratable basis over the vesting period. In August 2018, the Board of Directors of the Company approved the fiscal year 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. In addition to the stock option component described below, the plan contains the following restricted stock components: (a) a performance and service-based restricted stock grant of 3,541 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 being recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,068 shares in the aggregate, with a vesting date of August 31, 2021. Compensation expense is being recognized on a ratable basis over the vesting period. In September 2018, restricted stock in the amount of 2,472 shares related to a first quarter of fiscal 2017 grant was forfeited in conjunction with the termination of employment of a non-executive member of management of the Company. 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 being 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 being 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 relating to the remaining portion 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 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: (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 being recognized on a ratable basis over the vesting period. 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 contained time-based restricted stock grants of 15,945 shares in the aggregate, and have a vesting date of August 31, 2022. Compensation expense is being recognized on a ratable basis over the vesting period. During the second quarter of fiscal 2020, additional grants of 432, 616 and 18,720 shares of restricted stock (total of 19,768) 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 May 2020, restricted stock in the amount of 432 shares related to a second quarter of fiscal 2020 grant was forfeited in conjunction with the termination of employment of a non-executive member of management of the Company. During the fourth quarter of fiscal 2020, two additional grants totaling 481 shares and 261 shares of restricted stock were issued to two non-executive members of management, with vesting dates of July 27, 2021 and June 15, 2021, respectively. Compensation expense is being recognized on a ratable basis over the vesting period. Non-employee Board of Directors In February 2017, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 2,407 shares of restricted stock for service for the period from January 31, 2017 through January 31, 2018. The shares of restricted stock vested at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month vesting period. In February 2018, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 2,779 shares of restricted stock for service for the period from January 31, 2018 through January 31, 2019. The shares of restricted stock vested at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month vesting period. In February 2019, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 4,599 shares of restricted stock for service for the period from January 31, 2019 through January 31, 2020. The shares of restricted stock will vest at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month 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. A summary of the transactions of the Company’s restricted stock plans for the years ended August 31, 2020, 2019 and 2018 is presented below: Non Employee Weighted Average Officers Weighted Average Unvested restricted stock at August 31, 2017 2,407 $ 91.05 73,972 $ 51.56 Granted 2,779 $ 101.05 13,922 $ 83.65 Vested (2,407) $ 91.05 (22,315) $ 41.35 Forfeited or cancelled — — Unvested restricted stock at August 31, 2018 2,779 $ 101.05 65,579 $ 61.85 Granted 4,599 $ 101.92 7,524 $ 121.64 Vested (2,779) $ 101.05 (25,443) $ 65.79 Forfeited or cancelled — (3,305) $ 79.39 Unvested restricted stock at August 31, 2019 4,599 $ 101.92 44,355 $ 67.18 Granted 4,906 $ 95.59 43,841 $ 108.47 Vested (4,599) $ 101.92 (25,195) $ 61.51 Forfeited or cancelled — (3,126) $ 123.19 Unvested restricted stock at August 31, 2020 4,906 $ 95.59 59,875 $ 97.72 Stock Options In August 2015, the Board of Directors of the Company approved the fiscal year 2016 LTIP for the executive officers and other members of management. The 2016 LTIP was an equity-based plan with a grant date of September 1, 2015 and included options to purchase 21,275 shares of common stock in the aggregate with an exercise price of $39.50 per share. The options vested in three equal annual installments ending on August 31, 2018. The options granted will expire on September 1, 2025. Compensation expense was recognized over the period of the award consistent with the vesting terms. In August 2016, the Board of Directors of the Company approved the fiscal year 2017 LTIP for the executive officers and other members of management. The 2017 LTIP is an equity-based plan with a grant date of September 1, 2016 and included options to purchase 15,028 shares of common stock in the aggregate with an exercise price of $64.37 per share. The options vested in three equal annual installments ending on August 31, 2019. Of the options granted, 5,596 options will expire on August 31, 2026, and 9,432 options will expire on September 1, 2026. Compensation expense was recognized over the period of the award consistent with the vesting terms. In August 2016, 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, 2016 and included options to purchase 23,563 shares of common stock in the aggregate with an exercise price of $64.37 per share. These options cliff vested on August 31, 2019 and will expire on August 31, 2026. Compensation expense was recognized over the period of the award consistent with the vesting terms. In August 2017, the Board of Directors of the Company approved the fiscal year 2018 LTIP for the executive officers and other members of management. The 2018 LTIP is an equity-based plan with a grant date of September 1, 2017 and included options to purchase 9,622 shares of common stock in the aggregate with an exercise price of $93.50 per share. The options vested in three equal annual installments ending on August 31, 2020. Of the options granted, 4,591 options will expire on August 31, 2027, and 5,031 options will expire on September 1, 2027. Compensation expense was recognized over the period of the award consistent with the vesting terms. During the third quarter of fiscal 2018, an additional grant of options to purchase 606 shares of common stock with an exercise price of $104.00 was issued to a non-executive member of management. The options vested in three equal annual installments ending on August 31, 2020 and will expire on March 1, 2028. Compensation expense was recognized on a ratable basis over the vesting period. In August 2018, the Board of Directors of the Company approved the fiscal year 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 included options to purchase 8,603 shares of common stock in the aggregate with an exercise price of $123.95 per share. The options vest in three equal annual installments ending on August 31, 2021. Of the options granted, 3,927 options will expire on August 31, 2028, and 4,676 options will expire on September 1, 2028. Compensation expense is being recognized over the period of the award consistent with the vesting terms. During the fourth quarter of fiscal 2019, an additional grant of 483 options to purchase shares of common stock with an exercise price of $99.38 per share was made related to the 2019 LTIP grant and in conjunction with an amendment to the equity compensation program for a promotion of an employee. The options vest in three equal installments on August 31, 2019, 2020 and 2021, and will expire on August 31, 2028. 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 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 included options to purchase 13,418 shares of common stock in the aggregate with an exercise price of $100.22 per share. The options vest in three equal annual installments 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 being 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 stock 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 is being recognized on a ratable basis over the vesting period. The following table summarizes information about stock options outstanding as of August 31, 2020: Options Outstanding Options Exercisable Exercise Prices Number Weighted Avg. Weighted Aggregate Number Weighted Aggregate $ 16.00 5,065 2.1 $ 16.00 $ 413 5,065 $ 16.00 $ 413 $ 29.72 13,790 3.0 $ 29.72 $ 936 13,790 $ 29.72 $ 936 $ 35.50 13,372 4.0 $ 35.50 $ 830 13,372 $ 35.50 $ 830 $ 39.50 12,753 5.0 $ 39.50 $ 741 12,753 $ 39.50 $ 741 $ 64.37 34,260 6.0 $ 64.37 $ 1,137 34,260 $ 64.37 $ 1,137 $ 93.50 8,704 7.0 $ 93.50 $ 35 8,704 $ 93.50 $ 35 $ 99.38 483 8.0 $ 99.38 $ — 322 $ 99.38 $ — $ 100.22 67,060 9.0 $ 100.22 $ — 4,473 $ 100.22 $ — $ 104.00 606 7.5 $ 104.00 $ — 606 $ 104.00 $ — $ 123.95 8,603 8.0 $ 123.95 $ — 5,735 $ 123.95 $ — 164,696 6.8 $ 75.21 $ 4,092 99,080 $ 57.96 $ 4,092 Options are granted with an exercise price that is equal to the closing market value of the Company’s common stock on the day preceding the grant date, which is determined not to be materially different from the opening market value on the date of grant. A summary of the transactions of the Company’s stock option plans for the years ended August 31, 2020, 2019 and 2018 is presented below: Officers Weighted Options outstanding at August 31, 2017 152,974 $ 34.21 Granted 10,228 $ 94.12 Exercised (64,012) $ 19.06 Forfeited or cancelled — Options outstanding at August 31, 2018 99,190 $ 50.17 Granted 9,086 $ 122.64 Exercised (7,022) $ 42.86 Forfeited or cancelled — Options outstanding at August 31, 2019 101,254 $ 57.18 Granted 67,060 $ 100.22 Exercised (3,618) $ 34.21 Forfeited or cancelled — Options outstanding at August 31, 2020 164,696 $ 75.21 Options exercisable at August 31, 2020 99,080 $ 57.96 The weighted average grant date fair value of options granted in the years ended August 31, 2020, 2019 and 2018 was $29.79, $40.12 and $30.99 per share, respectively. The total pretax intrinsic value of stock options exercised was $311, $403 and $6,714 for the years ended August 31, 2020, 2019, and 2018, respectively. Excluding the effects of common stock reserved for issuance upon exercise of the 164,696 outstanding options, there were 949,398 shares of common stock available for future issuance under the Company’s 2013 Equity Incentive Plan on August 31, 2020. Based on historic experience, management estimates all outstanding stock options will vest. The income tax benefit realized from stock options exercised, vesting of restricted stock and issuance of stock pursuant to grants of restricted stock units was $149, $157 and $1,921 for the years ended August 31, 2020, 2019 and 2018, respectively. As of August 31, 2020, unrecognized expense related to all stock-based compensation described above was $5,397 (including $4,136 for restricted stock and $1,261 for stock options), which will be recognized over the next five fiscal years. |
Segment Data
Segment Data | 12 Months Ended |
Aug. 31, 2020 | |
Segment Data | |
Segment Data | Note 11—Segment Data In fiscal 2019 (prior year), due to the recent changes in our business structure, including several recent acquisitions and divestitures within the previously existing Industrial Materials segment, changes in senior management and the establishment of our Chief Executive Officer as our sole chief operating decision maker, the Company's management team has restructured its internal and external reporting process to more accurately reflect the manner in which the current business is being managed and operated. In the fourth quarter of fiscal 2019 (prior year), the Company reorganized into three reportable operating segments: an Adhesives, Sealants and Additives segment, an Industrial Tapes segment and a Corrosion Protection and Waterproofing segment. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets. The Adhesives, Sealants and Additives segment (formerly included within the Industrial Materials 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. This 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. Beginning December 31, 2017, the Adhesives, Sealants and Additives segment includes the acquired operations of Zappa Stewart within the Company’s specialty chemicals intermediates product line. The Industrial Tapes segment (formerly included within the Industrial Materials 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. This 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 cable 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 (formerly known as the Construction Materials 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 segments: Years Ended August 31, 2020 2019 2018 Revenue Adhesives, Sealants and Additives $ 96,208 $ 104,796 $ 101,690 Industrial Tapes 118,960 129,845 130,598 Corrosion Protection and Waterproofing 45,994 46,710 51,900 Total $ 261,162 $ 281,351 $ 284,188 Income before income taxes Adhesives, Sealants and Additives $ 25,953 $ 27,142 (d) $ 35,190 (h) Industrial Tapes 31,237 (a) 28,216 (e) 30,886 (i) Corrosion Protection and Waterproofing 16,638 (b) 15,909 (f) 18,178 Total for reportable segments 73,828 71,267 84,254 Corporate and common costs (28,508) (c) (27,714) (g) (27,289) (j) Total $ 45,320 $ 43,553 $ 56,965 Includes the following costs by segment: Adhesives, Sealants and Additives Interest $ 98 $ 177 $ 422 Depreciation 994 1,467 1,285 Amortization 9,313 9,359 7,895 Industrial Tapes Interest $ 111 $ 216 $ 516 Depreciation 1,746 1,755 2,748 Amortization 1,800 1,800 2,604 Corrosion Protection and Waterproofing Interest $ 37 $ 126 $ 234 Depreciation 615 674 753 Amortization 463 1,286 1,308 (a) 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 (b) Includes $170 gain on the refund of a payment made in fiscal 2019 related to engineering studies performed to assess potential operational changes and further plant rationalization and consolidation and an expense of $405 for the write-down of certain assets under construction. (c) Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to the Company’s companywide ERP system, a $760 gain related to the April 2020 sale of the Company’s Pawtucket, RI location, a $1,791 gain related to the August 2020 sale of the Company’s Randolph, MA property, $183 in severance expense related to the May 2020 reduction in force, $85 in expenses related to the final transition out of the Pawtucket, RI facility, $155 of pension-related settlement costs due to the timing of lump-sum distribution and $274 in acquisition-related costs attributable to the September 2020 (fiscal 2021) acquisition of ABchimie (d) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business (e) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019, and $526 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 second half of fiscal 2019 (f) Includes $200 of expense related to engineering studies performed to assess potential future operational changes and further plant rationalization and consolidation, see note (b) (g) Includes $511 of pension-related settlement costs due to the timing of lump-sum distributions (h) Includes $1,070 of expense related to inventory step-up in fair value attributable to the acquisition of Zappa Stewart (i) Includes $1,085 gain on sale of license related to the structural composites product line recorded in the second quarter of fiscal 2018, $1,480 gain on sale of business related to the April 2018 sale of the structural composites rod business and $1,272 of expense related to the exit of our Pawtucket, RI location in the fourth quarter of fiscal 2018 (j) Includes $393 in acquisition-related expense attributable to the December 2017 acquisition of Zappa Stewart August 31, August 31, 2020 2019 Total Assets Adhesives, Sealants and Additives $ 129,457 $ 135,583 Industrial Tapes 71,229 77,085 Corrosion Protection and Waterproofing 32,642 32,478 Total for reportable segments 233,328 245,146 Corporate and common assets 113,502 62,822 Total $ 346,830 $ 307,968 |
Export Sales and Foreign Operat
Export Sales and Foreign Operations | 12 Months Ended |
Aug. 31, 2020 | |
Export Sales and Foreign Operations | |
Export Sales and Foreign Operations | Note 12—Export Sales and Foreign Operations Export sales from continuing domestic operations to unaffiliated third parties were $30,067, $30,582 and $42,883 for the years ended August 31, 2020, 2019 and 2018, respectively. The decrease in export sales in fiscal 2020 against fiscal 2019 in a reflection of the overall year-over-year decrease in sales results. The decrease in export sales in fiscal 2019 against fiscal 2018 resulted from decreased export sales into China and Europe. The Company’s products are sold worldwide. Revenue for the years ended August 31, 2020, 2019 and 2018, are attributed to operations located in the following countries: Years Ended August 31, 2020 2019 2018 Revenue United States $ 226,690 $ 248,281 $ 244,225 United Kingdom 20,543 17,504 20,598 All other foreign (1) 13,929 15,566 19,365 Total $ 261,162 $ 281,351 $ 284,188 (1) Inclusive of sales originated from our Paris, France location, royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations. As of August 31, 2020 and 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: August 31, August 31, 2020 2019 Long-Lived Assets United States Property, plant and equipment, net $ 22,427 $ 24,993 Goodwill and Intangible assets, less accumulated amortization 117,930 129,057 United Kingdom Property, plant and equipment, net 2,320 2,493 Goodwill and Intangible assets, less accumulated amortization 4,403 4,446 All other foreign Property, plant and equipment, net 827 1,840 Goodwill and Intangible assets, less accumulated amortization 1,269 1,187 Total Property, plant and equipment, net $ 25,574 $ 29,326 Goodwill and Intangible assets, less accumulated amortization $ 123,602 $ 134,690 |
Supplemental Cash Flow Data
Supplemental Cash Flow Data | 12 Months Ended |
Aug. 31, 2020 | |
Supplemental Cash Flow Data | |
Supplemental Cash Flow Data | Note 13—Supplemental Cash Flow Data Supplemental cash flow information for the years ended August 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Income taxes paid $ 11,186 $ 11,714 $ 20,142 Interest paid $ 230 $ 728 $ 915 Noncash Investing and Financing Activities Common stock received for payment of stock option exercises $ 123 $ 119 $ 1,028 Property, plant and equipment additions included in accounts payable $ 92 $ 67 $ 197 Supplemental cash flow information as related to acquisitions and divestitures for the years ended August 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Sale of Randolph, MA Property Asset held for sale $ (14) Gain on sale of real estate (1,791) Cash received from sale of real estate, net 1,805 Sale of Pawtucket, RI Location Asset held for sale $ (1,050) Gain on sale of real estate (760) Cash received from sale of real estate, net 1,810 Acquisition of Zappa Stewart Current assets $ 10,478 Property, plant & equipment 1,872 Goodwill and Intangible assets 64,378 Deferred tax liability (2,626) Accounts payable and accrued liabilities (633) Payments for acquisitions (73,469) Sale of Structural Composites Rod Business Inventory $ (522) Goodwill (230) Gain on sale of business (1,480) Cash received from sale of business, net of transaction costs 2,232 Sale of Structural Composites License Property and equipment $ (26) Gain on sale of license (1,085) Accrued income taxes 111 Cash received from sale of license 1,000 Sale of Fiber Optic Cable Components Product Line Due from sale of business $ (400) Cash received from sale of product line, net of transaction costs 400 |
Acquisitions
Acquisitions | 12 Months Ended |
Aug. 31, 2020 | |
Acquisitions | |
