10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED

AUGUST 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 1-9852

CHASE CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts	11-1797126
(State or other jurisdiction of incorporation of organization)	(I.R.S. Employer Identification No.)

295 University Avenue, Westwood, Massachusetts 02090

(Address of Principal Executive Offices) (Zip Code)

(781) 332-0700

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to section 12(b) of the Act:

Title of each class Common stock, $.10 par value Trading Symbol(s) CCF Name of each exchange on which registered NYSE American

Securities registered pursuant to section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES ◻  NO ⌧

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. YES ◻ NO ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ⌧ NO ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ⌧ NO ◻

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ◻	Accelerated filer ⌧
Non-accelerated filer ◻	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ⌧

The aggregate market value of the common stock held by non-affiliates of the registrant, computed by reference to the closing price as of the last business day of the Registrant’s most recently completed second fiscal quarter, February 28, 2021, was approximately $573,033,000.

As of October 31, 2021, the Company had outstanding 9,457,489 shares of common stock, $0.10 par value, which is its only class of common stock.

Documents Incorporated By Reference:

Portions of the registrant’s definitive proxy statement for the Annual Meeting of Shareholders, which is expected to be filed within 120 days after the registrant’s fiscal year ended August 31, 2021, are incorporated by reference into Part III hereof.

CHASE CORPORATION

INDEX TO ANNUAL REPORT ON FORM 10-K

For the Year Ended August 31, 2021

		Page No.
Cautionary Note Concerning Forward-Looking Statements		2
PART I
Item 1	Business	3
Item 1A	Risk Factors	12
Item 1B	Unresolved Staff Comments	18
Item 2	Properties	18
Item 3	Legal Proceedings	19
Item 4	Mine Safety Disclosures	19
Item 4A	Information About our Executive Officers	19
PART II
Item 5	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	20
Item 6	Reserved	21
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	37
Item 8	Financial Statements and Supplementary Data	38
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	101
Item 9A	Controls and Procedures	101
Item 9B	Other Information	104
Item 9C	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	104
PART III
Item 10	Directors, Executive Officers and Corporate Governance	105
Item 11	Executive Compensation	105
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	105
Item 13	Certain Relationships and Related Transactions, and Director Independence	105
Item 14	Principal Accountant Fees and Services	105
PART IV
Item 15	Exhibits and Financial Statement Schedules	106
Item 16	Form 10-K Summary	108
SIGNATURES		109

1

Cautionary Note Concerning Forward-Looking Statements

This Annual Report on Form 10-K contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, including without limitation forward-looking statements made under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” involve risks and uncertainties. Any statements contained in this Annual Report that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements as to our future operating results; seasonality expectations; plans for the development, utilization or disposal of manufacturing facilities; future economic conditions; our expectations as to legal proceedings; the effect of our market and product development efforts; and expectations or plans relating to the implementation or realization of our strategic goals and future growth, including through potential future acquisitions. Forward-looking statements may also include, among other things, statements relating to future sales, earnings, cash flow, results of operations, use of cash and other measures of financial performance, statements relating to future dividend payments, as well as expected impact of the coronavirus disease 2019 (COVID-19) pandemic on the Company's businesses. Forward-looking statements may be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “predicts,” “targets,” “forecasts,” “strategy,” and other words of similar meaning in connection with the discussion of future operating or financial performance. These statements are based on current expectations, estimates and projections about the industries in which we operate, and the beliefs and assumptions made by management. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Accordingly, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Readers should refer to the discussions under Item 1A “Risk Factors” of this Annual Report on Form 10-K.

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PART I

Item 1 – Business

Primary Operating Divisions and Facilities and Industry Segments

Chase Corporation (the “Company,” “Chase,” “we,” or “us”), a global specialty chemicals company founded in 1946, is a leading manufacturer of protective materials for high-reliability applications across diverse market sectors. Our strategy is to maximize the performance of our core businesses and brands while seeking future opportunities through strategic acquisitions. Through investments in facilities, systems and organizational consolidation we seek to improve performance and gain economies of scale.

We are organized into three reportable operating segments: an Adhesives, Sealants and Additives segment, an Industrial Tapes segment and a Corrosion Protection and Waterproofing segment. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets.

The Adhesives, Sealants and Additives segment offers innovative and specialized product offerings consisting of both end-use products and intermediates that are generally used in, or integrated into, another company’s product. Demand for the segment’s product offerings is typically dependent upon general economic conditions. The Adhesives, Sealants and Additives segment leverages the core specialty chemical competencies of the Company and serves diverse markets and applications. The segment sells predominantly into the transportation, appliances, medical, general industrial and environmental market verticals. The segment’s products include moisture protective coatings and cleaners, and customized sealant and adhesive systems for electronics, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning September 1, 2020, the Adhesives, Sealants and Additives segment includes the acquired operations of ABchimie, within the electronic and industrial coatings product line and beginning February 5, 2021, the acquired operations of Emerging Technologies, Inc (“ETi”), within the functional additives product line.

The Industrial Tapes segment features wire and cable materials, specialty tapes and other laminated and coated products. The segment derives its competitive advantage through its proven chemistries, its diverse specialty offerings and the reliability its supply chain offers to end customers. These products are generally used in the assembly of other manufacturers’ products, with demand typically dependent upon general economic conditions. The Industrial Tapes segment sells mostly to established markets, with some exposure to growth opportunities through further development of existing products. Markets served include cable manufacturing, utilities and telecommunications, and electronics packaging. The segment’s offerings include insulating and conducting materials for wire and cable manufacturers, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing services, pulling and detection tapes used in the installation, measurement and location of fiber optic cables and water and natural gas lines and cover tapes essential to delivering semiconductor components via tape-and-reel packaging.

The Corrosion Protection and Waterproofing segment is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. End markets include new and existing infrastructure projects on oil, gas, water and wastewater pipelines, highways and bridge decks, water and wastewater containment systems, and commercial buildings. The segment’s products include protective coatings for pipeline applications, coating and lining systems for waterproofing and liquid storage applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion joint systems for waterproofing applications in transportation and architectural markets. With sales generally dependent on outdoor project work, the segment experiences highly seasonal sales patterns.

Our manufacturing facilities are distinct to their respective segments apart from our O’Hara Township, PA, Blawnox, PA and Hickory, NC facilities, which produce products related to a combination of operating segments.

3

A summary of our operating structure as of August 31, 2021 is as follows:

ADHESIVES, SEALANTS AND ADDITIVES SEGMENT
	Primary
	Operating
Key Products	Locations	Background/History
Protective conformal coatings under the brand name HumiSeal®, moisture protective electronic coatings sold to the electronics industry including circuitry used in automobiles, industrial controls and home appliances. ​	O'Hara Township, PA ​	The HumiSeal business and product lines were acquired in the early 1970s.
Advanced adhesives, sealants, and coatings for automotive and industrial applications that require specialized bonding, encapsulating, environmental protection, or thermal management functionality.	Woburn, MA Hickory, NC	In September 2016, we acquired certain assets and the operations of Resin Designs, LLC. In the second quarter of 2021, we began relocating the sealants system manufacturing process from our Newark, CA, location to our Hickory, NC location. This relocation was completed in the fourth quarter of fiscal 2021.
Protective conformal coatings under the brand name HumiSeal®, moisture protective electronic coatings sold to the electronics industry including circuitry used in automobiles, industrial controls and home appliances. ​	Winnersh, Wokingham, England Paris, France Pune, India	In October 2005, we acquired all of the capital stock of Concoat Holdings Ltd. and its subsidiaries. In 2006, Concoat was renamed HumiSeal Europe. In March 2007, we expanded our international presence with the formation of HumiSeal Europe SARL in France. HumiSeal Europe SARL operates a sales/technical service office and warehouse near Paris, France. This business works closely with the HumiSeal operation in Winnersh, Wokingham, England, allowing direct sales and service to the French market. In June 2016, we further expanded our international presence through the purchase of Spray Products (India) Private Limited, located in Pune, India. This business enhances the Company’s ability to provide technical, sales, manufacturing, chemical handling and packaging services in the region and works closely with our HumiSeal manufacturing operation in Winnersh, Wokingham, England. In December 2016, the business was renamed HumiSeal India Private Limited.
Solutions provider for the cleaning and protection of electronic assemblies under the brand name ABchimie.	Corbelin, France	In September 2020, we acquired all the capital stock of ABchimie.
​ Polymeric microspheres, sold under the Dualite® brand, which are utilized for weight and density reduction and sound dampening across varied industries. ​ ​ Polyurethane dispersions utilized for various coating products. ​	​ Greenville, SC	​ In January 2015, we acquired two product lines from Henkel Corporation. They, along with the Superabsorbents business acquired in December 2017, comprise our functional additives product line. The Company currently contracts with manufacturing partners to produce its polyurethane dispersions.
Superabsorbent polymers, sold through our Zappa Stewart and Emerging Technologies, Inc. divisions, which are utilized for water and liquid management, remediation and protection in diverse markets including wire and cable, medical, environmental, infrastructure, energy and consumer products.	Hickory, NC Greensboro, NC	In December 2017, we acquired Stewart Superabsorbents, LLC and its Zappa-Tec business (collectively “Zappa Stewart”). In February 2021, we acquired the assets and operations of Emerging Technologies, Inc. (ETi).

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INDUSTRIAL TAPES SEGMENT
	Primary
	Operating
Key Products	Locations	Background/History
Specialty tapes and related products for the electronic and telecommunications industries using the brand name Chase & Sons®. Insulating and conducting materials for the manufacture of electrical and telephone wire and cable, electrical splicing, and terminating and repair tapes, which are marketed to wire and cable manufacturers selling into energy-oriented and communication markets, and to public utilities. ​ PaperTyger®, a trademark for laminated durable papers sold to the envelope converting and commercial printing industries.	Oxford, MA	In August 2011, we relocated our manufacturing processes that had been previously conducted at our Webster, MA facility to this location. In December 2012, we relocated the majority of our manufacturing processes that had been previously conducted at our Randolph, MA facility to this location. Our Randolph facility was one of our first operating facilities, and had been producing products for the wire and cable industry for more than fifty years. In the fourth quarter of 2018, we moved the wire and cable material manufacturing process that had been conducted at our Pawtucket, RI facility to our Lenoir, NC and Oxford, MA locations. We acquired the Paper Tyger, LLC assets in 2003.
​ Chase BLH2OCK®, a water-blocking compound sold to the wire and cable industry.	​ Blawnox, PA ​	​ In September 2012, we relocated our Chase BLH2OCK® manufacturing processes that had been previously conducted at our Randolph, MA facility to this location. ​
Laminated film foils for the electronics and cable industries and cover tapes essential to delivering semiconductor components via tape and reel packaging. ​ Pulling and detection tapes used in the installation, measurement and location of fiber optic cable, and water and natural gas lines. ​	Lenoir, NC Suzhou, China ​ Hickory, NC ​	In June 2012, we acquired all of the capital stock of NEPTCO Incorporated, which operated facilities in Rhode Island, North Carolina and China. In October 2013, we moved the manufacturing processes that had been conducted at our Taylorsville, NC facility to our Lenoir, NC location. In the fourth quarter of 2018, we moved the wire and cable material manufacturing process that had been conducted at our Pawtucket, RI facility to our Lenoir, NC and Oxford, MA locations. In the third quarter of 2019, we began relocating the pulling and detection tapes manufacturing process from our Granite Falls, NC location to our Hickory, NC location. This relocation was completed in the second quarter of fiscal 2020. ​

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CORROSION PROTECTION AND WATERPROOFING SEGMENT
	Primary
	Operating
Key Products	Locations	Background/History
Protective pipe-coating tapes and other protectants for valves, regulators, casings, joints, metals, and concrete, which are sold under the brand name Royston®, to oil companies, gas utilities and pipeline companies. Rosphalt50® is a polymer additive that provides long-term cost-effective solutions in many applications such as waterproofing of bridge decks and approaches, ramps, racetracks, airport runways and taxiways and specialty road applications. Waterproofing membranes for highway bridge deck metal-supported surfaces.	Blawnox, PA	The Royston business was acquired in the early 1970s.
​ Waterproofing sealants, expansion joints and accessories for the transportation, industrial and architectural markets.	​ O'Hara Township, PA	​ In April 2005, we acquired certain assets of E-Poxy Engineered Materials. Additionally, in September 2006, we acquired all of the capital stock of Capital Services Joint Systems. Both of these acquisitions were combined to form the expansion joints business.
Technologically advanced products, including the brand Tapecoat®, for demanding anti-corrosion applications in the gas, oil and marine pipeline market segments, as well as tapes and membranes for roofing and other construction-related applications.	​ Evanston, IL	​ In November 2001, we acquired substantially all the assets of Tapecoat, previously a division of T.C. Manufacturing Inc.
Specialized high-performance coating and lining systems used worldwide in liquid storage and containment applications.	Houston, TX	In September 2009, we acquired all the outstanding capital stock of C.I.M. Industries Inc. (“CIM”).
Waterproofing and corrosion protection systems for oil, gas and water pipelines, and a supplier to Europe, the Middle East and Southeast Asia. The ServiWrap® brand pipeline protection tapes and products, which offer long-term corrosion protection for buried pipelines in the most challenging natural environments.	Rye, East Sussex, England	In September 2007, we purchased certain product lines and a related manufacturing facility in Rye, East Sussex, England through our wholly-owned subsidiary, Chase Protective Coatings Ltd. This facility joins Chase's North American-based Tapecoat® and Royston® brands to broaden the protective pipeline coatings product line and better address global demand. In December 2009, we acquired the full range of ServiWrap® pipeline protection products (“ServiWrap”) from Grace Construction Products Limited, a U.K.-based unit of W.R. Grace & Co. ServiWrap products complement our portfolio of pipeline protection tapes, coatings and accessories and extend our global customer base.

Other Business Developments

During the third quarter of fiscal 2021, Chase announced to the employees at its Woburn, MA location that its adhesives systems operations, part of the Adhesive, Sealants and Additives segment’s electronic and industrial coatings product line, would be consolidating into the Company’s existing O'Hara Township, PA location. This rationalization and consolidation initiative-related announcement aligns with the second quarter announcement of the Company’s plan to move its sealant systems production from Newark, CA to Hickory, NC, described in more detail below. Chase Corporation obtained both the adhesive and sealants systems as part of its fiscal 2017 acquisition of the operations of Resin Designs. No expense was recognized related to the adhesive systems initiative during fiscal 2021, with the majority of future costs anticipated to occur in the first half of fiscal 2022.

6

On February 5, 2021, the Company acquired certain assets of Emerging Technologies, Inc. (“ETi”), a superabsorbent polymers solutions provider, located in Greensboro, NC. The business was acquired for a purchase price of $9,997,000 comprising $8,997,000 paid on February 5, 2021 and an accrual of $1,000,000 to be paid out up to eighteen months after purchase, subsequent to final working capital adjustments, and excluding acquisition-related costs. As part of this transaction, Chase acquired substantially all working capital and fixed assets of the business and entered a multi-year lease at ETi’s existing location. The Company expensed $128,000 of acquisition-related costs during fiscal 2021 associated with this acquisition. The purchase was funded with available cash on hand. ETi is a solutions provider and formulator of absorbent polymers for use in the packaging, recreational, consumer, and sanitation markets. The acquisition broadens the Company’s superabsorbent polymers product offerings and formulation capabilities while expanding its market reach. The Company is currently in the process of finalizing purchase accounting, regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed, and anticipates completion within the first quarter of fiscal 2022. Since the effective date of the acquisition, the financial results of ETi’s acquired operations have been included in the Company’s financial statements within the functional additives product line, contained within the Adhesives, Sealants and Additives operating segment.

During the second quarter of fiscal 2021, Chase began moving the sealant systems operations, part of the Adhesive, Sealants and Additives segment’s electronic and industrial coatings product line, from its Newark, CA location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. The sealant systems operations and Newark, CA location came to Chase Corporation as part of the fiscal 2017 acquisition of the operations of Resin Designs, and the Company’s lease there terminated in fiscal 2021. The Company recognized $977,000 in expense related to the move in fiscal 2021.

On September 1, 2020 (the first day of fiscal 2021), the Company acquired all the capital stock of ABchimie for €18,654,000 (approximately $22,241,000 at the time of the transaction) net of cash acquired, subsequent to final working capital adjustment, excluding acquisition-related costs totaling $274,000 recognized in fiscal 2020 and with a potential earn out based on performance potentially worth an additional €7,000,000 (approximately $8,330,000 at the time of the transaction). ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and protection of electronic assemblies, with ‎further formulation, production, and research and development capabilities‎. The transaction was funded with cash on hand. The financial results of the business were included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company finalized its purchase accounting regarding the allocation of the purchase price to tangible and identifiable intangible assets assumed, including finalizing the recording of deferred taxes, during the fourth quarter of fiscal 2021, without any material adjustments from amounts initially recorded.

Products and Markets

Our principal products are specialty tapes, laminates, adhesives, sealants, coatings and chemical intermediates which are sold by our salespeople, manufacturers' representatives and distributors. 

In our Adhesives, Sealants and Additives segment, these products consist of: 

(i) moisture protective coatings and cleaning solutions, which are sold to the electronics industry for circuitry manufacturing, including circuitry used in automobiles, industrial controls and home appliances;

(ii) advanced adhesives, sealants, and coatings for automotive and industrial applications that require specialized bonding, encapsulating, environmental protection, or thermal management functionality;

(iii) polymeric microspheres utilized by various industries to allow for weight and density reduction and sound dampening;

(iv) polyurethane dispersions utilized for various coating products; and

(v) superabsorbent polymers utilized for water and liquid management, remediation and protection in diverse markets including wire and cable, medical, environmental, infrastructure, energy and consumer products.

7

In our Industrial Tapes segment, these products consist of: 

(i) insulating and conducting materials for the manufacture of electrical and telephone wire and cable, electrical splicing, and terminating and repair tapes, which are marketed to wire and cable manufacturers;

(ii) laminated film foils, including EMI/RFI shielding tapes used in communication and local area network (LAN) cable;

(iii) industrial coated or laminate products and custom manufacturing services sold into medical, consumer, automotive, packaging, energy, telecommunications and other specialized markets;

(iv) laminated durable papers, including laminated paper with an inner security barrier used in personal and mail-stream privacy protection, which are sold primarily to the envelope converting and commercial printing industries;

(v) pulling and detection tapes used in the installation, measurement and location of fiber optic cable, water and natural gas lines, and power, data, and video cable for commercial buildings; and

(vi) cover tapes with reliable adhesive and anti-static properties essential to delivering semiconductor components via tape and reel packaging.

In our Corrosion Protection and Waterproofing segment, these products consist of:

(i) protective coatings, tapes and protectants for pipelines, valves, casings and other metals, which are sold to oil companies, gas companies and water/wastewater utilities for use in both the construction and maintenance of oil, gas, water and wastewater pipelines;

(ii) fluid-applied coating and lining systems for use in the water and wastewater industry;

(iii) waterproofing tapes and coatings used in waterproofing of the exterior of both commercial and industrial structures;

(iv) waterproofing membranes for highway bridge deck metal-supported surfaces, and high-performance polymeric asphalt additives, which are sold to municipal transportation authorities; and

(v) expansion and control joint systems designed for roads, bridges, stadiums and airport runways.

There is some seasonality in selling products into the construction market, which most acutely effects our Corrosion Protection and Waterproofing segment. Higher demand is often experienced when temperatures are warmer in most of North America (April through October), with lower demand occurring when temperatures are colder (typically our second fiscal quarter).

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Human Capital Management

Chase Corporation’s success derives from its dedicated employees worldwide, who are responsible for the operations, innovation and ethics core to our business and its future. In 2021, our employees continued to navigate the challenges of COVID-19, and, with an overarching commitment to health and safety, maintained a commitment to our customers, including providing products to critical industries such as healthcare, utilities, infrastructure and telecommunications.

As of October 31, 2021, we employed approximately 661 people (including union employees). 81% were U.S. based and 19% international. 26% of our employees worked in administrative, selling and research and development functions, while 74% worked in the manufacture of our products at our facilities. Given macrotrends faced worldwide, Chase currently operates in an increasingly competitive landscape in hiring and retaining a manufacturing labor force. We consider our employee relations to be good. In the U.S., we offer our employees a wide array of company-paid benefits, which we believe are competitive relative to others in our industry. In our operations outside the U.S., we offer benefits that may vary from those offered to our U.S. employees due to customary local practices and statutory requirements.

We have policies in place designed to provide a safe and healthy workplace and comply with applicable safety and health regulations and our own internal requirements. We work to provide and maintain a safe, healthy and productive workplace, in consultation with our employees, by addressing and remediating identified risks of accidents, injury and health impacts.

We strive to maintain workplace environments that are free from discrimination or harassment on the basis of race, sex, color, national or social origin, ethnicity, religion, age, disability, sexual orientation, gender identification or expression, political opinion, or any other status protected by applicable law. The qualities and characteristics we seek for recruitment, hiring, placement, development, training, compensation, and advancement at the Company are job qualifications, performance, skills, and experience.

Respect for human rights is a fundamental value of the Company. Chase strives to respect and promote human rights in accordance with the United Nations Guiding Principles on Business and Human Rights in our relationships with our employees, customers, suppliers, and vendors. Our aim is to further advance human rights within the communities in which we operate. The Chase Corporation’s Human Rights and Supplier Code of Conduct policies and statements on Safety Performance, Environmental Impact and Energy and Resources are available on the Chase Corporation website (www.chasecorp.com).

Backlog, Customers and Competition

As of October 31, 2021, the backlog of customer orders believed to be firm was approximately $30,390,000.  This compared with a backlog of $15,949,000 as of October 31, 2020. The increase in backlog from the prior year amount was primarily due to: (a) raw material supply and logistics challenges broadly seen worldwide increasing the balance for the current year; and (b) a reduction from historical norms in the prior year given the impact of COVID-19 on that period. While we continue to work with our customers, venders and supply chain partners to prioritize the flow of goods, our backlog has increased to over one month’s worth of sales. During fiscal 2021 and 2020, no customer accounted for more than 10% of sales. No material portion of our business is subject to renegotiation or termination of profits or contracts at the election of the United States Federal Government.

There are other companies that manufacture or sell products and services similar to those made and sold by us.  Many of those companies are larger and have greater financial resources than we have. We compete principally on the basis of technical performance, service reliability, quality and price.

Raw Materials

We obtain raw materials from a wide variety of suppliers, with alternative sources of most essential materials available within reasonable lead times.

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Patents, Trademarks, Licenses, Franchises and Concessions

As of August 31, 2021, we owned the following trademarks that we believe were of material importance to our business: Chase Corporation^®, C-Spray (Logo), a trademark used in conjunction with most of the Company’s business segment and product line marketing material and communications; HumiSeal^®, a trademark for moisture protective coatings sold to the electronics industry; Chase & Sons^®, a trademark for barrier and insulating tapes sold to the wire and cable industry; Chase BLH2OCK^®, a trademark for a water-blocking compound sold to the wire and cable industry; Rosphalt50^®, a trademark for an asphalt additive used predominantly on bridge decks for waterproofing protection; PaperTyger^®, a trademark for laminated durable papers sold to the envelope converting and commercial printing industries; DuraDocument^®, a trademark for durable, laminated papers sold to the digital print industry; Defender^® a trademarked RFID protective material sold to the personal accessories and paper industries; Tapecoat^®, a trademark for corrosion preventive surface coatings and primers; Maflowrap^®, a trademark for anti-corrosive tapes incorporating self-adhesive mastic or rubber-backed strips, made of plastic materials; Royston^®, a trademark for a corrosion-inhibiting coating composition for use on pipes; Ceva^®, a trademark for epoxy pastes/gels/mortars and elastomeric concrete used in the construction industry; CIM^® trademarks for fluid-applied coating and lining systems used in the water and wastewater industry; ServiWrap^® trademarks for pipeline protection tapes, coatings and accessories; NEPTCO^®, a trademark used in conjunction with most of NEPTCO’s products marketing material and communications; NEPTAPE^®, a trademark for coated shielding and insulation materials used in the wire and cable industry; Muletape^®, a trademark for pulling and installation tapes sold to the telecommunications industry; Trace-Safe^®, a trademark for detection tapes sold to the telecommunications and water and gas utilities industries; Dualite^®, a trademark for polymeric microspheres utilized for density and weight reduction and sound dampening by various industries; 4EvaSeal^®, a trademark for adhesive-backed tape utilized in various industries; Resin Designs^®, a trademark for adhesives and sealants sold into the microelectronics and semiconductor industries; SlickTape^®, a trademark for a lubricated shielding tape sold to the wire and cable industry; HighDraw^®, a trademark for a highly extensible shielding tape sold to the wire and cable industry; ZapZorb^®, a trademark for environmental solidification products that are designed to meet the specific challenges posed by a wide range of liquid-bearing waste streams; ZapLoc^®, a trademark for medical waste solidifier products packaged in bottles or larger packages; ZapPak^®, a trademark for medical waste solidifier products packaged in dissolvable film; and ABchimie^®, a trademark used in conjunction with most of ABchimie’s products marketing material and communications.

We do not have any other material trademarks, licenses, franchises, or concessions. While we do hold various patents, as well as other trademarks, we do not believe that they are material to the success of our business.

10

Research and Development

We expensed approximately $4,056,000, $4,007,000 and $4,021,000 for Company-sponsored research and development during fiscal 2021, 2020 and 2019, respectively, which was recorded within Research and Product Development Costs on the Consolidated Statement of Operations. Research and development costs have stayed relatively consistent from fiscal 2019 through fiscal 2021 as the Company continued focused development work on strategic product lines.

Available Information

Chase maintains a website at http://www.chasecorp.com. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports filed or furnished pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934, as well as section 16 reports on Form 3, 4, or 5, are available free of charge on this site as soon as is reasonably practicable after they are filed or furnished with the SEC. Our Code of Conduct and Ethics and the charters for the Audit Committee, the Nominating and Governance Committee and the Compensation and Management Development Committee of our Board of Directors are also available on our internet website. The Code of Conduct and Ethics and charters are also available in print to any shareholder upon request. Requests for such documents should be directed to Shareholder and Investor Relations Department, at 295 University Avenue, Westwood, Massachusetts 02090. Our internet website and the information contained on it or connected to it are not part of nor incorporated by reference into this Form 10-K. Our filings with the SEC are also available on the SEC’s website at http://www.sec.gov.

Financial Information regarding Segment and Geographic Areas

Please see Notes 11 and 12 to the Company’s Consolidated Financial Statements for financial information about the Company’s operating segments and domestic and foreign operations for each of the last three fiscal years.

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Item 1A – Risk Factors

The following risk factors should be read carefully in connection with evaluating our business and the forward-looking information contained in this Annual Report on Form 10-K. We feel that any of the following risks could materially adversely affect our business, operations, industry, financial position or our future financial performance. While we believe that we have identified and discussed below the key risk factors affecting our business, there may be additional risks and uncertainties that are not presently known or that are not currently believed to be significant that may adversely affect our business, operations, industry, financial position and financial performance in the future.

Operational and Competitive Risks

We currently operate in mature markets where increases or decreases in market share could be significant.

Our sales and net income are largely dependent on sales from a consistent and well-established customer base. Organic growth opportunities are minimal; however, we have used and will continue to use strategic acquisitions as a means to build and grow the business. In this business environment, increases or decreases in market share could have a material effect on our business condition or results of operation. We face intense competition from a diverse range of competitors, including operating divisions of companies much larger and with far greater resources than we have. If we are unable to maintain our market share, our business could suffer.

Fluctuations in the supply and prices of raw materials may negatively impact our financial results.

We obtain raw materials needed to manufacture our products from a number of suppliers. Many of these raw materials are petroleum-based derivatives. Under normal market conditions, these materials are generally available on the open market and from a variety of producers. From time to time, however, the prices and availability of these raw materials fluctuate (as was experienced in the second half of fiscal 2021), which could impair our ability to procure necessary materials, or increase the cost of manufacturing our products. If the prices of raw materials increase, and we are unable to pass these increases on to our customers, we could experience reduced profit margins.

If our products fail to perform as expected, or if we experience product recalls, we could incur significant and unexpected costs and lose existing and future business.

Our products are complex and could have defects or errors presently unknown to us, which may give rise to claims against us, diminish our brands or divert our resources from other purposes. Despite testing, new and existing products could contain defects and errors and may in the future contain manufacturing or design defects, errors or performance problems when first introduced, or even after these products have been used by our customers for a period of time. These problems could result in expensive and time-consuming design modifications or warranty charges, changes to our manufacturing processes, product recalls, significant increases in our maintenance costs, or exposure to liability for damages, any of which may result in substantial and unexpected expenditures, require significant management attention, damage our reputation and customer relationships, and adversely affect our business, our operating results and our cash flow.

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The Company’s results of operations have been adversely affected and could in the future be materially adversely impacted by the coronavirus disease 2019 (COVID-19) pandemic.

The global spread of the coronavirus disease 2019 (COVID-19) pandemic has created significant volatility, uncertainty and economic disruption. The Company experienced lower sales as a result of the economic disruption (most acutely in the second half of fiscal 2020 and the first half of fiscal 2021), and has initiated cost-saving measures, including a targeted workforce reduction, in response to the uncertainties associated with the scope and duration of the pandemic. The extent to which the COVID-19 pandemic impacts the Company’s business, operations and financial results in future periods will depend on numerous evolving factors that it may not be able to accurately predict, including: the duration and scope of the pandemic; future domestic and international waves and variants of COVID-19 and current vaccines’ effectiveness against such variants; governmental, business and individuals’ actions that have been and continue to be taken in response to the pandemic; the impact of the pandemic on economic activity and actions taken in response; the effect on its customers’ demand for its goods and services and its vendor’s ability to supply it with raw materials; its ability to sell and provide goods and services, including as a result of travel restrictions and people working from home; the ability of its customers to pay for goods and services; and any closures of its customers’ offices and facilities. Customers may also slow down decision-making, delay planned work or seek to terminate existing agreements.

Further, the effects of the pandemic may also increase the Company’s cost of capital or make additional capital more difficult or available only on terms less favorable to it. A sustained downturn may also result in the carrying value of the Company’s goodwill or other intangible assets exceeding their fair value, which may require it to recognize an impairment to those assets. A sustained downturn in the financial markets and asset values may have the effect of increasing the Company’s pension funding obligations in order to ensure that its qualified pension plan continues to be adequately funded, which may divert cash flow from other uses. The effects of the pandemic, including remote working arrangements for employees, may also impact the Company’s financial reporting systems and internal control over financial reporting, including its ability to ensure information required to be disclosed in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

We may experience difficulties in the redesign and consolidation of our manufacturing facilities which could impact shipments to customers, product quality, and our ability to realize cost savings.

We currently have several ongoing projects to streamline our manufacturing operations, which include the redesign and consolidation of certain manufacturing facilities in order to reduce overhead costs. Despite our planning, we may be unable to effectively leverage assets, personnel, and business processes in the transition of production among manufacturing facilities. Uncertainty is inherent within the facility redesign and consolidation process, and unforeseen circumstances could offset the anticipated benefits of these streamlining projects, disrupt service to customers, and impact product quality.

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Strategic Risks

Our business strategy includes the pursuit of strategic acquisitions, which may not be successful if they happen at all.

From time to time, we engage in discussions with potential target companies concerning potential acquisitions. In executing our acquisition strategy, we may be unable to identify suitable acquisition candidates. In addition, we may face competition from other companies for acquisition candidates, making it more difficult to acquire suitable companies on favorable terms. We have historically financed larger acquisitions with additional borrowings under our bank credit agreements. Our credit agreement places certain restrictions on our ability to acquire other businesses, and imposes certain financial covenants on us that may limit our ability to borrow. If we incur additional indebtedness in order to finance an acquisition, that indebtedness may reduce the availability of our cash flow to fund future working capital, capital expenditures, and other general corporate purposes, may increase our vulnerability to adverse economic conditions, and may expose us to the risk of increased interest rates. If we finance an acquisition through the issuance of equity securities, the ownership interest of our existing shareholders would be proportionately diluted.

Even if we do identify a suitable acquisition target and are able to negotiate and close a transaction (as we did in fiscal 2021 for both ABchimie and the operations of Emerging Technologies, Inc. (“ETI”)), the integration of an acquired business into our operations involves numerous risks, including potential difficulties in integrating an acquired company’s product line with ours; the diversion of our resources and management’s attention from other business concerns; the potential loss of key employees; limitations imposed by antitrust or merger control laws in the United States or other jurisdictions; risks associated with entering a new geographical or product market; and the day-to-day management of a larger and more diverse combined company.

We may not realize the synergies, operating efficiencies, market position or revenue growth we anticipate from acquisitions, and our failure to effectively manage the above risks could have a material adverse effect on our business, growth prospects and financial performance.

International Risks

If we cannot successfully manage the unique challenges presented by international markets, we may not be successful in expanding our international operations.

Our strategy includes expansion of our operations in existing and new international markets by selective acquisitions and strategic alliances. Our ability to successfully execute our strategy in international markets is affected by many of the same operational risks we face in expanding our U.S. operations. In addition, our international expansion may be adversely affected by our ability to identify and gain access to local suppliers as well as by local laws and customs, legal and regulatory constraints, political and economic conditions and currency regulations of the countries or regions in which we currently operate or intend to operate in the future. Risks inherent in our international operations also include, among others, the costs and difficulties of managing international operations, adverse tax consequences, domestic and international tariffs and trade policies and greater difficulty in enforcing intellectual property rights. Additionally, foreign currency exchange rates and fluctuations may have an impact on future costs or on future cash flows from our international operations.

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Current and threatened tariffs on goods from China and other countries could result in lower revenue, profits and cash flows.

The Company imports raw materials from China, makes sales of finished goods into China and has manufacturing operations in China. The Company works to lower the potential negative effects of the tariffs through seeking alternative sources for our raw materials, when available and pragmatic, and, in certain cases, through altering our manufacturing logistics by utilizing non-U.S. manufacturing where tariffs do not apply. While we also attempt to pass on these additional costs to our customers, competitive factors (including competitors who import from other countries not subject to such tariffs) may limit our ability to sustain price increases and, as a result, may adversely impact our revenue, profits and cash flows. In addition, the imposition of tariffs may influence the sourcing habits of certain end users of our products which, in turn, could have a direct impact on the requirements of our direct customers for our products. Such an impact could adversely affect our revenue, profits and cash flows.

Industry Risks

Our results of operations could be adversely affected by uncertain economic and political conditions and the effects of these conditions on our customers’ businesses and levels of business activity.

Global economic and political conditions can affect the businesses of our customers and the markets they serve. A severe or prolonged economic downturn or a negative or uncertain political climate could adversely affect, among others, the automotive, housing, construction, pipeline, energy, transportation, infrastructure or electronics industries. This may reduce demand for our products or depress pricing of those products, either of which may have a material adverse effect on our results of operations. Changes in global economic conditions or foreign and domestic trade policy could also shift demand to products for which we do not have competitive advantages, and this could negatively affect the amount of business that we are able to obtain. In addition, if we are unable to successfully anticipate changing economic and political conditions, we may be unable to effectively plan for and respond to those changes and our business could be negatively affected.

General economic factors, domestically and internationally, may also adversely affect our financial performance through increased raw material costs or other expenses and by making access to capital more difficult.

The cumulative effect of higher interest rates, energy costs, inflation, levels of unemployment, healthcare costs, unsettled financial markets, and other economic factors (including changes in foreign currency exchange rates and changes to federal, state, local and international tax laws or the application or enforcement practices of such laws) could adversely affect our financial condition by increasing our manufacturing costs and other expenses at the same time that our customers may be scaling back demand for our products. Prices of certain commodity products, including oil and petroleum-based products, are historically volatile and are subject to fluctuations arising from changes in domestic and international supply and demand, labor costs, competition, weather events and climate change (such as winter storm Uri’s effects on our Houston, TX location and the surrounding region in February 2021 and Hurricane Ida’s impact on the Gulf Coast region in August 2021), regional and global public health crises, market speculation, government regulations and periodic delays in delivery. Rapid and significant changes in commodity prices may affect our sales and profit margins. These factors can increase our cost of products and services sold and/or selling, general and administrative expenses, and otherwise adversely affect our operating results. Disruptions in the credit markets may limit our ability to access debt capital for use in acquisitions or other purposes on advantageous terms or at all. If we are unable to manage our expenses in response to general economic conditions and margin pressures, or if we are unable to obtain capital for strategic acquisitions or other needs, then our results of operations would be negatively affected.

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Other Risks

We are dependent on key personnel.

We depend significantly on our executive officers including our President and Chief Executive Officer, Adam P. Chase, and on other key employees. The loss of the services of any of these key employees could have a material impact on our business and results of operations. In addition, our acquisition strategy will require that we attract, motivate and retain additional skilled and experienced personnel. We have experienced in the past, and may continue to experience, an increasingly competitive landscape relating to obtaining and retaining a manufacturing labor force. The inability to satisfy such requirements could have a negative impact on our ability to remain competitive in the future.

Financial market performance may have a material adverse effect on our pension plan assets and require additional funding requirements.

Significant and sustained declines in the financial markets may have a material adverse effect on the fair market value of the assets of our qualified pension plan. While these pension plan assets are considered non-financial assets since they are not carried on our balance sheet (i.e. the balance sheet reflects only the net of plan assets and obligations), the fair market valuation of these assets could impact our funding requirements, funded status or net periodic pension cost. Any significant and sustained declines in the fair market value of these pension assets could require us to increase our funding requirements, which would have an impact on our cash flow, and could also lead to additional pension expense.

If we fail to maintain effective internal control over financial reporting, this may adversely affect investor confidence in our company and, as a result, the value of our common stock.

We are required under Section 404 of the Sarbanes-Oxley Act to furnish a report by management on the effectiveness of our internal control over financial reporting and to include a report by our independent auditors attesting to such effectiveness. Any failure by us to maintain effective internal control over financial reporting could adversely affect our ability to report accurately our financial condition or results of operations.

As discussed in our Annual Report on Form 10-K for the year ended August 31, 2018, our management concluded that, as of August 31, 2018, we had a material weakness in our internal control over financial reporting related to our business combination processes. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. We have remediated the identified material weakness, but no assurances can be given that management will not identify in the future other internal control deficiencies that constitute a material weakness in our internal control over financial reporting or that any such material weakness will be remediated in a timely fashion.

If we are unable to maintain effective internal control over financial reporting, or if our independent auditors determine that we have a material weakness in our internal control over financial reporting, we could lose investor confidence in the accuracy and completeness of our financial reports, the market price of our common stock could decline, and we could be subject to sanctions or investigations by the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, also could restrict our future access to the capital markets.

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Failure or compromise of security with respect to an operating or information system or portable electronic device could adversely affect our results of operations and financial condition or the effectiveness of our internal controls over operations and financial reporting.

We are highly dependent on automated systems to record and process our daily transactions and certain other components of our financial statements.  Notwithstanding efforts to ensure the integrity of our automated systems, we could experience a failure of one or more of these systems, or a compromise of our security due to technical system flaws, data input or recordkeeping errors, or tampering or manipulation of our systems by employees or unauthorized third parties.  Information security risks also exist with respect to the use of portable electronic devices, such as laptops and smartphones, which are particularly vulnerable to loss and theft.

We could be subject to disruptions of any of these systems arising from events that are wholly or partially beyond our control (for example, natural disasters, acts of terrorism, epidemics, pandemics, computer viruses, cyber-attacks, malware, ransomware, and electrical/telecommunications outages). All of these risks are also applicable wherever we rely on outside vendors to provide services.  Operating system failures, disruptions, or the compromise of security with respect to operating systems or portable electronic devices (with information technology security threats increasing in frequency and sophistication) could subject us to liability claims, harm our reputation, interrupt our operations, or adversely affect our business, results from operations, financial condition, cash flow or internal control over financial reporting.

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Item 1B – Unresolved Staff Comments

Not applicable.

Item 2 – Properties

The principal properties of the Company as of August 31, 2021 are situated at the following locations and have the following characteristics:

	Square	Owned /
Location	Feet	Leased	Principal Use
Westwood, MA	20,200	Leased	Corporate headquarters, executive office and global operations center, including research and development, sales and administrative services
Blawnox, PA	44,000	Owned	Manufacture and sale of protective coatings and tape products
Coreblin, France	9,600	Leased	Manufacture and sale of protective electronic coatings, as well as research and development
Evanston, IL	100,000	Owned	Manufacture and sale of protective coatings and tape products
Granite Falls, NC	108,000	Owned	The building is currently being leased to a third party
Greenville, SC	34,600	Leased	Manufacture and sale of polymeric microspheres, as well as research and development
Greensboro, NC	16,000	Leased	Formulation and sale of superabsorbent polymer products
Hickory, NC	180,000	Leased	Manufacture and sale of superabsorbent polymer products, pulling and detection tapes and sealant systems, as well as research and development (includes operations formerly housed in our Granite Falls, NC facility beginning in the second quarter of fiscal 2020, and operations formerly housed in our Newark, CA facility beginning in the fourth quarter of fiscal 2021)
Houston, TX	45,000	Owned	Manufacture of coating and lining systems for use in liquid storage and containment applications
Lenoir, NC	110,000	Owned	Manufacture and sale of laminated film foils and cover tapes
Mississauga, Canada	2,500	Leased	Distribution center
O’Hara Township, PA	109,000	Owned	Manufacture and sale of protective electronic coatings, expansion joints and accessories
Oxford, MA	73,600	Owned	Manufacture of tape and related products for the electronic and telecommunications industries, as well as laminated durable papers
Paris, France	1,900	Leased	Sales/technical service office and warehouse allowing direct sales and service to the French market
Pune, India	4,650	Leased	Manufacture, packaging and sale of protective electronic coatings
Rotterdam, Netherlands	2,500	Leased	Distribution center
Rye, East Sussex, England	36,600	Owned	Manufacture and sale of protective coatings and tape products
Suzhou, China	48,000	Leased	Manufacture of packaging tape products for the electronics industries
Winnersh, Wokingham, England	18,800	Leased	Manufacture and sale of protective electronic coatings, as well as research and development
Woburn, MA	34,000	Leased	Manufacture and sale of adhesive systems, as well as research and development

The above facilities vary in age, are in good condition and, in the opinion of management, are adequate and suitable for present operations. We also own equipment and machinery that is in good repair and, in the opinion of management, adequate and suitable for present operations. We believe that we could significantly add to our capacity by increasing shift operations. Availability of machine hours through additional shifts would provide expansion of current production volume without significant additional capital investment.

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Item 3 – Legal Proceedings

The Company is involved from time to time in litigation incidental to the conduct of its business. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition, results of operations or cash flows, litigation is inherently unpredictable. Therefore, judgments could be rendered, or settlements agreed to, that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable.

item 4 – mine safety disclosures

Not applicable.

Item 4a – INFORMATION ABOUT OUR Executive OfficerS

The following table sets forth information concerning our Executive Officers as of October 31, 2021.  Each of our Executive Officers is selected by our Board of Directors and holds office until his successor is elected and qualified.

