Divestiture Activities

12 Months Ended

Aug. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 5. Discontinued Operations and Other Divestiture Activities

Discontinued Operations

On October 31, 2019, as part of our overall strategy to become a pure-play industrial tools and services company, the Company completed the sale of the businesses comprising its former EC&S segment. This divestiture was considered part of our strategic shift to become a pure-play industrial tools and services company, and therefore, the results of operations are recorded as a component of "Earnings (loss) from discontinued operations, net of income taxes" in the Condensed Consolidated Statements of Earnings for all periods presented. All discontinued operations activity included within the Condensed Consolidated Statements of Earnings and the Condensed Consolidated Statements of Cash Flows for the periods presented relate to impacts from certain retained liabilities.

The following represents the detail of "Earnings (loss) from discontinued operations, net of income taxes" within the Consolidated Statements of Earnings (in thousands):

	Year Ended August 31,
	2024		2023		2022
Selling, general and administrative (benefit) expenses	$	(6,054)	$	10,069	$	4,842
Impairment & divestiture benefit	—		(1,530)		—
Operating income (loss)	6,054		(8,539)		(4,842)
Other income, net	—		372		—
Earnings (loss) before income tax benefit	6,054		(8,911)		(4,842)
Income tax expense (benefit)	2,512		(1,823)		(937)
Earnings (loss) from discontinued operations, net of income taxes	$	3,542	$	(7,088)	$	(3,905)

Other Divestiture Activities

On July 11, 2023, the Company completed the sale of the Cortland Industrial business, which had been included in the Other operating segment, for net cash proceeds of $20.1 million. In connection with the completion of the sale, the Company recorded a net gain of $6.0 million, inclusive of $0.1 million of purchase price from the customary finalization of working

capital negotiations in the first quarter of fiscal 2024.The historical results of the Cortland Industrial business (which had net sales of $22.7 million, and $26.2 million for the year ended August 31, 2023 and 2022, respectively) are not material to the consolidated financial results.