Acquisitions | Note 14—Acquisitions Acquisition of ABchimie On September 1, 2020 (subsequent to fiscal 2020), the Company acquired all the capital stock of ABchimie for €18,000 (approximately $21,420 at the time of the transaction) net of cash and marketable securities acquired, subject to final working capital adjustment, excluding acquisition-related costs of $274 and with a potential earn out based on performance potentially worth an additional €7,000 (approximately $8,330 at the time of the transaction). ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and the protection of electronic assemblies, with further formulation, production, and research and development capabilities. The transaction was funded 100% with cash on hand. The financial results of the business will be included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company is currently in the process of finalizing purchase accounting, regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed and anticipates completion within fiscal 2021. The ABchimie acquisition does not represent a significant business combination so pro forma financial information is not provided. Acquisition of Zappa Stewart On December 31, 2017, the Company acquired Zappa Stewart, an advanced superabsorbent polymer (SAP) formulator and solutions provider, with operations located in Hickory and McLeansville, NC. The business was acquired for a purchase price of $73,469, after final working capital adjustments and excluding acquisition-related costs. Chase Corporation acquired all equity of the business and entered multiyear leases at both locations. The purchase was funded by a combination of a $65,000 draw on the Company’s existing revolving credit facility and available cash on hand. Zappa Stewart’s protective materials technology is complementary to Chase Corporation’s current specialty chemicals offerings. This acquisition is in line with our core strategies and extends our reach into growing medical and consumer applications. Since the effective date for this acquisition, December 31, 2017, the financial results of the acquired business have been included in the Company’s financial statements within the Adhesives, Sealants and Additives operating segment, in the specialty chemicals intermediates product line. The acquisition was accounted for as a business combination under ASC Topic 805, “Business Combinations.” In accordance with this accounting standard, the Company expensed $393 of acquisition-related costs during the second quarter of 2018 to acquisition-related costs. The Company finalized purchase accounting in the three-month period ended November 30, 2018 (the first quarter of fiscal 2019), with no adjustments made to the preliminary amounts recorded at August 31, 2018. The purchase price has been allocated to the acquired tangible and identifiable intangible assets assumed, based on their fair values as of the date of the acquisition: Assets and Liabilities Amount Accounts receivable $ 3,670 Inventory 6,796 Prepaid expenses and other current assets 12 Property, plant & equipment 1,872 Goodwill 34,138 Intangible assets 30,240 Deferred tax liability (2,626) Accounts payable and accrued expenses (633) Total purchase price $ 73,469 The excess of the purchase price over the net tangible and intangible assets acquired resulted in goodwill of $34,138 that is largely attributable to the synergies and economies of scale from combining the operations, technologies and research and development capabilities of Zappa Stewart and Chase, particularly as it pertains to the expansion of the Company's product and service offerings, the established workforce and marketing efforts. A portion of this goodwill, $23,990, is deductible for income tax purposes. All assets, including goodwill, acquired as part of the Zappa Stewart acquisition are included in the Adhesives, Sealants and Additives operating segment. Identifiable intangible assets purchased with this transaction are as follows: Weighted Average Intangible Asset Amount Useful Life Customer relationships $ 28,500 7.9 years Technology 900 7 years Trade names 840 4 years Total intangible assets $ 30,240 Supplemental Pro Forma Data (unaudited) The following table presents the pro forma results of the Company for the year ended August 31, 2018 as though the Zappa Stewart acquisition described above occurred on September 1, 2016 (the first day of fiscal 2017). The actual revenue and expenses for the acquired business are included in the Company’s consolidated results beginning on December 31, 2017. From the date of acquisition (December 31, 2017) through August 31, 2018, revenue and net income for the Zappa Stewart operations included in the consolidated statement of operations were $16,324 and $578, respectively, with results inclusive of sale of $1,070 in inventory step-up cost, $393 in acquisition-related costs and amortization expense of $2,672 recognized related to intangible assets recorded as part of the transaction, but not inclusive of any interest or financing costs. The pro forma results include adjustments for the estimated amortization of intangibles, acquisition-related costs, sale of inventory step-up cost, interest expense assuming the entire $65,000 draw remained outstanding through December 31, 2017 (at the interest rate effective at the date of borrowing) and the income tax impact of the pro forma adjustments at the statutory rate of 26% for fiscal 2018. The following pro forma information is not necessarily indicative of the results that would have been achieved if the acquisition had been effective on September 1, 2016. Years Ended August 31, 2018 Revenue $ Net income Net income available to common shareholders, per common and common equivalent share Basic earnings per share $ 4.75 Diluted earnings per share $ 4.70 |
Sale of License
Sale of License | 12 Months Ended |
Aug. 31, 2020 | |
Sale of License | |
Sale of License | Note 15—Sale of License In November 2017 (fiscal 2018), the Company entered a license agreement with an unrelated party to sell a license, including intellectual property, and certain construction in process assets, with a net book value of $26, all of which related to the manufacturing of certain structural composite materials. In the second fiscal quarter of 2018, the transaction was finalized for gross consideration of $1,111 comprising cash proceeds of $1,000 and $111 in foreign tax consideration paid by the buyer on Chase Corporation’s behalf. This transaction resulted in a gain of $1,085, which was recorded in the Company’s consolidated statement of operations as a gain on sale of license during the fiscal quarter ended February 28, 2018. In relation to this license agreement, the purchaser also entered into a royalty agreement with the Company under which the purchaser agreed to make royalty payments to the Company based on the volume of future sales of certain structural composite material manufactured by the purchaser. Revenue recognized related to this royalty agreement was not material in fiscal 2019 and 2018, and this royalty agreement was terminated in fiscal 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 16—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. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that it does not have any financial liabilities measured at fair value other than long‑term debt and that its financial assets are currently all classified within Level 1 or Level 2 in the fair value hierarchy. The financial assets classified as Level 1 and Level 2 as of August 31, 2020 and 2019 represent investments which are restricted for use in non-qualified 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 August 31, 2020 and 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 August 31, 2020 $ 1,619 $ 1,395 $ 224 $ — Restricted investments August 31, 2019 $ 1,260 $ 1,091 $ 169 $ — The following table presents the fair values of the Company’s long‑term debt as of August 31, 2020 and 2019 which is recorded at its carrying amount: 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 August 31, 2020 $ — $ — $ — $ — Long-term debt August 31, 2019 $ — $ — $ — $ — The long-term debt had no outstanding balance as of August 31, 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 6 to the consolidated financial statements for additional information on long-term debt. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Aug. 31, 2020 | |
Net Income Per Share | |
Net Income Per Share | Note 17—Net Income Per Share The determination of earnings per share under the two‑class method is as follows: Years Ended August 31, 2020 2019 2018 Net income $ 34,157 $ 32,711 $ 43,143 Less: Allocated to participating securities 273 257 410 Available to common shareholders $ 33,884 $ 32,454 $ 42,733 Basic weighted average shares outstanding 9,359,940 9,334,232 9,296,648 Additional dilutive common stock equivalents 79,810 44,975 69,423 Diluted weighted average shares outstanding 9,439,750 9,379,207 9,366,071 Net income available to common shareholders, per common and common equivalent share Basic $ 3.62 $ 3.48 $ 4.60 Diluted $ 3.59 $ 3.46 $ 4.56 For the years ended August 31, 2020, 2019 and 2018, stock options to purchase 11,183, 12,901 and 404 shares of common stock were outstanding but were not included in the calculation of diluted net income per share because their inclusion would be antidilutive. Included in the calculation of dilutive common stock equivalents are the unvested portion of restricted stock and stock options. |
Sale of Businesses
Sale of Businesses | 12 Months Ended |
Aug. 31, 2020 | |
Sale of Businesses | |
Sale of Businesses | Note 18—Sale of Businesses Sale of Structural Composites Rod Business On April 20, 2018, Chase Corporation finalized an agreement with an unrelated party to sell all inventory, operational machinery and equipment and intangible assets of the Company’s structural composites rod business, as well as a license related to the production and sale of rod, for proceeds of $2,232, net of transaction costs and following all working capital adjustments. This business, which was part of the structural composites product line within the Industrial Tapes segment (previously within the former Industrial Materials segment), had limited growth and profitability prospects as part of the Company, and was outside the areas Chase has identified for strategic emphasis. The divestiture was accounted for under ASC Topic 360, “Disclosure — Impairment or Disposal of Long-Lived Assets.” In accordance with this accounting standard, the resulting pre-tax gain on sale of $1,480 was recognized in the third quarter of fiscal 2018 as a gain on sale of businesses within the consolidated statement of operations. Chase received $2,075, net of transaction costs, in the third quarter of fiscal 2018, with the remaining $157 received in the fourth quarter of fiscal 2018 as a result of a working capital true-up. Related to this transaction, the purchaser entered into a royalty agreement with the Company, under which the purchaser agreed to make royalty payments to the Company based on future sales of certain structural composite material manufactured by the purchaser. Royalty revenue recognized in fiscal 2019 and 2018 related to this agreement was not material, and this royalty agreement was terminated in fiscal 2019. The sale of the structural components rod business followed the Company’s sale of the RodPack ® wind blade components business in November 2015, and the licensing of certain composite technologies during the second quarter of fiscal 2018 (see further discussion in Note 15 to the consolidated financial statements). Subsequent to the third quarter of fiscal 2018, Chase Corporation has included the results of its remaining structural composites wind energy business (inclusive of the royalties and the custom manufacturing services) within the specialty products product line. |
Sale of Real Estate
Sale of Real Estate | 12 Months Ended |
Aug. 31, 2020 | |
Sale of Real Estate | |
Sale of Real Estate | Note 19—Sale of Real Estate Sale of Randolph, MA Property In August 2020, the Company finalized the sale of its Randolph, MA property for net proceeds of $1,805. This transaction resulted in a gain of $1,791, which was recorded during the fourth quarter of fiscal 2020. Sale of Pawtucket, RI Location In April 2020, the Company finalized the sale of its Pawtucket, RI location for net proceeds of $1,810. This transaction resulted in a gain of $760, which was recorded during the third quarter of fiscal 2020. |
Operations Optimization Costs
Operations Optimization Costs | 12 Months Ended |
Aug. 31, 2020 | |
Operations Optimization Costs | |
Operations Optimization Costs | Note 20—Operations Optimization Costs Strategic Actions Taken Related to COVID-19 The second, third and fourth fiscal quarters of 2020 saw the global spread of the coronavirus pandemic (COVID-19), which grew to create significant volatility, uncertainty and global economic disruption. During the third fiscal quarter, the Company implemented changes to its cost structure designed to address market changes brought on by COVID-19 and demonstrate its commitment to fiscal prudence: (a) the Company made a targeted reduction in its global workforce, contemplated pre-pandemic but catalyzed by COVID-19, which resulted in the recognition of $183 in severance costs during the period; and (b) the Company also instituted a temporary 20% reduction in the base salaries of its named executive officers and select members of senior management, as well as the cash compensation of the non-employee members of its Board of Directors. The reduction in force, which impacted operations in the Company’s U.S. facilities, and the adjustments in compensation, were both effective May 2020. ERP System Upgrade During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase Corporation 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 the 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, third or fourth fiscal quarters. 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 Corporation 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 $559 in expense related to the move in the six-month period ended February 29, 2020, having recognized $526 in expense during the second half of fiscal 2019. No costs were recognized in the six months ended August 31, 2020, and future costs related to this move are not anticipated to be significant to the consolidated financial statements. Engineering Studies Related to Facility Consolidation and Rationalization Initiative During the fourth quarter of fiscal 2019 (prior year), the Company commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s facility rationalization and consolidation initiative. Chase Corporation completed its review of the data and recommendations provided by the study in the fourth quarter of fiscal 2020 (current year). The Company recognized $200 in expense related to these services in fiscal 2019, and a gain of $170 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Also in the fourth quarter of fiscal 2020 and related to the recommendations of the commissioned engineering studies, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405 related to the machinery. The Company may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined. 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. The Company completed the sale of its Pawtucket, RI location to a third party in the third quarter of fiscal 2020 for net proceeds totaling $1,810, recognizing a gain on sale of real estate of $760. Also, during the third quarter of fiscal 2020, the Company recognized $85 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 21—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. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Aug. 31, 2020 | |
Assets Held for Sale | |
Assets Held for Sale | Note 22—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 August 31, 2020 and 2019 were: August 31, 2020 August 31, 2019 Pawtucket, RI - Property, plant and equipment $ — $ 1,050 Randolph, MA - Property — 14 Total $ — $ 1,064 The Randolph, MA and Pawtucket, RI locations were sold for gains of $1,791 and $760, respectively, during fiscal 2020. See Note 19 to the consolidated financial statements for additional information on the sale of the Randolph, MA and Pawtucket, RI properties during fiscal 2020. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Aug. 31, 2020 | |
Selected Quarterly Financial Data (Unaudited) | |
Selected Quarterly Financial Data (Unaudited) | Note 23—Selected Quarterly Financial Data (Unaudited) The following table presents unaudited operating results for each of the Company’s quarters in the years ended August 31, 2020 and 2019: Fiscal Year 2020 Quarters First Second Third Fourth Year Net Sales $ 65,757 $ 64,626 $ 64,157 $ 63,202 $ 257,742 Gross Profit on Sales 23,974 23,960 24,468 23,725 96,127 Net income $ 7,362 $ 7,879 $ 9,908 $ 9,008 $ 34,157 Net income available to common shareholders, per common and common equivalent share: Basic $ 0.78 $ 0.83 $ 1.05 $ 0.95 $ 3.62 Diluted $ 0.77 $ 0.83 $ 1.04 $ 0.95 $ 3.59 Fiscal Year 2019 Quarters First Second Third Fourth Year Net Sales $ 71,364 $ 65,442 $ 70,883 $ 69,150 $ 276,839 Gross Profit on Sales 24,789 22,229 24,477 25,181 96,676 Net income $ 8,823 $ 5,273 $ 8,541 $ 10,074 $ 32,711 Net income available to common shareholders, per common and common equivalent share: Basic $ 0.94 $ 0.56 $ 0.91 $ 1.07 $ 3.48 Diluted $ 0.93 $ 0.56 $ 0.90 $ 1.07 $ 3.46 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Aug. 31, 2020 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | Note 24—Valuation and Qualifying Accounts The following table sets forth activity in the Company’s accounts receivable and sales return reserve: Year ended Balance at Charges to Deductions to Balance at August 31, 2020 $ 739 $ 921 $ (1,222) $ 438 August 31, 2019 $ 559 $ 1,775 $ (1,595) $ 739 August 31, 2018 $ 456 $ 1,138 $ (1,035) $ 559 The following table sets forth activity in the Company’s warranty reserve (the warranty reserve is included within accrued expenses on the consolidated balance sheet): Year ended Balance at Charges to Deductions to Balance at August 31, 2020 $ 37 $ — $ (37) $ — August 31, 2019 $ — $ 37 $ — $ 37 August 31, 2018 $ 220 $ — $ (220) $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Aug. 31, 2020 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | Note 25 — 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 36 (1,215) (1,541) (2,720) Reclassifications to net income of previously deferred (gains) losses (8) 740 — 732 Other comprehensive income (loss) 28 (475) (1,541) (1,988) Balance at August 31, 2019 $ 154 $ (6,271) $ (8,207) $ (14,324) Other comprehensive gains (losses) before reclassifications 143 (1,278) 3,163 2,028 Reclassifications to net income of previously deferred (gains) losses (28) 620 — 592 Other comprehensive income (loss) 115 (658) 3,163 2,620 Adoption of ASU 2018-02 — (1,388) — (1,388) Balance at August 31, 2020 $ 269 $ (8,317) $ (5,044) $ (13,092) The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income: Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Year Ended Year Ended Location of Gain (Loss) Reclassified from Accumulated August 31, 2020 August 31, 2019 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized loss (gain) on sale of restricted investments $ (37) $ (11) Selling, general and administrative expenses Tax expense (benefit) 9 3 Gain net of tax $ (28) $ (8) Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ 667 $ 475 Other income (expense) Settlement and curtailment loss 155 511 Other income (expense) Tax expense (benefit) (202) (246) Loss net of tax $ 620 $ 740 Total net loss reclassified for the period $ 592 $ 732 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Aug. 31, 2020 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 26 — Revenue from Contracts with Customers The Company accounts for revenue in accordance with ASC 606, “Revenue from Contracts with Customers,” adopted September 1, 2018 (proceeding periods are accounted for under the historic accounting standards of ASC 605). 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 consolidated balance sheet. The following table presents contract assets by reportable operating segment as of August 31, 2020 and 2019: August 31, August 31, 2020 2019 Contract Assets Adhesives, Sealants and Additives $ 20 $ 42 Industrial Tapes 21 26 Corrosion Protection and Waterproofing 41 79 Total $ 82 $ 147 The Company did not have any contract liabilities as of August 31, 2020 and 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 years ended August 31, 2020 and 2019 was as follows: Year Ended August 31, 2020 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 64,611 $ 105,911 $ 36,252 $ 206,774 Asia 17,977 7,150 6,361 31,488 Europe 13,201 3,286 3,047 19,534 All other foreign 419 2,613 334 3,366 Total Revenue $ 96,208 $ 118,960 $ 45,994 $ 261,162 Year Ended August 31, 2019 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 70,320 $ 117,955 $ 37,463 $ 225,738 Asia 19,430 7,126 6,524 33,080 Europe 14,773 2,637 2,455 19,865 All other foreign 273 2,127 268 2,668 Total Revenue $ 104,796 $ 129,845 $ 46,710 $ 281,351 Practical Expedients and Policy Elections Shipping and Handling Policy Election — the Company has made an accounting policy election to record shipping and handling activities occurring after control has passed to the customer to be treated as a fulfillment cost rather than as a distinct performance obligation. Shipping and handling expenses consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded within cost of products and services sold. Amounts billed to customers as shipping and handling are classified as revenue when services are performed. Considering Existence of a Significant Financing Component — as a practical expedient, an entity need not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. Given the time between the Company transferring a promised good or service to the customer and the customer paying for that good or service is less than one year based on the terms of arrangements with customers, the Company does not adjust the promised amount of consideration for effects of a significant financing component. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Summary of Significant Accounting Policies | |