Name	Age	Offices Held and Business Experience during the Past Five Years
Adam P. Chase	49	President of the Company since January 2008, Chief Executive Officer of the Company since February 2015. Adam Chase was the Chief Operating Officer of the Company from February 2007 to February 2015.
Peter R. Chase	73	Chairman of the Board of the Company since February 2007, and Executive Chairman of the Company since February 2015. Peter Chase was the Chief Executive Officer of the Company from September 1993 to February 2015. Peter Chase is the father of Adam Chase.
Michael J. Bourque	58	Chief Financial Officer of the Company since February 2021. Previously, Chief Financial Officer of Keystone Dental, Inc., since April 2019. Prior to that, Michael Bourque was employed at Analogic Corporation since 2014, most recently as Senior Vice President, Chief Financial Officer and Treasurer.
Jeffery D. Haigh	54	Vice President, General Counsel and Corporate Secretary since February 2021. Previously, Vice President, General Counsel since joining Chase in July 2020. Prior to that Jeffery Haigh worked in private practice from 2018 to 2020, and having worked at Clean Harbors, Inc. from 2008 to 2018, most recently as Senior Counsel.

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PART II

Item 5 – Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our common stock is traded on the NYSE American under the symbol CCF.  As of October 29, 2021 (last trading day before October 31, 2021), there were 263 shareholders of record of our Common Stock and we believe there were approximately 9,643 beneficial shareholders who held shares in nominee name. On that date, the closing price of our common stock was $96.00 per share as reported by the NYSE American.

Single annual cash dividend payments were declared and scheduled to be paid subsequent to each year ended August 31, 2021, 2020 and 2019 in the amounts of $1.00, $0.80 and $0.80 per common share, respectively. Our revolving credit facility contains financial covenants which may have the effect of limiting the amount of dividends that we can pay.

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Comparative Stock Performance

The following line graph compares the yearly percentage change in our cumulative total shareholder return on the Common Stock for the last five fiscal years with the cumulative total return on the Standard & Poor's 500 Stock Index (the “S&P 500 Index”), and a composite peer index that is weighted by market equity capitalization (the “Peer Group Index”). The companies included in the Peer Group Index are Henkel AG & Co KGaA, H.B. Fuller Company, Intertape Polymer Group, Rogers Corporation and RPM International, Inc. Cumulative total returns are calculated assuming that $100 was invested on August 31, 2016 in each of the Common Stock, the S&P 500 Index and the Peer Group Index, and that all dividends were reinvested.

	2016		2017		2018		2019		2020		2021
Chase Corp	$	100	$	147	$	196	$	160	$	156	$	185
S&P 500 Index	$	100	$	116	$	139	$	143	$	175	$	229
Peer Group Index	$	100	$	104	$	106	$	89	$	96	$	100

The information under the caption “Comparative Stock Performance” above is not deemed to be “filed” as part of this Annual Report, and is not subject to the liability provisions of Section 18 of the Securities Exchange Act of 1934. Such information will not be deemed to be incorporated by reference into any filing we make under the Securities Act of 1933 unless we explicitly incorporate it into such a filing at the time.

Item 6 – Reserved

This item is reserved as a result of the Company’s adoption of Item 301 of Regulation S-K, pursuant to rules adopted by the Securities and Exchange Commission on November 19, 2020, which included removing the requirement to include selected financial data.

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Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion provides an analysis of our financial condition and results of operations. This material should be read in conjunction with the Consolidated Financial Statements and notes thereto included in Item 8 of this Annual Report on Form 10-K.

The discussion of the comparison of our fiscal 2020 and fiscal 2019 results was previously presented in the Management’s Discussion & Analysis in Part II, Item 7 of the Company’s Annual Report on Form 10-K filed with the SEC on November 12, 2020, and has been omitted from this section pursuant to Instruction 1 to Item 303(a) of Regulation S-K.

Selected Relationships within the Consolidated Statements of Operations

	Years Ended August 31,
	2021			2020			2019
	(Dollars in thousands)
Revenue	$	293,336		$	261,162		$	281,351
Net income	$	44,920		$	34,157		$	32,711
Increase (decrease) in revenue from prior year
Amount	$	32,174		$	(20,189)		$	(2,837)
Percentage		12	%		(7)	%		(1)	%
Increase (decrease) in net income from prior year
Amount	$	10,763		$	1,446		$	(10,432)
Percentage		32	%		4	%		(24)	%
Percentage of revenue:
Revenue		100	%		100	%		100	%
Cost of products and services sold		60			62			64
Selling, general and administrative expenses		18			19			17
Research and Product Development Costs		1			2			1
Other (income) expense, net		1			*			2
Income before income taxes		20	%		17	%		15	%
Income taxes		5			4			4
Net income		15	%		13	%		12	%

* denotes less than one percent

Note: Some percentage of revenue amounts may not sum due to rounding

Overview

General

Fiscal 2021 was a year marked by strong revenue and margin performance as Chase Corporation rebounded and grew over the COVID-19 impacted fiscal 2020. The Adhesives, Sealants and Additives segment led the improvement by achieving both organic and inorganic growth, with sales into automotive, industrial, medical and consumer markets, and an upward trajectory in international markets. The results of both the Company’s current year acquisitions (the February 2021 acquisition of the operations of Emerging Technologies, Inc. (“ETi”) and the September 2020 acquisition of ABchimie) are reported under the Adhesives, Sealants and Additives segment and combined provided accretive results for the year. The Industrial Tapes segment achieved recovery in sales over the prior year, with especially strong comparative results in the fourth quarter of fiscal 2021. Due to lower sales into the pipeline line and transportation infrastructure markets, the Corrosion Protection and Waterproofing segment sales fell short of the prior year.

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All of Chase Corporation’s segments are currently facing global raw material inflationary pressures, supply chain challenges and an increasingly competitive landscape related to obtaining and retaining a manufacturing labor force. These challenges, most specifically those related to raw material costs and logistics complications, were seen in the Company’s fiscal third quarter and became even more pressing in its fourth fiscal quarter. Chase anticipates these trends to continue well into our fiscal 2022. Chase continues to meet its customers’ increasing demands by leveraging its global network, partnering with customers and suppliers and driving further efficiencies throughout the Company’s production and logistics processes. While the Company looks to drive cost savings, it will also continue to institute customer price adjustments as needed across all affected product lines to protect gross margins.

Business Development

Through mergers, acquisitions and divestitures, its marketing and product development efforts and its ability to rationalize and consolidate its operations, Chase Corporation remains focused on its core strategies for sustainable long-term growth.

During the third quarter of fiscal 2021, Chase announced to the employees at its Woburn, MA location that its adhesives systems operations would be consolidating into the Company’s existing O'Hara Township, PA location. This rationalization and consolidation initiative-related announcement aligns with the second quarter announcement of the Company’s plan to move its sealant systems production from Newark, CA to Hickory, NC. The Company completed the Newark, CA to Hickory, NC move in the fourth quarter of fiscal 2021, and anticipates completing the Woburn, MA to O’Hara Township, PA relocation during the first half of fiscal 2022. Chase Corporation obtained both the adhesive and sealants systems as part of its fiscal 2017 acquisition of the operations of Resin Designs.

On February 5, 2021, the Company acquired certain assets of Emerging Technologies, Inc. (“ETi”), a Greensboro, NC-located solutions provider and formulator of absorbent polymers for use in the packaging, recreational, consumer and sanitation markets. Following its fiscal 2018 acquisition of Zappa Stewart, the acquisition of ETi expands Chase Corporation’s market share in the growing superabsorbent polymers vertical. This second quarter acquisition comes following the September 1, 2020 (first day of fiscal 2021) purchase of ABchimie, a Corbelin, France-headquartered solutions provider for the cleaning and protection of electronic assemblies, that includes additional formulation, production, and research and development capabilities. Both the fiscal 2021 acquisitions were funded with available cash on hand and broaden the Company’s specialty chemical offerings within the Adhesives, Sealants, and Additives reporting segment with high performance, environmentally-friendly technologies that are complementary to Chase’s existing product offerings.

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Revenue by Segment

The Company has three reportable operating segments summarized below:

Segment	Product Lines	Manufacturing Focus and Products
Adhesives, Sealants and Additives	Electronic and Industrial Coatings Functional Additives (1)	Protective coatings, including moisture protective coatings and cleaning solutions, and customized sealant and adhesive systems for electronics; polyurethane dispersions, polymeric microspheres and superabsorbent polymers.
Industrial Tapes	Cable Materials Specialty Products Pulling and Detection Electronic Materials	Protective tape and coating products and services, including insulating and conducting materials for wire and cable manufacturers; laminated durable papers, packaging and industrial laminate products and custom manufacturing services; pulling and detection tapes used in the installation, measurement and location of fiber optic cable and water and natural gas lines; and cover tapes essential to delivering semiconductor components via tape and reel packaging.
Corrosion Protection and Waterproofing	Coating and Lining Systems Pipeline Coatings Building Envelope Bridge and Highway	Protective coatings and tape products, including coating and lining systems for use in liquid storage and containment applications; protective coatings for pipeline and general construction applications; adhesives and sealants used in architectural and building envelope waterproofing applications; high-performance polymeric asphalt additives and expansion and control joint systems for use in the transportation and architectural markets.

(1) Formerly referred to as the specialty chemical intermediates product line

Revenue from the Adhesives, Sealants and Additives segment increased in fiscal 2021 versus the prior year. Driven by Asian and European markets showing growth and the inorganic boost provided by the acquired operations of ABchimie, sales volumes within the electronic and industrial coatings product line increased. The Company’s North American-focused functional additives product line sales also experienced both organic and inorganic volume and price growth over the prior year, with the operations of ETi added to the product line following its February 5, 2021 acquisition.

Sales showed recovery in the Industrial Tapes segment over the COVID-19 impacted prior year, with the pulling and detection, electronic materials, and specialty products product lines driving top-line improvements for the year-to-date period. The segment’s cable materials, specialty products and pulling and detection product lines all have a North American concentration, and (in addition to the Asian-focused electronic materials product line) showed combined volume and price growth in the fourth quarter to move the segment into a favorable comparative position for the year.

The Corrosion Protection and Waterproofing segment’s sales fell short of the prior year in fiscal 2021. While the coating and lining systems and building envelope product lines sales were favorable to the prior year, declines in both domestic and international infrastructure markets resulted in lower sales volume in the pipeline coatings and bridge and highway product lines, and the segment as a whole.

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Balance Sheet and Cash Flow

Chase Corporation’s balance sheet remained strong as of August 31, 2021, with cash on hand of $119,429,000, and a current ratio of 6.5. Cash provided by operating activities of $61,217,000 for fiscal 2021 surpassed the prior year mark of $55,734,000. The Company’s cash position remains healthy, with cash flow from operations more than offsetting the costs to acquire ETi and ABchimie, and to pay an annual dividend during the fiscal year.

The Company held no outstanding balance on its $200,000,000 revolving credit facility as of August 31, 2021. The revolving credit facility, which was amended and restated in July 2021 (fourth quarter of fiscal 2021) to increase its capacity from $150,000,000 to $200,000,000, allows for the Company to pay down debt with excess cash, while retaining access to immediate liquidity to fund future accretive activities, including mergers and acquisitions, as they are identified. The new facility also gives Chase the ability to request an increase in this amount by an additional $100,000,000 ($300,000,000 in total borrowing capacity) at the individual or collective option of any of the lenders. Through amending and restating the credit agreement in the fourth quarter of fiscal 2021, Chase also extended the maturity date of the facility through July 2026.

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Results of Operations

Revenue and Income Before Income Taxes by Segment are as follows:

			Income Before			% of
	Revenue		Income Taxes			Revenue
	(Dollars in thousands)
Fiscal 2021
Adhesives, Sealants and Additives	$	126,864	$	36,520	(a)​	29	%
Industrial Tapes		120,873		37,407		31	%
Corrosion Protection and Waterproofing		45,599		15,913	(b)​	35	%
	$	293,336		89,840		31	%
Less corporate and common costs				(31,246)	(c)​
Income before income taxes			$	58,594
Fiscal 2020
Adhesives, Sealants and Additives	$	96,208	$	25,953		27	%
Industrial Tapes		118,960		31,237	(d)​	26	%
Corrosion Protection and Waterproofing		45,994		16,638	(e)​	36	%
	$	261,162		73,828		28	%
Less corporate and common costs				(28,508)	(f)​
Income before income taxes			$	45,320
Fiscal 2019
Adhesives, Sealants and Additives	$	104,796	$	27,142	(g)​	26	%
Industrial Tapes		129,845		28,216	(h)​	22	%
Corrosion Protection and Waterproofing		46,710		15,909	(i)​	34	%
	$	281,351		71,267		25	%
Less corporate and common costs				(27,714)	(j)​
Income before income taxes			$	43,553

(a) Includes $1,664 in loss on the upward adjustment of the performance-based earn out contingent consideration associated with the September 2020 acquisition of ABchimie and $977 in exit costs related to the movement of the sealants system business out of the Newark, CA location and into the Hickory, NC location during fiscal 2021

(b) Includes expense of $100 for the write-down of certain assets under construction

(c) Includes $128 in acquisition-related expense attributable to the February 2021 acquisition of the operations of ETi

(d) Includes $559 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first six months of fiscal 2020

(e) Includes $170 gain on the refund of a payment made in fiscal 2019 related to engineering studies performed to assess potential operational changes and further plant rationalization and consolidation and an expense of $405 for the write-down of certain assets under construction

(f) Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to the Company’s companywide ERP system, a $760 gain related to the April 2020 sale of the Company’s Pawtucket, RI location, a $1,791 gain related to the August 2020 sale of the Company’s Randolph, MA property, $183 in severance expense related to the May 2020 reduction in force, $85 in expenses related to the final transition out of the Pawtucket, RI facility, $155 of pension-related settlement costs due to the timing of lump-sum distribution and $274 in acquisition-related costs attributable to the September 2020 (fiscal 2021) acquisition of ABchimie

(g) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business

(h) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019, and $526 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the second half of fiscal 2019

(i) Includes $200 of expense related to engineering studies performed to assess potential future operational changes and further plant rationalization and consolidation, see note (e)

(j) Includes $511 of pension-related settlement costs due to the timing of lump-sum distributions

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Total Revenue

Total revenue in fiscal 2021 increased $32,174,000 or 12% to $293,336,000 from $261,162,000 in the prior year.

Revenue in our Adhesives, Sealants and Additives segment increased $30,656,000 or 32% to $126,864,000 for the year ended August 31, 2021 compared to $96,208,000 in fiscal 2020. Organic revenue growth accounted $20,330,000 of the segment’s overall year-to-date period sales increase. The increase in revenue from the Adhesives, Sealants and Additives segment in fiscal 2021 was primarily due to the electronic and industrial coatings product line’s $22,392,000 organic and inorganic increase. The operations of ABchimie, acquired September 1, 2020 (first day of fiscal 2021), provided the product line accretive top-line gains, while strong organic gains were seen both domestically and internationally. Also positively impacting the segment’s sales were organic and inorganic increases in revenue from the North American-focused functional additives product line totaling $8,264,000 in the current year. The functional additives product line sales totals included the operations of ETi, following its acquisition on February 5, 2021 (second quarter of fiscal 2021).

Revenue in our Industrial Tapes segment increased $1,913,000 or 2% to $120,873,000 for the year ended August 31, 2021 compared to $118,960,000 in fiscal 2020. The net increase in revenue for the segment was primarily due to the following: (a) the pulling and detection tapes product line saw sales growth of $867,000 over the prior year year-to-date period on a volume and price driven increase; (b) the electronic materials product line, which has a nearly exclusive Asian end-market, saw a volume-driven increase of $865,000 over the prior year-to-date period; and (c) a revenue increase of $329,000 for the year-to-date period for the specialty products product line, with current year growth achieved despite the Company ending its arrangement to provide low margin transitional toll manufacturing services in the second quarter of fiscal 2020 (prior year). Partially offsetting the segment’s sales growth was the North American-focused cable materials product line with a net sales decrease of $148,000 for the full year period.

Revenue from our Corrosion Protection and Waterproofing segment decreased $395,000 or 1% to $45,599,000 for the year ended August 31, 2021 compared to $45,994,000 for fiscal 2020. The segment’s sales decrease in the current year was predominantly driven by: (a) the pipeline coatings product line’s $2,183,000 largely volume-driven reduction as compared to the prior year to-date period, with the Company’s North American and Rye, U.K.-based facility’s negatively impacted in the current year by industry-wide material supply challenges and a tight labor market; and (b) the bridge and highway product line sales falling short of repeating prior year results by $1,408,000 on lower project demand. Positively affecting the results of the segment were volume and price sales increases of $2,076,000 and $1,120,000 by the coating and lining systems and the building envelope product lines, respectively.

Royalties and commissions in the Adhesive, Sealants and Additives and Industrial Tapes segments totaled $3,534,000 and $3,420,000 for the years ended August 31, 2021 and 2020, respectively. The increase in royalties and commissions in fiscal 2021 compared to fiscal 2020 was primarily due to increased sales of electronic and industrial coatings products by our licensed manufacturer in Asia.

Export sales from domestic operations to unaffiliated third parties were $33,439,000 and $30,067,000 for the years ended August 31, 2021 and 2020, respectively.  The increase in export sales in fiscal 2021 compared to fiscal 2020 is reflective of the company-wide year-over-year increase in sales results, as the Company showed recovery and growth following the period most significantly affected by COVID-19.

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Cost of Products and Services Sold

Cost of products and services sold increased $13,045,000 or 8% to $174,660,000 for the fiscal year ended August 31, 2021 compared to $161,615,000 in fiscal 2020. As a percentage of revenue, cost of products and services sold decreased to 60% in fiscal 2021 compared to 62% for fiscal 2020.

The following table summarizes the relative percentages of cost of products and services sold to revenue for our three operating segments:

	Fiscal Years Ended August 31,
Cost of products and services sold	2021		2020		2019
Adhesives, Sealants and Additives	57	%	58	%	58	%
Industrial Tapes	64	%	68	%	72	%
Corrosion Protection and Waterproofing	57	%	55	%	57	%
Total Company	60	%	62	%	64	%

Cost of products and services sold in our Adhesives, Sealants and Additives segment was $71,805,000 for the fiscal year ended August 31, 2021 compared to $55,902,000 in fiscal 2020. As a percentage of revenue, cost of products and services sold in this segment decreased to 57% for fiscal 2021 compared to 58% for fiscal 2020. Cost of products and services sold in our Industrial Tapes segment was $77,013,000 for the fiscal year ended August 31, 2021 compared to $80,351,000 in fiscal 2020. As a percentage of revenue, cost of products and services sold in this segment decreased to 64% in fiscal 2021 compared to 68% for fiscal 2020. Cost of products and services sold in our Corrosion Protection and Waterproofing segment was $25,842,000 for the fiscal year ended August 31, 2021 compared to $25,362,000 in fiscal 2020. As a percentage of revenue, cost of products and services sold in this segment increased to 57% in fiscal 2021 compared to 55% in fiscal 2020. As a percentage of revenue, cost of products and services overall decreased primarily due to: (a) more favorable sales mixes in the Adhesives, Sealants and Additives and Industrial Tapes segments, as higher margin products and offerings constituted a comparatively higher portion of total sales; and (b) net production and operational efficiencies realized in the Adhesives, Sealants and Additives and Industrial Tapes segments in the current year, including those gained in part through the facility rationalization and consolidation initiative. All of Chase Corporation’s segments are subject to current global raw material inflationary pressures and supply chain and labor market challenges, and the Company, in line with customer agreements, is addressing this by instituting customer price adjustments across impacted product lines. However, most notably in the fourth quarter of fiscal 2021, raw material cost increases outpaced customer price adjustments given customer agreement required lead times for price adjustments. Chase Corporation continues to monitor and adjust prices as needed to protect margins in the intermediate and long-term periods.

With the composition of our finished goods and the markets we serve, the costs of certain commodities (including petroleum-based solvents, films, yarns, polymers and nonwovens, aluminum and copper foils, specialty papers, and various resins, adhesives and inks) both directly and indirectly affect the purchase price of our raw materials and the market demand for our product offerings. The Company diligently monitors raw material and commodities pricing across all its product lines in its efforts to preserve margins.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $2,736,000 or 6% to $52,100,000 during fiscal 2021 compared to $49,364,000 in fiscal 2020. As a percentage of revenue, selling, general and administrative expenses decreased to 18% of total revenue in fiscal 2021 compared to 19% for fiscal 2020. The Company continues to closely monitor spending with an emphasis on controlling costs and leveraging existing resources.

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Research and Product Development Costs

Research and Product Development Costs increased $49,000 or 1% to $4,056,000 during fiscal 2021, compared to $4,007,000 in fiscal 2020. Research and development stayed relatively consistent from fiscal 2020 to 2021 as the Company continued focused development work on strategic product lines.

Operations Optimization Costs

During the third quarter of fiscal 2021, Chase announced to the employees at its Woburn, MA location that its adhesives systems operations, part of the Adhesives, Sealants and Additives segment’s electronic and industrial coatings product line, would be consolidating into the Company’s existing O'Hara Township, PA location. This rationalization and consolidation initiative-related announcement aligns with the second quarter announcement of the Company’s plan to move its sealant systems production from Newark, CA to Hickory, NC, described in more detail below. Chase Corporation obtained both the adhesive and sealants systems as part of its fiscal 2017 acquisition of the operations of Resin Designs. No expense was recognized related to the adhesive systems initiative during fiscal 2021, with the majority of future costs anticipated to occur in the first half of fiscal 2022.

During the second quarter of fiscal 2021, Chase began moving the sealant systems operations, part of the Adhesives, Sealants and Additives segment’s electronic and industrial coatings product line, from its Newark, CA location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. The sealant systems operations and Newark, CA location came to Chase Corporation as part of the fiscal 2017 acquisition of the operations of Resin Designs, and the Company’s lease there terminated in the current fiscal year. The Company recognized $977,000 in expense related to the move during the fiscal year ended August 31, 2021. This project is now substantively completed, and any future costs related to this move are not anticipated to be significant to the consolidated financial statements.

