INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2014

Income Tax Disclosure [Abstract]

Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates

Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates includes the following components (in thousands):

	Years Ended August 31,
	2014		2013		2012
United States	$	34,927	$	30,377	$	38,121
Foreign	99,322		92,834		64,593
Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates	$	134,249	$	123,211	$	102,714

Significant components of income tax provision

Significant components of the income tax provision are as follows (in thousands):

	Years Ended August 31,
	2014			2013			2012
Current:
U.S.	$	11,921		$	7,214		$	7,593
Foreign	29,120			29,054			26,325
Total	$	41,041		$	36,268		$	33,918
Deferred:
U.S.	$	613		$	3,257		$	1,853
Foreign	(381		)	(402		)	(1,031		)
Valuation allowance charge (release)	99			(181		)	313
Total	$	331		$	2,674		$	1,135
Provision for income taxes	$	41,372		$	38,942		$	35,053

Reconciliation of income tax rate

The reconciliation of income tax computed at the Federal statutory tax rate to the provision for income taxes is as follows (in percentages):

	Years Ended August 31,
	2014		2013		2012
Federal tax provision at statutory rates	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	0.3		0.3		0.3
Differences in foreign tax rates	(5.2	)	(3.7	)	(3.6	)
Permanent items and other adjustments	0.8		0.2		2.1
Increase (decrease) in Foreign valuation allowance	(0.1	)	(0.2	)	0.3
Provision for income taxes	30.8	%	31.6	%	34.1	%

Significant components of deferred tax assets

Significant components of the Company’s deferred tax assets as of August 31, 2014 and 2013 are shown below (in thousands):

	August 31,
	2014			2013
Deferred tax assets:
U.S. net operating loss carryforward	$	5,977		$	7,379
Foreign tax credits	862			2,096
Deferred compensation	1,621			2,087
U.S. timing differences and alternative minimum tax credits	2,647			1,708
Foreign net operating losses	7,169			7,137
Foreign timing differences:
Accrued expenses and other timing differences	2,935			5,179
Depreciation and Amortization	5,873			5,027
Deferred Income	3,688			3,534
Gross deferred tax assets	30,772			34,147
U.S. deferred tax liabilities (depreciation and other timing differences)	(2,354		)	(3,216		)
Foreign deferred tax liabilities netted against deferred tax assets	(2,066		)	(1,638		)
U.S. valuation allowance	(613		)	(700		)
Foreign valuation allowance	(7,737		)	(9,432		)
Net deferred tax assets	$	18,002		$	19,161

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2014			2013			2012
Balance at beginning of fiscal year	$	9,373		$	11,212		$	13,528
Additions based on tax positions related to the current year	964			349			575
Settlements	(1,093		)	(191		)	(591		)
Expiration of the statute of limitations for the assessment of taxes	(458		)	(1,997		)	(2,300		)
Balance at end of fiscal year	$	8,786		$	9,373		$	11,212

Summary of income tax examinations

The Company is generally no longer subject to income tax examinations by tax authorities in its major jurisdictions except for the fiscal years subject to audit as set forth in the table below:

Tax Jurisdiction	Fiscal Years Subject to Audit
U.S. federal	1998, 2000 to 2005, 2007, 2011 to the present
California (U.S.) (state return)	2005, 2007 and 2010 to the present
Florida(U.S.) (state return)	2002 to 2005, 2007 and 2011 to the present
Aruba	2012 to the present
Barbados	2008 to the present
Costa Rica	2011 to the present
Colombia	2010 to the present
Dominican Republic	2009 and 2011 to the present
El Salvador	2009 to the present
Guatemala	2009 to the present
Honduras	2009, 2010, 2012 to the present
Jamaica	2008 to the present
Mexico	2011 to the present
Nicaragua	2010 to the present
Panama	2011 to the present
Trinidad	2004 to the present
U.S. Virgin Islands	2001 to the present