Products and Markets | Products and Markets Our principal products are specialty tapes, laminates, adhesives, sealants, coatings and chemical intermediates that are sold by our salespeople, manufacturers' representatives and distributors. In our Adhesives, Sealants and Additives segment, these products consist of: (i) moisture protective coatings, which are sold to the electronics industry for circuitry manufacturing, including circuitry used in automobiles, industrial controls and home appliances; (ii) advanced adhesives, sealants, and coatings for automotive and industrial applications that require specialized bonding, encapsulating, environmental protection, or thermal management functionality; (iii) polymeric microspheres utilized by various industries to allow for weight and density reduction and sound dampening; (iv) polyurethane dispersions utilized for various coating products; and (v) superabsorbent polymers, which are utilized for water and liquid management, remediation and protection in diverse markets including wire and cable, medical, environmental, infrastructure, energy and consumer products. In our Industrial Tapes segment, these products consist of: (i) (ii) (iii) industrial coated or laminate products and custom manufacturing services sold into medical, consumer, automotive, packaging, energy, telecommunications and other specialized markets; (iv) laminated durable papers, including laminated paper with an inner security barrier used in personal and mail‑stream privacy protection, which are sold primarily to the envelope converting and commercial printing industries; (v) pulling and detection tapes used in the installation, measurement and location of fiber optic cable, water and natural gas lines, and power, data and video cable for commercial buildings; and (vi) cover tapes with reliable adhesive and anti‑static properties essential to delivering semiconductor components via tape and reel packaging. In our Corrosion Protection and Waterproofing segment, these products consist of: (i) protective coatings, tapes and protectants for pipelines, valves, casings and other metals, which are sold to oil companies, gas companies and water/wastewater utilities for use in both the construction and maintenance of oil, gas, water and wastewater pipelines; (ii) fluid applied coating and lining systems for use in the water and wastewater industry; (iii) waterproofing tapes and coatings used in waterproofing of the exterior of both commercial and industrial structures; (iv) waterproofing membranes for highway bridge deck metal supported surfaces, which are sold to municipal transportation authorities, and high-performance polymeric asphalt additives; and (v) expansion and control joint systems designed for roads, bridges, stadiums and airport runways. |
Basis of Presentation | Basis of Presentation 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 functional currency for financial reporting. Certain reclassifications have been made to the prior year amounts to conform to the current year’s presentation. |
Other Business Developments | Other Business Developments On September 1, 2020 (subsequent to fiscal 2020), the Company acquired all the capital stock of ABchimie for €18,000 (approximately $21,420 at the time of the transaction) net of cash and marketable securities acquired, subject to final working capital adjustment, excluding acquisition-related costs of $274 and with a potential earn out based on performance potentially worth an additional €7,000 (approximately $8,330 at the time of the transaction). ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and the protection of electronic assemblies, with further formulation, production, and research and development capabilities. The transaction was funded 100% with cash on hand. The financial results of the business will be included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company is currently in the process of finalizing purchase accounting, regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed and anticipates completion within fiscal 2021. The ABchimie acquisition does not represent a significant business combination so pro forma financial information is not provided. The second, third and fourth fiscal quarters of 2020 saw the global spread of the coronavirus pandemic (COVID-19), which grew to create significant volatility, uncertainty and global economic disruption. During the third fiscal quarter, the Company implemented changes to its cost structure designed to address market changes brought on by COVID-19 and demonstrate its commitment to fiscal prudence: (a) the Company made a targeted reduction in its global workforce, contemplated pre-pandemic but catalyzed by COVID-19, which resulted in the recognition of $183 in severance costs during the period; and (b) the Company also instituted a temporary 20% reduction in the base salaries of its named executive officers and select members of senior management, as well as the cash compensation of the non-employee members of its Board of Directors. The reduction in force, which impacted operations in the Company’s U.S. facilities, and the adjustments in compensation, were both effective May 2020. During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase Corporation 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 the 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, third or fourth fiscal quarters. 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, the Company 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 $559 in expense related to the move in the six-month periods ended February 29, 2020, having recognized $526 in expense during the second half of fiscal 2019. No costs were recognized in the six months ended August 31, 2020, and future costs related to this move are not anticipated to be significant to the consolidated financial statements. During the fourth quarter of fiscal 2019 (prior year), Chase Corporation commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s ongoing facility rationalization and consolidation initiative. Chase completed its review of the data and recommendations provided by the study in the fourth quarter of fiscal 2020 (current year). The Company recognized $200 in expense related to these services in fiscal 2019, and a gain of $170 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Also in the fourth quarter of fiscal 2020 and related to the recommendations of the commissioned engineering studies, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405 related to the machinery. Chase may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined. 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. The Company completed the sale of its Pawtucket, RI location to a third party in the third quarter of fiscal 2020 for net proceeds totaling $1,810, recognizing a gain on sale of real estate of $760. Also, during the third quarter of fiscal 2020, the Company recognized $85 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods. On April 20, 2018, Chase Corporation finalized an agreement with an unrelated party to sell all inventory, operational machinery and equipment and intangible assets of the Company’s structural composites rod business, as well as a license related to the production and sale of rod, for proceeds of $2,232, net of transaction costs and following certain working capital adjustments. This business, which was part of the structural composites product line within the Industrial Tapes segment, had limited growth and profitability prospects as part of the Company, and was outside the areas Chase has identified for strategic emphasis. The resulting pre-tax gain on sale of $1,480 was recognized in the third quarter of fiscal 2018 as a gain on sale of businesses within the consolidated statement of operations. Chase received $2,075, net of transaction costs, in the third quarter of fiscal 2018, with the remaining $157 received in the fourth quarter of fiscal 2018 as a result of a working capital true-up. Chase Corporation will provide certain transitional manufacturing and administrative support to the purchaser for which the Company will receive additional consideration upon the performance of services. On December 29, 2017, Chase Corporation entered an agreement to acquire Stewart Superabsorbents, LLC (“SSA, LLC”), an advanced superabsorbent polymer (SAP) formulator and solutions provider, with operations located in Hickory and McLeansville, NC. The transaction closed on December 31, 2017. In its final fiscal year before its acquisition, SSA, LLC, and its then recently-acquired Zappa-Tec business (collectively “Zappa Stewart”) had combined revenue in excess of $24,000. This acquisition proved to be immediately accretive to the Company’s earnings in the period of acquisition, after adjusting for nonrecurring costs associated with the transaction and financing. The business was acquired for a purchase price of $73,469 after final working capital adjustments and excluding acquisition-related costs. As part of this transaction, Chase Corporation acquired all assets of the business, and entered multiyear leases at both locations. The Company expensed $393 of acquisition-related costs during the second quarter of fiscal 2018. The purchase was funded from a combination of Chase’s existing revolving credit facility and available cash on hand. Zappa Stewart’s protective materials technology complements Chase’s current specialty chemicals offerings. This acquisition is aligned with the Company’s core strategies and extends its reach into growing medical, environmental and consumer applications. The Company finalized purchase accounting in the first quarter of fiscal 2019, without any adjustment to amounts recorded at August 31, 2018. Following the effective date of the acquisition the financial results of Zappa Stewart’s operations have been included in the Company’s financial statements in the specialty chemical intermediates product line, contained within the Adhesives, Sealants and Additives operating segment. The Company has evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, and other than: (a) the cash dividend announced on November 12, 2020 of $0.80 per share to shareholders of record on November 27, 2020 and payable on December 7, 2020; and (b) the acquisition of ABchimie discussed in Note 14, the Company is not aware of any other events or transactions that occurred subsequent to the balance sheet date, but prior to filing, that would require recognition or disclosure in its consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of demand deposit accounts or investment instruments that meet high credit quality standards such as money market funds, government securities, or commercial paper. The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents. |
Accounts Receivable | Accounts Receivable The Company evaluates the collectability of accounts receivable balances based on a combination of factors. In cases where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations to it, a specific allowance against amounts due to the Company is recorded, and thereby reduces the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, industry and geographic factors, the current business environment and its historical experience. Receivables are written off against these reserves in the period they are determined to be uncollectable. |
Inventory | Inventory The Company values inventory at the lower of cost or net realizable value using the first in, first out (FIFO) method. Management assesses the recoverability of inventory based on types and levels of inventory held, forecasted demand and changes in technology. These assessments require management judgments and estimates, and valuation adjustments for excess and obsolete inventory may be recorded based on these assessments. The Company estimates excess and obsolescence exposures based upon assumptions about future demand, product transitions and market conditions, and records adjustments to reduce inventories to their estimated net realizable value. The failure to accurately forecast demand may lead to additional excess and obsolete inventory and future charges. |
Goodwill | Goodwill The Company accounts for goodwill in accordance with ASC Topic 350, “Intangibles — Goodwill and Other.” The Company performs impairment reviews annually each 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 the 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. The Company performed an impairment test on the indefinite-lived and long-lived assets related to the 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. The polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method). In fiscal 2017, we early adopted Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles — Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” When evaluating the potential impairment of goodwill, we first assess a range of qualitative factors, including but not limited to, industry conditions, the competitive environment, changes in the market for our products and services, entity-specific factors such as strategy and changes in key personnel, and the overall financial performance for each of our reporting units relative to historical or projected future operating results. If after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then 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. Fair values for reporting units are determined based on the income approach (discounted cash flow method). For the annual fiscal 2020 fourth quarter review, no goodwill impairment, nor at-risk reporting units, was indicated as of August 31, 2020. For the annual fiscal 2020 goodwill impairment test, we performed a qualitative assessment of goodwill impairment and concluded that it was more likely than not that our reporting units' fair values exceeded their carrying values (i.e. indicated no impairment of goodwill). Accordingly, it was not necessary for us to perform the quantitative analysis. |
Intangible Assets | Intangible Assets Intangible assets consist of patents, formulas, trade names, customer relationships and trademarks. The Company capitalizes costs related to patent applications and technology agreements. The costs of these assets are amortized over the lesser of the useful life of the asset or its statutory life. Capitalized costs are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight‑line method over the assets’ estimated useful lives. Expenditures for maintenance repairs and minor renewals are charged to expense as incurred. Betterments and major renewals are capitalized. Upon retirement or other disposition of assets, related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is included in the determination of income or loss. The estimated useful lives of property, plant and equipment are as follows: Buildings and improvements 15 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements are depreciated over the lesser of the useful life or the term of the lease. |
Restricted Investments and Deferred Compensation | Restricted Investments and Deferred Compensation The Company has a non-qualified deferred savings plan that covers its Board of Directors and a separate plan covering selected employees. Participants may elect to defer a portion of their compensation for payment in a future tax year. The plans are funded by trusteed assets that are restricted to the payment of deferred compensation or satisfaction of the Company’s general creditors. The Company’s restricted investments under the plans were $1,619 and $1,260 at August 31, 2020 and 2019, respectively, and corresponding deferred compensation liabilities were $1,629 and $1,275 at August 31, 2020 and 2019, respectively. The Company accounts for the restricted investments as available for sale by recording net unrealized gains or losses in other comprehensive income as a component of stockholders’ equity. |
Revenue | Revenue Effective September 1, 2018, the Company adopted accounting standard ASU No. 2014-09, “Revenue from Contracts with Customers” (ASC 606) using the modified retrospective method for contracts that were not completed as of August 31, 2018. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, whereby the cumulative impact of all prior periods is recorded in retained earnings or other impacted balance sheet line items upon adoption. The comparative information (for all periods prior to September 1, 2018) has not been adjusted and continues to be reported under ASU No. 2009-13 “Revenue Recognition” (ASC 605). The impact on the Company’s consolidated balance sheets, and statements of operations, equity or cash flows as of the adoption date as a result of applying ASC 606 have been reflected within those respective financial statements. The Company’s accounting policy has been updated to align with ASC 606. The adoption of ASC 606 represents a change in accounting principle that provides enhanced revenue recognition disclosures. The Company accounts for revenue from contracts with customers when: (a) there is approval and commitment from both parties; (b) the rights of the parties are identified; (c) payment terms are identified; (d) the contract has commercial substance; and (e) collectability of consideration is probable. Revenue is primarily derived from customer purchase orders, master sales agreements, and negotiated contracts, all of which represent contracts with customers. See Note 26 to the consolidated financial statements for more information on our accounting for revenue. |
Research and Product Development Costs | Research and Product Development Costs Research and product development costs are expensed as incurred and include primarily engineering salaries, overhead and materials used in connection with research and development projects. Research and development expense amounted to $4,007, $4,021 and $3,940 for the years ended August 31, 2020, 2019 and 2018, respectively, and was recorded within Research and product development costs on the consolidated statements of operations. |
Pension Plan | Pension Plans The Company accounts for its pension plans following the requirements of ASC Topic 715, “Compensation —Retirement Benefits” (“ASC 715”). ASC 715 requires an employer to: (a) recognize in its statement of financial position the funded status of a benefit plan; (b) measure defined benefit plan assets and obligations as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise but are not recognized as components of net periodic benefit costs pursuant to prior existing guidance. |
Stock Based Compensation | Stock-Based Compensation In accordance with the accounting for stock-based compensation guidance, ASC Topic 718 “Compensation – Stock Compensation” (“ASC 718”), the Company measures and recognizes compensation expense for all share‑based payment awards made to employees and directors based on estimated fair values. This includes restricted stock, restricted stock units and stock options. The guidance allows for the continued use of the simplified method as the Company has concluded that its historical share option exercise experience does not provide a reasonable basis for estimating expected term. Stock‑based compensation expense recognized in fiscal years 2020, 2019 and 2018 was $3,208, $2,176 and $2,128, respectively. The fair value of options granted was estimated on the date of grant using the Black‑Scholes option pricing model with the following weighted average assumptions for the years ending August 31, 2020, 2019 and 2018: 2020 2019 2018 Expected dividend yield % % % Expected life years 6.0 years 6.0 years Expected volatility % % % Risk-free interest rate % 2.7 % 1.9 % Expected volatility is determined by looking at a combination of historical volatility over the past six years as well as implied future volatility. |
Translation of Foreign Currency | Translation of Foreign Currency The financial position and results of operations of the Company’s HumiSeal Europe Ltd and Chase Protective Coatings Ltd businesses are measured using the British pound as the functional currency. The financial position and results of operations of the Company’s HumiSeal Europe SARL business in France are measured using euros as the functional currency. The financial position and results of the Company’s HumiSeal India Private Limited business in India are measured using the Indian rupee as the functional currency. The functional currency for all our other operations is the U.S. dollar. Revenue and expenses of these international businesses have been translated at average exchange rates. 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 (a component of stockholders’ equity). Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of these international operations are included in other income (expense) on the consolidated statements of operations and were gains (losses) of ($911), ($48) and $85 for the fiscal years ended August 31, 2020, 2019 and 2018, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, a deferred tax asset or liability is determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Tax credits are recorded as a reduction in income taxes. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company estimates contingent income tax liabilities based on the guidance for accounting for uncertain tax positions as prescribed in ASC Topic 740, “Income Taxes.” See Note 7 for more information on the Company’s income taxes, including information on the effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on our financial position and results of operations, including adjustments that were recorded during fiscal 2018 and 2019 related to the Tax Act. |
Net Income Per Share | 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” (“ASC 260”). The Company allocates earnings to participating securities and computes earnings per share using the two-class method. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non‑owner sources, including foreign currency translation adjustments, unrealized gains and losses on marketable securities and adjustments related to the change in the funded status of the pension plans. |
Segments | Segments ASC Topic 280 “Segment Reporting” of the Financial Accounting Standards Board (“FASB”) codification establishes standards for reporting information about operating segments. In the fourth quarter of its 2019 fiscal year (prior year), the Company reorganized into three reportable operating segments, an Adhesives, Sealants and Additives segment, an Industrial Tapes segment and a Corrosion Protection and Waterproofing segment. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets. 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 products. 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. Beginning December 31, 2017, the Adhesives, Sealants and Additives segment includes the acquired operations of Zappa Stewart, within the specialty chemical intermediates product line. 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 cable 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. |
Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, “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 2016-13. The ASU 2019-11 amendment provides clarity and improves the codification to ASU 2016-13. 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 consolidated financial statements. Recently Adopted Accounting Standards Fiscal 2020 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees are 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. The Company 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 it 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 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 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 of the Tax Reform related to its pension funding from accumulated other comprehensive loss to retained earnings. Fiscal 2019 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amended guidance establishes a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance, including industry-specific guidance. The amended guidance clarifies that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the amended guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 was effective for the Company’s interim and annual reporting periods beginning September 1, 2018 (fiscal 2019), and could have been adopted using either a full retrospective or modified retrospective transition method. The Company adopted the amended guidance and all related amendments using the modified retrospective approach on September 1, 2018. The Company recognized the cumulative effect of initially applying the new revenue standard to all open contracts requiring recognition over time that were not completed on the date of adoption as an adjustment to the opening balance of retained earnings. At the adoption date, the cumulative impact of revenue that would have been recognized over time was $80. The related adoption impact to retained earnings was $22, net of tax. The impact to net sales and net income as a result of applying ASC 606 was an increase of $67 and $5, respectively, for the year ended August 31, 2019. See Note 26 — “Revenue from Contracts with Customers” for further discussion of the effects of adoption. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230).” This ASU provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The Company adopted ASU No. 2016-15 on September 1, 2018, and the adoption did not have a material effect on its financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance dictates that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The Company adopted the ASU on September 1, 2018. The adoption had no material effect on the financial statements and related disclosures in fiscal 2020 and 2019. The effect ASU No. 2017-01 will have on the financial statements and related disclosures of the Company in future periods will be dependent on the nature of potential future acquisitions and divestitures. In March 2017, the FASB issued ASU No. 2017-07, “Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715, Compensation — Retirement Benefits. The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The ASU also allows only the service cost component to be eligible for capitalization when applicable (e.g., as a cost of internally manufactured inventory or a self-constructed asset). The Company adopted ASU No. 2017-07 on September 1, 2018, which resulted in the reclassification of $654 and $1,065, previously reported in selling, general and administrative expense, to other income (expense) for the years ended August 31, 2018 and 2017 (prior years), respectively. Fiscal 2018 The Company did not adopt any new accounting standards in fiscal 2018. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of property, plant and equipment | Buildings and improvements 15 to 40 years Machinery and equipment 3 to 10 years |
Schedule of weighted average assumptions used to estimate the fair value of options granted on the date of grant using the Black-Scholes option pricing model | 2020 2019 2018 Expected dividend yield % % % Expected life years 6.0 years 6.0 years Expected volatility % % % Risk-free interest rate % 2.7 % 1.9 % |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Inventory | |
Schedule of inventory | August 31, August 31, 2020 2019 Raw materials $ 18,993 $ 20,325 Work in process 7,761 8,748 Finished goods 12,304 13,281 Total Inventory $ 39,058 $ 42,354 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | 2020 2019 Land and improvements $ 4,997 $ 6,079 Buildings 17,992 17,900 Machinery and equipment 51,942 51,934 Leasehold improvements 2,212 1,828 Construction in progress 714 1,315 77,857 79,056 Accumulated depreciation (52,283) (49,730) Property, plant and equipment, net $ 25,574 $ 29,326 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Aug. 31, 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, 2018 $ $ $ $ Loss on impairment of polyurethane dispersions business (2,410) — — (2,410) Foreign currency translation adjustment (287) — (13) (300) Balance at August 31, 2019 $ 50,090 $ 21,215 $ 10,681 $ 81,986 Foreign currency translation adjustment 397 — 19 416 Balance at August 31, 2020 $ 50,487 $ 21,215 $ 10,700 $ 82,402 |
Schedule of intangible assets subject to amortization | Weighted Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value August 31, 2020 Patents and agreements years $ 1,760 $ 1,705 $ 55 Formulas and technology years 10,250 9,121 1,129 Trade names years 8,575 7,781 794 Customer lists and relationships years 98,966 59,744 39,222 $ 119,551 $ 78,351 $ 41,200 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, 2021 11,066 2022 10,036 2023 6,768 2024 5,560 2025 3,961 |
Cash Surrender Value of Life _2
Cash Surrender Value of Life Insurance (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Cash Surrender Value of Life Insurance. | |
Schedule of cash surrender value of life insurance policies | 2020 2019 John Hancock $ 4,450 $ 4,450 Cash surrender value of life insurance policies $ 4,450 $ 4,450 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Long-Term Debt | |
Schedule of long-term debt | 2020 2019 All-revolving credit facility with a borrowing capacity of $150,000 $ — $ — Long-term debt $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Income Taxes | |
Schedule of domestic and foreign pre-tax income | Year Ended August 31, 2020 2019 2018 United States $ 42,027 $ 37,088 $ 48,962 Foreign 3,293 6,465 8,003 $ 45,320 $ 43,553 $ 56,965 |
Schedule of provision (benefit) for income taxes | Year Ended August 31, 2020 2019 2018 Current: Federal $ 9,157 $ 9,880 $ 12,872 State 1,813 1,699 1,662 Foreign 962 1,575 1,761 Total current income tax provision 11,932 13,154 16,295 Deferred: Federal (520) (1,699) (2,214) State (184) (529) (263) Foreign (65) (84) 4 Total deferred income tax benefit (769) (2,312) (2,473) Total income tax provision $ 11,163 $ 10,842 $ 13,822 |
Schedule of reconciliation of the effective income tax rate with the U.S. federal statutory income tax rate | Year Ended August 31, 2020 2019 2018 Federal statutory rates 21.0 % 21.0 % 25.7 % Adjustment resulting from the tax effect of: State and local taxes, net of federal benefit % % % Domestic production deduction % % % Foreign tax rate differential % % % Adjustment to uncertain tax position % % % Transaction costs not deductible % % % Research credit generated % % % Stock Compensation % % % Permanent items % % % Tax effect of undistributed earnings % % % Other % % % Change in valuation allowance % % % Deferred income tax remeasurement % % % Effective income tax rate 24.6 % 24.9 % 24.3 % |
Summary of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities | As of August 31, 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 309 $ 432 Inventories 994 1,193 Accruals 504 541 Warranty reserve 14 22 Pension accrual 2,749 2,623 Deferred compensation 391 300 Foreign currency loss on previously taxed income 96 96 Loan finance costs 7 34 Restricted stock grants 823 456 Non-qualified stock options 211 258 Right-of-use asset 2,354 — Foreign net operating loss, net of valuation allowance 247 — Other 572 353 9,271 6,308 Deferred tax liabilities: Prepaid liabilities (16) (8) Lease liability (2,693) — Depreciation and amortization (1,633) (2,496) (4,342) (2,504) Net deferred tax assets (liabilities) $ 4,929 $ 3,804 |
Summary of the Company's adjustments to its uncertain tax positions | 2020 2019 2018 Balance, at beginning of the year $ 2,324 $ 1,889 $ 1,257 Increase for tax positions related to the current year 101 55 47 (Decrease) increase for tax positions related to prior years (609) 300 595 Increase for interest and penalties 125 106 71 Decrease for lapses of statute of limitations — (26) (81) Balance, at end of year $ 1,941 $ 2,324 $ 1,889 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Leases | |
Schedule of Lessee's balance sheet disclosure | August 31, 2020 Assets Operating lease right-of-use asset $ 8,821 Liabilities Current (accrued expense) $ 1,865 Operating lease long-term liabilities 6,395 Total lease liability $ 8,260 |
Schedule of components of lease costs | Year Ended August 31, 2020 Operating lease cost (a) $ 3,783 (a) Includes short-term leases and variable lease costs (e.g. common area maintenance), which are immaterial. |
Schedule of Maturity of lease liability | Future Operating Year ending August 31, Lease Payments 2021 $ 2,085 2022 1,500 2023 1,346 2024 1,360 2025 and thereafter 2,687 Less: Interest (718) Present value of lease liabilities $ 8,260 |
Schedule of weighted average remaining lease term and discount rates | August 31, 2020 Lease Term and Discount Rate Weighted average remaining lease term (years) Operating leases 5.5 Weighted average discount rate (percentage) Operating leases 3.1 % |
Schedule of supplemental cash flow information | Year Ended August 31, 2020 Operating cash outflows from operating leases $ 2,444 Total cash paid for amounts included in the measurement of lease liabilities $ 2,444 |
Schedule of future minimum lease payments under noncancelable operating leases | 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 |
Benefits and Pension Plans (Tab
Benefits and Pension Plans (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Pensions and Other Postretirement Benefits | |
Schedule of the status of the Company's pension plans | Year Ended August 31, 2020 2019 2018 Change in benefit obligation Projected benefit obligation at beginning of year $ 20,087 $ 21,860 $ 22,673 Service cost 295 283 283 Interest cost 451 696 629 Actuarial (gain) loss 2,253 995 17 Settlements — — — Benefits paid (2,423) (3,747) (1,742) Projected benefit obligation at end of year $ 20,663 $ 20,087 $ 21,860 Change in plan assets Fair value of plan assets at beginning of year $ 7,859 $ 9,855 $ 9,003 Actual return on plan assets 868 181 509 Employer contribution 1,864 1,570 2,085 Settlements — — — Benefits paid (2,423) (3,747) (1,742) Fair value of plan assets at end of year $ 8,168 $ 7,859 $ 9,855 Funded status at end of year $ (12,495) $ (12,228) $ (12,005) Year Ended August 31, 2020 2019 2018 Amounts recognized in consolidated balance sheets Noncurrent assets $ — $ — $ 301 Current liabilities (1,565) (1,743) (1,570) Noncurrent liabilities (10,930) (10,485) (10,736) Net amount recognized in consolidated balance sheets $ (12,495) $ (12,228) $ (12,005) Actuarial present value of benefit obligation and funded status Accumulated benefit obligations $ 18,307 $ 18,244 $ 20,075 Projected benefit obligations $ 20,663 $ 20,087 $ 21,858 Plan assets at fair value $ 8,168 $ 7,859 $ 9,855 Amounts recognized in accumulated other comprehensive income Prior service cost $ 44 $ 47 $ 54 Net actuarial loss 10,595 9,638 9,377 Adjustment to pre-tax accumulated other comprehensive income $ 10,639 $ 9,685 $ 9,431 Year Ended August 31, 2020 2019 2018 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net (gain)/loss $ 711 $ 1,863 $ (704) Amortization of loss (664) (472) (484) Supplemental plan assumption change 1,065 (620) 676 Amortization of prior service cost (3) (3) (3) Effect of settlement on accumulated other comprehensive income (155) (511) — Total recognized in other comprehensive income 954 257 (515) Net periodic pension cost 1,178 1,537 937 Total recognized in net periodic pension cost and other comprehensive income $ 2,132 $ 1,794 $ 422 Estimated amounts that will be amortized from accumulated comprehensive income over the next fiscal year Prior service cost $ 3 $ 3 $ 3 Net actuarial loss 656 500 475 |
Schedule of components of net periodic benefit cost | 2020 2019 2018 Components of net periodic benefit cost Service cost $ 295 $ 283 $ 283 Interest cost 451 696 629 Expected return on plan assets (390) (428) (462) Amortization of prior service cost 3 3 3 Amortization of accumulated loss 664 472 484 Curtailment and settlement loss 155 511 — Net periodic benefit cost $ 1,178 $ 1,537 $ 937 |
Schedule of weighted-average assumptions used to determine benefit obligations | 2020 2019 2018 Discount rate Qualified plan 1.92 % 2.58 % 3.80 % Supplemental plan 1.65 % 2.37 % 3.57 % NEPTCO plan — % 2.29 % 3.59 % Rate of compensation increase Qualified and Supplemental plan 3.50 % 3.50 % 3.50 % NEPTCO plan — % — % — % |
Schedule of weighted-average assumptions used to determine net periodic benefit cost | 2020 2019 2018 Discount rate Qualified plan 2.58 % 3.80 % 3.30 % Supplemental plan 2.37 % 3.57 % 2.73 % NEPTCO plan 2.29 % 3.59 % 2.95 % Expected long-term return on plan assets Qualified plan 5.60 % 5.40 % 5.40 % Supplemental plan — % — % — % NEPTCO plan 5.60 % 5.40 % 5.20 % Rate of compensation increase Qualified and Supplemental plan 3.50 % 3.50 % 3.50 % NEPTCO plan — % — % — % |
Schedule of pension plans' assets by asset category | Fair value measurements at Fair value measurements at August 31, 2020 August 31, 2019 Significant Significant Quoted prices other Significant Quoted prices other Significant in active observable unobservable in active observable unobservable August 31, markets inputs inputs August 31, markets inputs inputs 2020 (Level 1) (Level 2) (Level 3) 2019 (Level 1) (Level 2) (Level 3) Asset Category Equity securities $ 3,986 $ 3,986 $ — $ — $ 3,474 $ 3,474 $ — $ — Debt securities 4,182 4,182 — — 4,385 4,385 — — Total $ 8,168 $ 8,168 $ — $ — $ 7,859 $ 7,859 $ — $ — |
Schedule of pension benefit payments (which include expected future service) expected to be paid | Year ending August 31, Pension Benefits 2021 $ 2,996 2022 1,759 2023 2,507 2024 1,948 2025 1,788 2026-2030 $ 5,393 |
Qualified Plan | |
Pensions and Other Postretirement Benefits | |
Schedule of target allocation and weighted-average asset allocations | Target Allocation Percentage of Plan Assets as of August 31, Asset Category Range 2020 2019 2018 Equity securities 10-80 % 49 % 44 % 46 % Debt securities 20-70 % 51 % 56 % 54 % Other 0-100 % — % — % — % Total 100 % 100 % 100 % 100 % |
NEPTCO | Qualified Plan | |
Pensions and Other Postretirement Benefits | |
Schedule of target allocation and weighted-average asset allocations | Target Allocation Percentage of Plan Assets as of August 31, Asset Category Range 2020 2019 2018 Equity securities 10-80 % — % 44 % 46 % Debt securities 20-70 % — % 56 % 54 % Other 0-100 % — % — % — % Total 100 % — % 100 % 100 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Stockholders' Equity | |
Summary of restricted stock plan | Non Employee Weighted Average Officers Weighted Average Unvested restricted stock at August 31, 2017 2,407 $ 91.05 73,972 $ 51.56 Granted 2,779 $ 101.05 13,922 $ 83.65 Vested (2,407) $ 91.05 (22,315) $ 41.35 Forfeited or cancelled — — Unvested restricted stock at August 31, 2018 2,779 $ 101.05 65,579 $ 61.85 Granted 4,599 $ 101.92 7,524 $ 121.64 Vested (2,779) $ 101.05 (25,443) $ 65.79 Forfeited or cancelled — (3,305) $ 79.39 Unvested restricted stock at August 31, 2019 4,599 $ 101.92 44,355 $ 67.18 Granted 4,906 $ 95.59 43,841 $ 108.47 Vested (4,599) $ 101.92 (25,195) $ 61.51 Forfeited or cancelled — (3,126) $ 123.19 Unvested restricted stock at August 31, 2020 4,906 $ 95.59 59,875 $ 97.72 |
Summary of information about stock options outstanding | Options Outstanding Options Exercisable Exercise Prices Number Weighted Avg. Weighted Aggregate Number Weighted Aggregate $ 16.00 5,065 2.1 $ 16.00 $ 413 5,065 $ 16.00 $ 413 $ 29.72 13,790 3.0 $ 29.72 $ 936 13,790 $ 29.72 $ 936 $ 35.50 13,372 4.0 $ 35.50 $ 830 13,372 $ 35.50 $ 830 $ 39.50 12,753 5.0 $ 39.50 $ 741 12,753 $ 39.50 $ 741 $ 64.37 34,260 6.0 $ 64.37 $ 1,137 34,260 $ 64.37 $ 1,137 $ 93.50 8,704 7.0 $ 93.50 $ 35 8,704 $ 93.50 $ 35 $ 99.38 483 8.0 $ 99.38 $ — 322 $ 99.38 $ — $ 100.22 67,060 9.0 $ 100.22 $ — 4,473 $ 100.22 $ — $ 104.00 606 7.5 $ 104.00 $ — 606 $ 104.00 $ — $ 123.95 8,603 8.0 $ 123.95 $ — 5,735 $ 123.95 $ — 164,696 6.8 $ 75.21 $ 4,092 99,080 $ 57.96 $ 4,092 |
Summary of the transactions of the Company's stock option plans | Officers Weighted Options outstanding at August 31, 2017 152,974 $ 34.21 Granted 10,228 $ 94.12 Exercised (64,012) $ 19.06 Forfeited or cancelled — Options outstanding at August 31, 2018 99,190 $ 50.17 Granted 9,086 $ 122.64 Exercised (7,022) $ 42.86 Forfeited or cancelled — Options outstanding at August 31, 2019 101,254 $ 57.18 Granted 67,060 $ 100.22 Exercised (3,618) $ 34.21 Forfeited or cancelled — Options outstanding at August 31, 2020 164,696 $ 75.21 Options exercisable at August 31, 2020 99,080 $ 57.96 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Segment Data | |
Summary of information about the Company's reportable segments | Years Ended August 31, 2020 2019 2018 Revenue Adhesives, Sealants and Additives $ 96,208 $ 104,796 $ 101,690 Industrial Tapes 118,960 129,845 130,598 Corrosion Protection and Waterproofing 45,994 46,710 51,900 Total $ 261,162 $ 281,351 $ 284,188 Income before income taxes Adhesives, Sealants and Additives $ 25,953 $ 27,142 (d) $ 35,190 (h) Industrial Tapes 31,237 (a) 28,216 (e) 30,886 (i) Corrosion Protection and Waterproofing 16,638 (b) 15,909 (f) 18,178 Total for reportable segments 73,828 71,267 84,254 Corporate and common costs (28,508) (c) (27,714) (g) (27,289) (j) Total $ 45,320 $ 43,553 $ 56,965 Includes the following costs by segment: Adhesives, Sealants and Additives Interest $ 98 $ 177 $ 422 Depreciation 994 1,467 1,285 Amortization 9,313 9,359 7,895 Industrial Tapes Interest $ 111 $ 216 $ 516 Depreciation 1,746 1,755 2,748 Amortization 1,800 1,800 2,604 Corrosion Protection and Waterproofing Interest $ 37 $ 126 $ 234 Depreciation 615 674 753 Amortization 463 1,286 1,308 (a) 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 (b) Includes $170 gain on the refund of a payment made in fiscal 2019 related to engineering studies performed to assess potential operational changes and further plant rationalization and consolidation and an expense of $405 for the write-down of certain assets under construction. (c) Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to the Company’s companywide ERP system, a $760 gain related to the April 2020 sale of the Company’s Pawtucket, RI location, a $1,791 gain related to the August 2020 sale of the Company’s Randolph, MA property, $183 in severance expense related to the May 2020 reduction in force, $85 in expenses related to the final transition out of the Pawtucket, RI facility, $155 of pension-related settlement costs due to the timing of lump-sum distribution and $274 in acquisition-related costs attributable to the September 2020 (fiscal 2021) acquisition of ABchimie (d) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business (e) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019, and $526 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 second half of fiscal 2019 (f) Includes $200 of expense related to engineering studies performed to assess potential future operational changes and further plant rationalization and consolidation, see note (b) (g) Includes $511 of pension-related settlement costs due to the timing of lump-sum distributions (h) Includes $1,070 of expense related to inventory step-up in fair value attributable to the acquisition of Zappa Stewart (i) Includes $1,085 gain on sale of license related to the structural composites product line recorded in the second quarter of fiscal 2018, $1,480 gain on sale of business related to the April 2018 sale of the structural composites rod business and $1,272 of expense related to the exit of our Pawtucket, RI location in the fourth quarter of fiscal 2018 (j) Includes $393 in acquisition-related expense attributable to the December 2017 acquisition of Zappa Stewart |
Schedule of total assets for the Company's reportable segments | August 31, August 31, 2020 2019 Total Assets Adhesives, Sealants and Additives $ 129,457 $ 135,583 Industrial Tapes 71,229 77,085 Corrosion Protection and Waterproofing 32,642 32,478 Total for reportable segments 233,328 245,146 Corporate and common assets 113,502 62,822 Total $ 346,830 $ 307,968 |
Export Sales and Foreign Oper_2
Export Sales and Foreign Operations (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Export Sales and Foreign Operations | |
Schedule of revenue by country | Years Ended August 31, 2020 2019 2018 Revenue United States $ 226,690 $ 248,281 $ 244,225 United Kingdom 20,543 17,504 20,598 All other foreign (1) 13,929 15,566 19,365 Total $ 261,162 $ 281,351 $ 284,188 (1) Inclusive of sales originated from our Paris, France location, royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations. |