During the third fiscal quarter of 2020, the Company implemented changes in its cost structure designed to address market changes brought on, in part, by COVID-19. These changes included a targeted reduction of approximately 4.5% of the Company’s global workforce. This reduction, which was contemplated pre-pandemic but catalyzed by COVID-19, resulted in the recognition of $183,000 in severance costs during the third quarter of fiscal 2020. The reduction in force, which impacted operations in the Blawnox, PA, Hickory, NC, Lenoir, NC, Evanston, IL, Oxford, MA and Westwood, MA facilities, was effective May 2020.

During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around the Company’s facilities rationalization and consolidation initiative. The Company recognized $150,000 in expense related to these services in the first quarter of fiscal 2020.

During the third quarter of fiscal 2019, Chase began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. At the time, the pulling and detection operations were the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving, including moving internal research and development capabilities, was substantially completed during the second quarter of fiscal 2020. The Company recognized $559,000 in expense related to the move in the first half of fiscal 2020, having recognized $526,000 in expense during the second half of fiscal 2019. This project is substantively completed. No costs were recorded in the second half of fiscal 2020 or in fiscal 2021, and any future costs related to this move are not anticipated to be significant to the consolidated financial statements.

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During the fourth quarter of fiscal 2019, Chase commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s ongoing facility rationalization and consolidation initiative. Chase completed its review of the data and recommendations provided by the study in the fourth quarter of fiscal 2020 (prior year). The Company recognized $200,000 in expense related to these services in fiscal 2019, and a gain of $170,000 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Chase may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined.

During the fourth quarter of 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. The manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. The Company completed the sale of its Pawtucket, RI location to a third-party in April 2020, for net proceeds totaling $1,810,000. This transaction resulted in a gain of $760,000 which was recorded during the third quarter of fiscal 2020. Also, during the third quarter of fiscal 2020, the Company recognized $85,000 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods.

Acquisition-Related Costs

In the second quarter of fiscal 2021, the Company incurred $128,000 of costs related to our February 5, 2021 acquisition of Emerging Technologies, Inc (“ETi”). This acquisition was accounted for as a business combination in accordance with applicable accounting standards, and all related professional service fees (including legal, accounting and actuarial fees) were expensed as incurred within the second fiscal quarter of 2021.

In fiscal 2020, the Company incurred $274,000 of costs related to our acquisition of ABchimie.  This acquisition was accounted for as a business combination in accordance with applicable accounting standards, and all related professional service fees (including banking, legal, accounting and actuarial fees) were expensed as incurred within the second, third and fourth quarters of fiscal 2020. The transaction was consummated at the beginning of fiscal 2021.

Gain on Sale of Real Estate

In August 2020, the Company finalized the sale of its Randolph, MA property for net proceeds of $1,805,000. This transaction resulted in a gain of $1,791,000 which was recorded during the quarter ended August 31, 2020 (fiscal 2020).

In April 2020, the Company finalized the sale of its Pawtucket, RI location for net proceeds of $1,810,000. This transaction resulted in a gain of $760,000 which was recorded during the quarter ended May 31, 2020 (fiscal 2020).

Write-down of certain assets under construction

In the fourth quarter of fiscal 2021, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $100,000 related to the machinery.

In the fourth quarter of fiscal 2020, given the results and recommendations of a commissioned engineering study, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405,000 related to the machinery.

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Loss on Contingent Consideration

As a component of the September 1, 2020 acquisition of ABchimie, the Company incurred a performance-based earn out liability potentially worth an additional €7,000,000 (approximately $8,330,000 at the time of the transaction) in consideration. Following its initial recording of an accrual for $928,000 at the acquisition date, $1,664,000 in expense related to adjustments to the performance-based earn out accrual were recorded to the consolidated statement of operations for the year ended August 31, 2021.

Interest Expense

Interest expense increased $51,000 or 21% to $297,000 in fiscal 2021 compared to $246,000 in fiscal 2020. As the Company had no outstanding balance on its revolving debt facility for both periods, interest expense has remained relatively low.

Other Income (Expense)

Other expense was $760,000 in fiscal 2021 compared to other expense of $1,675,000 in fiscal 2020, a decrease of $915,000. Other income (expense) primarily includes foreign exchange gains (losses) caused by changes in exchange rates on transactions or balances denominated in currencies other than the functional currency of our subsidiaries, non-service cost components of periodic pension expense (including pension-related settlement costs due to the timing of lump-sum distributions), interest income, rental income and other non-trade/non-royalty/non-commission receipts. The decrease in total other expense in fiscal 2021 compared to fiscal 2020 was largely due to the recognition of a smaller foreign exchange loss in fiscal 2021 as compared to fiscal 2020.

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Income Taxes

Our effective tax rate for fiscal 2021 was 23.3% as compared to 24.6% in fiscal 2020. 

The current and prior years’ effective tax rates were most prominently affected by the passage of the Tax Cuts and Jobs Act (the “Tax Act”) in December 2017. For fiscal 2021 and 2020, the Company utilized the new 21% Federal tax rate enacted by the Tax Act. Please see Note 7 — “Income Taxes” to the Consolidated Financial Statements for further discussion of the effects of the Tax Act.

Net Income

Net income increased $10,763,000 or 32% to $44,920,000 compared to $34,157,000 in fiscal 2020. The increase in net income in the year-to-date period was primarily due to higher sales and an improved relative gross margin.

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Liquidity and Sources of Capital

Our cash balance increased $20,361,000 to $119,429,000 at August 31, 2021 from $99,068,000 at August 31, 2020. The increased cash balance was primarily attributable to cash from operations of $61,217,000, net of $22,241,000 utilized to acquire ABchimie on September 1, 2020, $8,997,000 utilized to acquire the operations of Emerging Technologies, Inc. (“ETi”) on February 5, 2021 and the $7,557,000 dividend paid in December 2020. Of the above noted balances, $26,309,000 and $42,615,000 were held outside the U.S. by Chase Corporation and our foreign subsidiaries as of August 31, 2021 and 2020, respectively. Given our cash position and borrowing capability in the United States and the potential for increased investment and acquisitions in foreign jurisdictions, prior to the second quarter of fiscal 2018, we did not have a history of repatriating a significant portion of our foreign cash. With the passage of the Tax Cuts and Jobs Act (the “Tax Act”) in the second fiscal quarter of 2018, significant changes in the Internal Revenue Code were enacted, changing the U.S. taxable nature of previously unrepatriated foreign earnings. We repatriated $10,499,000 in U.K. foreign earnings in fiscal 2018 and $17,230,000 in fiscal 2019. We do not currently take the position that undistributed foreign subsidiaries’ earnings are considered to be permanently reinvested. See Note 7 — “Income Taxes” to the Consolidated Financial Statements included in this Report for further discussion of the effects of the Tax Act.

Cash provided by operations was $61,217,000 for the year ended August 31, 2021 compared to $55,734,000 in fiscal 2020.  Cash provided by operations during fiscal 2021 was primarily due to operating income and increased accounts payable, partially offset by an elevated level of accounts receivable (resulting from increased sales).

The ratio of current assets to current liabilities was 6.5 as of August 31, 2021 compared to 7.7 as of August 31, 2020. The decrease in our current ratio in fiscal 2021 was primarily attributable to increased accounts payable on normal trade activity during the period.

Cash used in investing activities was $33,927,000 for the year ended August 31, 2021 compared to $2,077,000 in cash provided by investing activities in fiscal 2020. During fiscal 2021, cash used in investing activities was largely due to the cash on hand purchases of both ABchimie and ETi and cash spent on capital purchases of machinery and equipment.

Cash used in financing activities was $8,248,000 for the year ended August 31, 2021 compared to $8,420,000 used in financing activities in fiscal 2020. Chase paid annual dividends of $7,557,000 and $7,539,000 in 2021 and 2020, respectively.

On November 15, 2021, Chase announced a cash dividend of $1.00 per share (totaling approximately $9,457,000) to shareholders of record on November 30, 2021 and payable on December 9, 2021.

On November 12, 2020, Chase announced a cash dividend of $0.80 per share (totaling $7,557,000) to shareholders of record on November 27, 2020 and payable on December 7, 2020.

On July 27, 2021 (the fourth quarter of fiscal 2021), the Company entered into the Second Amended and Restated Credit Agreement (the “New Credit Agreement”) by and among the Company (the “Chase Borrower”), NEPTCO Incorporated (“NEPTCO”), the subsidiary guarantors party thereto, the financial institutions party thereto as Lenders, and Bank of America, N.A., as administrative agent, with participation from Wells Fargo Bank, N.A., PNC Bank, N.A. and JPMorgan Chase Bank, N.A. The New Credit Agreement was entered into to amend, restate and extend the Company’s preexisting Amended and Restated Credit Agreement (the “Prior Credit Agreement”), which had a maturity date of December 15, 2021 and is discussed in more detail below, and to provide for additional liquidity to finance acquisitions, working capital and capital expenditures, and for other general corporate purposes. Under the New Credit Agreement, Chase obtained an increased revolving credit loan (the “New Revolving Facility”), with borrowing capabilities not to exceed $200,000,000 at any time, with the ability to request an increase in this amount by an additional $100,000,000 at the individual or collective option of any of the Lenders. The applicable interest rate for the New Revolving Facility and New Term Loan (defined below) is based on the effective London Interbank Offered Rate (LIBOR) plus a range of 1.00% to 1.75%, depending on the consolidated net leverage ratio of Chase and its subsidiaries. At August 31, 2021, there was no outstanding principal balance, and as such, no applicable interest rate. The New Credit Agreement has a five-year term with interest payments due at the end of the applicable LIBOR period (but in no event less frequently than the three-month anniversary of the commencement of such LIBOR period) and principal payment due at the expiration

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of the agreement, July 27, 2026. The New Credit Agreement contains provisions that may replace LIBOR as the benchmark index under certain circumstances. In addition, the Company may elect a base rate option for all or a portion of the New Revolving Facility, in which case interest payments shall be due with respect to such portion of the New Revolving Facility on the last business day of each quarter. Subject to certain conditions set forth in the New Credit Agreement, the Company may elect to convert all or a portion of the outstanding New Revolving Facility into a new term loan twice during the term of the New Revolving Facility (each, a “New Term Loan”, and collectively with the New Revolving Facility, the “New Credit Facility”), which New Term Loan shall be payable quarterly in equal installments sufficient to amortize the original principal amount of such Term Loan on a ten year amortization schedule. The outstanding balance on the New Credit Facility is guaranteed by all of Chase’s direct and indirect domestic subsidiaries. The New Credit Facility is subject to restrictive covenants under the New Credit Agreement, and financial covenants that require Chase and its subsidiaries to maintain certain financial ratios on a consolidated basis, including a consolidated net leverage ratio of 3.25 to 1.00 and a consolidated interest coverage ratio of 3.50 to 1.00 (both defined in the New Credit Agreement). Chase Corporation was in compliance with the debt covenants as of August 31, 2021. The New Credit Agreement also places certain Lender-approval requirements as to the size of permitted acquisitions which may be entered into by the Company and its subsidiaries, and allows for a temporary step-up in the allowed consolidated leverage ratio for the four fiscal quarters ending after certain designated acquisitions. Prepayment is allowed by the New Credit Agreement at any time during the term of the agreement, subject to customary notice requirements and the payment of customary LIBOR breakage fees.

In connection with entry into the New Credit Agreement, Chase amended and restated its Prior Credit Agreement, the full amount of which was substantially available as of July 27, 2021.

The Prior Credit Agreement was an all-revolving credit facility with a borrowing capacity of $150,000,000, which could be increased by an additional $50,000,000 at the request of the Company and the individual or collective option of any of the lenders, and with an interest rate based on the effective LIBOR plus an additional amount in the range of 1.00% to 1.75%, depending on our consolidated net leverage ratio or, at the Company’s option, at the bank’s base lending rate. At August 31, 2020 there was no outstanding principal balance, and as such, no applicable interest rate. Chase Corporation was in compliance with the covenants under the Prior Credit Facility as of August 31, 2020 (prior year).

The Company has several ongoing capital projects, as well as its facility rationalization and consolidation initiative, which are important to its long-term strategic goals. Machinery and equipment may be added as needed to increase capacity or enhance operating efficiencies in the Company’s production facilities.

During the second and third fiscal quarters of 2021, respectively, the Company announced plans to consolidate its Newark, CA operations into its Hickory, NC facility, and its Woburn, MA operations into its O’Hara Township, PA facility. The consolidation of the Newark, CA facility was completed in the fourth quarter of fiscal 2021, and the consolidation of the Woburn, MA facility is anticipated to be completed in the first half of fiscal 2022. During the third fiscal quarter of 2020, the Company implemented changes in its cost structure designed to address market changes brought on, in part, by COVID-19. These changes included a targeted reduction of approximately 4.5% of the Company’s global workforce. During fiscal 2019, the Company announced it had begun moving the production of its pulling and detection products from its Granite Falls, NC location to its Hickory, NC location, with completion of the move occurring in the first half of fiscal 2020. During fiscal 2018, the Company announced the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. The manufacturing of products previously produced in the Pawtucket, RI facility was moved to Company facilities in Oxford, MA and Lenoir, NC, and the facility was subsequently sold in fiscal 2020. During the fourth quarter of fiscal 2019, the Company commissioned engineering studies to assess potential future operational changes and further plant rationalization and consolidation. These actions are in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its processes. A total of all potential future costs arising from any further plant rationalization and consolidation cannot be estimated at this time.

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We may acquire companies or other assets in future periods which are complementary to our business. The acquisition of ABchimie included a potential earnout based on performance of up to an additional €7,000,000 (approximately $8,330,000 at the time of the transaction), which the Company expects to pay with cash on hand if the applicable conditions are met. The acquisition of ETi includes a $1,000,000 withholding, which is payable by the Company within eighteen months of the acquisition. The Company believes that its existing resources, including cash on hand and the New Amended and Restated Credit Agreement, together with cash generated from operations and additional bank borrowings, will be sufficient to fund its cash flow requirements through at least the next twelve months. However, there can be no assurance that additional financing, if needed, will be available on favorable terms, if at all.

To the extent that interest rates increase in future periods, we will assess the impact of these higher interest rates on the financial and cash flow projections of our potential acquisitions.

We have no material off-balance sheet arrangements.

Contractual Cash Obligations

The following table summarizes our contractual cash obligations at August 31, 2021 under operating leases and the effect such obligations are expected to have on our liquidity and cash flow in future periods (dollars in thousands):

			Payments Due
Contractual Obligations	Total		2022		2023		2024		2025		2026		2027 and thereafter
Operating leases	$	9,628	$	1,750	$	1,596	$	1,519	$	1,358	$	1,075	$	2,330
Total	$	9,628	$	1,750	$	1,596	$	1,519	$	1,358	$	1,075	$	2,330

We may be required to make payments related to our unrecognized tax benefits. Due to the uncertainty of the timing of future cash flows associated with these unrecognized tax benefits, we are unable to make reasonably reliable estimates of the period of cash settlement, if any, with the respective taxing authorities. Accordingly, the Company’s unrecognized tax benefits was $2,190,000 as of August 31, 2021. See Note 7 — “Income Taxes” to the Consolidated Financial Statements for further information.

We also expect to make payments as needed to satisfy our funding obligations for our obligations for pension and other post-retirement benefit plans. As of August 31, 2021, we had recognized an accrued benefit plan liability of $10,981,000 representing the unfunded obligations of the pension benefit plans. See Note 9 — “Benefits and Pension Plans” to the Consolidated Financial Statements for further information, including expected pension benefit payments for the next 10 years.

The Company does not have significant agreements for the purchase of raw materials or other goods specifying minimum quantities or set prices that exceed expected requirements or extend beyond one year.

Recently Issued Accounting Standards

For discussion of the newly issued accounting pronouncements see “Recently Adopted Accounting Standards” in Note 1 — “Summary of Significant Accounting Policies” to the Consolidated Financial Statements included in this Report.

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Critical Accounting Policies, Judgments, and Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the U.S. requires management to make judgments, assumptions and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Our significant accounting policies are described in Note 1 — “Summary of Significant Accounting Policies” to the Consolidated Financial Statements included in this Report.

The U.S. Securities and Exchange Commission (“SEC”) requires companies to provide additional disclosure and commentary on their most critical accounting policies and estimates. The SEC has defined critical accounting policies as the ones that are most important to the portrayal of a company’s financial condition and operating results, and require management to make its most significant estimates and judgments in the preparation of its Consolidated Financial Statements. The SEC has defined critical accounting estimates as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of a company.

Judgments, assumptions, and estimates are used for, but not limited to, the allowances for accounts receivable; inventory allowances; business combinations, goodwill, intangible assets, and other long-lived assets; revenue; income tax reserves; deferred income taxes; stock-based compensation; as well as discount and return rates used to calculate pension obligations. The accounting policies described below are significantly affected by critical accounting estimates.

Business Combinations

We assign the value of the consideration transferred to acquire a business to the tangible assets and identifiable intangible assets acquired, and liabilities assumed on the basis of their fair values at the date of acquisition. The Company’s assess the fair value of assets, including intangible assets, using a variety of methods, and each asset is measured at fair value from the perspective of a market participant. The method used to estimate the fair values of intangible assets incorporates significant assumptions regarding the estimates a market participant would make in order to evaluate an asset, including a market participant’s use of the asset and the appropriate discount rates for a market participant. Assets recorded from the perspective of a market participant that are determined to not have economic use for the Company are expensed immediately. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Transaction costs and restructuring costs associated with a transaction to acquire a business are expensed as incurred.

Contingent Consideration

In connection with accounting for the ABchimie acquisition on September 1, 2020, the Company recorded a contingent consideration liability included within Other liabilities on the consolidated balance sheet. The contingent consideration liability was valued using a Monte Carlo simulation model in an option pricing framework based on key inputs requiring significant judgments and estimates to be made by the Company, including forecasts of future earnings over the multiyear period encompassed by the earnout, and that are not all observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company assesses the fair value of the contingent consideration liability at each reporting period. Any subsequent changes in the estimated fair value of the liability are reflected in Loss on contingent consideration on the consolidated statement of operations until the liability is settled. If fully realized, the contingent consideration due would total €7,000,000 (approximately $8,330,000 at the time of the initial transaction).

Impact of Inflation

Inflation has not had a significant long-term impact on our earnings, with the impact of the current inflationary period most acutely limited to the fourth quarter of fiscal 2021.  In the event of significant inflation over an extended period of time, our continued efforts to recover cost increases could be hampered as a result of the competitive nature of the industries in which we operate. Future volatility of general price inflation or deflation and raw material cost and availability could adversely affect our financial results.

36

Item 7a – Quantitative and Qualitative Disclosures about Market Risk

We limit the amount of credit exposure to any one issuer. At August 31, 2021, other than our restricted investments (which are restricted for use in a non-qualified retirement savings plans for certain key employees and members of the Board of Directors), all of our funds were either in demand deposit accounts or investment instruments that meet high credit quality standards such as money market funds, government securities, or commercial paper.

Our domestic operations have limited currency exposure since substantially all transactions are denominated in U.S. dollars. However, our European and Asian operations are subject to currency exchange fluctuations. We continue to review our policies and procedures to control this exposure while maintaining the benefit from these operations and sales not denominated in U.S. dollars. The effect of an immediate hypothetical 10% change in the exchange rate between the British pound or euro and the U.S. dollar would not have a material effect on the Company’s overall liquidity. As of August 31, 2021, the Company had cash balances in the following foreign currencies (with USD equivalents in thousands):

Currency Code	Currency Name	USD Equivalent at August 31, 2021
GBP	British Pound	$	14,613
EUR	Euro	$	5,840
CAD	Canadian Dollar	$	1,990
CNY	Chinese Yuan	$	375
INR	Indian Rupee	$	365

The Company will continue to review its current cash balances denominated in foreign currency considering current tax guidelines, including the impact of the Tax Act to the U.S. Internal Revenue Code, working capital requirements, infrastructure improvements and potential acquisitions.

The Company recognized a foreign currency translation gain for the year ended August 31, 2021 in the amount of $1,295,000 related to our European and Indian operations, which is recorded in accumulated other comprehensive income (loss) within our consolidated statement of equity. The functional currency for all our other operations is the U.S. Dollar. We do not have or utilize any derivative financial instruments.

We pay interest on our outstanding long-term debt at interest rates that fluctuate based upon changes in various base interest rates. There was no outstanding balance of long-term debt at August 31, 2021 and 2020. See “Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Sources of Capital,” Note 6 — “Long-Term Debt” and Note 16 — “Fair Value Measurements” to the Consolidated Financial Statements for additional information regarding our outstanding long-term debt.  The effect of an immediate hypothetical 10% change in variable interest rates would not have a material effect on our Consolidated Financial Statements.

37

Item 8 – Financial Statements and Supplementary Data

The following Consolidated Financial Statements of Chase Corporation are filed as part of this Annual Report on Form 10-K:

Index to Consolidated Financial Statements:

	Page No.
Report of Independent Registered Public Accounting Firm	39
Consolidated Balance Sheets as of August 31, 2021 and 2020	42
Consolidated Statements of Operations for each of the three fiscal years in the period ended August 31, 2021	43
Consolidated Statements of Comprehensive Income for each of the three fiscal years in the period ended August 31, 2021	44
Consolidated Statements of Equity for each of the three fiscal years in the period ended August 31, 2021	45
Consolidated Statements of Cash Flows for each of the three fiscal years in the period ended August 31, 2021	46
Notes to Consolidated Financial Statements	47

38

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders

Chase Corporation

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Chase Corporation (a Massachusetts corporation) and subsidiaries (the “Company”) as of August 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the three years in the period ended August 31, 2021, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of August 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended August 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of August 31, 2021, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated November 15, 2021 expressed an unqualified opinion.

