Adjustment to additional paid in capital resulting from the recognition of convertible debt instruments as two separate components - a debt component and an equity component. This bifurcation may result in a basis difference associated with the liability component that represents a temporary difference for purposes of applying accounting for income taxes. The initial recognition of deferred taxes for the tax effect of that temporary difference is as an adjustment to additional paid in capital.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 25
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=51819886&loc=SL6014347-161799

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance (in shares) at Aug. 31, 2019		51,776				20,262
Beginning balance at Aug. 31, 2019	$ 632,212	$ 25,888	$ 91,185	$ 866,886	$ (491)	$ (351,256)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation, net of forfeitures	1,583		1,574			$ 9
Stock-based compensation, net of forfeitures (in shares)						0
Issuance of stock, net	0		(2,219)			$ 2,219
Issuance of stock, net (in shares)						128
Repurchase of common stock (in shares)						(43)
Repurchase of common stock	(1,663)					$ (1,663)
Common stock dividends	(3,485)			(3,485)
Actuarial loss, net of tax	8				8
Interest rate swap activity, net of tax	(68)				(68)
Equity component of convertible senior notes and offering costs, net of tax of $20,915	61,555		61,555
Convertible note hedge purchase, net of tax of $17,417	(53,383)		(53,383)
Warrant transactions	42,210		42,210
Net income	14,068			14,068
Ending balance (in shares) at Nov. 30, 2019		51,776				18,177
Ending balance at Nov. 30, 2019	785,609	$ 25,888	198,733	877,469	(551)	$ (315,930)
Beginning balance (in shares) at Aug. 29, 2020		51,776				18,133
Beginning balance at Aug. 29, 2020	827,466	$ 25,888	203,791	913,610	(526)	$ (315,297)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation, net of forfeitures	2,354		2,346			$ 8
Stock-based compensation, net of forfeitures (in shares)						0
Issuance of stock, net	0		(1,586)			$ 1,586
Issuance of stock, net (in shares)						91
Issuance of stock for acquisition	92,572		57,811			$ 34,761
Issuance of stock for acquisition (in shares)						2,000
Repurchase of common stock (in shares)						(233)
Repurchase of common stock	(11,606)					$ (11,606)
Common stock dividends	(4,088)			(4,088)
Actuarial loss, net of tax	9				9
Net income	57,423			57,423
Ending balance (in shares) at Nov. 28, 2020		51,776				18,275
Ending balance at Nov. 28, 2020	$ 871,558	$ 25,888	$ 204,551	$ 966,945	$ (517)	$ (325,309)