Schedule of long-lived assets by country | August 31, August 31, 2020 2019 Long-Lived Assets United States Property, plant and equipment, net $ 22,427 $ 24,993 Goodwill and Intangible assets, less accumulated amortization 117,930 129,057 United Kingdom Property, plant and equipment, net 2,320 2,493 Goodwill and Intangible assets, less accumulated amortization 4,403 4,446 All other foreign Property, plant and equipment, net 827 1,840 Goodwill and Intangible assets, less accumulated amortization 1,269 1,187 Total Property, plant and equipment, net $ 25,574 $ 29,326 Goodwill and Intangible assets, less accumulated amortization $ 123,602 $ 134,690 |
Supplemental Cash Flow Data (Ta
Supplemental Cash Flow Data (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Supplemental Cash Flow Data | |
Schedule of supplemental cash flow information | 2020 2019 2018 Income taxes paid $ 11,186 $ 11,714 $ 20,142 Interest paid $ 230 $ 728 $ 915 Noncash Investing and Financing Activities Common stock received for payment of stock option exercises $ 123 $ 119 $ 1,028 Property, plant and equipment additions included in accounts payable $ 92 $ 67 $ 197 Supplemental cash flow information as related to acquisitions and divestitures for the years ended August 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Sale of Randolph, MA Property Asset held for sale $ (14) Gain on sale of real estate (1,791) Cash received from sale of real estate, net 1,805 Sale of Pawtucket, RI Location Asset held for sale $ (1,050) Gain on sale of real estate (760) Cash received from sale of real estate, net 1,810 Acquisition of Zappa Stewart Current assets $ 10,478 Property, plant & equipment 1,872 Goodwill and Intangible assets 64,378 Deferred tax liability (2,626) Accounts payable and accrued liabilities (633) Payments for acquisitions (73,469) Sale of Structural Composites Rod Business Inventory $ (522) Goodwill (230) Gain on sale of business (1,480) Cash received from sale of business, net of transaction costs 2,232 Sale of Structural Composites License Property and equipment $ (26) Gain on sale of license (1,085) Accrued income taxes 111 Cash received from sale of license 1,000 Sale of Fiber Optic Cable Components Product Line Due from sale of business $ (400) Cash received from sale of product line, net of transaction costs 400 |
Acquisitions (Tables)
Acquisitions (Tables) - Zappa Stewart | 12 Months Ended |
Aug. 31, 2020 | |
Schedule of allocation of acquisition cost to the acquired tangible and identifiable intangible assets and liabilities assumed based on their fair values as of the date of the acquisition | Assets and Liabilities Amount Accounts receivable $ 3,670 Inventory 6,796 Prepaid expenses and other current assets 12 Property, plant & equipment 1,872 Goodwill 34,138 Intangible assets 30,240 Deferred tax liability (2,626) Accounts payable and accrued expenses (633) Total purchase price $ 73,469 |
Schedule of identifiable intangible assets purchased as part of business acquisition | Weighted Average Intangible Asset Amount Useful Life Customer relationships $ 28,500 7.9 years Technology 900 7 years Trade names 840 4 years Total intangible assets $ 30,240 |
Schedule of pro forma information | Years Ended August 31, 2018 Revenue $ Net income Net income available to common shareholders, per common and common equivalent share Basic earnings per share $ 4.75 Diluted earnings per share $ 4.70 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 31, 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 August 31, 2020 $ 1,619 $ 1,395 $ 224 $ — 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 August 31, 2020 $ — $ — $ — $ — Long-term debt August 31, 2019 $ — $ — $ — $ — |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Net Income Per Share | |
Schedule of determination of earnings per share under the two-class method | Years Ended August 31, 2020 2019 2018 Net income $ 34,157 $ 32,711 $ 43,143 Less: Allocated to participating securities 273 257 410 Available to common shareholders $ 33,884 $ 32,454 $ 42,733 Basic weighted average shares outstanding 9,359,940 9,334,232 9,296,648 Additional dilutive common stock equivalents 79,810 44,975 69,423 Diluted weighted average shares outstanding 9,439,750 9,379,207 9,366,071 Net income available to common shareholders, per common and common equivalent share Basic $ 3.62 $ 3.48 $ 4.60 Diluted $ 3.59 $ 3.46 $ 4.56 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Assets Held for Sale | |
Summary of assets held for sale | August 31, 2020 August 31, 2019 Pawtucket, RI - Property, plant and equipment $ — $ 1,050 Randolph, MA - Property — 14 Total $ — $ 1,064 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Selected Quarterly Financial Data (Unaudited) | |
Schedule of unaudited operating results for each of the Company's quarters | Fiscal Year 2020 Quarters First Second Third Fourth Year Net Sales $ 65,757 $ 64,626 $ 64,157 $ 63,202 $ 257,742 Gross Profit on Sales 23,974 23,960 24,468 23,725 96,127 Net income $ 7,362 $ 7,879 $ 9,908 $ 9,008 $ 34,157 Net income available to common shareholders, per common and common equivalent share: Basic $ 0.78 $ 0.83 $ 1.05 $ 0.95 $ 3.62 Diluted $ 0.77 $ 0.83 $ 1.04 $ 0.95 $ 3.59 Fiscal Year 2019 Quarters First Second Third Fourth Year Net Sales $ 71,364 $ 65,442 $ 70,883 $ 69,150 $ 276,839 Gross Profit on Sales 24,789 22,229 24,477 25,181 96,676 Net income $ 8,823 $ 5,273 $ 8,541 $ 10,074 $ 32,711 Net income available to common shareholders, per common and common equivalent share: Basic $ 0.94 $ 0.56 $ 0.91 $ 1.07 $ 3.48 Diluted $ 0.93 $ 0.56 $ 0.90 $ 1.07 $ 3.46 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Valuation and Qualifying Accounts | |
Schedule of Company's accounts receivable reserve | Year ended Balance at Charges to Deductions to Balance at August 31, 2020 $ 739 $ 921 $ (1,222) $ 438 August 31, 2019 $ 559 $ 1,775 $ (1,595) $ 739 August 31, 2018 $ 456 $ 1,138 $ (1,035) $ 559 |
Schedule of Company's warranty reserve | Year ended Balance at Charges to Deductions to Balance at August 31, 2020 $ 37 $ — $ (37) $ — August 31, 2019 $ — $ 37 $ — $ 37 August 31, 2018 $ 220 $ — $ (220) $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Aug. 31, 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 36 (1,215) (1,541) (2,720) Reclassifications to net income of previously deferred (gains) losses (8) 740 — 732 Other comprehensive income (loss) 28 (475) (1,541) (1,988) Balance at August 31, 2019 $ 154 $ (6,271) $ (8,207) $ (14,324) Other comprehensive gains (losses) before reclassifications 143 (1,278) 3,163 2,028 Reclassifications to net income of previously deferred (gains) losses (28) 620 — 592 Other comprehensive income (loss) 115 (658) 3,163 2,620 Adoption of ASU 2018-02 — (1,388) — (1,388) Balance at August 31, 2020 $ 269 $ (8,317) $ (5,044) $ (13,092) |
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 Year Ended Year Ended Location of Gain (Loss) Reclassified from Accumulated August 31, 2020 August 31, 2019 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized loss (gain) on sale of restricted investments $ (37) $ (11) Selling, general and administrative expenses Tax expense (benefit) 9 3 Gain net of tax $ (28) $ (8) Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ 667 $ 475 Other income (expense) Settlement and curtailment loss 155 511 Other income (expense) Tax expense (benefit) (202) (246) Loss net of tax $ 620 $ 740 Total net loss reclassified for the period $ 592 $ 732 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Revenue from Contracts with Customers | |
Schedule of contract assets by reportable operating segment | August 31, August 31, 2020 2019 Contract Assets Adhesives, Sealants and Additives $ 20 $ 42 Industrial Tapes 21 26 Corrosion Protection and Waterproofing 41 79 Total $ 82 $ 147 |
Schedule of disaggregation of revenue | Year Ended August 31, 2020 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 64,611 $ 105,911 $ 36,252 $ 206,774 Asia 17,977 7,150 6,361 31,488 Europe 13,201 3,286 3,047 19,534 All other foreign 419 2,613 334 3,366 Total Revenue $ 96,208 $ 118,960 $ 45,994 $ 261,162 Year Ended August 31, 2019 Adhesives, Sealants Industrial Corrosion Protection Consolidated and Additives Tapes and Waterproofing Revenue Revenue North America $ 70,320 $ 117,955 $ 37,463 $ 225,738 Asia 19,430 7,126 6,524 33,080 Europe 14,773 2,637 2,455 19,865 All other foreign 273 2,127 268 2,668 Total Revenue $ 104,796 $ 129,845 $ 46,710 $ 281,351 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Acquisition (Details) $ / shares in Units, € in Thousands, $ in Thousands | Nov. 06, 2020$ / shares | Sep. 01, 2020EUR (€) | Sep. 01, 2020USD ($) | Jun. 25, 2018 | Dec. 31, 2017USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2020USD ($) | May 31, 2020USD ($) | Feb. 29, 2020USD ($) | Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | May 31, 2018USD ($) | Feb. 28, 2018USD ($) | Aug. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Aug. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2020USD ($)$ / shares | Aug. 31, 2019USD ($)$ / shares | Aug. 31, 2018USD ($)$ / shares | Sep. 01, 2020USD ($) | Apr. 20, 2018USD ($) |
Basis of Presentation | |||||||||||||||||||||||||
Severance costs | $ 183 | ||||||||||||||||||||||||
Percentage of temporary reduction in the base salaries of its named Executive Officers and select members of Senior Management, as well as the cash compensation of the non-employee members of the Board | 20.00% | ||||||||||||||||||||||||
Exit costs related to facilities | $ 807 | $ 986 | $ 1,272 | ||||||||||||||||||||||
Proceeds from sale of businesses | $ 400 | $ 2,232 | |||||||||||||||||||||||
Annual cash dividends declared per share | $ / shares | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.80 | |||||||||||||||||||||
Asset Impairment Charges | $ 405 | ||||||||||||||||||||||||
Gain on sale of property | 2,551 | ||||||||||||||||||||||||
Granite Falls Location | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
Exit costs related to facilities | $ 0 | $ 559 | $ 526 | $ 526 | |||||||||||||||||||||
Structural Composites Rod Business | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
Total proceeds received or to be received | $ 2,232 | ||||||||||||||||||||||||
Gain on assets sold | $ 1,480 | ||||||||||||||||||||||||
Proceeds from sale of businesses | $ 157 | $ 2,075 | |||||||||||||||||||||||
Pawtucket, RI manufacturing facility | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
Exit costs related to facilities | $ 85 | $ 260 | $ 1,272 | $ 0 | |||||||||||||||||||||
Anticipated future exit costs | 0 | ||||||||||||||||||||||||
Proceeds from the sale of property | $ 1,810 | 1,810 | |||||||||||||||||||||||
Gain on sale of property | 760 | 760 | |||||||||||||||||||||||
Transition period | 2 months | ||||||||||||||||||||||||
Zappa Stewart | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
Acquisition related expenses | $ 393 | ||||||||||||||||||||||||
Purchase price | $ 73,469 | $ 73,469 | |||||||||||||||||||||||
Subsequent Events | ABchime | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
Consideration paid in cash | € 18,000 | $ 21,420 | |||||||||||||||||||||||
Acquisition related expenses | $ 274 | ||||||||||||||||||||||||
Potential earn out | € 7,000 | $ 8,330 | |||||||||||||||||||||||
Minimum | Zappa Stewart | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
Combined revenue | $ 24,000 | ||||||||||||||||||||||||
Engineering Studies related to Facility Consolidation and Rationalization Initiative | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
Business development cost | $ 0 | $ 0 | $ 0 | $ 150 | $ 200 | ||||||||||||||||||||
Gain on refund | 170 | ||||||||||||||||||||||||
Asset Impairment Charges | 405 | ||||||||||||||||||||||||
Gain on sale of property | $ 170 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - PPE (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2020USD ($) | Aug. 31, 2019segment | Feb. 28, 2019USD ($) | Aug. 31, 2020segment | Aug. 31, 2019USD ($) | |
Goodwill | |||||
Number of reporting units | 3 | ||||
Number of operating segments | 3 | 3 | |||
Loss on impairment of goodwill | $ | $ 0 | $ 2,410 | $ 2,410 | ||
Buildings and improvements | Minimum | |||||
Property, plant and equipment | |||||
Estimated useful life | 15 years | ||||
Buildings and improvements | Maximum | |||||
Property, plant and equipment | |||||
Estimated useful life | 40 years | ||||
Machinery and equipment | Minimum | |||||
Property, plant and equipment | |||||
Estimated useful life | 3 years | ||||
Machinery and equipment | Maximum | |||||
Property, plant and equipment | |||||
Estimated useful life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Restricted Investments and Deferred Compensation | |||
Restricted investments | $ 1,619 | $ 1,260 | |
Deferred compensation liabilities | 1,629 | 1,275 | |
Research and Product Development Costs | |||
Research and development expense | 4,007 | 4,021 | $ 3,940 |
Stock Based Compensation | |||
Stock-based compensation expense | $ 3,208 | $ 2,176 | $ 2,128 |
Weighted average assumptions used to estimate the fair value of options granted | |||
Expected Dividend yield (as a percent) | 0.70% | 0.70% | 0.90% |
Expected life | 6 years | 6 years | 6 years |
Expected volatility (as a percent) | 31.00% | 31.40% | 34.70% |
Risk-free interest rate (as a percent) | 1.40% | 2.70% | 1.90% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Translation of Foreign Currency (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
Foreign currency translation adjustment | |||
Translation of Foreign Currency | |||
Foreign currency translation adjustment | $ (911) | $ (48) | $ 85 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - ASU update (Details) - USD ($) $ in Thousands | Sep. 01, 2018 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Dec. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2020 | Sep. 01, 2019 |
Recently Adopted Accounting Pronouncements | |||||||||||||||||
Package of practical expedients | true | ||||||||||||||||
Operating lease liability | $ 8,260 | $ 8,260 | $ 8,260 | ||||||||||||||
Operating lease liability, short-term | 1,865 | 1,865 | 1,865 | ||||||||||||||
Operating lease long-term liabilities | 6,395 | 6,395 | 6,395 | ||||||||||||||
Operating lease right-of-use asset (Note 8) | 8,821 | 8,821 | 8,821 | ||||||||||||||
Net sales | 261,162 | $ 281,351 | $ 284,188 | ||||||||||||||
Retained earnings | 298,266 | $ 270,260 | 298,266 | 270,260 | $ 298,266 | ||||||||||||
Net income | $ 9,008 | $ 9,908 | $ 7,879 | $ 7,362 | $ 10,074 | $ 8,541 | $ 5,273 | $ 8,823 | 34,157 | 32,711 | 43,143 | ||||||
Selling, general and administrative expense | $ 49,364 | $ 48,707 | $ 47,703 | ||||||||||||||
Statutory tax rate (as a percent) | 35.00% | 21.00% | 21.00% | 21.00% | 25.70% | 21.00% | |||||||||||
ASU 2016-02 | |||||||||||||||||
Recently Adopted Accounting Pronouncements | |||||||||||||||||
Operating lease liability | $ 9,644 | ||||||||||||||||
Operating lease liability, short-term | 2,071 | ||||||||||||||||
Operating lease long-term liabilities | 7,573 | ||||||||||||||||
Operating lease right-of-use asset (Note 8) | $ 10,200 | ||||||||||||||||
ASU 2014-09 | |||||||||||||||||
Recently Adopted Accounting Pronouncements | |||||||||||||||||
Net sales | $ 80 | ||||||||||||||||
Retained earnings | 22 | ||||||||||||||||
ASU 2014-09 | Restatement adjustment | |||||||||||||||||
Recently Adopted Accounting Pronouncements | |||||||||||||||||
Net sales | 67 | ||||||||||||||||
Net income | $ 5 | ||||||||||||||||
ASU 2017-07 | |||||||||||||||||
Recently Adopted Accounting Pronouncements | |||||||||||||||||
Selling, general and administrative expense | $ 654 | $ 1,065 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Inventory | ||
Raw materials | $ 18,993 | $ 20,325 |
Work in process | 7,761 | 8,748 |
Finished goods | 12,304 | 13,281 |
Total Inventory | $ 39,058 | $ 42,354 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 77,857 | $ 79,056 |
Accumulated depreciation | (52,283) | (49,730) |
Property, plant and equipment, net | 25,574 | 29,326 |
Land and improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 4,997 | 6,079 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 17,992 | 17,900 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 51,942 | 51,934 |
Leasehold improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 2,212 | 1,828 |
Construction in progress | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 714 | $ 1,315 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Goodwill (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($)segment | Feb. 28, 2019USD ($) | Aug. 31, 2020USD ($)segment | Aug. 31, 2019USD ($) | |
Changes in the carrying value of goodwill | |||||
Balance at the beginning of the period | $ 81,986 | $ 84,696 | |||
Loss on impairment of polyurethane dispersions business | $ 0 | $ (2,410) | (2,410) | ||
Foreign currency translation adjustment | 416 | (300) | |||
Balance at the end of the period | 82,402 | $ 81,986 | $ 82,402 | 81,986 | |
Number of reporting units | segment | 3 | ||||
Number of operating segments | segment | 3 | 3 | |||
Goodwill deductible for income tax purposes | 31,591 | $ 34,778 | $ 31,591 | 34,778 | |
Adhesives, Sealants and Additives | |||||
Changes in the carrying value of goodwill | |||||
Balance at the beginning of the period | 50,090 | 52,787 | |||
Loss on impairment of polyurethane dispersions business | $ (2,410) | (2,410) | |||
Foreign currency translation adjustment | 397 | (287) | |||
Balance at the end of the period | 50,487 | 50,090 | 50,487 | 50,090 | |
Industrial Tapes | |||||
Changes in the carrying value of goodwill | |||||
Balance at the beginning of the period | 21,215 | 21,215 | |||
Balance at the end of the period | 21,215 | 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 | 10,694 | |||
Foreign currency translation adjustment | 19 | (13) | |||
Balance at the end of the period | $ 10,700 | $ 10,681 | $ 10,700 | $ 10,681 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Goodwill and Other Intangibles | |||
Gross Carrying Value | $ 119,551 | $ 118,566 | |
Accumulated Amortization | 78,351 | 65,862 | |
Net Carrying Value | 41,200 | 52,704 | |
Aggregate amortization expense | 11,576 | $ 12,445 | $ 11,807 |
Estimated amortization expense | |||
2021 | 11,066 | ||
2022 | 10,036 | ||
2023 | 6,768 | ||
2024 | 5,560 | ||
2025 | $ 3,961 | ||
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 | 1,705 | 1,693 | |
Net Carrying Value | $ 55 | $ 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 | $ 10,250 | $ 10,164 | |
Accumulated Amortization | 9,121 | 7,969 | |
Net Carrying Value | $ 1,129 | $ 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 | $ 8,575 | $ 8,503 | |
Accumulated Amortization | 7,781 | 7,261 | |
Net Carrying Value | $ 794 | $ 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 | $ 98,966 | $ 98,139 | |
Accumulated Amortization | 59,744 | 48,939 | |
Net Carrying Value | $ 39,222 | $ 49,200 |
Cash Surrender Value of Life _3
Cash Surrender Value of Life Insurance (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Cash Surrender Value of Life Insurance | ||
Cash surrender value of life insurance | $ 4,450 | $ 4,450 |
John Hancock | ||
Cash Surrender Value of Life Insurance | ||
Cash surrender value of life insurance, gross | $ 4,450 | $ 4,450 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Thousands | Dec. 15, 2016USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) |
Long-term debt | |||||||
Principal payment | $ 25,000 | $ 40,000 | |||||
Zappa Stewart | |||||||
Long-term debt | |||||||
Amount drawn remained outstanding | $ 65,000 | $ 65,000 | |||||
New Credit Agreement | |||||||
Long-term debt | |||||||
Maximum borrowing capacity | $ 150,000 | $ 150,000 | |||||
Additional borrowing capacity | $ 50,000 | ||||||
Carrying value of direct and indirect domestic subsidiaries | $ 246,096 | ||||||
Term of debt | 5 years | ||||||
Amount drawn remained outstanding | $ 0 | $ 0 | $ 0 | ||||
Term of potential debt | 7 years | ||||||
Amount drew in relation to acquisition | $ 65,000 | ||||||
Principal payment | $ 25,000 | $ 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 | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | 32 Months Ended | ||||
Aug. 31, 2019 | May 31, 2019 | Nov. 30, 2018 | Dec. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2020 | |
Effective income tax rate | |||||||||
Income taxes | $ 11,163 | $ 10,842 | $ 13,822 | ||||||
Income before income taxes | $ 45,320 | $ 43,553 | $ 56,965 | ||||||
Effective income tax rate | 24.60% | 24.90% | 24.30% | ||||||
Statutory tax rate (as a percent) | 35.00% | 21.00% | 21.00% | 21.00% | 25.70% | 21.00% | |||
Tax benefit/(expense) | $ 0 | $ 0 | $ 0 | $ 681 | |||||
Tax benefit resulting from remeasurement and reclassification of existing deferred tax liability | 379 | ||||||||
Provision tax expenses | 917 | ||||||||
Tax expense recorded as the result of remeasuring the Federal benefit on our uncertain tax positions | 143 | ||||||||
Transition tax adjustment associated with its accumulated, undistributed foreign earnings | 2,298 | ||||||||
Short term payable | 153 | ||||||||
Long taxes payable | $ 1,766 | ||||||||
Percentage of short term tax payable | 8.00% | ||||||||
Discrete tax benefit | $ 379 | ||||||||
Additional component of total federal expense | $ 9,157 | $ 9,880 | $ 12,872 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | 32 Months Ended | ||
Dec. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2020 | |
Domestic and foreign pre-tax income | ||||||
United States | $ 42,027 | $ 37,088 | $ 48,962 | |||
Foreign | 3,293 | 6,465 | 8,003 | |||
Income before income taxes | 45,320 | 43,553 | 56,965 | |||
Current: | ||||||
Federal | 9,157 | 9,880 | 12,872 | |||
State | 1,813 | 1,699 | 1,662 | |||
Foreign | 962 | 1,575 | 1,761 | |||
Total current income tax provision | 11,932 | 13,154 | 16,295 | |||
Deferred: | ||||||
Federal | (520) | (1,699) | (2,214) | |||
State | (184) | (529) | (263) | |||
Foreign | (65) | (84) | 4 | |||