Basis for opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

39

Critical audit matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole and, we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Valuation of the acquisition-date fair value of customer relationships

As described in Note 14 to the consolidated financial statements, on September 1, 2020 the Company acquired ABchimie for a total purchase price of $22.2 million. The Company’s accounting for this included estimating the fair value of the customer relationships intangible asset for $11.1 million. We identified the valuation of the acquisition-date fair value of the customer relationships intangible asset acquired in the ABchimie transaction as a critical audit matter.

The principal considerations for our determination that the fair value of the customer relationships intangible asset is a critical audit matter is that a high degree of subjective auditor judgment was required in evaluating certain assumptions used in the valuation method to calculate the fair value of this asset. The valuation model included a number of internally developed assumptions for which there was limited observable market information, and the calculated fair value of this intangible asset was sensitive to possible changes in the following key assumptions: forecasted cash flows and the customer attrition rate.

Our audit procedures related to the valuation of the acquisition-date fair value of the customer relationships intangible asset included the following, among others:

● We tested internal controls over the Company’s acquisition-date valuation process, including controls over the development of the key assumptions.

● We evaluated the annual customer attrition rate by examining the Company’s historical customer attrition data, as well as comparing attrition rates to prior acquisitions.

● We tested the reasonableness of management’s forecasted customer relationships cash flows by comparing forecasts to historical actual results, projected industry growth rates and market factors and trends.

● We involved valuation professionals with specialized skills and knowledge, who assisted in:

o evaluating the valuation approach used by the Company to calculate the fair value of the customer relationships intangible asset;

o performing a sensitivity analysis over the customer attrition rate assumption.

40

Valuation of contingent consideration

As described in Note 14 to the consolidated financial statements, on September 1, 2020 the Company acquired ABchimie for a total purchase price of $22.2 million. The acquisition included a contingent consideration provision based on future annual earnings before interest and taxes exceeding certain thresholds in each of the four years subsequent to the acquisition, with a potential total consideration of $8.3 million. We identified the valuation of the acquisition-date fair value and subsequent reporting period-end revaluation of the contingent consideration as a critical audit matter.

The principal considerations for our determination that the valuation of the fair value of the contingent consideration is a critical audit matter is that a high degree of subjective auditor judgment was required in evaluating certain inputs to the Monte Carlo simulation model used to determine the fair value of the contingent consideration. Specifically, the key inputs included forecasted earnings before interest and taxes and the volatility rate. There was limited observable market information, and the calculated fair value of the contingent consideration was sensitive to possible changes to these key inputs

Our audit procedures related to the valuation of the contingent consideration included the following, among others:

● We tested internal controls over the Company’s acquisition-date and reporting period end valuation process, including controls over the key inputs listed above.

● We compared forecasted earnings before interest and taxes to historical actual results, prior acquisitions, projected industry growth rates and market factors and trends.

● We involved valuation professionals with specialized skills and knowledge, who assisted in:

o evaluating the valuation model used by the Company to calculate the fair value of contingent consideration; and

o comparing the selected volatility used against publicly available volatility of comparable companies.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2019

Boston, Massachusetts November 15, 2021

41

CHASE CORPORATION

CONSOLIDATED BALANCE SHEETS

In thousands, except share and per share amounts

	August 31,		August 31,
	2021		2020
ASSETS
Current Assets
Cash and cash equivalents	$	119,429	$	99,068
Accounts receivable, less allowances of $451 and $438		46,212		36,993
Inventory		41,217		39,058
Prepaid expenses and other current assets		2,851		2,470
Prepaid income taxes and refunds due		3,255		231
Total current assets		212,964		177,820
Property, plant and equipment, less accumulated depreciation of $50,666 and $52,283		24,267		25,574
Other Assets
Goodwill		97,866		82,402
Intangible assets, less accumulated amortization of $91,484 and $78,351		46,954		41,200
Cash surrender value of life insurance		4,450		4,450
Restricted investments		2,260		1,619
Deferred income taxes		5,265		4,929
Operating lease right-of-use asset (Note 8)		9,312		8,821
Other assets		821		15
Total assets	$	404,159	$	346,830
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	19,575	$	12,525
Accrued payroll and other compensation		7,179		5,751
Income taxes payable		761		—
Accrued expenses		5,407		4,867
Total current liabilities		32,922		23,143
Operating lease long-term liabilities (Note 8)		7,202		6,395
Deferred compensation		2,267		1,629
Accumulated pension obligation		9,416		10,930
Other liabilities		2,537		—
Deferred income taxes		3,301		—
Accrued income taxes		2,190		1,941
Commitments and contingencies (Notes 6, 8, 21)
Equity
First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued		—		—
Common stock, $.10 par value: Authorized 20,000,000 shares; 9,447,905 shares at August 31, 2021 and 9,439,082 shares at August 31, 2020 issued and outstanding		946		944
Additional paid-in capital		18,959		16,674
Accumulated other comprehensive loss		(11,210)		(13,092)
Retained earnings		335,629		298,266
Total equity		344,324		302,792
Total liabilities and equity	$	404,159	$	346,830

See accompanying notes to the Consolidated Financial Statements.

42

CHASE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

In thousands, except share and per share amounts

	Years Ended August 31,
	2021		2020		2019
Revenue
Sales	$	289,802	$	257,742	$	276,839
Royalties and commissions		3,534		3,420		4,512
		293,336		261,162		281,351
Costs and Expenses
Cost of products and services sold		174,660		161,615		180,163
Selling, general and administrative expenses		52,100		49,364		48,707
Research and product development costs		4,056		4,007		4,021
Operations optimization costs (Note 20)		977		807		986
Acquisition-related costs (Note 14)		128		274		—
Gain on sale of real estate (Note 19)		—		(2,551)		—
Write-down of certain assets under construction (Note 20)		100		405		—
Loss on impairment of goodwill (Note 4)		—		—		2,410
Loss on contingent consideration (Note 14)		1,664		—		—
Operating income		59,651		47,241		45,064
Interest expense		(297)		(246)		(519)
Other income (expense)		(760)		(1,675)		(992)
Income before income taxes		58,594		45,320		43,553
Income taxes (Note 7)		13,674		11,163		10,842
Net income	$	44,920	$	34,157	$	32,711
Net income available to common shareholders, per common and common equivalent share (Note 17)
Basic	$	4.75	$	3.62	$	3.48
Diluted	$	4.73	$	3.59	$	3.46
Weighted average shares outstanding
Basic		9,383,085		9,359,940		9,334,232
Diluted		9,428,416		9,439,750		9,379,207
Annual cash dividends declared per share	$	0.80	$	0.80	$	0.80

See accompanying notes to the Consolidated Financial Statements.

43

CHASE CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

In thousands, except share and per share amounts

	Years Ended August 31,
	2021		2020		2019
Net income	$	44,920	$	34,157	$	32,711
Other comprehensive income (loss):
Net unrealized gain on restricted investments, net of tax		249		115		28
Change in funded status of pension plans, net of tax		338		(658)		(475)
Foreign currency translation adjustment		1,295		3,163		(1,541)
Total other comprehensive income (loss)		1,882		2,620		(1,988)
Comprehensive income	$	46,802	$	36,777	$	30,723

See accompanying notes to the Consolidated Financial Statements.

44

CHASE CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

In thousands, except share and per share amounts

				Additional		Accumulated Other				Total
	Common Stock			Paid-In		Comprehensive		Retained		Stockholders'
	Shares	Amount		Capital		Income (Loss)		Earnings		Equity
Balance at August 31, 2018	9,396,947	$	939	$	13,104	$	(12,336)	$	245,049	$	246,756
Restricted stock grants, net of forfeitures	8,818		1		(1)						—
Amortization of restricted stock grants					1,673						1,673
Amortization of stock option grants					503						503
Exercise of stock options	7,022		1		300						301
Common stock received for payment of stock option exercises	(954)		—		(119)						(119)
Common stock retained to pay statutory minimum withholding taxes on common stock	(11,085)		(1)		(1,109)						(1,110)
Cash dividend paid, $0.80 per share									(7,522)		(7,522)
Change in funded status of pension plans, net of tax $218							(475)				(475)
Foreign currency translation adjustment							(1,541)				(1,541)
Net unrealized gain on restricted investments, net of tax ($5)							28				28
Adoption of ASC 606 (Note 1)									22		22
Net income									32,711		32,711
Balance at August 31, 2019	9,400,748	$	940	$	14,351	$	(14,324)	$	270,260	$	271,227
Restricted stock grants, net of forfeitures	45,621		5		(5)						—
Amortization of restricted stock grants					2,290						2,290
Amortization of stock option grants					918						918
Exercise of stock options	3,618		—		123						123
Common stock received for payment of stock option exercises	(1,057)		—		(123)						(123)
Common stock retained to pay statutory minimum withholding taxes on common stock	(9,848)		(1)		(880)						(881)
Cash dividend paid, $0.80 per share									(7,539)		(7,539)
Change in funded status of pension plans, net of tax ($215)							(658)				(658)
Foreign currency translation adjustment							3,163				3,163
Net unrealized gain on restricted investments, net of tax $40							115				115
Adoption of ASU 2018-02 (Note 1)							(1,388)		1,388		-
Net income									34,157		34,157
Balance at August 31, 2020	9,439,082	$	944	$	16,674	$	(13,092)	$	298,266	$	302,792
Restricted stock grants, net of forfeitures	10,245		2		(2)						—
Amortization of restricted stock grants					2,351						2,351
Amortization of stock option grants					627						627
Exercise of stock options	7,546		1		292						293
Common stock received for payment of stock option exercises	(1,809)		—		(206)						(206)
Common stock retained to pay statutory minimum withholding taxes on common stock	(7,159)		(1)		(777)						(778)
Cash dividend on common stock, $0.80 per share									(7,557)		(7,557)
Change in funded status of pension plans, net of tax $585							338				338
Foreign currency translation adjustment							1,295				1,295
Net unrealized gain (loss) on restricted investments, net of tax $75							249				249
Net income									44,920		44,920
Balance at August 31, 2021	9,447,905	$	946	$	18,959	$	(11,210)	$	335,629	$	344,324

See accompanying notes to the Consolidated Financial Statements.

45

CHASE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands

	Years Ended August 31,
	2021		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	44,920	$	34,157	$	32,711
Adjustments to reconcile net income to net cash provided by operating activities
Gain on sale of real estate		—		(2,551)		—
Loss on impairment of goodwill		—		—		2,410
Write-down of certain assets under construction		100		405		—
Loss on contingent consideration		1,664		—		—
Depreciation		3,946		4,015		4,762
Amortization		12,858		11,576		12,445
Provision (recovery) of allowance for doubtful accounts and credit losses		11		(307)		183
Stock-based compensation		2,978		3,208		2,176
Realized gain on restricted investments		(65)		(37)		(11)
Pension curtailment and settlement loss		—		155		511
Deferred taxes		(908)		(769)		(2,312)
Increase (decrease) from changes in assets and liabilities
Accounts receivable		(7,921)		3,092		4,858
Inventory		(910)		3,562		(2,864)
Prepaid expenses and other assets		(490)		43		356
Accounts payable		6,164		260		(5,493)
Accrued compensation and other expenses		954		(1,865)		(1,536)
Accrued income taxes		(2,084)		790		1,339
Net cash provided by operating activities		61,217		55,734		49,535
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment		(2,441)		(1,371)		(2,488)
Cost to acquire intangible assets		—		—		(36)
Payments for acquisitions		(31,238)		—		—
Proceeds from sale of real estate		—		3,615		—
Proceeds from sale of businesses		—		—		400
Changes in restricted investments		(248)		(167)		(122)
Proceeds from settlement of life insurance policies		—		—		80
Net cash (used in) provided by investing activities		(33,927)		2,077		(2,166)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of principal on debt		—		—		(25,000)
Dividend paid		(7,557)		(7,539)		(7,522)
Proceeds from exercise of common stock options		87		—		182
Payments of taxes on stock options and restricted stock		(778)		(881)		(1,110)
Net cash used in financing activities		(8,248)		(8,420)		(33,450)
INCREASE IN CASH & CASH EQUIVALENTS		19,042		49,391		13,919
Effect of foreign exchange rates on cash		1,319		1,906		(976)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		99,068		47,771		34,828
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	119,429	$	99,068	$	47,771

See Note 13 for supplemental cash flow information including non-cash financing and investing activities

See accompanying notes to the Consolidated Financial Statements.

46

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 1—Summary of Significant Accounting Policies

The principal accounting policies of Chase Corporation (the “Company”) and its subsidiaries are as follows:

Products and Markets

Our principal products are specialty tapes, laminates, adhesives, sealants, coatings and chemical intermediates that are sold by our salespeople, manufacturers' representatives and distributors.

In our Adhesives, Sealants and Additives segment, these products consist of:

(i) moisture protective coatings and cleaning solutions, which are sold to the electronics industry for circuitry manufacturing, including circuitry used in automobiles, industrial controls and home appliances;

(ii) advanced adhesives, sealants, and coatings for automotive and industrial applications that require specialized bonding, encapsulating, environmental protection, or thermal management functionality;

(iii) polymeric microspheres utilized by various industries to allow for weight and density reduction and sound dampening;

(iv) polyurethane dispersions utilized for various coating products; and

(v) superabsorbent polymers utilized for water and liquid management, remediation and protection in diverse markets including wire and cable, medical, environmental, infrastructure, energy and consumer products.

In our Industrial Tapes segment, these products consist of:

(i) insulating and conducting materials for the manufacture of electrical and telephone wire and cable, electrical splicing, and terminating and repair tapes, which are marketed to wire and cable manufacturers;

(ii) laminated film foils, including EMI/RFI shielding tapes, used in communication and local area network (LAN) cable;

(iii) industrial coated or laminate products and custom manufacturing services sold into medical, consumer, automotive, packaging, energy, telecommunications and other specialized markets;

(iv) laminated durable papers, including laminated paper with an inner security barrier used in personal and mail-stream privacy protection, which are sold primarily to the envelope converting and commercial printing industries;

(v) pulling and detection tapes used in the installation, measurement and location of fiber optic cable, water and natural gas lines, and power, data and video cable for commercial buildings; and

(vi) cover tapes with reliable adhesive and anti-static properties essential to delivering semiconductor components via tape and reel packaging.

47

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

In our Corrosion Protection and Waterproofing segment, these products consist of:

(i) protective coatings, tapes and protectants for pipelines, valves, casings and other metals, which are sold to oil companies, gas companies and water/wastewater utilities for use in both the construction and maintenance of oil, gas, water and wastewater pipelines;

(ii) fluid applied coating and lining systems for use in the water and wastewater industry;

(iii) waterproofing tapes and coatings used in waterproofing of the exterior of both commercial and industrial structures;

(iv) waterproofing membranes for highway bridge deck metal supported surfaces, which are sold to municipal transportation authorities, and high-performance polymeric asphalt additives; and

(v) expansion and control joint systems designed for roads, bridges, stadiums and airport runways.

Basis of Presentation

The financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company uses the U.S. dollar as the functional currency for financial reporting. Certain reclassifications have been made to the prior year amounts to conform to the current year’s presentation.

Other Business Developments

During the third quarter of fiscal 2021, Chase announced to the employees at its Woburn, MA location that its adhesives systems operations, part of the Adhesive, Sealants and Additives segment’s electronic and industrial coatings product line, would be consolidating into the Company’s existing O'Hara Township, PA location. This rationalization and consolidation initiative-related announcement aligns with the second quarter announcement of the Company’s plan to move its sealant systems production from Newark, CA to Hickory, NC, described in more detail below. Chase Corporation obtained both the adhesive and sealants systems as part of its fiscal 2017 acquisition of the operations of Resin Designs. No expense was recognized related to the adhesive systems initiative during the second half of fiscal 2021, with the majority of future costs anticipated to occur in the first half of fiscal 2022.

On February 5, 2021, the Company acquired certain assets of Emerging Technologies, Inc. (“ETi”), a superabsorbent polymers solutions provider, located in Greensboro, NC. The business was acquired for a purchase price of $9,997, comprising $8,997 paid on February 5, 2021 and an accrual of $1,000 to be paid out up to eighteen months after purchase, subsequent to final working capital adjustments, and excluding acquisition-related costs. As part of this transaction, Chase acquired substantially all working capital and fixed assets of the business and entered a multi-year lease at ETi’s existing location. The Company expensed $128 of acquisition-related costs associated with this acquisition. The purchase was funded with available cash on hand. ETi is a solutions provider and formulator of absorbent polymers for use in the packaging, recreational, consumer, and sanitation markets. The acquisition broadens the Company’s superabsorbent polymers product offerings and formulation capabilities while expanding its market reach. The Company is currently in the process of finalizing purchase accounting, regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed, and anticipates completion within the first quarter of fiscal 2022. Since the effective date of the acquisition, the financial results of ETi’s acquired operations have been included in the Company’s financial statements within the functional additives product line, contained within the Adhesives, Sealants and Additives operating segment.

48

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

During the second quarter of fiscal 2021, Chase began moving the sealant systems operations, part of the Adhesive, Sealants and Additives segment’s electronic and industrial coatings product line, from its Newark, CA location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. The sealant systems operations and Newark, CA location came to Chase Corporation as part of the fiscal 2017 acquisition of the operations of Resin Designs, and the Company’s lease there terminated in fiscal 2021. The Company recognized $977 in expense related to the move in fiscal 2021.

On September 1, 2020 (the first day of fiscal 2021), the Company acquired all the capital stock of ABchimie for €18,654 (approximately $22,241 at the time of the transaction) net of cash acquired, subsequent to final working capital adjustment, excluding acquisition-related costs totaling $274 recognized in fiscal 2020 and with a potential earn out based on performance potentially worth an additional €7,000 (approximately $8,330 at the time of the transaction). ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and protection of electronic assemblies, with ‎further formulation, production, and research and development capabilities‎. The transaction was funded with cash on hand. The financial results of the business were included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company finalized purchase accounting during the fourth quarter of fiscal 2021, with no significant change to amounts initially recorded.

Fiscal 2020 saw the beginning of the global spread of the coronavirus pandemic (COVID-19), which grew to create significant volatility, uncertainty and global economic disruption. During the third fiscal quarter of 2020, the Company implemented changes to its cost structure designed to address market changes brought on by COVID-19 and demonstrate its commitment to fiscal prudence: (a) the Company made a targeted reduction in its global workforce, contemplated pre-pandemic but catalyzed by COVID-19, which resulted in the recognition of $183 in severance costs during the period; and (b) the Company also instituted a temporary 20% reduction in the base salaries of its named executive officers and select members of senior management, as well as the cash compensation of the non-employee members of its Board of Directors. The reduction in force, which impacted operations in the Company’s U.S. facilities, and the adjustments in compensation, were both effective May 2020. The executive officers’ and Board of Directors’ temporary compensation reductions were lifted on December 1, 2020, retroactive to September 1, 2020.

During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase Corporation is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around the facilities rationalization and consolidation initiative. The Company recognized $150 in expense related to these services in the first quarter of fiscal 2020, with no expense recognized in the second, third or fourth fiscal quarters. Given the ongoing nature of the review, an estimate of future costs, including those that may be capitalized, cannot currently be determined.

During the third quarter of fiscal 2019, the Company began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. At the time, the pulling and detection operations were the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving, including moving internal research and development capabilities, was substantially completed during the second quarter of fiscal 2020. The Company recognized $559 in expense related to the first half of fiscal 2020, having recognized $526 in expense during the second half of fiscal 2019. No costs were recognized in the second half of 2020 or during fiscal 2021, and future costs related to this move are not anticipated to be significant to the consolidated financial statements.

During the fourth quarter of fiscal 2019, Chase Corporation commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s ongoing facility rationalization and consolidation initiative. Chase completed its review of the data and recommendations provided by the study in the fourth quarter of

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CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

fiscal 2020. The Company recognized $200 in expense related to these services in fiscal 2019, and a gain of $170 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Also in the fourth quarter of fiscal 2020 and related to the recommendations of the commissioned engineering studies, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405 related to the machinery. The Company recognized an additional $100 in the fourth quarter of fiscal 2021, to fully write-down the equipment’s value. Chase may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined.

On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018, with no additional expense recognized in the remainder of fiscal 2019. The Company completed the sale of its Pawtucket, RI location to a third party in the third quarter of fiscal 2020 for net proceeds totaling $1,810, recognizing a gain on sale of real estate of $760. Also, during the third quarter of fiscal 2020, the Company recognized $85 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods.

The Company has evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, and other than the cash dividend announced on November 15, 2021 of $1.00 per share to shareholders of record on November 30, 2021 and payable on December 9, 2021, the Company is not aware of any other events or transactions that occurred subsequent to the balance sheet date, but prior to filing, that would require recognition or disclosure in its consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of demand deposit accounts or investment instruments that meet high credit quality standards such as money market funds, government securities, or commercial paper. The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents.

Credit risk related to cash and cash equivalents is limited based on the creditworthiness of the financial institutions at which these funds are held. We maintain cash balances in multiple banks. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250. Certain of our account balances exceed the FDIC limit. Cash balances held outside the United States totaled $26,309 as of August 31, 2021.

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CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Accounts Receivable

As a result of the adoption of ASU 2016-13, the Company has updated its critical accounting policy related to trade accounts receivable and allowances for credit losses effective September 1, 2020 as follows:

All trade accounts receivable are reported net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our trade accounts receivable over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. The Company regularly performs detailed reviews of our pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. Receivables are written off against these reserves in the period they are determined to be uncollectable.

