Statements of Earnings

12 Months Ended

Aug. 31, 2019

Statements of Earnings [Abstract]

Statements of Earnings

18 Statements of Earnings

Sales

Sales are as follows:

	Years ended August 31,
	2019			2018		2017
Test and measurement	$	204,693		$	197,423	$	193,863
Service assurance, systems and services		82,788			71,248		49,906
Foreign exchange gains (losses) on forward exchange contracts		(591	)		875		(468	)
Total sales for the year	$	286,890		$	269,546	$	243,301

Net research and development

Net research and development expenses comprise the following:

	Years ended August 31,
	2019			2018			2017
Gross research and development expenses	$	57,972		$	65,243		$	53,124
Research and development tax credits and grants		(7,419	)		(8,089	)		(5,956	)
Net research and development expenses for the year	$	50,553		$	57,154		$	47,168

Depreciation and amortization

Depreciation and amortization expenses by functional area are as follows:

	Years ended August 31,
	2019		2018		2017
Cost of sales
Depreciation of property, plant and equipment	$	1,862	$	2,077	$	1,522
Amortization of intangible assets		7,186		9,212		2,652
		9,048		11,289		4,174
Selling and administrative expenses
Depreciation of property, plant and equipment		1,354		902		530
Amortization of intangible assets		1,043		592		251
		2,397		1,494		781
Net research and development expenses
Depreciation of property, plant and equipment		2,253		2,465		1,850
Amortization of intangible assets		783		523		386
		3,036		2,988		2,236
	$	14,481	$	15,771	$	7,191
Depreciation of property, plant and equipment	$	5,469	$	5,444	$	3,902
Amortization of intangible assets		9,012		10,327		3,289
Total depreciation and amortization expenses for the year	$	14,481	$	15,771	$	7,191

Employee compensation

Employee compensation comprises the following:

	Years ended August 31,
	2019		2018		2017
Salaries and benefits	$	136,059	$	134,453	$	115,832
Restructuring charges		3,305		2,072		3,509
Stock-based compensation costs		1,831		1,748		1,414
Total employee compensation for the year	$	141,195	$	138,273	$	120,755

Restructuring charges by functional area are as follows:

	Years ended August 31,
	2019			2018			2017
Cost of sales	$	304		$	517		$	1,697
Selling and administrative expenses		495			673			1,150
Net research and development costs		2,506			3,219			2,232
Interest and other expense		–			150			–
Income taxes		(63	)		(1,150	)		–
Total restructuring charges for the year	$	3,242		$	3,409		$	5,079

Stock-based compensation costs by functional area are as follows:

	Years ended August 31,
	2019		2018		2017
Cost of sales	$	136	$	143	$	121
Selling and administrative expenses		1,375		1,217		1,052
Net research and development expenses		320		388		304
Total stock-based compensation costs for the year	$	1,831	$	1,748	$	1,477