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Retirement Plans
 12 Months Ended
Aug. 31, 2013
Retirement Plans [Abstract]  
Retirement Plans

 

O. RETIREMENT PLANS

 

The Company has defined contribution profit‑sharing plans covering substantially all of its full-time U.S. employees.  Participants may voluntarily contribute a percentage of compensation, but not in excess of the maximum allowed under the Internal Revenue Code.  The plan provides for a matching contribution by the Company.  The Company's total contributions charged to expense under this plan were $1.0 million, $0.9 million and $0.7 million for the years ended August 31, 2013,  2012 and 2011, respectively. 

 

A supplementary non‑qualified, non‑funded retirement plan for six former executives is also maintained.  Plan benefits are based on the executive's average total compensation during the three highest compensation years of employment.  This unfunded supplemental retirement plan is not subject to the minimum funding requirements of ERISA.  The Company has purchased life insurance policies on certain former executives named in this supplemental retirement plan to provide funding for this liability. 

 

As of August 31, 2013 and 2012, the funded status of the supplemental retirement plan was recorded in the consolidated balance sheets.  The Company utilizes an August 31 measurement date for plan obligations related to the supplemental retirement plan.  As this is an unfunded retirement plan, the funded status is equal to the benefit obligation.

 

The funded status of the plan and the net amount recognized in the accompanying balance sheets as of August 31 is as follows: 

 

 

 

 

 

 

 

 

 

August 31,

$ in thousands

 

2013

 

2012

Change in benefit obligation:

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$
7,378 

 

$
6,787 

    Interest cost

 

 
266 

 

 
325 

    Actuarial loss

 

 
(206)

 

 
823 

    Benefits paid

 

 
(557)

 

 
(557)

Benefit obligation at end of year

 

$
6,881 

 

$
7,378 

 

 

 

 

 

 

 

 

Amounts recognized in the statement of financial position consist of:

 

 

 

 

 

 

 

 

 

August 31,

$ in thousands

 

2013

 

2012

Other current liabilities

 

$
557 

 

$
557 

Pension benefit liabilities

 

 
6,324 

 

 
6,821 

Net amount recognized

 

$
6,881 

 

$
7,378 

 

 

 

 

 

 

 

The before-tax amounts recognized in accumulated other comprehensive loss as of August 31 consists of:

 

 

 

 

 

 

 

 

 

August 31,

$ in thousands

 

2013

 

2012

Net actuarial loss

 

$
(3,683)

 

$
(4,101)

 

 

 

 

 

 

 

 

For the years ended August 31, 2013 and 2012, the Company assumed a discount rate of 4.75 percent and 3.75 percent, respectively, for the determination of the liability.  The assumptions used to determine benefit obligations and costs are selected based on current and expected market conditions.  The discount rate is based on a hypothetical portfolio of long-term corporate bonds with cash flows approximating the timing of expected benefit payments.

 

 

For the years ended August 31, 2013,  2012 and 2011, the Company assumed a discount rate of 3.75 percent,  5.00 percent and 5.00 percent, respectively, for the determination of the net periodic benefit cost.  The components of the net periodic benefit cost for the supplemental retirement plan for the years ended August 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

For the years ended August 31,

$ in thousands

 

2013

 

2012

 

2011

Interest cost

 

$
266 

 

$
325 

 

$
334 

Net amortization and deferral

 

 
212 

 

 
166 

 

 
164 

Total

 

$
478 

 

$
491 

 

$
498 

 

 

 

 

 

 

 

 

 

 

The estimated actuarial loss for the supplemental retirement plan that will be amortized, on a pre-tax basis, from accumulated other comprehensive loss into net periodic benefit cost during fiscal 2013 will be $0.2 million.

 

 

The Company’s future annual contributions to the supplemental retirement plan will be equal to expected net benefit payments since the plan is unfunded. The following net benefit payments are expected to be paid:

 

 

 

 

 

 

 

 

 

Fiscal Years

 

$ in thousands

 

 

2014

 

$
557 

 

 

2015

 

 
540 

 

 

2016

 

 
533 

 

 

2017

 

 
526 

 

 

2018

 

 
519 

 

 

Thereafter

 

 
4,206 

 

 

 

 

$
6,881