Prior to September 1, 2020, the Company evaluated the collectability of accounts receivable balances based on a combination of factors. In cases where the Company was aware of circumstances that may have impaired a specific customer’s ability to meet its financial obligations to it, a specific allowance against amounts due to the Company was recorded, and thereby reduced the net recognized receivable to the amount the Company reasonably believed would be collected. For all other customers, the Company recognized allowances for doubtful accounts based on the length of time the receivables were past due, industry and geographic factors, the current business environment and its historical experience.

Inventory

The Company values inventory at the lower of cost or net realizable value using the first in, first out (FIFO) method. Management assesses the recoverability of inventory based on types and levels of inventory held, forecasted demand and changes in technology. These assessments require management judgments and estimates, and valuation adjustments for excess and obsolete inventory may be recorded based on these assessments. We estimate excess and obsolescence exposures based upon assumptions about future demand, product transitions, and market conditions, and record adjustments to reduce inventories to their estimated net realizable value. The failure to accurately forecast demand may lead to additional excess and obsolete inventory and future charges.

Goodwill

The Company accounts for goodwill in accordance with ASC Topic 350, “Intangibles — Goodwill and Other.” The Company performs impairment reviews annually each fourth quarter and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable.

During the three-month period ended February 28, 2019 (fiscal 2019), the ordering patterns of the polyurethane dispersions reporting unit’s customers, especially those in the automotive industry, combined with a decrease in the reporting unit’s backlog of customer orders believed to be firm as of February 28, 2019, indicated that an impairment in the carrying value of the reporting unit might have occurred. The Company performed an impairment test on the indefinite-lived and long-lived assets related to the polyurethane dispersions reporting unit, now part of the Adhesives, Sealants and Additives operating segment and reporting unit (part of the former Industrial Materials segment during the second fiscal quarter of 2019), in accordance with ASC Topic 350, “Intangibles — Goodwill and Other” and ASC Topic 360, “Disclosure — Impairment or Disposal of Long-Lived Assets.” As a result of impairment testing, which included first testing long-lived assets other than goodwill for impairment under applicable guidance, the Company recorded a charge of $2,410 to loss on impairment of goodwill within the consolidated statement of operations during the quarter

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CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

ended February 28, 2019. The polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method).

The Company has adopted Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles — Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” When evaluating the potential impairment of goodwill, Chase first assesses a range of qualitative factors, including but not limited to, industry conditions, the competitive environment, changes in the market for our products and services, entity-specific factors such as strategy and changes in key personnel, and the overall financial performance for each of our reporting units relative to historical or projected future operating results. If after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then assess goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. If the fair value of a reporting unit is less than its carrying value, an impairment loss, limited to the amount of goodwill allocated to that reporting unit, is recorded. Fair values for reporting units are determined based on the income approach (discounted cash flow method).

For the annual fiscal 2021 fourth quarter review, no goodwill impairment, nor at-risk reporting units, was indicated as of August 31, 2021. For the annual fiscal 2021 goodwill impairment test, we performed a qualitative assessment of goodwill impairment and concluded that it was more likely than not that our reporting units' fair values exceeded their carrying values (i.e. indicated no impairment of goodwill). Accordingly, it was not necessary for us to perform the quantitative analysis.

Intangible Assets

Intangible assets consist of patents, formulas, trade names, customer relationships and trademarks. The Company capitalizes costs related to patent applications and technology agreements. The costs of these assets are amortized over the lesser of the useful life of the asset or its statutory life. Capitalized costs are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Property, Plant and Equipment

Property, plant and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Expenditures for maintenance repairs and minor renewals are charged to expense as incurred. Betterments and major renewals are capitalized. Upon retirement or other disposition of assets, related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is included in the determination of income or loss. The estimated useful lives of property, plant and equipment are as follows:

Buildings and improvements	15	to	40	years
Machinery and equipment	3	to	10	years

Leasehold improvements are depreciated over the lesser of the useful life or the term of the lease.

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CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Restricted Investments and Deferred Compensation

The Company has a non-qualified deferred savings plan that covers its Board of Directors and a separate plan covering selected employees. Participants may elect to defer a portion of their compensation for payment in a future tax year. The plans are funded by trusteed assets that are restricted to the payment of deferred compensation or satisfaction of the Company’s general creditors. The Company’s restricted investments under the plans were $2,260 and $1,619 at August 31, 2021 and 2020, respectively, and corresponding deferred compensation liabilities were $2,267 and $1,629 at August 31, 2021 and 2020, respectively. The Company accounts for the restricted investments as available for sale by recording net unrealized gains or losses in other comprehensive income as a component of stockholders’ equity.

Revenue

Effective September 1, 2018 (fiscal 2019), the Company adopted accounting standard ASU No. 2014-09, “Revenue from Contracts with Customers” (ASC 606) using the modified retrospective method for contracts that were not completed as of August 31, 2018. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, whereby the cumulative impact of all prior periods is recorded in retained earnings or other impacted balance sheet line items upon adoption. The impact on the Company’s consolidated balance sheets, and statements of operations, equity or cash flows as of the adoption date as a result of applying ASC 606 have been reflected within those respective financial statements. The Company’s accounting policy has been updated to align with ASC 606.

The adoption of ASC 606 represents a change in accounting principle that provides enhanced revenue recognition disclosures. The Company accounts for revenue from contracts with customers when: (a) there is approval and commitment from both parties; (b) the rights of the parties are identified; (c) payment terms are identified; (d) the contract has commercial substance; and (e) collectability of consideration is probable. Revenue is primarily derived from customer purchase orders, master sales agreements, and negotiated contracts, all of which represent contracts with customers. See Note 15 to the consolidated financial statements for more information on our accounting for revenue.

Research and Product Development Costs

Research and product development costs are expensed as incurred and include primarily engineering salaries, overhead and materials used in connection with research and development projects. Research and development expense amounted to $4,056, $4,007 and $4,021 for the years ended August 31, 2021, 2020 and 2019, respectively, and was recorded within Research and product development costs on the consolidated statements of operations.

Pension Plans

The Company accounts for its pension plans following the requirements of ASC Topic 715, “Compensation —Retirement Benefits” (“ASC 715”). ASC 715 requires an employer to: (a) recognize in its statement of financial position the funded status of a benefit plan; (b) measure defined benefit plan assets and obligations as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise but are not recognized as components of net periodic benefit costs pursuant to prior existing guidance.

53

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Stock-Based Compensation

In accordance with the accounting for stock-based compensation guidance, ASC Topic 718 “Compensation – Stock Compensation” (“ASC 718”), the Company measures and recognizes compensation expense for all share-based payment awards made to employees, directors and consultants based on estimated fair values. This includes restricted stock, restricted stock units and stock options. The guidance allows for the continued use of the simplified method as the Company has concluded that its historical share option exercise experience does not provide a reasonable basis for estimating expected term.

Stock-based compensation expense recognized in fiscal years 2021, 2020 and 2019 was $2,978, $3,208 and $2,176, respectively.

The fair value of options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions for the years ending August 31, 2021, 2020 and 2019:

	2021		2020		2019
Expected dividend yield	0.7	%	0.7	%	0.7	%
Expected life	6.0	years	6.0	years	6.0	years
Expected volatility	39.5	%	31.0	%	31.4	%
Risk-free interest rate	0.4	%	1.4	%	2.7	%

Expected volatility is determined by looking at a combination of historical volatility over the past six years as well as implied future volatility.

Translation of Foreign Currency

The financial position and results of operations of the Company’s HumiSeal Europe Ltd and Chase Protective Coatings Ltd businesses are measured using the British pound as the functional currency. The financial position and results of operations of the Company’s HumiSeal Europe SARL and ABchimie businesses in France are measured using euros as the functional currency. The financial position and results of the Company’s HumiSeal India Private Limited business in India are measured using the Indian rupee as the functional currency. The functional currency for all our other operations is the U.S. dollar. Revenue and expenses of these international businesses have been translated at average exchange rates. Foreign currency translation gains and losses are determined using current exchange rates for monetary items and historical exchange rates for other balance sheet items, and are recorded as a change in other comprehensive income (a component of stockholders’ equity). Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of these international operations are included in other income (expense) on the consolidated statements of operations and were gains (losses) of ($512), ($911) and ($48) for the fiscal years ended August 31, 2021, 2020 and 2019, respectively.

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CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Income Taxes

The Company accounts for income taxes under the asset and liability method. Under this method, a deferred tax asset or liability is determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Tax credits are recorded as a reduction in income taxes. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company estimates contingent income tax liabilities based on the guidance for accounting for uncertain tax positions as prescribed in ASC Topic 740, “Income Taxes.” See Note 7 for more information on the Company’s income taxes, including information on the effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on our financial position and results of operations.

Net Income Per Share

The Company has unvested share-based payment awards with a right to receive nonforfeitable dividends, which are considered participating securities under ASC Topic 260, “Earnings Per Share” (“ASC 260”). The Company allocates earnings to participating securities and computes earnings per share using the two-class method.

Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments, unrealized gains and losses on marketable securities and adjustments related to the change in the funded status of the pension plans.

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CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Segments

ASC Topic 280 “Segment Reporting” of the Financial Accounting Standards Board (“FASB”) codification establishes standards for reporting information about operating segments. The Company is organized into three reportable operating segments: Adhesives, Sealants and Additives; Industrial Tapes; and Corrosion Protection and Waterproofing. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets.

The Adhesives, Sealants and Additives segment offers innovative and specialized product offerings consisting of both end-use products and intermediates that are generally used in, or integrated into, another company’s products. Demand for the segment’s product offerings is typically dependent upon general economic conditions. The Adhesives, Sealants and Additives segment leverages the core specialty chemical competencies of the Company, and serves diverse markets and applications. The segment sells predominantly into the transportation, appliances, medical, general industrial and environmental market verticals. The segment’s products include moisture protective coatings and cleaners and customized sealant and adhesive systems for electronics, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning September 1, 2020 (first day of fiscal 2021), the Adhesives, Sealants and Additives segment includes the acquired operations of ABchimie, within the electronic and industrial coatings product line and beginning February 5, 2021, the acquired operations of Emerging Technologies, Inc. (“ETi”), within the functional additives product line.

The Industrial Tapes segment features wire and cable materials, specialty tapes, and other laminated and coated products. The segment derives its competitive advantage through its proven chemistries, diverse specialty offerings and the reliability its supply chain offers to end customers. These products are generally used in the assembly of other manufacturers’ products, with demand typically dependent upon general economic conditions. The Industrial Tapes segment sells mostly to established markets, with some exposure to growth opportunities through further development of existing products. Markets served include cable manufacturing, utilities and telecommunications, and electronics packaging. The segment’s offerings include insulating and conducting materials for wire and cable manufacturers, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing services, pulling and detection tapes used in the installation, measurement and location of fiber optic cable and water and natural gas lines, and cover tapes essential to delivering semiconductor components via tape and reel packaging.

The Corrosion Protection and Waterproofing segment is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. End markets include new and existing infrastructure projects on oil, gas, water and wastewater pipelines, highways and bridge decks, water and wastewater containment systems, and commercial buildings. The segment’s products include protective coatings for pipeline applications, coating and lining systems for waterproofing and liquid storage applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion joint systems for waterproofing applications in transportation and architectural markets. With sales generally dependent on outdoor project work, the segment experiences highly seasonal sales patterns.

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CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Contingent Consideration

In connection with accounting for the ABchimie acquisition on September 1, 2020, the Company recorded a contingent consideration liability included within Other liabilities on the consolidated balance sheet. The contingent consideration liability was valued using a Monte Carlo simulation model in an option pricing framework based on key inputs requiring significant judgments and estimates to be made by the Company, including forecasts of future earnings over the multiyear period encompassed by the earnout, and that are not all observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company assesses the fair value of the contingent consideration liability at each reporting period. Any subsequent changes in the estimated fair value of the liability are reflected in Loss on contingent consideration on the consolidated statement of operations until the liability is settled. If fully realized, the contingent consideration due would total €7,000 (approximately $8,330 at the time of the initial transaction)

Recently Adopted Accounting Standards

Fiscal 2021

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The ASU applies to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the ASU do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients and that are retained through the end of the hedging relationship. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. ASU 2020-04 has not had, and the Company does not expect it to have in future periods, a material impact on the Company's consolidated financial statements and disclosures.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which modifies the measurement approach for credit losses on financial assets measured on an amortized cost basis from an 'incurred loss' method to an 'expected loss' method. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13. This amendment provides clarity and improves the codification to ASU 2016-13. The pronouncements are concurrently effective for fiscal years beginning after December 15, 2019 and interim periods therein. The Company adopted ASU 2016-13 on September 1, 2020, using the modified retrospective transition method which resulted in no material impact on the consolidated financial statements.

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CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

As a result of the adoption of ASU 2016-13, the Company has updated its critical accounting policy related to trade accounts receivable and allowances for credit losses effective September 1, 2020 from the critical accounting policies previously disclosed in our audited financial statements for the year ended August 31, 2020 as follows:

All trade accounts receivable are reported net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our trade accounts receivable over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. The Company regularly performs detailed reviews of our pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected.

Fiscal 2020

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements.” The updated guidance provided an optional transition method, which allows for the application of the standard as of the adoption date with no restatement of prior period amounts. The Company adopted the standard on September 1, 2019 (start of fiscal 2020) under the optional transition method described above. Consequently, historical financial information was not updated, and the disclosures required under the new standard are not provided for dates and periods prior to September 1, 2019.

The new standard provides several optional practical expedients in transition. The Company has elected to apply the “package of practical expedients” which allows it to not reassess i) whether existing or expired arrangements contain a lease, ii) the lease classification of existing or expired leases, or iii) whether previous initial direct costs would qualify for capitalization under the new lease standard. In preparation for adoption of the standard, the Company enhanced its internal controls to enable the preparation of financial information including the assessment of the impact of the standard. The initial adoption of the ASU resulted in the recognition of additional lease liabilities of $9,644 ($2,071 short-term and $7,573 long-term) and right-of-use assets of $10,200 as of September 1, 2019 on the consolidated balance sheet as it relates to the Company’s operating leases. The new standard did not have a material impact on the Company’s consolidated statement of operations or cash flows.

58

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the current enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. Therefore, the Company adopted ASU 2018-02 in the first quarter of the year ending August 31, 2020, and has elected to reclassify the income tax effects of the Tax Reform related to its pension funding from accumulated other comprehensive loss to retained earnings.

Fiscal 2019

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amended guidance establishes a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance, including industry-specific guidance.

The amended guidance clarifies that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the amended guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 was effective for the Company’s interim and annual reporting periods beginning September 1, 2018 (fiscal 2019), and could have been adopted using either a full retrospective or modified retrospective transition method.

The Company adopted the amended guidance and all related amendments using the modified retrospective approach on September 1, 2018. The Company recognized the cumulative effect of initially applying the new revenue standard to all open contracts requiring recognition over time that were not completed on the date of adoption as an adjustment to the opening balance of retained earnings.

At the adoption date, the cumulative impact of revenue that would have been recognized over time was $80. The related adoption impact to retained earnings was $22, net of tax. The impact to net sales and net income as a result of applying ASC 606 was an increase of $67 and $5, respectively, for the year ended August 31, 2019. See Note 26 — “Revenue from Contracts with Customers” for further discussion of the effects of adoption.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230).” This ASU provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The Company adopted ASU No. 2016-15 on September 1, 2018, and the adoption did not have a material effect on its financial statements and related disclosures.

59

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.”  The new guidance dictates that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The Company adopted the ASU on September 1, 2018. The adoption had no material effect on the financial statements and related disclosures in fiscal 2021, 2020 or 2019. The effect ASU No. 2017-01 will have on the financial statements and related disclosures of the Company in future periods will be dependent on the nature of potential future acquisitions and divestitures.

In March 2017, the FASB issued ASU No. 2017-07, “Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715, Compensation — Retirement Benefits. The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The ASU also allows only the service cost component to be eligible for capitalization when applicable (e.g., as a cost of internally manufactured inventory or a self-constructed asset). The Company adopted ASU No. 2017-07 on September 1, 2018.

60

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 2—Inventory

Inventory consisted of the following as of August 31, 2021 and 2020:

	August 31,		August 31,
	2021		2020
Raw materials	$	24,055	$	18,993
Work in process		5,928		7,761
Finished goods		11,234		12,304
Total Inventory	$	41,217	$	39,058

Note 3—Property, Plant and Equipment

Property, plant and equipment consisted of the following as of August 31, 2021 and 2020:

	August 31,		August 31,
	2021		2020
Land and improvements	$	5,020	$	4,997
Buildings		16,904		17,992
Machinery and equipment		49,505		51,942
Leasehold improvements		2,891		2,212
Construction in progress		613		714
		74,933		77,857
Accumulated depreciation		(50,666)		(52,283)
Property, plant and equipment, net	$	24,267	$	25,574

Note 4—Goodwill and Intangible Assets

The changes in the carrying value of goodwill, by operating segment, were as follows:

	Adhesives, Sealants and Additives		Industrial Tapes		Corrosion Protection and Waterproofing		Consolidated
Balance at August 31, 2019	$	50,090	$	21,215	$	10,681	$	81,986
Foreign currency translation adjustment		397		—		19		416
Balance at August 31, 2020	$	50,487	$	21,215	$	10,700	$	82,402
Acquisition of ABchimie		13,055		—		—		13,055
Acquisition of Emerging Technologies, Inc.		2,451		—		—		2,451
Foreign currency translation adjustment		(48)		—		6		(42)
Balance at August 31, 2021	$	65,945	$	21,215	$	10,706	$	97,866

61

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The Company’s goodwill is allocated to each reporting unit based on the nature of the products manufactured by the respective business combinations that originally created the goodwill. The Company has identified a total of three reporting units, corresponding to its three reportable operating segments that are used to evaluate the possible impairment of goodwill. Goodwill impairment exists when the carrying amount of goodwill exceeds its fair value. Assessments of possible impairment of goodwill are made when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable through future operations. Additionally, testing for possible impairment of recorded goodwill and certain intangible asset balances is required annually. The amount and timing of any impairment charges based on these assessments require the estimation of future cash flows and the fair market value of the related assets based on management’s best estimates of certain key factors, including future selling prices and volumes; operating, raw material and energy costs; and various other projected operating and economic factors, including the anticipated future impact of the coronavirus disease 2019 (COVID-19) pandemic. When testing, fair values of the reporting units and the related implied fair values of their respective goodwill are established using discounted cash flows.

The Company adopted Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles — Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” When evaluating the potential impairment of goodwill, we first assess a range of qualitative factors, including but not limited to, industry conditions, the competitive environment, changes in the market for our products and services, entity-specific factors such as strategy and changes in key personnel, and the overall financial performance for each of our reporting units relative to historical or projected future operating results. If after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then assess goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. If the fair value of a reporting unit is less than its carrying value, an impairment loss, limited to the amount of goodwill allocated to that reporting unit, is recorded. Fair values for reporting units are determined based on the income approach (discounted cash flow method).

During the three-month period ended February 28, 2019 (fiscal 2019), the ordering patterns of the polyurethane dispersions reporting unit’s customers, especially those in the automotive industry, combined with a decrease in the reporting unit’s backlog of customer orders believed to be firm as of February 28, 2019, indicated that an impairment in the carrying value of the reporting unit might have occurred. The Company performed an impairment test on the indefinite-lived and long-lived assets related to the polyurethane dispersions reporting unit, now part of the Adhesives, Sealants and Additives operating segment and reporting unit (part of the former Industrial Materials segment during the second fiscal quarter of 2019), in accordance with ASC Topic 350, “Intangibles — Goodwill and Other” and ASC Topic 360, “Disclosure — Impairment or Disposal of Long-Lived Assets.” As a result of impairment testing, which included first testing long-lived assets other than goodwill for impairment under applicable guidance, the Company recorded a charge of $2,410 to loss on impairment of goodwill within the consolidated statement of operations during the quarter ended February 28, 2019. The polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method).

The Company performs impairment reviews annually each fourth quarter and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable. For the annual fiscal 2021 goodwill impairment test, we performed a qualitative assessment of goodwill impairment and concluded that it was more likely than not that our reporting units' fair values exceeded their carrying values (i.e. indicated no impairment of goodwill). Accordingly, it was not necessary for us to perform the quantitative analysis.

As of August 31, 2021 and 2020, the Company had a total goodwill balance of $97,866 and $82,402, respectively, related to its acquisitions, of which $30,697 and $31,591 respectively, remained deductible for income taxes.

62

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Intangible assets subject to amortization consisted of the following as of August 31, 2021 and 2020:

	Weighted Average		Gross Carrying		Accumulated		Net Carrying
	Amortization Period		Value		Amortization		Value
August 31, 2021
Patents and agreements	14.6	years	$	1,760	$	1,715	$	45
Formulas and technology	7.9	years		10,987		9,769		1,218
Trade names	5.9	years		8,836		8,285		551
Customer lists and relationships	9.2	years		116,855		71,715		45,140
			$	138,438	$	91,484	$	46,954
August 31, 2020
Patents and agreements	14.6	years	$	1,760	$	1,705	$	55
Formulas and technology	7.8	years		10,250		9,121		1,129
Trade names	5.8	years		8,575		7,781		794
Customer lists and relationships	9.1	years		98,966		59,744		39,222
			$	119,551	$	78,351	$	41,200

Aggregate amortization expense related to intangible assets for the years ended August 31, 2021, 2020 and 2019 was $12,858, $11,576 and $12,445, respectively. As of August 31, 2021 estimated amortization expense for the next five fiscal years is as follows:

Years ending August 31,
2022	11,862
2023	8,746
2024	7,538
2025	5,939
2026	5,144

Note 5—Cash Surrender Value of Life Insurance

The Company recognized cash surrender value of a life insurance policy with the following carrier as of August 31, 2021 and 2020:

	2021		2020
John Hancock	$	4,450	$	4,450
Cash surrender value of life insurance policies	$	4,450	$	4,450

The policy is subject to periodic review. The Company currently intends to maintain the policy through the life or retirement of the insured, and records at the premium paid balance.

63

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 6—Long-Term Debt

Long-term debt consisted of the following at August 31, 2021 and 2020:

	2021		2020
All-revolving credit facility with a borrowing capacity of $150,000	$	—	$	—
All-revolving credit facility with a borrowing capacity of $200,000		—		—
Long-term debt	$	—	$	—

On July 27, 2021 (the fourth quarter of fiscal 2021), the Company entered into the Second Amended and Restated Credit Agreement (the “New Credit Agreement”) by and among the Company (the “Chase Borrower”), NEPTCO Incorporated (“NEPTCO”), the guarantor subsidiaries party thereto, the financial institutions party thereto as Lenders, and Bank of America, N.A., as administrative agent, with participation from Wells Fargo Bank, N.A., PNC Bank, N.A. and JPMorgan Chase Bank, N.A. The New Credit Agreement was entered into to amend, restate and extend the Company’s preexisting Amended and Restated Credit Agreement (the “Prior Credit Agreement”), which previously had a maturity date of December 15, 2021 and is discussed in more detail below, and to provide for additional liquidity to finance acquisitions, working capital and capital expenditures, and for other general corporate purposes. Under the New Credit Agreement, Chase obtained an increased revolving credit loan (the “New Revolving Facility”), with borrowing capabilities not to exceed $200,000 at any time, with the ability to request an increase in this amount by an additional $100,000 at the individual or collective option of any of the Lenders. The applicable interest rate for the New Revolving Facility and New Term Loan (defined below) is based on the effective London Interbank Offered Rate (LIBOR) plus a range of 1.00% to 1.75%, depending on the consolidated net leverage ratio of Chase and its subsidiaries. At August 31, 2021, there was no outstanding principal balance, and as such, no applicable interest rate.

The New Credit Agreement has a five-year term with interest payments due at the end of the applicable LIBOR period (but in no event less frequently than the three-month anniversary of the commencement of such LIBOR period) and principal payment due at the expiration of the agreement, July 27, 2026. The New Credit Agreement contains provisions that may replace LIBOR as the benchmark index under certain circumstances. In addition, the Company may elect a base rate option for all or a portion of the New Revolving Facility, in which case interest payments shall be due with respect to such portion of the New Revolving Facility on the last business day of each quarter. Subject to certain conditions set forth in the New Credit Agreement, the Company may elect to convert all or a portion of the outstanding New Revolving Facility into a new term loan twice during the term of the New Revolving Facility (each, a “New Term Loan”, and collectively with the New Revolving Facility, the “New Credit Facility”), which New Term Loan shall be payable quarterly in equal installments sufficient to amortize the original principal amount of such Term Loan on a ten year amortization schedule.

The outstanding balance on the New Credit Facility is guaranteed by all of Chase’s direct and indirect domestic subsidiaries, which collectively had a carrying value of approximately $283,610 at August 31, 2021. The New Credit Facility is subject to restrictive covenants under the New Credit Agreement, and financial covenants that require Chase and its subsidiaries to maintain certain financial ratios on a consolidated basis, including a consolidated net leverage ratio of 3.25 to 1.00 and a consolidated interest coverage ratio of 3.50 to 1.00 (both defined in the New Credit Agreement). Chase Corporation was in compliance with the debt covenants as of August 31, 2021. The New Credit Agreement also places certain Lender-approval requirements as to the size of permitted acquisitions which may be entered into by the Company and its subsidiaries, and allows for a temporary step-up in the allowed consolidated leverage ratio for the four fiscal quarters ending after certain designated acquisitions. Prepayment is allowed by the New Credit Agreement at any

64

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

time during the term of the agreement, subject to customary notice requirements and the payment of customary LIBOR breakage fees.

In connection with entry into the New Credit Agreement, Chase amended and restated its Prior Credit Agreement, the Revolving Facility which was substantially available as of July 27, 2021, and the Term Loan option of which was never utilized, and which together fully constituted the Prior Credit Agreement.

The Prior Credit Agreement was an all-revolving credit facility with a borrowing capacity of $150,000, which could be increased by an additional $50,000 at the request of the Company and the individual or collective option of any of the lenders, and with an interest rate based on the effective LIBOR plus an additional amount in the range of 1.00% to 1.75%, depending on our consolidated net leverage ratio or, at the Company’s option, at the bank’s base lending rate.

65

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 7—Income Taxes

The Company has applied the U.S. statutory Federal rate of 21%, enacted as part of the Tax Cuts and Jobs Act (the “Tax Act”) in December 2017, for fiscal years end August 31, 2021, 2020 and 2019.

In fiscal 2019, the Company began recognizing an additional component of total Federal tax expense, the tax on Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Act, which became applicable to the Company in fiscal 2019. The Company elected to account for GILTI as a period cost, and therefore included GILTI expense in the effective tax rate calculation. This provision did not have a material effect on the effective tax rate for the years ended August 31, 2021, 2020 and 2019.

The Company concluded that the Base Erosion and Anti Abuse Tax (“BEAT”) provision of the Tax Act, which also became applicable to the Company in fiscal 2019, had no effect on our effective tax rate for fiscal 2021, 2020 or 2019.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, included a technical correction to the Tax Act which will allow accelerated deductions for qualified improvement property. The Company is currently evaluating the impact of the CARES Act, but at present does not expect that the qualified improvement property correction nor other provisions of the CARES Act would result in a material tax benefit to us in future periods. The CARES Act had no material effect on the effective tax rate for fiscal 2021 and 2020.

In July 2020, the United States Internal Revenue Service (“IRS”) released final regulations (TD 9901) that ease documentation standards and provide greater flexibility for taxpayers claiming the deduction for Foreign-Derived Intangible Income (“FDII”). During fiscal 2021, the Company’s effective tax rate included an FDII deduction benefit of $665. Also during fiscal 2021, the Company favorably resolved multiple uncertain tax positions and established international management fee and other transactions which resulted in $933 of tax benefit and $791 of tax expense, respectively.

Domestic and foreign pre-tax income for the years ended August 31, 2021, 2020 and 2019 was:

	Year Ended August 31,
	2021		2020		2019
United States	$	52,182	$	42,027	$	37,088
Foreign		6,412		3,293		6,465
	$	58,594	$	45,320	$	43,553

66

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The provision (benefit) for income taxes for the years ended August 31, 2021, 2020 and 2019 was:

	Year Ended August 31,
	2021		2020		2019
Current:
Federal	$	11,677	$	9,157	$	9,880
State		782		1,813		1,699
Foreign		2,123		962		1,575
Total current income tax provision		14,582		11,932		13,154
Deferred:
Federal		(832)		(520)		(1,699)
State		(124)		(184)		(529)
Foreign		48		(65)		(84)
Total deferred income tax benefit		(908)		(769)		(2,312)
Total income tax provision	$	13,674	$	11,163	$	10,842

The provision (benefit) for income taxes differs from the amount computed by applying the Federal statutory income tax rate to income before income taxes. The Company’s combined federal, state and foreign effective tax rate as a percentage of income before taxes for fiscal 2021, 2020 and 2019, net of offsets generated by federal, state and foreign tax benefits, was 23.3%, 24.6% and 24.9%, respectively. The following is a reconciliation of the effective income tax rate with the U.S. Federal statutory income tax rate for the years ended August 31, 2021, 2020 and 2019:

	Year Ended August 31,
	2021		2020		2019
Federal statutory rates	21.0	%	21.0	%	21.0	%
Adjustment resulting from the tax effect of:
State and local taxes, net of federal benefit	2.3	%	3.0	%	2.1	%
Foreign tax rate differential	(0.3)	%	0.0	%	0.1	%
Adjustment to uncertain tax position	0.1	%	(1.1)	%	1.0	%
Transaction costs not deductible	0.0	%	0.5	%	0.0	%
Research credit generated	(0.1)	%	(0.1)	%	(0.3)	%
Stock Compensation	(0.3)	%	(0.3)	%	(0.4)	%
Permanent items	1.1	%	0.9	%	1.1	%
GILTI and Subpart F, net of foreign tax credit	0.3	%	0.3	%	0.6	%
Other	(0.4)	%	0.4	%	(0.4)	%
Change in valuation allowance	0.0	%	0.0	%	0.1	%
Deferred income tax remeasurement	0.1	%	0.0	%	0.0	%
Foreign Derived Intangible Income	(1.1)	%	0.0	%	0.0	%
Performance-based earnout contingency	0.6	%	0.0	%	0.0	%
Effective income tax rate	23.3	%	24.6	%	24.9	%

67

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The following table summarizes the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities:

	As of August 31,
	2021		2020
Deferred tax assets:
Allowance for doubtful accounts	$	320	$	309
Inventories		520		994
Accruals		966		504
Warranty reserve		6		14
Pension accrual		2,386		2,749
Deferred compensation		545		391
Foreign currency loss on previously taxed income		96		96
Loan finance costs		3		7
Restricted stock grants		327		823
Non-qualified stock options		347		211
Lease liability		2,328		2,354
Foreign net operating loss, net of valuation allowance		192		247
Other		41		572
		8,077		9,271
Deferred tax liabilities:
Prepaid liabilities		(18)		(16)
Foreign intangibles		(3,156)		—
Right-of-use asset		(2,280)		(2,693)
Depreciation and amortization		(659)		(1,633)
		(6,113)		(4,342)
Net deferred tax assets (liabilities)	$	1,964	$	4,929

As of August 31, 2021, the Company had $599 of gross foreign operating loss carry forwards to offset future taxable income, the net balance of which was included within deferred income taxes. The net operating losses will begin to expire in fiscal year ending August 31, 2025.

Chase Corporation is required to apply a valuation allowance to reduce the deferred tax assets reported if based on the weight of the evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of August 31, 2021, the Company determined that a valuation allowance was not needed.

Consistent with the Company’s practice prior to the passage of the Tax Act, we do not currently take the position that undistributed foreign subsidiaries’ earnings are considered to be permanently reinvested.

68

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

A summary of the Company’s adjustments to its uncertain tax positions, included within long-term accrued income taxes on the consolidated balance sheet, in fiscal years ended August 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
Balance, at beginning of the year	$	1,941	$	2,324	$	1,889
Increase for tax positions related to the current year		—		101		55
Increase (decrease) for tax positions related to prior years		1,180		(609)		300
Decreases for settlement of uncertain tax positions		(705)		—		—
Increase for interest and penalties		208		125		106
Decrease for lapses of statute of limitations		(434)		—		(26)
Balance, at end of year	$	2,190	$	1,941	$	2,324

The unrecognized tax benefits mentioned above include an aggregate of $487 of accrued interest and penalty balances related to uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. An increase in accrued interest and penalty charges of approximately $208, net of Federal tax expense, was recorded as a tax expense during the current fiscal year. The Company anticipates that its accrual for uncertain tax positions could change by approximately $510 over the next twelve-month period due to statute of limitations expiration.

The Company is subject to U.S. Federal income tax, as well as to income tax of multiple state, local and foreign tax jurisdictions. The statute of limitations for all material U.S. Federal, state, and local tax filings remains open for fiscal years subsequent to 2017. For foreign jurisdictions, the statute of limitations remains open in the U.K and France for fiscal years subsequent to 2017.

Note 8—Leases

Effective September 1, 2019 (the start of fiscal 2020), the Company adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective approach and utilizing the effective date as its date of initial application. The Company has elected to apply the ‘package of practical expedients’ which allows it to not reassess i) whether existing or expired arrangements contain a lease, ii) the lease classification of existing or expired leases, or iii) whether previous initial direct costs would qualify for capitalization under the new lease standard.

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets and short-term and long-term lease liabilities, as applicable. The Company does not have any financing leases that are material in nature.

Operating lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company believes it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment.

The Company has elected not to recognize leases with an original term of one year or less on the balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew.

69

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The following table presents the right-of-use asset and short-term and long-term lease liabilities amounts recorded on the consolidated balance sheet as of August 31, 2021 and 2020:

	August 31,		August 31,
	2021		2020
Assets
Operating lease right-of-use asset	$	9,312	$	8,821
Liabilities
Current (accrued expenses)	$	1,515	$	1,865
Operating lease long-term liabilities		7,202		6,395
Total lease liability	$	8,717	$	8,260

Lease cost

The components of lease costs for the years ended August 31, 2021 and 2020 are as follows:

	Year Ended August 31,
	2021		2020
Operating lease cost (a)	$	3,772	$	3,783

(a) Includes short-term leases and variable lease costs (e.g. common area maintenance), which are immaterial. ​ ​

Maturity of lease liability

The maturity of the Company's lease liabilities on August 31, 2021 was as follows:

	Future Operating
Year ending August 31,	Lease Payments
2022		1,750
2023		1,596
2024		1,519
2025		1,358
2026		1,075
2027 and thereafter		2,330
Less: Interest		(911)
Present value of lease liabilities	$	8,717

70

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The weighted average remaining lease term and discount rates are as follows:

	August 31,			August 31,
	2021			2020
Lease Term and Discount Rate
Weighted average remaining lease term (years)
Operating leases		6.8			5.5
Weighted average discount rate (percentage)
Operating leases		3.1	%		3.1	%

Other Information

Supplemental cash flow information related to leases is as follows:

	Year Ended August 31,
	2021		2020
Operating cash outflows from operating leases	$	2,266	$	2,444
Total cash paid for amounts included in the measurement of lease liabilities	$	2,266	$	2,444

Total rental expense for all operating leases amounted to $3,772, $3,783 and $3,734 for the years ended August 31, 2021, 2020 and 2019, respectively.

Note 9—Benefits and Pension Plans

401(k) Plans

The Company has a defined contribution plan adopted pursuant to section 401(k) of the Internal Revenue Code of 1986 (the “Chase 401(k) Plan”). Any qualified employee who has attained age 21 and has been employed by the Company for at least three months may contribute a portion of his or her salary to the plan and the Company will match 100% of the first one percent of salary contributed and 50% thereafter, up to an amount equal to three and one-half percent of such employee’s annual salary.

The Company’s contribution expense for all 401(k) plans was $844, $852 and $787 for the years ended August 31, 2021, 2020 and 2019, respectively.

Non-Qualified Deferred Savings Plans

The Company has a non-qualified deferred savings plan covering the Board of Directors and a separate plan covering selected employees. Participants may elect to defer a portion of their compensation for future payment. The plans are funded by trusteed assets that are restricted to the payment of deferred compensation or satisfaction of the Company’s general creditors. The Company’s liability under the plans was $2,267 and $1,629 on August 31, 2021 and 2020, respectively.

Pension Plans

The Company has noncontributory defined benefit pension plans covering employees of certain divisions of the Company. The Company has a funded, qualified plan (“Qualified Plan”) and an unfunded supplemental plan (“Supplemental Plan”) designed to maintain benefits for certain employees at the plan formula level. The plans provide

71

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

for pension benefits determined by a participant’s years of service and final average compensation. The Qualified Plan assets consist of separate pooled investment accounts with a trust company. The measurement date for the plans is August 31, 2021.

Effective December 1, 2008, a “soft freeze” in the Qualified Plan was adopted whereby no new employees hired would be admitted to the Qualified Plan, with the exception of employees who were members of the International Association of Machinists and Aerospace Workers Union whose contract was amended in June 2012 to include a soft freeze with an effective date of July 15, 2012. All eligible participants who were admitted to the plan prior to the applicable soft freeze dates continue to accrue benefits as detailed in the plan agreements.

Through our wholly-owned subsidiary NEPTCO, the Company had a third defined benefit pension plan (“NEPTCO Pension Plan”) covering our union employees at our Pawtucket facility. This plan was frozen effective October 31, 2006, and as a result, no new participants could enter the plan and the benefits of current participants were frozen as of that date. The benefits were based on years of service and the employee’s average compensation during the earlier of five years before retirement, or October 31, 2006. The NEPTCO Pension Plan assets consisted of separate pooled investment accounts with a trust company. The measurement date for the NEPTCO Pension Plan was historically the same as the Company’s fiscal year end.

In August 2019, the Board of Directors approved a plan to terminate the NEPTCO Pension Plan. The Company established November 15, 2019 as the plan termination date and during fiscal 2020 performed the administrative actions required to carry out the termination. No balance related to the NEPTCO defined benefit plan was carried on the Company’s consolidated balance sheet as of August 31, 2021 or 2020.

The following tables reflect the status of the Company’s pension plans for the years ended August 31, 2021 2020 and 2019:

	Year Ended August 31,
	2021		2020		2019
Change in benefit obligation
Projected benefit obligation at beginning of year	$	20,663	$	20,087	$	21,860
Service cost		366		295		283
Interest cost		341		451		696
Actuarial (gain) loss		645		2,253		995
Benefits paid		(1,754)		(2,423)		(3,747)
Projected benefit obligation at end of year	$	20,261	$	20,663	$	20,087
Change in plan assets
Fair value of plan assets at beginning of year	$	8,168	$	7,859	$	9,855
Actual return on plan assets		1,301		868		181
Employer contribution		1,565		1,864		1,570
Benefits paid		(1,754)		(2,423)		(3,747)
Fair value of plan assets at end of year	$	9,280	$	8,168	$	7,859
Funded status at end of year	$	(10,981)	$	(12,495)	$	(12,228)

72

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

	Year Ended August 31,
	2021		2020		2019
Amounts recognized in consolidated balance sheets
Noncurrent assets	$	—	$	—	$	—
Current liabilities		(1,565)		(1,565)		(1,743)
Noncurrent liabilities		(9,416)		(10,930)		(10,485)
Net amount recognized in consolidated balance sheets	$	(10,981)	$	(12,495)	$	(12,228)
Actuarial present value of benefit obligation and funded status
Accumulated benefit obligations	$	17,898	$	18,307	$	18,244
Projected benefit obligations	$	20,261	$	20,663	$	20,087
Plan assets at fair value	$	9,280	$	8,168	$	7,859
Amounts recognized in accumulated other comprehensive income
Prior service cost	$	40	$	44	$	47
Net actuarial loss		9,674		10,595		9,638
Adjustment to pre-tax accumulated other comprehensive income	$	9,714	$	10,639	$	9,685

	Year Ended August 31,
	2021		2020		2019
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain)/loss	$	(884)	$	711	$	1,863
Amortization of loss		(656)		(664)		(472)
Supplemental plan assumption change		619		1,065		(620)
Amortization of prior service cost		(3)		(3)		(3)
Effect of settlement on accumulated other comprehensive income		—		(155)		(511)
Total recognized in other comprehensive income		(924)		954		257
Net periodic pension cost		975		1,178		1,537
Total recognized in net periodic pension cost and other comprehensive income	$	51	$	2,132	$	1,794
Estimated amounts that will be amortized from accumulated comprehensive income over the next fiscal year
Prior service cost	$	3	$	3	$	3
Net actuarial loss		593		656		500

Prior service cost arose from the amendment of the plan’s benefit schedules to comply with the Tax Reform Act of 1986 and adoption of the unfunded supplemental pension plan.

73

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Components of net periodic pension cost for the fiscal years ended August 31, 2021, 2020 and 2019 included the following:

	2021		2020		2019
Components of net periodic benefit cost
Service cost	$	366	$	295	$	283
Interest cost		341		451		696
Expected return on plan assets		(391)		(390)		(428)
Amortization of prior service cost		3		3		3
Amortization of accumulated loss		656		664		472
Curtailment and settlement loss		—		155		511
Net periodic benefit cost	$	975	$	1,178	$	1,537

Weighted average assumptions used to determine benefit obligations as of August 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
Discount rate
Qualified plan	2.15	%	1.92	%	2.58	%
Supplemental plan	1.95	%	1.65	%	2.37	%
NEPTCO plan	—	%	—	%	2.29	%
Rate of compensation increase
Qualified and Supplemental plan	3.50	%	3.50	%	3.50	%
NEPTCO plan	—	%	—	%	—	%

Weighted average assumptions used to determine net periodic benefit cost for the years ended August 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
Discount rate
Qualified plan	1.92	%	2.58	%	3.80	%
Supplemental plan	1.65	%	2.37	%	3.57	%
NEPTCO plan	—	%	2.29	%	3.59	%
Expected long-term return on plan assets
Qualified plan	5.25	%	5.60	%	5.40	%
Supplemental plan	—	%	—	%	—	%
NEPTCO plan	—	%	5.60	%	5.40	%
Rate of compensation increase
Qualified and Supplemental plan	3.50	%	3.50	%	3.50	%
NEPTCO plan	—	%	—	%	—	%

It is the Company’s policy to evaluate, on an annual basis, the discount rate used to determine the projected benefit obligation to approximate rates on high quality, long-term obligations. The Moody’s Corporate Aa Bond index has generally been used as a benchmark for this purpose, with adjustments made if the duration of the index differed from that of the plan. The discount rate is determined by matching the expected payouts from the respective plans to the spot rates inherent in the FTSE Pension Discount Curve (formerly Citigroup Pension Discount Curve). A single rate is then developed, that when applied to the expected cash flows, results in the same present value as determined using the various spot rates. The Company believes that this approach produces the most appropriate approximation of the plan liability.

74

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The Company estimates that each 100-basis point reduction in the discount rate would result in additional (decreased) net periodic pension cost, the Company’s primary pension obligation, of approximately $41 for the Qualified Plan and ($49) for the Supplemental Plan. The expected return on plan assets is derived from a periodic study of long-term historical rates of return on the various asset classes included in the Company’s targeted pension plan asset allocation. The Company estimates that each 100-basis point reduction in the expected return on plan assets would result in additional net periodic pension cost of approximately $75 for the Qualified Plan. No rate of return is assumed for the Supplemental Plan since that plan is currently not funded. The rate of compensation increase is also evaluated and is adjusted by the Company, if necessary, periodically.