Total deferred income tax provision (benefit) | (769) | (2,312) | (2,473) | |||
Total income tax provision | $ 11,163 | $ 10,842 | $ 13,822 | |||
Reconciliation of the effective income tax rate on continuing operations with the U.S. federal statutory income tax rate | ||||||
Federal statutory rates (as a percent) | 35.00% | 21.00% | 21.00% | 21.00% | 25.70% | 21.00% |
Adjustment resulting from the tax effect of: | ||||||
State and local taxes, net of federal benefit (as a percent) | 3.00% | 2.10% | 1.90% | |||
Domestic production deduction (as a percent) | (0.00%) | (0.00%) | (1.60%) | |||
Foreign tax rate differential (as a percent) | 0.00% | 0.10% | (0.30%) | |||
Adjustment to uncertain tax position (as a percent) | 1.10% | (1.00%) | (1.10%) | |||
Transaction costs not deductible | 0.50% | 0.00% | 0.00% | |||
Research credit generated (as a percent) | (0.10%) | (0.30%) | (0.20%) | |||
Stock Compensation (as a percent) | (0.30%) | (0.40%) | (3.40%) | |||
Permanent items (as a percent) | 0.90% | 1.10% | 0.90% | |||
Tax effect of undistributed earnings (as a percent) | 0.30% | 0.60% | (0.80%) | |||
Other (as a percent) | 0.40% | (0.40%) | (0.80%) | |||
Change in valuation allowance (as a percent) | 0.00% | 0.10% | 0.10% | |||
Deferred income tax remeasurement (as a percent) | 0.00% | 0.00% | 1.70% | |||
Effective income tax rate (as a percent) | 24.60% | 24.90% | 24.30% |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Taxes | |||
Current income tax provision | $ 11,932 | $ 13,154 | $ 16,295 |
Total deferred income tax provision (benefit) | (769) | (2,312) | (2,473) |
Total income tax provision | $ 11,163 | $ 10,842 | $ 13,822 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Deferred tax assets: | |||
Allowance for doubtful accounts | $ 309 | $ 432 | |
Inventories | 994 | 1,193 | |
Accruals | 504 | 541 | |
Warranty reserve | 14 | 22 | |
Pension accrual | 2,749 | 2,623 | |
Deferred compensation | 391 | 300 | |
Foreign currency loss on previously taxed income | 96 | 96 | |
Loan finance costs | 7 | 34 | |
Restricted stock grants | 823 | 456 | |
Non-qualified stock options | 211 | 258 | |
Right-of-use asset | 2,354 | ||
Foreign net operating loss, net of valuation allowance | 247 | ||
Other | 572 | 353 | |
Deferred tax assets, net | 9,271 | 6,308 | |
Deferred tax liabilities: | |||
Prepaid liabilities | (16) | (8) | |
Lease liability | (2,693) | ||
Depreciation and amortization | (1,633) | (2,496) | |
Noncurrent deferred tax liabilities | (4,342) | (2,504) | |
Net deferred tax assets (liabilities) | 4,929 | 3,804 | |
Gross foreign operating loss carry forwards | 727 | ||
Adjustments to uncertain tax positions | |||
Balance, at beginning of the year | 2,324 | 1,889 | $ 1,257 |
Increase for tax positions related to the current year | 101 | 55 | 47 |
(Decrease) increase for tax positions related to prior years | (609) | 300 | 595 |
Increase for interest and penalties | 125 | 106 | 71 |
Decrease for lapses of statute of limitations | (26) | (81) | |
Balance, at end of year | 1,941 | $ 2,324 | $ 1,889 |
Accrued balances related to uncertain tax positions | |||
Accrued interest and penalty | 1,002 | ||
Increase in accrued interest and penalty charges recorded as tax benefit | $ 125 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Leases | |||
Package of practical expedients | true | ||
Assets | |||
Operating leas e right-of-use asset | $ 8,821 | ||
Current (accrued expense) | $ 1,865 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesMember | ||
Operating lease long-term liabilities | $ 6,395 | ||
Total lease liability | 8,260 | ||
Rental expense | $ 3,783 | ||
Rental expense | $ 3,734 | $ 3,114 |
Leases - Components Of Lease Co
Leases - Components Of Lease Costs (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Leases | |
Operating lease cost | $ 3,783 |
Leases - Maturity Of Lease Liab
Leases - Maturity Of Lease Liability (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Maturity of lease liability | |
2021 | $ 2,085 |
2022 | 1,500 |
2023 | 1,346 |
2024 | 1,360 |
2025 and thereafter | 2,687 |
Less: Interest | (718) |
Total lease liability | $ 8,260 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Operating lease | |
Operating leases, Weighted average remaining lease term (years) | 5 years 6 months |
Operating leases, Weighted average discount rate (percentage) | 3.10% |
Operating cash outflows from operating leases | $ 2,444 |
Total cash paid for amounts included in the measurement of lease liabilities | $ 2,444 |
Leases - Minimum Lease Payments
Leases - Minimum Lease Payments Prior to ASU 2016-02 (Details) $ in Thousands | Aug. 31, 2020USD ($) |
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 |
Benefits and Pension Plans (Det
Benefits and Pension Plans (Details) | Nov. 15, 2018USD ($)item | Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) |
401(k) Plan | ||||
Percent of participant's compensation | 3.50% | |||
401(k) Plan | ||||
Eligibility age for defined contribution plan | 21 years | |||
Minimum eligibility service period | 6 months | |||
Employer match of employee contributions of first percent of eligible compensation (as a percent) | 100.00% | |||
Percentage of eligible compensation, matched 100% by employer | 1.00% | |||
Employer match of employee contributions after the first percent of eligible compensation (as a percent) | 50.00% | |||
Maximum percentage of employee's annual salary, matched by employer | 3.50% | |||
Contribution expense | $ 852,000 | $ 787,000 | $ 702,000 | |
Non-Qualified Deferred Savings Plan | ||||
Recorded liability for Board of Directors and selected employees savings plan | $ 1,629,000 | $ 1,275,000 | ||
NEPTCO | ||||
401(k) Plan | ||||
Number of 401(k) savings plans | item | 2 | |||
NEPTCO | Union Employees | ||||
401(k) Plan | ||||
Number of 401(k) savings plans | item | 1 | |||
Amount for each $1.00 of participant deferrals the company may contribute | $ 0.50 | |||
Base amount of participant deferrals for company contributions | $ 1 | |||
Percent of participant's compensation | 6.00% | |||
401(k) Plan | ||||
Maximum percentage of employee's annual salary, matched by employer | 6.00% | |||
NEPTCO | Non-union Employees | ||||
401(k) Plan | ||||
Number of 401(k) savings plans | item | 1 | |||
Amount for each $1.00 of participant deferrals the company may contribute | $ 0.75 | |||
Base amount of participant deferrals for company contributions | $ 1 | |||
Percent of participant's compensation | 6.00% | |||
401(k) Plan | ||||
Maximum percentage of employee's annual salary, matched by employer | 6.00% | |||
Maximum | NEPTCO | ||||
401(k) Plan | ||||
Percent of annual compensation participants may defer | 10.00% | |||
Minimum | NEPTCO | ||||
401(k) Plan | ||||
Percent of annual compensation participants may defer | 1.00% |
Benefits and Pension Plans - Ch
Benefits and Pension Plans - Changes in Plan Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | $ 20,087 | $ 21,860 | $ 22,673 |
Service cost | 295 | 283 | 283 |
Interest cost | 451 | 696 | 629 |
Actuarial (gain) loss | 2,253 | 995 | 17 |
Benefits paid | (2,423) | (3,747) | (1,742) |
Projected benefit obligation at end of year | 20,663 | 20,087 | 21,860 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 7,859 | 9,855 | 9,003 |
Actual return on plan assets | 868 | 181 | 509 |
Employer contribution | 1,864 | 1,570 | 2,085 |
Benefits paid | (2,423) | (3,747) | (1,742) |
Fair value of plan assets at end of year | 8,168 | 7,859 | 9,855 |
Funded status | |||
Funded status at end of year | (12,495) | (12,228) | (12,005) |
Amounts recognized in consolidated balance sheets | |||
Noncurrent assets | 301 | ||
Current liabilities | (1,565) | (1,743) | (1,570) |
Noncurrent liabilities | (10,930) | (10,485) | (10,736) |
Net amount recognized in consolidated balance sheets | (12,495) | (12,228) | (12,005) |
Actuarial present value of benefit obligation and funded status | |||
Accumulated benefit obligations | 18,307 | 18,244 | 20,075 |
Projected benefit obligations | 20,663 | 20,087 | 21,858 |
Plan assets at fair value | 8,168 | 7,859 | 9,855 |
Amounts recognized in accumulated other comprehensive income | |||
Prior service cost | 44 | 47 | 54 |
Net actuarial loss | 10,595 | 9,638 | 9,377 |
Adjustment to pre-tax accumulated other comprehensive income | 10,639 | 9,685 | 9,431 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net (gain)/loss | 711 | 1,863 | (704) |
Amortization of loss | (664) | (472) | (484) |
Supplemental plan assumption change | 1,065 | (620) | 676 |
Amortization of prior service cost | (3) | (3) | (3) |
Effect of settlement on accumulated other comprehensive income | (155) | (511) | |
Total recognized in other comprehensive income | 954 | 257 | (515) |
Net periodic pension cost | 1,178 | 1,537 | 937 |
Total recognized in net periodic pension cost and other comprehensive income | 2,132 | 1,794 | 422 |
Estimated amounts that will be amortized from accumulated comprehensive income over the next fiscal year | |||
Prior service cost | 3 | 3 | 3 |
Net actuarial loss | 656 | 500 | 475 |
Components of net periodic benefit cost | |||
Service cost | 295 | 283 | 283 |
Interest cost | 451 | 696 | 629 |
Expected return on plan assets | (390) | (428) | (462) |
Amortization of prior service cost | 3 | 3 | 3 |
Amortization of accumulated loss | 664 | 472 | 484 |
Curtailment and settlement loss | 155 | 511 | |
Net periodic benefit cost | 1,178 | $ 1,537 | $ 937 |
NEPTCO | |||
Change in plan assets | |||
Fair value of plan assets at end of year | $ 0 | ||
NEPTCO | Union Employees | |||
Pensions and Other Postretirement Benefits | |||
Period before retirement for determination of employee's average compensation | 5 years |
Benefits and Pension Plans - We
Benefits and Pension Plans - Weighted Average Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Weighted-average assumptions used to determine benefit obligations | |||
Rate of compensation increase (as a percent) | 3.50% | 3.50% | 3.50% |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Rate of compensation increase (as a percent) | 3.50% | 3.50% | 3.50% |
Qualified Plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 1.92% | 2.58% | 3.80% |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 2.58% | 3.80% | 3.30% |
Expected long term return on plan assets (as a percent) | 5.60% | 5.40% | 5.40% |
Reduction in discount rate used to estimate additional net periodic pension cost (as a percent) | 1.00% | ||
Additional net periodic pension cost from each 100 basis point reduction in the discount rate | $ 41 | ||
Reduction in expected return on plan assets used to estimate the increase in net periodic pension cost (as a percent) | 1.00% | ||
Additional net periodic pension cost from each 100 basis point reduction in the expected return on plan assets | $ 68 | ||
Supplemental plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 1.65% | 2.37% | 3.57% |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 2.37% | 3.57% | 2.73% |
Additional net periodic pension cost from each 100 basis point reduction in the discount rate | $ (57) | ||
NEPTCO | Qualified Plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 2.29% | 3.59% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 2.29% | 3.59% | 2.95% |
Expected long term return on plan assets (as a percent) | 5.60% | 5.40% | 5.20% |
Benefits and Pension Plans - As
Benefits and Pension Plans - Asset Categories (Details) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Qualified Plan | |||
Target allocation and weighted-average asset allocations | |||
Expected long term return on plan assets (as a percent) | 5.25% | ||
Qualified Plan | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 100.00% | 100.00% | 100.00% |
Percentage of Plan Assets | 100.00% | 100.00% | 100.00% |
Expected long term return on plan assets (as a percent) | 5.60% | 5.40% | 5.40% |
Equity Securities | Qualified Plan | |||
Target allocation and weighted-average asset allocations | |||
Percentage of Plan Assets | 49.00% | 44.00% | 46.00% |
Equity Securities | Qualified Plan | Minimum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 10.00% | 10.00% | 10.00% |
Equity Securities | Qualified Plan | Maximum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 80.00% | 80.00% | 80.00% |
Debt Securities | Qualified Plan | |||
Target allocation and weighted-average asset allocations | |||
Percentage of Plan Assets | 51.00% | 56.00% | 54.00% |
Debt Securities | Qualified Plan | Minimum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 20.00% | 20.00% | 20.00% |
Debt Securities | Qualified Plan | Maximum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 70.00% | 70.00% | 70.00% |
Other | Qualified Plan | Minimum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 0.00% | 0.00% | 0.00% |
Other | Qualified Plan | Maximum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 100.00% | 100.00% | 100.00% |
NEPTCO | Qualified Plan | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 100.00% | 100.00% | 100.00% |
Percentage of Plan Assets | 100.00% | 100.00% | |
Expected long term return on plan assets (as a percent) | 5.60% | 5.40% | 5.20% |
NEPTCO | Equity Securities | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 80.00% | 80.00% | 80.00% |
NEPTCO | Equity Securities | Qualified Plan | |||
Target allocation and weighted-average asset allocations | |||
Percentage of Plan Assets | 44.00% | 46.00% | |
NEPTCO | Equity Securities | Qualified Plan | Minimum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 10.00% | 10.00% | 10.00% |
NEPTCO | Debt Securities | Qualified Plan | |||
Target allocation and weighted-average asset allocations | |||
Percentage of Plan Assets | 56.00% | 54.00% | |
NEPTCO | Debt Securities | Qualified Plan | Minimum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 20.00% | 20.00% | 20.00% |
NEPTCO | Debt Securities | Qualified Plan | Maximum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 70.00% | 70.00% | 70.00% |
NEPTCO | Other | Qualified Plan | Minimum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 0.00% | 0.00% | 0.00% |
NEPTCO | Other | Qualified Plan | Maximum | |||
Target allocation and weighted-average asset allocations | |||
Total target allocation (as a percent) | 100.00% | 100.00% | 100.00% |
Benefits and Pension Plans - Fa
Benefits and Pension Plans - Fair Value (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Pensions and Other Postretirement Benefits | ||||
Fair value of plan assets | $ 8,168 | $ 7,859 | $ 9,855 | $ 9,003 |
Equity securities | ||||
Pensions and Other Postretirement Benefits | ||||
Fair value of plan assets | 3,986 | 3,474 | ||
Debt securities | ||||
Pensions and Other Postretirement Benefits | ||||
Fair value of plan assets | 4,182 | 4,385 | ||
Quoted prices in active markets (Level 1) | ||||
Pensions and Other Postretirement Benefits | ||||
Fair value of plan assets | 8,168 | 7,859 | ||
Quoted prices in active markets (Level 1) | Equity securities | ||||
Pensions and Other Postretirement Benefits | ||||
Fair value of plan assets | 3,986 | 3,474 | ||
Quoted prices in active markets (Level 1) | Debt securities | ||||
Pensions and Other Postretirement Benefits | ||||
Fair value of plan assets | $ 4,182 | $ 4,385 |
Benefits and Pension Plans - Fu
Benefits and Pension Plans - Future Benefit Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Estimated future pension benefit payments | |||
2021 | $ 2,996 | ||
2022 | 1,759 | ||
2023 | 2,507 | ||
2024 | 1,948 | ||
2025 | 1,788 | ||
2026-2030 | 5,393 | ||
Employer contribution | $ 1,864 | $ 1,570 | $ 2,085 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Sep. 01, 2019installment$ / sharesshares | Sep. 01, 2018installment$ / sharesshares | Sep. 01, 2017$ / sharesshares | Sep. 01, 2016installmentshares | Sep. 01, 2015shares | May 31, 2020shares | Feb. 29, 2020shares | Aug. 31, 2019$ / sharesshares | Feb. 28, 2019shares | Sep. 30, 2018$ / sharesshares | Feb. 28, 2018shares | Aug. 31, 2017installment$ / sharesshares | Feb. 28, 2017shares | Aug. 31, 2016installment$ / sharesshares | Aug. 31, 2015installment$ / sharesshares | Aug. 31, 2020individualitem$ / sharesshares | Feb. 29, 2020shares | Aug. 31, 2019installment$ / sharesshares | Aug. 31, 2018$ / sharesshares | May 31, 2018installment$ / sharesshares | Nov. 30, 2016shares | Nov. 30, 2015shares | May 31, 2015shares | Aug. 31, 2020individualitem$ / sharesshares | Aug. 31, 2019$ / sharesshares | Aug. 31, 2018$ / sharesshares | Aug. 31, 2017$ / sharesshares | Oct. 31, 2012shares | Nov. 30, 2005shares |
Non-employee members of BOD | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 4,906 | 4,599 | 2,779 | ||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Unvested restricted stock, beginning balance (in shares) | 4,599 | 2,779 | 2,407 | 2,779 | 4,599 | 2,779 | 2,407 | ||||||||||||||||||||||
Granted (in shares) | 4,906 | 4,599 | 2,779 | ||||||||||||||||||||||||||
Vested (in shares) | (4,599) | (2,779) | (2,407) | ||||||||||||||||||||||||||
Unvested restricted stock, ending balance (in shares) | 4,599 | 2,407 | 4,906 | 4,599 | 2,779 | 4,906 | 4,599 | 2,779 | 2,407 | ||||||||||||||||||||
Weighted Average Grant Date Fair Value | |||||||||||||||||||||||||||||
Unvested restricted stock, beginning balance (in dollars per share) | $ / shares | $ 101.92 | $ 101.05 | $ 91.05 | $ 101.05 | $ 101.92 | $ 101.05 | $ 91.05 | ||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | 95.59 | 101.92 | 101.05 | ||||||||||||||||||||||||||
Vested (in dollars per share) | $ / shares | 101.92 | 101.05 | 91.05 | ||||||||||||||||||||||||||
Unvested restricted stock, ending balance (in dollars per share) | $ / shares | $ 101.92 | $ 91.05 | $ 95.59 | $ 101.92 | $ 101.05 | $ 95.59 | $ 101.92 | $ 101.05 | $ 91.05 | ||||||||||||||||||||
Officers and employees | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 43,841 | 7,524 | 13,922 | ||||||||||||||||||||||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | 57.96 | $ 57.96 | |||||||||||||||||||||||||||
Shares forfeited | 3,126 | 3,305 | |||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 57.18 | $ 34.21 | $ 75.21 | $ 57.18 | $ 50.17 | $ 75.21 | $ 57.18 | $ 50.17 | $ 34.21 | ||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Unvested restricted stock, beginning balance (in shares) | 44,355 | 65,579 | 73,972 | 65,579 | 44,355 | 65,579 | 73,972 | ||||||||||||||||||||||
Granted (in shares) | 43,841 | 7,524 | 13,922 | ||||||||||||||||||||||||||
Vested (in shares) | (25,195) | (25,443) | (22,315) | ||||||||||||||||||||||||||
Forfeited or cancelled (in shares) | (3,126) | (3,305) | |||||||||||||||||||||||||||
Unvested restricted stock, ending balance (in shares) | 44,355 | 73,972 | 59,875 | 44,355 | 65,579 | 59,875 | 44,355 | 65,579 | 73,972 | ||||||||||||||||||||
Weighted Average Grant Date Fair Value | |||||||||||||||||||||||||||||
Unvested restricted stock, beginning balance (in dollars per share) | $ / shares | $ 67.18 | $ 61.85 | $ 51.56 | $ 61.85 | $ 67.18 | $ 61.85 | $ 51.56 | ||||||||||||||||||||||
Granted (in dollars per share) | $ / shares | 108.47 | 121.64 | 83.65 | ||||||||||||||||||||||||||
Vested (in dollars per share) | $ / shares | 61.51 | 65.79 | 41.35 | ||||||||||||||||||||||||||
Forfeited or cancelled (in dollars per share) | $ / shares | 123.19 | 79.39 | |||||||||||||||||||||||||||
Unvested restricted stock, ending balance (in dollars per share) | $ / shares | $ 67.18 | $ 51.56 | $ 97.72 | $ 67.18 | $ 61.85 | 97.72 | $ 67.18 | $ 61.85 | $ 51.56 | ||||||||||||||||||||
Stock options | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Common stock available for future issuance (in shares) | 949,398 | 949,398 | 949,398 | ||||||||||||||||||||||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 57.96 | $ 57.96 | |||||||||||||||||||||||||||
Stock options | Executive officers and other members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Number of equal annual installments | installment | 3 | ||||||||||||||||||||||||||||
Stock options | Executive officers | August 31, 2019 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 23,563 | ||||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 64.37 | ||||||||||||||||||||||||||||
Restricted stock | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares forfeited | 2,472 | 2,694 | |||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Forfeited or cancelled (in shares) | (2,472) | (2,694) | |||||||||||||||||||||||||||
Restricted stock | Non-executive members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Number of grants | item | 2 | 2 | |||||||||||||||||||||||||||
Number of non-executive members of management | individual | 2 | 2 | |||||||||||||||||||||||||||
Shares forfeited | 432 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Forfeited or cancelled (in shares) | (432) | ||||||||||||||||||||||||||||
Restricted stock | Non-executive members of management | July 27, 2021 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 481 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 481 | ||||||||||||||||||||||||||||
Restricted stock | Non-executive members of management | June 15, 2021 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 261 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 261 | ||||||||||||||||||||||||||||
Restricted stock | Non-employee members of BOD | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 4,906 | 4,599 | 2,779 | 2,407 | |||||||||||||||||||||||||
Vesting period | 12 months | 12 months | 12 months | 12 months | |||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 4,906 | 4,599 | 2,779 | 2,407 | |||||||||||||||||||||||||
Time-based restricted stock | Executive officers | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 16,312 | ||||||||||||||||||||||||||||
Number of equal annual installments | installment | 5 | ||||||||||||||||||||||||||||
