XML 50 R33.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Aug. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax Expense from Continuing Operations | Income tax expense (benefit) from continuing operations is summarized as follows (in thousands):
| Year Ended August 31,
| 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |
Federal | $ | 2,205 |  |  | $ | (126 | ) |  | $ | 23,211 |
Foreign | 11,838 |  |  | 21,200 |  |  | 9,059 |
State | 912 |  |  | (1,616 | ) |  | (657 | )
| 14,955 |  |  | 19,458 |  |  | 31,613 |
Deferred: |  |  |  |  |
Federal | (12,470 | ) |  | (4,416 | ) |  | 4,224 |
Foreign | (23,797 | ) |  | (9,199 | ) |  | (4,130 | )
State | (3,858 | ) |  | (324 | ) |  | 866 |
| (40,125 | ) |  | (13,939 | ) |  | 960 |
Income tax expense (benefit) | $ | (25,170 | ) |  | $ | 5,519 |  |  | $ | 32,573 |
Reconciliation of Income Taxes at Federal Statutory Rate to Effective Tax Rate | A reconciliation of income taxes at the federal statutory rate to the effective tax rate is summarized in the following table:
| Year Ended August 31,
| 2016 |  | 2015 |  | 2014
Federal statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of Federal effect | 1.2 |  |  | (0.2 | ) |  | 0.8 |
Net effects of foreign tax rate differential and credits (1) | 1.6 |  |  | (58.4 | ) |  | (10.5 | )
Domestic manufacturing deduction | 0.3 |  |  | (5.1 | ) |  | (1.0 | )
Foreign branch currency losses | 4.9 |  |  | — |  |  | — |
Goodwill impairment (2) | (27.0 | ) |  | 78.6 |  |  | — |
Valuation allowance additions and releases (3) | (0.7 | ) |  | 15.5 |  |  | (8.0 | )
Changes in liability for unrecognized tax benefits (4) | (0.9 | ) |  | (42.1 | ) |  | 3.2 |
Change in income tax accounting method, net | — |  |  | — |  |  | (5.6 | )
Business divestitures | 3.9 |  |  | — |  |  | 3.0 |
Other items | 1.0 |  |  | (1.6 | ) |  | 1.8 |
Effective income tax rate | 19.3 | % |  | 21.7 | % |  | 18.7 | %
(1) During fiscal 2015, the Company generated $10.0 million of foreign tax credits, the result of a non-recurring non-permanent loan from a foreign subsidiary (which were utilized to reduce fiscal 2015 tax obligations) and had a higher proportion of non-U.S. earnings. (2) Fiscal 2016 and fiscal 2015 net earnings include a $186.5 million and $84.4 million, respectively, impairment of goodwill and intangible assets, of which $68.0 million and $6.3 million, respectively, are deductible for income tax purposes. (3) Additional valuation allowances of $5.7 million were established in fiscal 2015 due to uncertainty regarding utilization of foreign operating loss carryforwards, which were partially offset by the reversal of $2.3 million of previously established reserves. (4) The liability for unrecognized tax benefits decreased $9.5 million in fiscal 2015 primarily due to settlements and lapsing of tax audit statutes.
Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards that gave rise to deferred tax assets and liabilities include the following items (in thousands):
| August 31,
| 2016 |  | 2015
Deferred income tax assets: |  |  |
Operating loss and tax credit carryforwards | $ | 36,761 |  |  | $ | 19,419 |
Compensation related liabilities | 25,086 |  |  | 27,047 |
Postretirement benefits | 8,727 |  |  | 6,778 |
Inventory | 3,044 |  |  | 3,253 |
Book reserves and other items | 8,317 |  |  | 11,976 |
Total deferred income tax assets | 81,935 |  |  | 68,473 |
Valuation allowance | (8,147 | ) |  | (8,053 | )
Net deferred income tax assets | 73,788 |  |  | 60,420 |
Deferred income tax liabilities: |  |  |
Depreciation and amortization | (83,020 | ) |  | (110,763 | )
Other items | (5,493 | ) |  | (4,539 | )
Deferred income tax liabilities | (88,513 | ) |  | (115,302 | )
Net deferred income tax liability | $ | (14,725 | ) |  | $ | (54,882 | )
Changes in Gross Liability for Unrecognized Tax benefits, Excluding Interest and Penalties | Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, are as follows (in thousands):
| 2016 |  | 2015 |  | 2014
Beginning balance | $ | 29,924 |  |  | $ | 39,509 |  |  | $ | 18,006 |
Increases based on tax positions related to the current year | 1,050 |  |  | 2,183 |  |  | 28,053 |
Increase for tax positions taken in a prior period | 475 |  |  | 8,935 |  |  | — |
Decrease for tax positions taken in a prior period | — |  |  | (633 | ) |  | — |
Decrease due to lapse of statute of limitations | (1,027 | ) |  | (4,464 | ) |  | (7,030 | )
Decrease due to settlements | — |  |  | (14,180 | ) |  | — |
Changes in foreign currency exchange rates | (1,248 | ) |  | (1,426 | ) |  | 480 |
Ending balance | $ | 29,174 |  |  | $ | 29,924 |  |  | $ | 39,509 |
Earnings before Income Taxes, Including both Continuing and Discontinued Operations | Earnings (loss) before income taxes from continuing operations, are summarized as follows (in thousands):
| Year Ended August 31,
| 2016 |  | 2015 |  | 2014
Domestic | $ | (19,182 | ) |  | $ | 14,593 |  |  | $ | 84,854 |
Foreign | (111,162 | ) |  | 10,798 |  |  | 89,172 |
| $ | (130,344 | ) |  | $ | 25,391 |  |  | $ | 174,026 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=51663037&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=6907707&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration