Pensions and Other Postretirement Benefits (Tables)

12 Months Ended

Aug. 31, 2012

Summary of Pension and Other Postretirement Benefit Plans

The following represents information summarizing the Company's pension and other postretirement benefit plans. A measurement date of August 31, 2012 was used for all plans.

	Year Ended August 31,
	Pension Benefits						Other Benefits
	2012			2011			2012			2011
	(Dollars in thousands)
Change in benefit obligation:
Benefit obligation at September 1	$	47,545		$	48,875		$	16,924		$	17,580
Service cost		1,521			1,617			229			272
Interest cost		2,729			2,696			972			972
Plan participants’ contributions		—			—			119			134
Amendments		212			—			—			—
Actuarial (gain) loss		619			(1,099	)		(170	)		333
Change in assumptions		12,359			(2,560	)		3,024			(1,736	)
Benefits paid		(1,996	)		(1,984	)		(641	)		(631	)
Benefit obligation at August 31	$	62,989		$	47,545		$	20,457		$	16,924
Change in plan assets:
Fair value of plan assets at September 1	$	36,328		$	28,278		$	—		$	—
Actual return on plan assets		3,688			3,618			—			—
Company contributions		4,052			6,416			522			497
Plan participants’ contributions		—			—			119			134
Benefits paid		(1,996	)		(1,984	)		(641	)		(631	)
Fair value of the plan assets at August 31	$	42,072		$	36,328		$	—		$	—
Funded status:
Net liability – Plan assets less than projected benefit obligation	$	(20,917	)	$	(11,217	)	$	(20,457	)	$	(16,924	)
Recognized as:
Current accrued benefit liability	$	—		$	—		$	(750	)	$	(731	)
Non-current accrued benefit liability		(20,917	)		(11,217	)		(19,707	)		(16,193	)
Net Amount Recognized	$	(20,917	)	$	(11,217	)	$	(20,457	)	$	(16,924	)

Components of Accumulated Other Comprehensive Loss Unrecognized

Accumulated other comprehensive loss consists of the following amounts that have not yet been recognized as components of net benefit cost (dollars in thousands):

	August 31, 2012					August 31, 2011
	Pension Benefits		Other Benefits			Pension Benefits		Other Benefits
Unrecognized prior service cost (credit)	$	1,529	$	(307	)	$	1,545	$	(459	)
Unrecognized net actuarial loss		22,976		3,594			11,545		740
Total	$	24,505	$	3,287		$	13,090	$	281

Benefit Obligations in Excess of Fair Value of Plan Assets

Selected information related to the Company’s defined benefit pension plans that have benefit obligations in excess of fair value of plan assets is presented below (dollars in thousands):

	August 31,
	2012		2011
Projected benefit obligation	$	62,989	$	47,545
Accumulated benefit obligation	$	59,853	$	46,113
Fair value of plan assets	$	42,072	$	36,328

Components of Net Periodic Benefit Cost

Net Periodic Benefit Cost

	Year Ended August 31,
	Pension Benefits									Other Benefits
	2012			2011			2010			2012			2011			2010
	(Dollars in thousands)
Components of net periodic benefit cost
Service cost	$	1,521		$	1,617		$	1,608		$	229		$	272		$	353
Interest cost		2,729			2,696			2,633			972			972			1,077
Expected return on plan assets		(2,914	)		(2,234	)		(2,022	)		—			—			—
Amortization of prior service cost		228			228			244			(152	)		(152	)		(152	)
Amortization of actuarial loss		773			1,441			1,312			—			65			294
Benefit cost	$	2,337		$	3,748		$	3,775		$	1,049		$	1,157		$	1,572

Benefit Plan Assumptions

Assumptions

The Company assesses its benefit plan assumptions on a regular basis. Assumptions used in determining plan information are as follows:

	August 31,
	Pension Benefits									Other Benefits
	2012			2011			2010			2012			2011			2010
Weighted-average assumptions used to calculate net periodic expense:
Discount rate		5.87	%		5.64	%		5.98	%		5.87	%		5.64	%		5.98	%
Expected return on plan assets		8.00	%		8.00	%		8.00	%
Rate of compensation increase		3.00	%		4.00	%		4.00	%
Weighted-average assumptions used to calculate benefit obligations at August 31:
Discount rate		4.28	%		5.87	%		5.64	%		4.28	%		5.87	%		5.64	%
Expected return on plan assets		7.00	%		8.00	%		8.00	%
Rate of compensation increase		3.00	%		3.00	%		4.00	%

Assumed Health Care Cost Trend Rates

	2012			2011			2010
Assumed health care cost trend rates:
Current health care trend assumption		8.00	%		8.00	%		8.00	%
Ultimate health care trend rate		4.50	%		4.50	%		4.50	%
Year ultimate health care trend is reached		2030			2029			2028

Effect of Changes in Assumed Health Care Cost Trend Rate

The assumed health care cost trend rate could have a significant effect on the amounts reported. A one-percentage-point change in the assumed health care cost trend rate would have the following effects:

	1-Percentage- Point Increase		1-Percentage- Point Decrease
	(Dollars in thousands)
Effect on total of service and interest cost components in fiscal 2012	$	180	$	(149	)
Effect on postretirement accumulated benefit obligation as of August 31, 2012	$	3,115	$	(2,558	)

Weighted Average Asset Allocations of Investment Portfolio for Pension Plans

The weighted average asset allocations of the investment portfolio for the pension plans at August 31 are as follows:

	Target Allocation			August 31,
				2012			2011
U.S. equities		55	%		56	%		56	%
International equities		15	%		15	%		16	%
Fixed income investments		25	%		24	%		26	%
Real estate		5	%		5	%		2	%

Fair Value of Pension Plan's Assets by Major Asset Category

The following table presents the fair value of the pension plan’s assets by major asset category as of August 31, 2012.

	Quoted Prices In Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Common collective trust funds	$		$	39,970	$	—	$	39,970
Real estate equity funds		—		—		2,102		2,102
Fair value of plan assets	$	—	$	39,970	$	2,102	$	42,072

Changes in Fair Value of Pension Plan's Real Estate Equity Fund

The following table summarizes the changes in fair value of the pension plan’s real estate equity fund (Level 3) for fiscal year ended August 31, 2012.

	Real Estate
	Equity Fund
	(in thousands)
Balance, August 31, 2011	$	677
Actual return on plan assets:
Relating to assets still held at the reporting date		75
Relating to assets sold during the period		—
Purchases and sales		1,350
Transfers in (out) of Level 3		—
Balance, August 31, 2012	$	2,102

Expected Benefit Payments

Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include benefits attributable to estimate future employee service.

	Pension		Other Postretirement
	(Dollars in millions)
2013	$	2.3	$	0.9
2014		2.4		1.0
2015		2.5		1.0
2016		2.6		1.1
2017		2.8		1.2
2018-2022	$	17.3	$	7.8