Vesting period | 5 years | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 16,312 | ||||||||||||||||||||||||||||
Time-based restricted stock | Executive officers | August 31, 2019 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 7,768 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 7,768 | ||||||||||||||||||||||||||||
Time-based restricted stock | Executive officers | August 31, 2021 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 8,544 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 8,544 | ||||||||||||||||||||||||||||
2013 Plan | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 1,200,000 | ||||||||||||||||||||||||||||
Common stock available for future issuance (in shares) | 949,398 | 949,398 | |||||||||||||||||||||||||||
2005 Incentive Plan | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 1,000,000 | ||||||||||||||||||||||||||||
Common stock available for future issuance (in shares) | 39,473 | 39,473 | |||||||||||||||||||||||||||
2015 LTIP | Time-based restricted stock | Non-executive members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 16,000 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 16,000 | ||||||||||||||||||||||||||||
2015 LTIP | Time-based restricted stock | Non-executive members of management | April 16, 2020 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 15,000 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 15,000 | ||||||||||||||||||||||||||||
2015 LTIP | Time-based restricted stock | Non-executive members of management | January 31, 2018 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 1,000 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 1,000 | ||||||||||||||||||||||||||||
2016 LTIP | Executive officers and other members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Adjusted shares | 6,277 | ||||||||||||||||||||||||||||
Cumulative shares granted | 13,239 | ||||||||||||||||||||||||||||
2016 LTIP | Stock options | Executive officers and other members of management | August 31, 2018 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 21,275 | ||||||||||||||||||||||||||||
Number of equal annual allotments in which awards will vest | installment | 3 | ||||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 39.50 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 21,275 | ||||||||||||||||||||||||||||
2016 LTIP | Restricted stock | Non-executive members of management | October 20, 2020 Vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 5,000 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 5,000 | ||||||||||||||||||||||||||||
2016 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2018 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 6,962 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 6,962 | ||||||||||||||||||||||||||||
2016 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2018 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 7,683 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 7,683 | ||||||||||||||||||||||||||||
2017 LTIP | Executive officers and other members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Adjusted shares | 5,399 | ||||||||||||||||||||||||||||
2017 LTIP | Non-employee members of BOD | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Cumulative shares granted | 10,798 | ||||||||||||||||||||||||||||
2017 LTIP | Stock options | Executive officers and other members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 15,028 | ||||||||||||||||||||||||||||
Stock options expiring earlier (in shares) | 5,596 | ||||||||||||||||||||||||||||
Stock options expiring later (in shares) | 9,432 | ||||||||||||||||||||||||||||
Number of equal annual allotments in which awards will vest | installment | 3 | ||||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 64.37 | ||||||||||||||||||||||||||||
2017 LTIP | Restricted stock | Non-executive members of management | August 31, 2021 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 8,805 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 8,805 | ||||||||||||||||||||||||||||
2017 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2019 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 5,399 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 5,399 | ||||||||||||||||||||||||||||
2017 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2019 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 5,367 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 5,367 | ||||||||||||||||||||||||||||
2018 LTIP | Executive officers and other members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 572 | ||||||||||||||||||||||||||||
Cumulative shares granted | 4,821 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 572 | ||||||||||||||||||||||||||||
2018 LTIP | Stock options | Non-executive members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 606 | ||||||||||||||||||||||||||||
Number of equal annual allotments in which awards will vest | installment | 3 | ||||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 104 | ||||||||||||||||||||||||||||
2018 LTIP | Stock options | Executive officers and other members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 9,622 | 9,622 | |||||||||||||||||||||||||||
Number of equal annual installments | installment | 3 | ||||||||||||||||||||||||||||
Stock options expiring earlier (in shares) | 4,591 | ||||||||||||||||||||||||||||
Stock options expiring later (in shares) | 5,031 | ||||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 93.50 | $ 93.50 | |||||||||||||||||||||||||||
2018 LTIP | Restricted stock | Non-executive members of management | 31 August, 2020 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 192 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 192 | ||||||||||||||||||||||||||||
2018 LTIP | Restricted stock | Executive officers | August 20, 2019 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 609 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 609 | ||||||||||||||||||||||||||||
2018 LTIP | Performance and service based restricted stock | Executive officers and other members of management | 31 August, 2020 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 4,249 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 4,249 | ||||||||||||||||||||||||||||
2018 LTIP | Time-based restricted stock | Executive officers and other members of management | 31 August, 2020 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 3,473 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 3,473 | ||||||||||||||||||||||||||||
2019 LTIP | Stock options | Non-executive members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 483 | 483 | 483 | ||||||||||||||||||||||||||
Number of equal annual allotments in which awards will vest | installment | 3 | ||||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 99.38 | $ 99.38 | $ 99.38 | ||||||||||||||||||||||||||
2019 LTIP | Stock options | Executive officers and other members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 8,603 | ||||||||||||||||||||||||||||
Number of equal annual allotments in which awards will vest | installment | 3 | ||||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 123.95 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 8,603 | ||||||||||||||||||||||||||||
2019 LTIP | Stock options | Executive officers and other members of management | August 31, 2028 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares forfeited | 3,927 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Forfeited or cancelled (in shares) | (3,927) | ||||||||||||||||||||||||||||
2019 LTIP | Stock options | Executive officers and other members of management | September 1, 2028 Vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares forfeited | 4,676 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Forfeited or cancelled (in shares) | (4,676) | ||||||||||||||||||||||||||||
2019 LTIP | Restricted stock | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares forfeited | 833 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Forfeited or cancelled (in shares) | (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 | 3,541 | 211 | |||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 3,541 | 211 | |||||||||||||||||||||||||||
2019 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2021 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 3,068 | 132 | |||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 3,068 | 132 | |||||||||||||||||||||||||||
2020 LTIP | Stock options | Executive officers and other members of management | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 13,418 | ||||||||||||||||||||||||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 100.22 | ||||||||||||||||||||||||||||
Stock options expiring earlier (in shares) | 6,218 | ||||||||||||||||||||||||||||
Stock options expiring later (in shares) | 7,200 | ||||||||||||||||||||||||||||
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2021 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 432,616 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 432,616 | ||||||||||||||||||||||||||||
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2022 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 18,720 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 18,720 | ||||||||||||||||||||||||||||
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2024 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 19,768 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 19,768 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 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 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 3,689 | ||||||||||||||||||||||||||||
Equity Retention Agreement | Stock options | Executive officers | August 31, 2022 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares authorized | 53,642 | ||||||||||||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 100.22 | ||||||||||||||||||||||||||||
Equity Retention Agreement | Time-based restricted stock | Executive officers | August 31, 2022 vesting date | |||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Shares granted | 15,945 | ||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||
Granted (in shares) | 15,945 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Additional disclosures | ||||||||
Unrecognized expense related to all stock-based compensation (in dollars) | $ 5,397 | |||||||
Period over which unrecognized expense related to all stock based compensation will be recognized | 5 years | |||||||
2005 Incentive Plan | ||||||||
Additional disclosures | ||||||||
Common stock available for future issuance (in shares) | 39,473 | |||||||
Non-employee members of BOD | ||||||||
Additional disclosures | ||||||||
Outstanding at the end of the period (in shares) | 4,906 | 4,599 | 2,779 | 2,407 | ||||
Officers and employees | ||||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 99,080 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 57.96 | |||||||
Options outstanding | ||||||||
Options outstanding at the beginning of the period (in shares) | 101,254 | 99,190 | 152,974 | |||||
Granted (in shares) | 67,060 | 9,086 | 10,228 | |||||
Exercised (in shares) | (3,618) | (7,022) | (64,012) | |||||
Options outstanding at the end of the period (in shares) | 164,696 | 101,254 | 99,190 | |||||
Weighted Average Exercise Price | ||||||||
Options outstanding at the beginning of the period (in dollars per share) | $ 57.18 | $ 50.17 | $ 34.21 | |||||
Exercise price (in dollars per share) | 100.22 | 122.64 | 94.12 | |||||
Exercised (in dollars per share) | 34.21 | 42.86 | 19.06 | |||||
Options outstanding at the end of the period (in dollars per share) | $ 75.21 | $ 57.18 | $ 50.17 | |||||
Additional disclosures | ||||||||
Outstanding at the end of the period (in shares) | 59,875 | 44,355 | 65,579 | 73,972 | ||||
Stock options | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 164,696 | |||||||
Weighted Avg. Remaining Contractual Life | 6 years 9 months 18 days | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 75.21 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 4,092 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 99,080 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 57.96 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 4,092 | |||||||
Additional disclosures | ||||||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 29.79 | $ 40.12 | $ 30.99 | |||||
Total pretax intrinsic value of stock options exercised (in dollars) | $ 311 | $ 403 | $ 6,714 | |||||
Common stock available for future issuance (in shares) | 949,398 | |||||||
Tax (expense) / benefit realized from stock options exercised, vesting of restricted stock and issuance of stock pursuant to grants of restricted stock units (in dollars) | 149 | $ 157 | $ 1,921 | |||||
Unrecognized expense related to all stock-based compensation (in dollars) | $ 1,261 | |||||||
Stock options | $16.00 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 5,065 | |||||||
Weighted Avg. Remaining Contractual Life | 2 years 1 month 6 days | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 16 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 413 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 5,065 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 16 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 413 | |||||||
Stock options | $29.72 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 13,790 | |||||||
Weighted Avg. Remaining Contractual Life | 3 years | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 29.72 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 936 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 13,790 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 29.72 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 936 | |||||||
Stock options | $35.50 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 13,372 | |||||||
Weighted Avg. Remaining Contractual Life | 4 years | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 35.50 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 830 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 13,372 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 35.50 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 830 | |||||||
Stock options | $39.50 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 12,753 | |||||||
Weighted Avg. Remaining Contractual Life | 5 years | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 39.50 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 741 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 12,753 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 39.50 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 741 | |||||||
Stock options | $64.37 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 34,260 | |||||||
Weighted Avg. Remaining Contractual Life | 6 years | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 64.37 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 1,137 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 34,260 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 64.37 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 1,137 | |||||||
Stock options | $93.50 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 8,704 | |||||||
Weighted Avg. Remaining Contractual Life | 7 years | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 93.50 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 35 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 8,704 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 93.50 | |||||||
Aggregate Intrinsic Value (in dollars) | $ 35 | |||||||
Stock options | $99.38 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 483 | |||||||
Weighted Avg. Remaining Contractual Life | 8 years | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 99.38 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 322 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 99.38 | |||||||
Stock options | 100.22 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 67,060 | |||||||
Weighted Avg. Remaining Contractual Life | 9 years | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 100.22 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 4,473 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 100.22 | |||||||
Stock options | 104.00 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 606 | |||||||
Weighted Avg. Remaining Contractual Life | 7 years 6 months | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 104 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 606 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 104 | |||||||
Stock options | 123.95 | ||||||||
Options Outstanding | ||||||||
Number Outstanding (in shares) | 8,603 | |||||||
Weighted Avg. Remaining Contractual Life | 8 years | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 123.95 | |||||||
Options Exercisable | ||||||||
Number Exercisable (in shares) | 5,735 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ 123.95 | |||||||
Restricted stock | ||||||||
Additional disclosures | ||||||||
Unrecognized expense related to all stock-based compensation (in dollars) | $ 4,136 | |||||||
Restricted stock | Non-employee members of BOD | ||||||||
Stockholders' Equity | ||||||||
Vesting period | 12 months | 12 months | 12 months | 12 months |
Segment Data (Details)
Segment Data (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Aug. 31, 2020USD ($) | May 31, 2020USD ($) | Aug. 31, 2019USD ($)segment | Feb. 28, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Aug. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Aug. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2020USD ($)segment | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | |
Segment data | ||||||||||||||||
Revenue | $ 261,162 | $ 281,351 | $ 284,188 | |||||||||||||
Income before income taxes | 45,320 | 43,553 | 56,965 | |||||||||||||
Total assets | $ 346,830 | $ 307,968 | $ 346,830 | $ 307,968 | $ 307,968 | 346,830 | 307,968 | |||||||||
Interest | 246 | 519 | 1,172 | |||||||||||||
Depreciation | 4,015 | 4,762 | 5,817 | |||||||||||||
Amortization | $ 11,576 | 12,445 | 11,807 | |||||||||||||
Loss on impairment of goodwill | 0 | $ 2,410 | 2,410 | |||||||||||||
Number of operating segments | segment | 3 | 3 | ||||||||||||||
Severance costs | $ 183 | |||||||||||||||
Inventory Step up to Fair Value | 1,070 | |||||||||||||||
Gain on sale of license | 1,085 | |||||||||||||||
Write-down of certain assets under construction | $ 405 | |||||||||||||||
Expenses related to acquisition | 274 | 393 | ||||||||||||||
Pension related settlement costs | (155) | (511) | ||||||||||||||
Gain on sale of real estate (Note 19) | 2,551 | |||||||||||||||
Exit costs related to facilities | 807 | 986 | 1,272 | |||||||||||||
Zappa Stewart | ||||||||||||||||
Segment data | ||||||||||||||||
Expenses related to acquisition | $ 393 | $ 393 | ||||||||||||||
Pawtucket, RI manufacturing facility | ||||||||||||||||
Segment data | ||||||||||||||||
Gain on sale of real estate (Note 19) | 760 | 760 | ||||||||||||||
Exit costs related to facilities | $ 85 | $ 260 | $ 1,272 | 0 | ||||||||||||
Granite Falls Location | ||||||||||||||||
Segment data | ||||||||||||||||
Exit costs related to facilities | 0 | $ 559 | 526 | $ 526 | ||||||||||||
Randolph, MA - Property | ||||||||||||||||
Segment data | ||||||||||||||||
Gain on sale of real estate (Note 19) | 1,791 | |||||||||||||||
Adhesives, Sealants and Additives | ||||||||||||||||
Segment data | ||||||||||||||||
Revenue | 96,208 | 104,796 | 101,690 | |||||||||||||
Income before income taxes | 25,953 | 27,142 | 35,190 | |||||||||||||
Total assets | 129,457 | $ 135,583 | 129,457 | 135,583 | 135,583 | 129,457 | 135,583 | |||||||||
Interest | 98 | 177 | 422 | |||||||||||||
Depreciation | 994 | 1,467 | 1,285 | |||||||||||||
Amortization | 9,313 | 9,359 | 7,895 | |||||||||||||
Loss on impairment of goodwill | $ 2,410 | 2,410 | ||||||||||||||
Adhesives, Sealants and Additives | Zappa Stewart | ||||||||||||||||
Segment data | ||||||||||||||||
Inventory Step up to Fair Value | 1,070 | |||||||||||||||
Industrial Tapes | ||||||||||||||||
Segment data | ||||||||||||||||
Revenue | 118,960 | 129,845 | 130,598 | |||||||||||||
Income before income taxes | 31,237 | 28,216 | 30,886 | |||||||||||||
Total assets | 71,229 | 77,085 | 71,229 | 77,085 | 77,085 | 71,229 | 77,085 | |||||||||
Interest | 111 | 216 | 516 | |||||||||||||
Depreciation | 1,746 | 1,755 | 2,748 | |||||||||||||
Amortization | 1,800 | 1,800 | 2,604 | |||||||||||||
Gain on sale of license | $ 1,085 | |||||||||||||||
Industrial Tapes | Pawtucket, RI manufacturing facility | ||||||||||||||||
Segment data | ||||||||||||||||
Exit costs related to facilities | $ 260 | 1,272 | ||||||||||||||
Industrial Tapes | Granite Falls Location | ||||||||||||||||
Segment data | ||||||||||||||||
Exit costs related to facilities | $ 559 | 526 | ||||||||||||||
Industrial Tapes | Structural composites product line | ||||||||||||||||
Segment data | ||||||||||||||||
Gain on sale of license | 1,480 | |||||||||||||||
Corrosion Protection and Waterproofing | ||||||||||||||||
Segment data | ||||||||||||||||
Revenue | 45,994 | 46,710 | 51,900 | |||||||||||||
Income before income taxes | 16,638 | 15,909 | 18,178 | |||||||||||||
Total assets | 32,642 | 32,478 | 32,642 | 32,478 | 32,478 | 32,642 | 32,478 | |||||||||
Interest | 37 | 126 | 234 | |||||||||||||
Depreciation | 615 | 674 | 753 | |||||||||||||
Amortization | 463 | 1,286 | 1,308 | |||||||||||||
Construction Materials | Engineering Studies related to Facility Consolidation and Rationalization Initiative | ||||||||||||||||
Segment data | ||||||||||||||||
Write-down on certain other structural composites assets | 405 | |||||||||||||||
Gain on refund | 170 | |||||||||||||||
Reportable segments | ||||||||||||||||
