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Income Taxes (Tables) | 12 Months Ended
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Aug. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Earnings Before Income Taxes | For financial reporting purposes earnings before income taxes include the following components:
|  | For the years ended August 31, |
($ in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
United States |  | $ | 40,066 |  |  | $ | 34,465 |  |  | $ | 28,605 |
Foreign |  |  | 60,309 |  |  |  | 53,403 |  |  |  | 21,781 |
|  | $ | 100,375 |  |  | $ | 87,868 |  |  | $ | 50,386 |
Schedule of Significant Components of Income Tax Provision | Significant components of the income tax provision are as follows:
|  | For the years ended August 31, |
($ in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 8,119 |  |  | $ | 5,678 |  |  | $ | 2,432 |
State |  |  | 1,690 |  |  |  | 1,310 |  |  |  | 733 |
Foreign |  |  | 18,187 |  |  |  | 17,474 |  |  |  | 2,738 |
Total current |  |  | 27,996 |  |  |  | 24,462 |  |  |  | 5,903 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (684 | ) |  |  | 244 |  |  |  | 2,251 |
State |  |  | (76 | ) |  |  | 34 |  |  |  | 281 |
Foreign |  |  | 760 |  |  |  | (2,341 | ) |  |  | (621 | )
Total deferred |  | — |  |  |  | (2,063 | ) |  |  | 1,911 |
Total income tax provision |  | $ | 27,996 |  |  | $ | 22,399 |  |  | $ | 7,814 |
Schedule of Effective Income Tax Rate Reconciliation |
|  | For the years ended August 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
($ in thousands) |  | Amount |  |  | % |  |  | Amount |  |  | % |  |  | Amount |  |  | % |
U.S. statutory rate |  | $ | 21,079 |  |  |  | 21.0 |  |  | $ | 18,452 |  |  |  | 21.0 |  |  | $ | 10,581 |  |  |  | 21.0 |
State and local taxes, net of federal tax benefit |  |  | 1,259 |  |  |  | 1.3 |  |  |  | 1,069 |  |  |  | 1.2 |  |  |  | 859 |  |  |  | 1.7 |
Foreign tax rate differences |  |  | 6,017 |  |  |  | 6.0 |  |  |  | 3,318 |  |  |  | 3.8 |  |  |  | (390 | ) |  |  | (0.8 | )
U.S. tax reform |  |  | (103 | ) |  |  | (0.1 | ) |  |  | 313 |  |  |  | 0.4 |  |  |  | 339 |  |  |  | 0.7 |
Deferred tax asset valuation allowance |  |  | (610 | ) |  |  | (0.6 | ) |  | — |  |  | — |  |  |  | (2,169 | ) |  |  | (4.3 | )
Federal credits |  |  | (445 | ) |  |  | (0.4 | ) |  |  | (444 | ) |  |  | (0.6 | ) |  |  | (629 | ) |  |  | (1.2 | )
Uncertain tax benefits |  |  | (84 | ) |  |  | (0.1 | ) |  |  | (369 | ) |  |  | (0.4 | ) |  |  | (622 | ) |  |  | (1.2 | )
Capital gains |  |  | 529 |  |  |  | 0.5 |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  |  | 354 |  |  |  | 0.3 |  |  |  | 60 |  |  |  | 0.1 |  |  |  | (155 | ) |  |  | (0.3 | )
Effective rate |  | $ | 27,996 |  |  |  | 27.9 |  |  | $ | 22,399 |  |  |  | 25.5 |  |  | $ | 7,814 |  |  |  | 15.5 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | August 31, |
($ in thousands) |  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Accrued expenses |  | $ | 11,467 |  |  | $ | 12,569 |
Warranty |  |  | 3,433 |  |  |  | 3,336 |
Defined benefit pension plan |  |  | 1,253 |  |  |  | 1,391 |
Inventory |  |  | 2,749 |  |  |  | 2,544 |
Share-based compensation |  |  | 1,722 |  |  |  | 1,474 |
Vacation |  |  | 935 |  |  |  | 773 |
Net operating loss and capital loss carry forwards |  |  | 189 |  |  |  | 1,208 |
Deferred revenue |  |  | 1,379 |  |  |  | 1,422 |
Allowance for doubtful accounts |  |  | 1,338 |  |  |  | 1,122 |
Lease liabilities |  |  | 3,656 |  |  |  | 3,868 |
Capitalized research and development expenditures |  |  | 2,009 |  |  |  | — |
Other |  |  | 1,490 |  |  |  | 878 |
Gross deferred tax assets |  |  | 31,620 |  |  |  | 30,585 |
Valuation allowance |  |  | (491 | ) |  |  | (1,203 | )
Net deferred tax assets |  | $ | 31,129 |  |  | $ | 29,382 |
Deferred tax liabilities: |  |  |  |  |  |
Intangible assets |  | $ | (5,085 | ) |  | $ | (5,389 | )
Property, plant, and equipment |  |  | (12,718 | ) |  |  | (11,441 | )
Lease assets |  |  | (2,844 | ) |  |  | (2,999 | )
Derivative contract |  |  | (286 | ) |  |  | (1,294 | )
Total deferred tax liabilities |  | $ | (20,933 | ) |  | $ | (21,123 | )
Net deferred tax assets |  | $ | 10,196 |  |  | $ | 8,259 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of changes in unrecognized tax benefits is as follows:
|  | August 31, |
($ in thousands) |  | 2023 |  |  | 2022 |
Unrecognized tax benefits at beginning of the year |  | $ | 574 |  |  | $ | 724 |
Increases for positions taken in current year |  |  | 33 |  |  |  | 158 |
Decreases for positions taken in prior years |  |  | (15 | ) |  |  | — |
Reduction resulting from lapse of applicable statute of limitations |  |  | (144 | ) |  |  | (308 | )
Decreases for settlements with tax authorities |  |  | (48 | ) |  |  | — |
Unrecognized tax benefits at end of the year |  | $ | 400 |  |  | $ | 574 |

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