Segment data | ||||||||||||||||
Income before income taxes | 73,828 | 71,267 | 84,254 | |||||||||||||
Total assets | 233,328 | 245,146 | 233,328 | 245,146 | 245,146 | 233,328 | 245,146 | |||||||||
Corporate and common costs | ||||||||||||||||
Segment data | ||||||||||||||||
Income before income taxes | (28,508) | (27,714) | (27,289) | |||||||||||||
Total assets | $ 113,502 | $ 62,822 | $ 113,502 | $ 62,822 | $ 62,822 | 113,502 | 62,822 | |||||||||
Severance costs | 183 | |||||||||||||||
Expenses related to acquisition | 274 | |||||||||||||||
Pension related settlement costs | 155 | 511 | ||||||||||||||
Corporate and common costs | Zappa Stewart | ||||||||||||||||
Segment data | ||||||||||||||||
Expenses related to acquisition | $ 393 | |||||||||||||||
Corporate and common costs | Pawtucket, RI manufacturing facility | ||||||||||||||||
Segment data | ||||||||||||||||
Gain on sale of real estate (Note 19) | 760 | |||||||||||||||
Exit costs related to facilities | 85 | |||||||||||||||
Corporate and common costs | Randolph, MA - Property | ||||||||||||||||
Segment data | ||||||||||||||||
Gain on sale of real estate (Note 19) | 1,791 | |||||||||||||||
Corporate and common costs | Engineering Studies related to Facility Consolidation and Rationalization Initiative | ||||||||||||||||
Segment data | ||||||||||||||||
Business development cost | $ 150 | $ 200 |
Export Sales and Foreign Oper_3
Export Sales and Foreign Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Concentration risk | |||
Export sales | $ 30,067 | $ 30,582 | $ 42,883 |
Revenue | 261,162 | 281,351 | 284,188 |
Property, plant and equipment, net | 25,574 | 29,326 | |
United States | |||
Concentration risk | |||
Revenue | 226,690 | 248,281 | 244,225 |
United Kingdom | |||
Concentration risk | |||
Revenue | 20,543 | 17,504 | 20,598 |
All other Foreign | |||
Concentration risk | |||
Revenue | 13,929 | 15,566 | $ 19,365 |
Long-lived assets | |||
Concentration risk | |||
Property, plant and equipment, net | 25,574 | 29,326 | |
Goodwill and Intangible assets, less accumulated amortization | 123,602 | 134,690 | |
Long-lived assets | United States | |||
Concentration risk | |||
Property, plant and equipment, net | 22,427 | 24,993 | |
Goodwill and Intangible assets, less accumulated amortization | 117,930 | 129,057 | |
Long-lived assets | United Kingdom | |||
Concentration risk | |||
Property, plant and equipment, net | 2,320 | 2,493 | |
Goodwill and Intangible assets, less accumulated amortization | 4,403 | 4,446 | |
Long-lived assets | All other Foreign | |||
Concentration risk | |||
Property, plant and equipment, net | 827 | 1,840 | |
Goodwill and Intangible assets, less accumulated amortization | $ 1,269 | $ 1,187 |
Supplemental Cash Flow Data (De
Supplemental Cash Flow Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Supplemental Cash Flow Data | |||
Income taxes paid | $ 11,186 | $ 11,714 | $ 20,142 |
Interest paid | 230 | 728 | 915 |
Common stock received for payment of stock option exercises | 123 | 119 | 1,028 |
Property, plant and equipment additions included in accounts payable | 92 | 67 | 197 |
Randolph, MA - Property | |||
Sale of business | |||
Asset held for sale | (14) | ||
Gain on sale of business | (1,791) | ||
Cash received from sale of business, net of transaction costs | 1,805 | ||
Pawtucket, RI manufacturing facility | |||
Sale of business | |||
Asset held for sale | (1,050) | ||
Gain on sale of business | (760) | ||
Cash received from sale of business, net of transaction costs | $ 1,810 | ||
Zappa Stewart | |||
Acquisition of certain assets | |||
Current assets | 10,478 | ||
Property, plant and equipment | 1,872 | ||
Goodwill and Intangible assets | 64,378 | ||
Deferred tax liability | (2,626) | ||
Accounts payable and accrued liabilities | (633) | ||
Payments for acquisitions, net of cash acquired | (73,469) | ||
Structural Composites Rod Business | |||
Sale of business | |||
Inventory | (522) | ||
Goodwill and Intangible assets | (230) | ||
Gain on sale of business | (1,480) | ||
Cash received from sale of business, net of transaction costs | 2,232 | ||
Structural Composites License | |||
Sale of business | |||
Property and equipment | (26) | ||
Gain on sale of business | (1,085) | ||
Accrued income taxes | 111 | ||
Cash received from sale of business, net of transaction costs | $ 1,000 | ||
Fiber Optic Cable Components Product Line | |||
Sale of business | |||
Due from sale of business | (400) | ||
Cash received from sale of business, net of transaction costs | $ 400 |
Acquisitions (Details)
Acquisitions (Details) € in Thousands, $ in Thousands | Sep. 01, 2020EUR (€) | Sep. 01, 2020USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Feb. 28, 2018USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2020USD ($) | Aug. 31, 2018USD ($) | Sep. 01, 2020USD ($) | Aug. 31, 2019USD ($) |
Acquisitions | ||||||||||
Consideration paid in cash | $ 73,469 | |||||||||
Expenses related to acquisition | $ 274 | 393 | ||||||||
Goodwill deductible for income tax purposes | 31,591 | $ 34,778 | ||||||||
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values | ||||||||||
Goodwill | $ 84,696 | 82,402 | $ 84,696 | $ 81,986 | ||||||
New Credit Agreement | ||||||||||
Acquisitions | ||||||||||
Amount drew in relation to acquisition | $ 65,000 | |||||||||
ABchime | Subsequent Events | ||||||||||
Acquisitions | ||||||||||
Consideration paid in cash | € 18,000 | $ 21,420 | ||||||||
Acquisition related expenses | $ 274 | |||||||||
Potential earn out | € 7,000 | $ 8,330 | ||||||||
Zappa Stewart | ||||||||||
Acquisitions | ||||||||||
Purchase price | $ 73,469 | 73,469 | ||||||||
Expenses related to acquisition | $ 393 | $ 393 | ||||||||
Acquisition related expenses | $ 393 | |||||||||
Goodwill deductible for income tax purposes | $ 23,990 | |||||||||
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values | ||||||||||
Accounts receivable | 3,670 | 3,670 | ||||||||
Inventory | 6,796 | 6,796 | ||||||||
Prepaid expenses and other current assets | 12 | 12 | ||||||||
Property, plant and equipment | 1,872 | 1,872 | ||||||||
Goodwill | 34,138 | 34,138 | ||||||||
Intangible assets | 30,240 | 30,240 | ||||||||
Deferred tax liability | (2,626) | (2,626) | ||||||||
Accounts payable and accrued expenses | (633) | (633) | ||||||||
Total purchase price | 73,469 | 73,469 | ||||||||
Zappa Stewart | Customer Relationships | ||||||||||
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values | ||||||||||
Intangible assets | $ 28,500 | $ 28,500 |
Acquisitions - Intangible asset
Acquisitions - Intangible assets purchase transaction (Details) - Zappa Stewart $ in Thousands | 1 Months Ended |
Dec. 31, 2017USD ($) | |
Identifiable intangible assets purchased | |
Intangible assets | $ 30,240 |
Customer Relationships | |
Identifiable intangible assets purchased | |
Intangible assets | $ 28,500 |
Useful life | 7 years 10 months 24 days |
Technology | |
Identifiable intangible assets purchased | |
Intangible assets | $ 900 |
Useful life | 7 years |
Trade names | |
Identifiable intangible assets purchased | |
Intangible assets | $ 840 |
Useful life | 4 years |
Acquisitions - Supplemental Pro
Acquisitions - Supplemental Pro Forma Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | 32 Months Ended | ||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Feb. 28, 2018 | Dec. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2020 | |
Acquisition of Specialty Chemical Intermediates Businesses | |||||||||||||||
Revenue | $ 261,162 | $ 281,351 | $ 284,188 | ||||||||||||
Net income | $ 9,008 | $ 9,908 | $ 7,879 | $ 7,362 | $ 10,074 | $ 8,541 | $ 5,273 | $ 8,823 | 34,157 | $ 32,711 | 43,143 | ||||
Acquisition-related costs (Note 14) | $ 274 | $ 393 | |||||||||||||
Statutory tax rate (as a percent) | 35.00% | 21.00% | 21.00% | 21.00% | 25.70% | 21.00% | |||||||||
New Credit Agreement | |||||||||||||||
Acquisition of Specialty Chemical Intermediates Businesses | |||||||||||||||
Amount drawn remained outstanding | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||
Zappa Stewart | |||||||||||||||
Acquisition of Specialty Chemical Intermediates Businesses | |||||||||||||||
Revenue since acquisition date | $ 16,324 | ||||||||||||||
Net income (loss) since acquisition date | 578 | ||||||||||||||
Inventory step-up costs | 1,070 | ||||||||||||||
Acquisition-related costs (Note 14) | $ 393 | 393 | |||||||||||||
Amortization expense | 2,672 | ||||||||||||||
Amount drawn remained outstanding | $ 65,000 | $ 65,000 | |||||||||||||
Statutory tax rate (as a percent) | 26.00% | ||||||||||||||
Pro Forma Information | |||||||||||||||
Revenue | 292,609 | ||||||||||||||
Net income | $ 44,508 | ||||||||||||||
Net income available to common shareholders, per common and common equivalent share | |||||||||||||||
Basic earnings per share (in dollars per share) | $ 4.75 | ||||||||||||||
Diluted earning per share (in dollars per share) | $ 4.70 |
Sale of License (Details)
Sale of License (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2018 | Aug. 31, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2017 | |
Assets held for sale | |||||
Net book value | $ 41,200 | $ 52,704 | |||
Proceeds from sale of license | $ 1,000 | ||||
Gain on sale of license | $ 1,085 | ||||
Unrelated Party | |||||
Assets held for sale | |||||
Net book value | $ 26 | ||||
Gross consideration | $ 1,111 | ||||
Proceeds from sale of license | 1,000 | ||||
Foreign tax consideration paid by buyer | 111 | ||||
Gain on sale of license | $ 1,085 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Fair value measurements | ||
Long term debt outstanding | $ 0 | $ 0 |
Recurring basis | ||
Fair value measurements | ||
Restricted investments | 1,619 | 1,260 |
Recurring basis | Quoted prices in active markets (Level 1) | ||
Fair value measurements | ||
Restricted investments | 1,395 | 1,091 |
Recurring basis | Significant other observable inputs (Level 2) | ||
Fair value measurements | ||
Restricted investments | $ 224 | $ 169 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Basic Earnings per Share | |||||||||||
Net income | $ 9,008 | $ 9,908 | $ 7,879 | $ 7,362 | $ 10,074 | $ 8,541 | $ 5,273 | $ 8,823 | $ 34,157 | $ 32,711 | $ 43,143 |
Less: Allocated to participating securities | 273 | 257 | 410 | ||||||||
Available to common shareholders | $ 33,884 | $ 32,454 | $ 42,733 | ||||||||
Basic weighted average shares outstanding | 9,359,940 | 9,334,232 | 9,296,648 | ||||||||
Net income per share - Basic (in dollars per share) | $ 0.95 | $ 1.05 | $ 0.83 | $ 0.78 | $ 1.07 | $ 0.91 | $ 0.56 | $ 0.94 | $ 3.62 | $ 3.48 | $ 4.60 |
Diluted Earnings per Share | |||||||||||
Net income | $ 9,008 | $ 9,908 | $ 7,879 | $ 7,362 | $ 10,074 | $ 8,541 | $ 5,273 | $ 8,823 | $ 34,157 | $ 32,711 | $ 43,143 |
Basic weighted average shares outstanding | 9,359,940 | 9,334,232 | 9,296,648 | ||||||||
Additional dilutive common stock equivalents (in shares) | 79,810 | 44,975 | 69,423 | ||||||||
Diluted weighted average shares outstanding | 9,439,750 | 9,379,207 | 9,366,071 | ||||||||
Net income per share - Diluted (in dollars per share) | $ 0.95 | $ 1.04 | $ 0.83 | $ 0.77 | $ 1.07 | $ 0.90 | $ 0.56 | $ 0.93 | $ 3.59 | $ 3.46 | $ 4.56 |
Antidilutive securities | |||||||||||
Antidilutive stock options excluded from computation of earnings per share amount (in shares) | 11,183 | 12,901 | 404 |
Sale of Businesses (Details)
Sale of Businesses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Apr. 20, 2018 | |
Sale of Businesses | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 261,162 | $ 281,351 | $ 284,188 | |||
Proceeds from the sale of property and assets | $ 400 | $ 2,232 | ||||
Structural Composites Rod Business | ||||||
Sale of Businesses | ||||||
Total proceeds received or to be received | $ 2,232 | |||||
Pre-tax book gain from the sale of property and assets | $ 1,480 | |||||
Proceeds from the sale of property and assets | $ 157 | $ 2,075 |
Sale of Real Estate (Details)
Sale of Real Estate (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Apr. 30, 2020 | May 31, 2020 | Aug. 31, 2020 | |
Assets held for sale | ||||
Gain on sale of assets | $ 2,551 | |||
Randolph, MA - Property | ||||
Assets held for sale | ||||
Proceeds from the sale of property | $ 1,805 | |||
Gain on sale of assets | $ 1,791 | |||
Pawtucket, RI manufacturing facility | ||||
Assets held for sale | ||||
Proceeds from the sale of property | $ 1,810 | $ 1,810 | ||
Gain on sale of assets | $ 760 |
Operations Optimization Costs (
Operations Optimization Costs (Details) - USD ($) $ in Thousands | Jun. 25, 2018 | Apr. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Aug. 31, 2020 | Feb. 29, 2020 | Aug. 31, 2019 | Feb. 28, 2019 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
Operations Optimization Costs | ||||||||||||||||
Percentage of temporary reduction in the base salaries of its named Executive Officers and select members of Senior Management, as well as the cash compensation of the non-employee members of the Board | 20.00% | |||||||||||||||
Severance costs | $ 183 | |||||||||||||||
Write-down of certain assets under construction | $ 405 | |||||||||||||||
Exit costs related to facilities | 807 | $ 986 | $ 1,272 | |||||||||||||
Gain on sale of property | 2,551 | |||||||||||||||
Granite Falls Location | ||||||||||||||||
Operations Optimization Costs | ||||||||||||||||
Exit costs related to facilities | $ 0 | $ 559 | $ 526 | $ 526 | ||||||||||||
Pawtucket, RI manufacturing facility | ||||||||||||||||
Operations Optimization Costs | ||||||||||||||||
Restructuring Period | 2 months | |||||||||||||||
Exit costs related to facilities | 85 | $ 260 | $ 1,272 | $ 0 | ||||||||||||
Anticipated future exit costs | 0 | |||||||||||||||
Proceeds from the sale of property | $ 1,810 | 1,810 | ||||||||||||||
Gain on sale of property | 760 | 760 | ||||||||||||||
Engineering Studies related to Facility Consolidation and Rationalization Initiative | ||||||||||||||||
Operations Optimization Costs | ||||||||||||||||
Business Development | $ 0 | $ 0 | $ 0 | $ 150 | $ 200 | |||||||||||
Write-down of certain assets under construction | 405 | |||||||||||||||
Gain on sale of property | $ 170 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 31, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | |
Assets held for sale | |||
Assets held for sale | $ 1,064 | ||
Gain on sale of property | $ 2,551 | ||
Pawtucket, RI manufacturing facility | |||
Assets held for sale | |||
Assets held for sale | 1,050 | ||
Gain on sale of property | $ 760 | 760 | |
Randolph, MA - Property | |||
Assets held for sale | |||
Assets held for sale | $ 14 | ||
Gain on sale of property | $ 1,791 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Net sales | $ 261,162 | $ 281,351 | $ 284,188 | ||||||||
Gross Profit on Sales | $ 23,725 | $ 24,468 | $ 23,960 | $ 23,974 | $ 25,181 | $ 24,477 | $ 22,229 | $ 24,789 | 96,127 | 96,676 | |
Net income | $ 9,008 | $ 9,908 | $ 7,879 | $ 7,362 | $ 10,074 | $ 8,541 | $ 5,273 | $ 8,823 | $ 34,157 | $ 32,711 | $ 43,143 |
Net income available to common shareholders, per common and common equivalent share: | |||||||||||
Basic | $ 0.95 | $ 1.05 | $ 0.83 | $ 0.78 | $ 1.07 | $ 0.91 | $ 0.56 | $ 0.94 | $ 3.62 | $ 3.48 | $ 4.60 |
Diluted | $ 0.95 | $ 1.04 | $ 0.83 | $ 0.77 | $ 1.07 | $ 0.90 | $ 0.56 | $ 0.93 | $ 3.59 | $ 3.46 | $ 4.56 |
Product | |||||||||||
Net sales | $ 63,202 | $ 64,157 | $ 64,626 | $ 65,757 | $ 69,150 | $ 70,883 | $ 65,442 | $ 71,364 | $ 257,742 | $ 276,839 | $ 278,962 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accounts receivable reserve | |||
Changes in valuation allowances and reserves | |||
Balance at Beginning of Year | $ 739 | $ 559 | $ 456 |
Charges to Operations | 921 | 1,775 | 1,138 |
Deductions to Reserves | (1,222) | (1,595) | (1,035) |
Balance at End of Year | 438 | 739 | 559 |
Warranty reserve | |||
Changes in valuation allowances and reserves | |||
Balance at Beginning of Year | 37 | 0 | 220 |
Charges to Operations | 37 | ||
Deductions to Reserves | (37) | (220) | |
Balance at End of Year | $ 0 | $ 37 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accumulated other comprehensive income | |||
Balance | $ 271,227 | $ 246,756 | $ 210,929 |
Total other comprehensive income (loss) | 2,620 | (1,988) | 1,133 |
Balance | 302,792 | 271,227 | 246,756 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income | |||
Balance | (14,324) | (12,336) | (13,469) |
Other comprehensive gains (losses) before reclassifications | 2,028 | (2,720) | |
Reclassifications to net income of previously deferred (gains) losses | 592 | 732 | |
Total other comprehensive income (loss) | 2,620 | (1,988) | |
Adoption of ASU 2018-02 | (1,388) | ||
Balance | (13,092) | (14,324) | (12,336) |
Restricted investments | |||
Accumulated other comprehensive income | |||
Balance | 154 | 126 | |
Other comprehensive gains (losses) before reclassifications | 143 | 36 | |
Reclassifications to net income of previously deferred (gains) losses | (28) | (8) | |
Total other comprehensive income (loss) | 115 | 28 | |
Balance | 269 | 154 | 126 |
Change in funded status of pension plans | |||
Accumulated other comprehensive income | |||
Balance | (6,271) | (5,796) | |
Other comprehensive gains (losses) before reclassifications | (1,278) | (1,215) | |
Reclassifications to net income of previously deferred (gains) losses | 620 | 740 | |
Total other comprehensive income (loss) | (658) | (475) | |
Adoption of ASU 2018-02 | (1,388) | ||
Balance | (8,317) | (6,271) | (5,796) |
Foreign currency translation adjustment | |||
Accumulated other comprehensive income | |||
Balance | (8,207) | (6,666) | |
Other comprehensive gains (losses) before reclassifications | 3,163 | (1,541) | |
Total other comprehensive income (loss) | 3,163 | (1,541) | |
Balance | $ (5,044) | $ (8,207) | $ (6,666) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accumulated other comprehensive income | |||
Selling, general and administrative expenses | $ (49,364) | $ (48,707) | $ (47,703) |
Amortization of prior pension service costs and unrecognized losses | 3 | 3 | 3 |
Settlement and curtailment loss | (155) | (511) | |
Tax expense (benefit) | (11,163) | (10,842) | (13,822) |
Net income (loss) | 34,157 | 32,711 | $ 43,143 |
Reclassification out of accumulated other comprehensive income (loss) | |||
Accumulated other comprehensive income | |||
Net income (loss) | 592 | 732 | |
Restricted investments | Reclassification out of accumulated other comprehensive income (loss) | |||
Accumulated other comprehensive income | |||
Selling, general and administrative expenses | (37) | (11) | |
Tax expense (benefit) | 9 | 3 | |
Net income (loss) | (28) | (8) | |
Change in funded status of pension plans | Reclassification out of accumulated other comprehensive income (loss) | |||
Accumulated other comprehensive income | |||
Tax expense (benefit) | (202) | (246) | |
Net income (loss) | 620 | 740 | |
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 | 667 | 475 | |
Settlement and curtailment loss | $ 155 | $ 511 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Contract Assets | ||
Contract assets | $ 82 | $ 147 |
Contract liabilities | 0 | 0 |
Adhesives, Sealants and Additives | ||
Contract Assets | ||
Contract assets | 20 | 42 |
Industrial Tapes | ||
Contract Assets | ||
Contract assets | 21 | 26 |
Corrosion Protection and Waterproofing | ||
Contract Assets | ||
Contract assets | $ 41 | $ 79 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenue from Contracts with Customers | |||
Revenue | $ 261,162 | $ 281,351 | $ 284,188 |
Practical expedient - financing component | true | ||
North America | |||
Revenue from Contracts with Customers | |||
Revenue | $ 206,774 | 225,738 | |
Asia | |||
Revenue from Contracts with Customers | |||
Revenue | 31,488 | 33,080 | |
Europe | |||
Revenue from Contracts with Customers | |||
Revenue | 19,534 | 19,865 | |
All other foreign | |||
Revenue from Contracts with Customers | |||
Revenue | 3,366 | 2,668 | |
Adhesives, Sealants and Additives | |||
Revenue from Contracts with Customers | |||
Revenue | 96,208 | 104,796 | 101,690 |
Adhesives, Sealants and Additives | North America | |||
Revenue from Contracts with Customers | |||
Revenue | 64,611 | 70,320 | |
Adhesives, Sealants and Additives | Asia | |||
Revenue from Contracts with Customers | |||
Revenue | 17,977 | 19,430 | |
Adhesives, Sealants and Additives | Europe | |||
Revenue from Contracts with Customers | |||
Revenue | 13,201 | 14,773 | |
Adhesives, Sealants and Additives | All other foreign | |||
Revenue from Contracts with Customers | |||
Revenue | 419 | 273 | |
Industrial Tapes | |||
Revenue from Contracts with Customers | |||
Revenue | 118,960 | 129,845 | 130,598 |
Industrial Tapes | North America | |||
Revenue from Contracts with Customers | |||
Revenue | 105,911 | 117,955 | |
Industrial Tapes | Asia | |||
Revenue from Contracts with Customers | |||
Revenue | 7,150 | 7,126 | |
Industrial Tapes | Europe | |||
Revenue from Contracts with Customers | |||
Revenue | 3,286 | 2,637 | |
Industrial Tapes | All other foreign | |||
Revenue from Contracts with Customers | |||
Revenue | 2,613 | 2,127 | |
Corrosion Protection and Waterproofing | |||
Revenue from Contracts with Customers | |||
Revenue | 45,994 | 46,710 | $ 51,900 |
Corrosion Protection and Waterproofing | North America | |||
Revenue from Contracts with Customers | |||
Revenue | 36,252 | 37,463 | |
Corrosion Protection and Waterproofing | Asia | |||
Revenue from Contracts with Customers | |||
Revenue | 6,361 | 6,524 | |
Corrosion Protection and Waterproofing | Europe | |||
Revenue from Contracts with Customers | |||
Revenue | 3,047 | 2,455 | |
Corrosion Protection and Waterproofing | All other foreign | |||
Revenue from Contracts with Customers | |||
Revenue | $ 334 | $ 268 |