Qualified Plan Assets

The investment policy for the Qualified Plan is based on ERISA standards for prudent investing. The fundamental goal underlying the investment policy is to ensure that the assets of the plans are invested in a prudent manner to meet the obligations of the plans as these obligations come due. The primary investment objectives include providing a total return which will promote the goal of benefit security by attaining an appropriate ratio of plan assets to plan obligations, to provide for real asset growth while also tracking plan obligations, to diversify investments across and within asset classes, to reduce the impact of losses in single investments, and to follow investment practices that comply with applicable laws and regulations.

The primary policy objectives will be met by investing assets to achieve a reasonable tradeoff between return and risk relative to the plan’s obligations. This includes investing a portion of the assets in funds selected in part to hedge the interest rate sensitivity to plan obligations.

The Qualified Plan assets are invested in a diversified mix of both domestic and foreign equity investments and fixed income securities. Asset manager performance is reviewed at least annually and benchmarked against the peer universe for the given investment style. The Company’s expected return for the Qualified Plan is 4.85%. To determine the expected long-term rate of return on the assets for the Qualified Plan, the Company considered the historical and expected return on the plan assets, as well as the current and expected allocation of the plan assets.

Asset allocation is monitored on an ongoing basis relative to the established asset class targets. The interaction between plan assets and benefit obligations is periodically studied to assist in the establishment of strategic asset allocation targets. The investment policy permits variances from the targets within certain parameters. Asset rebalancing occurs when the underlying asset class allocations move outside these parameters, at which time the asset allocation is rebalanced back to the policy target weight.

The Qualified Plan has the following target allocation and weighted average asset allocations as of August 31, 2021, 2020 and 2019:

	Target
	Allocation		Percentage of Plan Assets as of August 31,
Asset Category	Range		2021		2020		2019
Equity securities	10-80	%	46	%	49	%	44	%
Debt securities	20-70	%	54	%	51	%	56	%
Other	0-100	%	—	%	—	%	—	%
Total	100	%	100	%	100	%	100	%

75

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

NEPTCO Pension Plan Assets

Prior to the NEPTCO Pensions Plan’s termination and full payout in fiscal 2020, the investment policy for the NEPTCO Pension Plan was based on ERISA standards for prudent investing. The fundamental goal underlying the investment policy was to ensure that the assets of the plans were invested in a prudent manner to meet the obligations of the plan as these obligations come due. The primary investment objectives included maximization of return within reasonable and prudent levels of risk, provision of returns comparable to returns for similar investment options, provision of exposure to a wide range of investment opportunities in various asset classes and vehicles, control of administrative and management costs, and provision of appropriate diversification within investment vehicles.

The primary policy objectives were met by investing assets to achieve a reasonable tradeoff between return and risk relative to the plan’s obligations. This included investing a portion of the assets in funds selected in part to hedge the interest rate sensitivity to plan obligations.

The NEPTCO Pension Plan assets were invested in a diversified mix of fixed income, and both domestic and foreign equity investments. The ongoing monitoring of investments was a regular and disciplined process and confirmed that the criteria remain satisfied. The process of monitoring investment performance relative to specified guidelines was consistently applied.

Historically, to determine the expected long-term rate of return on the assets for the NEPTCO Pension Plan, the Company considered the historical and expected return on the plan assets, as well as the current and expected allocation of the plan assets.

Given the plan’s termination and full payout in 2020, the plan no longer holds assets as of August 31, 2021 and 2020. The NEPTCO Pension Plan had the following target allocation and weighted average asset allocations as of August 31, 2021, 2020 and 2019:

	Target
	Allocation		Percentage of Plan Assets as of August 31,
Asset Category	Range		2021		2020		2019
Equity securities	10-80	%	—	%	—	%	44	%
Debt securities	20-70	%	—	%	—	%	56	%
Other	0-100	%	—	%	—	%	—	%
Total	100	%	—	%	—	%	100	%

76

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Fair Market Value of Pension Plan Assets

The Company is required to categorize pension plan assets using a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The following table presents the Company’s pension plan assets at August 31, 2021 and 2020 by asset category:

			Fair value measurements at								Fair value measurements at
			August 31, 2021								August 31, 2020
					Significant								Significant
			Quoted prices		other		Significant				Quoted prices		other		Significant
			in active		observable		unobservable				in active		observable		unobservable
	August 31,		markets		inputs		inputs		August 31,		markets		inputs		inputs
	2021		(Level 1)		(Level 2)		(Level 3)		2020		(Level 1)		(Level 2)		(Level 3)
Asset Category
Equity securities	$	4,241	$	4,241	$	—	$	—	$	3,986	$	3,986	$	—	$	—
Debt securities		5,039		5,039		—		—		4,182		4,182		—		—
Total	$	9,280	$	9,280	$	—	$	—	$	8,168	$	8,168	$	—	$	—

Level 1 Assets: The fair values of the common stocks, corporate bonds and U.S. Government securities included in this tier are based on the closing price reported on the active market where the individual securities are traded.

Estimated Future Benefit Payments

The following pension benefit payments (which include expected future service) are assumed to be paid in each of the following fiscal years based on the participants’ normal retirement age, and giving consideration to the termination of the NEPTCO Pension plan:

Year ending August 31,	Pension Benefits
2022	$	3,150
2023		2,333
2024		1,997
2025		1,818
2026		1,785
2027-2031	$	4,875

The Company contributed $1,565, $1,864 and $1,570 to fund its obligations under the pension plans for the years ended August 31, 2021, 2020 and 2019, respectively, including final cash outlays related to the termination of the NEPTCO plan in fiscal 2020. The Company plans to make the necessary contributions during fiscal 2022 to ensure its pension plans continue to be adequately funded given the current market conditions and does not anticipate a material change from amounts contributed during the current fiscal year.

77

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 10—Stockholders’ Equity

2013 Equity Incentive Plan

In October 2012, the Company adopted, and the stockholders subsequently approved, the 2013 Equity Incentive Plan (the “2013 Plan”). The 2013 Plan permits the grant of restricted stock, stock options, deferred stock, stock payments or other awards to employees, participating officers, directors, consultants and advisors who are linked directly to increases in shareholder value. The aggregate number of shares available for grant under the 2013 Plan was initially 1,200,000. Additional shares may become available in connection with share splits, share dividends or similar transactions. As of August 31, 2021, 949,220 shares remained available for future grant under the 2013 Plan.

2005 Incentive Plan

In November 2005, the Company adopted, and the stockholders subsequently approved, the 2005 Incentive Plan (the “2005 Plan”). The 2005 Plan permits the grant of restricted stock, stock options, deferred stock, stock payments or other awards to employees, participating officers, directors, consultants and advisors who are linked directly to increases in shareholder value. The aggregate number of shares available for grant under the 2005 Plan was initially 1,000,000. The Company is no longer granting equity awards under the 2005 Plan. Options to purchase 34,076 shares of common stock remained outstanding under the 2005 Plan as of August 31, 2021.

Restricted Stock

Employees and Executive Management

During the first quarter of fiscal 2016, a grant of 5,000 restricted shares was made to a non-executive member of management with a vesting date of October 20, 2020. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2016, the Board of Directors of the Company approved the fiscal year 2017 LTIP for the executive officers and other members of management. The 2017 LTIP was an equity-based plan with a grant date of September 1, 2016. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 5,399 shares in the aggregate, subject to adjustment based on fiscal 2017 results, with a vesting date of August 31, 2019, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 5,367 shares in the aggregate, with a vesting date of August 31, 2019, for which compensation expense was recognized on a ratable basis over the vesting period.

Based on the fiscal year 2017 financial results, 5,399 additional shares of restricted stock (total of 10,798 shares) were earned and granted subsequent to the end of fiscal year 2017 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award.

In August 2016, the Board of Directors of the Company also approved equity retention agreements with certain executive officers. The equity-based retention agreements had a grant date of September 1, 2016. In addition to the stock option component described below, the equity retention agreements contained a time-based restricted stock grant of 16,312 shares in the aggregate, with 7,768 shares having a vesting date of August 31, 2019, and 8,544 shares initially having a vesting date of August 31, 2021. The latter award was amended in August 2017 to vest in five equal annual installments over the five-year period following the grant date. Compensation expense was recognized on a ratable basis over the vesting period.

78

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

During the first quarter of fiscal 2017, additional grants totaling 8,805 shares of restricted stock were issued to non-executive members of management with a vesting date of August 31, 2021. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2017, the Board of Directors of the Company approved the fiscal year 2018 LTIP for the executive officers and other members of management. The 2018 LTIP was an equity-based plan with a grant date of September 1, 2017. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 4,249 shares in the aggregate, subject to adjustment based on fiscal 2018 results, with a vesting date of August 31, 2020, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,473 shares in the aggregate, with a vesting date of August 31, 2020, for which compensation expense was recognized on a ratable basis over the vesting period.

Based on the fiscal year 2018 financial results, 572 additional shares of restricted stock (total of 4,821 shares) were earned and granted subsequent to the end of fiscal year 2018 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award.

During the third quarter of fiscal 2018, an additional grant totaling 192 shares of restricted stock was issued to a non-executive member of management with a vesting date of August 31, 2020. Compensation expense was recognized on a ratable basis over the vesting period.

During the fourth quarter of fiscal 2018, an additional grant totaling 609 shares of restricted stock was issued to an executive member of management with a vesting date of August 20, 2019. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2018, the Board of Directors of the Company approved the fiscal year 2019 LTIP for the executive officers and other members of management. The 2019 LTIP was an equity-based plan with a grant date of September 1, 2018. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 3,541 shares in the aggregate, subject to adjustment based on fiscal 2019 results, with a vesting date of August 31, 2021, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,068 shares in the aggregate, with a vesting date of August 31, 2021, for which compensation expense was recognized on a ratable basis over the vesting period.

In September 2018, restricted stock in the amount of 2,472 shares related to a first quarter of fiscal 2017 grant was forfeited in conjunction with the termination of employment of a non-executive member of management of the Company.

During the fourth quarter of fiscal 2019, an additional grant of restricted stock was made related to the 2019 LTIP grant in conjunction with an amendment to the equity compensation program for a promoted employee. The additional grant contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 211 shares in the aggregate, subject to adjustment based on fiscal 2019 results, with a vesting date of August 31, 2021, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 132 shares in the aggregate, with a vesting date of August 31, 2021, for which compensation expense was recognized on a ratable basis over the vesting period.

In August 2019, restricted stock in the amount of 833 shares related to the 2019 LTIP grant was forfeited in conjunction with an amendment in the equity compensation agreement of an employee.

79

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Based on the fiscal year 2019 financial results, 2,694 shares of restricted stock already granted under the 2019 LTIP were forfeited subsequent to the end of fiscal year 2019 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award. Compensation expense relating to the remaining portion was recognized on a ratable basis over the vesting period.

In August 2019, the Board of Directors of the Company approved the fiscal year 2020 LTIP for the executive officers and other members of management. The 2020 LTIP is an equity-based plan with a grant date of September 1, 2019 and contains the following equity components: (a) a performance and service-based restricted stock grant of 3,697 shares in the aggregate, subject to adjustment based on fiscal 2020 results, with a vesting date of August 31, 2022, for which compensation expense is being recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,689 shares in the aggregate, with a vesting date of August 31, 2022, for which compensation expense is being recognized on a ratable basis over the vesting period.

In August 2019, the Board of Directors of the Company approved equity retention agreements with certain executive officers. The equity-based retention agreements have a grant date of September 1, 2019 and contained time-based restricted stock grants of 15,945 shares in the aggregate, and have a vesting date of August 31, 2022. Compensation expense is being recognized on a ratable basis over the vesting period.

During the second quarter of fiscal 2020, additional grants of 432,616 and 18,720 shares of restricted stock (total of 19,768) were issued to non-executive members of management with vesting dates of December 31, 2021, 2022 and 2024, respectively. Compensation expense is being recognized on a ratable basis over the vesting period.

In May 2020, restricted stock in the amount of 432 shares related to a second quarter of fiscal 2020 grant was forfeited in conjunction with the termination of employment of a non-executive member of management of the Company.

During the fourth quarter of fiscal 2020, two additional grants totaling 481 shares and 261 shares of restricted stock were issued to two non-executive members of management, with vesting dates of July 27, 2021 and June 15, 2021, respectively. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2020, the Board of Directors of the Company approved the fiscal year 2021 LTIP for the executive officers and other members of management. The 2021 LTIP is an equity-based plan with a grant date of September 1, 2020 and contains the following equity components: (a) a performance and service-based restricted stock grant of 3,798 shares in the aggregate, subject to adjustment based on fiscal 2021 results, with a vesting date of August 31, 2023, for which compensation expense is recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 4,919 shares in the aggregate, with a vesting date of August 31, 2023, for which compensation expense is recognized on a ratable basis over the vesting period.

In the first quarter of 2021, restricted stock in the amount of 952 shares related to the second quarter of fiscal 2020 grant was forfeited in conjunction with the termination of employment of non-executive members of management of the Company.

In January 2021, restricted stock in the amount of 4,409 shares of common stock were forfeited in conjunction with the termination without cause of a now former executive of the Company.

In February 2021, a performance and service-based restricted stock grant totaling 521 shares, and a time-vesting restricted stock grant in the amount of 261 shares was granted in conjunction with the appointment of a new executive of the Company. The restricted shares vest on the same terms as those granted under the 2021 LTIP in September 2020. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

80

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

In the fourth quarter of 2021, restricted stock in the amount of 447 shares related to the second quarter of fiscal 2020 grant was forfeited in conjunction with the termination of employment of non-executive members of management of the Company.

Non-employee Consultants and Advisors

In February 2021, restricted stock in the amount of 2,306 shares were granted to a consultant of the Company, with a two-year vesting term including continued service requirements. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

Non-employee Board of Directors

In February 2018, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 2,779 shares of restricted stock for service for the period from January 31, 2018 through January 31, 2019. The shares of restricted stock vested at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month vesting period.

In February 2019, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 4,599 shares of restricted stock for service for the period from January 31, 2019 through January 31, 2020. The shares of restricted stock vested at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month vesting period.

In February 2020, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 4,906 shares of restricted stock for service for the period from January 31, 2020 through January 31, 2021. The shares of restricted stock vested at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month vesting period.

In December 2020, restricted stock in the amount of 110 shares were granted to certain non-employee members of the board of directors in relation to their service on the board. These shares vested during the second fiscal quarter of 2021.

In February 2021, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 4,525 shares of restricted stock for service for the period from January 31, 2021 through January 31, 2022. The shares of restricted stock will vest at the conclusion of this service period. Compensation is being recognized on a ratable basis over the twelve-month vesting period.

81

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

A summary of the transactions of the Company’s restricted stock plans for the years ended August 31, 2021, 2020 and 2019 is presented below:

	Non Employee Directors	Weighted Average Grant Date Fair Value		Non Employee Consultants and Advisors	Weighted Average Grant Date Fair Value		Officers and Employees	Weighted Average Grant Date Fair Value
Unvested restricted stock at August 31, 2018	2,779	$	101.05	—			65,579	$	61.85
Granted	4,599	$	101.92	—			7,524	$	121.64
Vested	(2,779)	$	101.05	—			(25,443)	$	65.79
Forfeited or cancelled	—			—			(3,305)	$	79.39
Unvested restricted stock at August 31, 2019	4,599	$	101.92	—			44,355	$	67.18
Granted	4,906	$	95.59	—			43,841	$	108.47
Vested	(4,599)	$	101.92	—			(25,195)	$	61.51
Forfeited or cancelled	—			—			(3,126)	$	123.19
Unvested restricted stock at August 31, 2020	4,906	$	95.59	—			59,875	$	97.72
Granted	4,635	$	104.09	2,306	$	108.42	9,499	$	98.10
Vested	(5,016)	$	95.59	—			(19,978)	$	80.13
Forfeited or cancelled	—			—			(6,195)	$	103.86
Unvested restricted stock at August 31, 2021	4,525	$	104.09	2,306	$	108.42	43,201	$	107.37

Stock Options

In August 2016, the Board of Directors of the Company approved the fiscal year 2017 LTIP for the executive officers and other members of management. The 2017 LTIP is an equity-based plan with a grant date of September 1, 2016 and included options to purchase 15,028 shares of common stock in the aggregate with an exercise price of $64.37 per share. The options vested in three equal annual installments ending on August 31, 2019. Of the options granted, 5,596 options will expire on August 31, 2026, and 9,432 options will expire on September 1, 2026. Compensation expense was recognized over the period of the award consistent with the vesting terms.

In August 2016, the Board of Directors of the Company approved equity retention agreements with certain executive officers. The equity-based retention agreements have a grant date of September 1, 2016 and included options to purchase 23,563 shares of common stock in the aggregate with an exercise price of $64.37 per share. These options cliff vested on August 31, 2019 and will expire on August 31, 2026. Compensation expense was recognized over the period of the award consistent with the vesting terms.

In August 2017, the Board of Directors of the Company approved the fiscal year 2018 LTIP for the executive officers and other members of management. The 2018 LTIP is an equity-based plan with a grant date of September 1, 2017 and included options to purchase 9,622 shares of common stock in the aggregate with an exercise price of $93.50 per share. The options vested in three equal annual installments ending on August 31, 2020. Of the options granted, 4,591 options will expire on August 31, 2027, and 5,031 options will expire on September 1, 2027. Compensation expense was recognized over the period of the award consistent with the vesting terms.

82

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

During the third quarter of fiscal 2018, an additional grant of options to purchase 606 shares of common stock with an exercise price of $104.00 was issued to a non-executive member of management. The options vested in three equal annual installments ending on August 31, 2020 and will expire on March 1, 2028. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2018, the Board of Directors of the Company approved the fiscal year 2019 LTIP for the executive officers and other members of management. The 2019 LTIP was an equity-based plan with a grant date of September 1, 2018 and included options to purchase 8,603 shares of common stock in the aggregate with an exercise price of $123.95 per share. The options vested in three equal annual installments ending on August 31, 2021. Of the options granted, 3,927 options will expire on August 31, 2028, and 4,676 options will expire on September 1, 2028. Compensation expense was recognized over the period of the award consistent with the vesting terms.

During the fourth quarter of fiscal 2019, an additional grant of 483 options to purchase shares of common stock with an exercise price of $99.38 per share was made related to the 2019 LTIP grant and in conjunction with an amendment to the equity compensation program for a promotion of an employee. The options vested in three equal installments on August 31, 2019, 2020 and 2021, and will expire on August 31, 2028. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2019, the Board of Directors of the Company approved the fiscal year 2020 LTIP for the executive officers and other members of management. The 2020 LTIP is an equity-based plan with a grant date of September 1, 2019 and included options to purchase 13,418 shares of common stock in the aggregate with an exercise price of $100.22 per share. The options vest in three equal annual installments ending on August 31, 2022. Of the options granted, 6,218 options will expire on August 31, 2029, and 7,200 options will expire on September 1, 2029. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

In August 2019, the Board of Directors of the Company also approved equity retention agreements with certain executive officers. The equity-based retention agreements have a grant date of September 1, 2019 and contain stock options to purchase 53,642 shares of common stock in the aggregate with an exercise price of $100.22 per share. The options will cliff vest on August 31, 2022 and will expire on August 31, 2029. Compensation expense is being recognized on a ratable basis over the vesting period.

In August 2020, the Board of Directors of the Company approved the fiscal year 2021 LTIP for the executive officers and other members of management. The 2020 LTIP is an equity-based plan with a grant date of September 1, 2020 and included options to purchase 14,845 shares of common stock in the aggregate with an exercise price of $97.57 per share. The options vest in three equal annual installments ending on August 31, 2023. Of the options granted, 5,391 options will expire on August 31, 2030, and 9,454 options will expire on September 1, 2030. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

In January 2021, options to purchase 18,129 shares of common stock were forfeited in conjunction with the termination without cause of a now former executive of the Company. Options to purchase an additional 306 shares of common stock were forfeited in April 2021 related to this same termination.

In February 2021, options to purchase 749 shares of common stock with an exercise price of $104.04 per share were granted in conjunction with the appointment of a new executive of the Company. The stock options vest on the same terms as those granted in September 2020 under the 2021 LTIP. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

83

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The following table summarizes information about stock options outstanding as of August 31, 2021:

		Options Outstanding						Options Exercisable
Exercise Prices		Number Outstanding	Weighted Avg. Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Exercisable	Weighted Average Exercise Price		Aggregate Intrinsic Value
$	16.00	2,533	1.1	$	16.00	$	250	2,533	$	16.00	$	250
$	29.72	10,925	2.0	$	29.72	$	926	10,925	$	29.72	$	926
$	35.50	13,372	3.0	$	35.50	$	1,056	13,372	$	35.50	$	1,056
$	39.50	12,753	4.0	$	39.50	$	956	12,753	$	39.50	$	956
$	64.37	32,920	5.0	$	64.37	$	1,650	32,920	$	64.37	$	1,650
$	93.50	8,704	6.0	$	93.50	$	183	8,704	$	93.50	$	183
$	97.57	13,579	9.0	$	97.57	$	230	4,526	$	97.57	$	77
$	100.22	50,024	8.0	$	100.22	$	714	7,972	$	100.22	$	114
$	104.00	606	6.5	$	104.00	$	6	606	$	104.00	$	6
$	104.04	749	9.0	$	104.04	$	8	250	$	104.04	$	3
$	123.95	8,144	7.0	$	123.95	$	—	8,144	$	123.95	$	—
		154,309	6.0	$	76.24	$	5,979	102,705	$	64.41	$	5,221

Options are granted with an exercise price that is equal to the closing market value of the Company’s common stock on the day preceding the grant date, which is determined not to be materially different from the opening market value on the date of grant.

A summary of the transactions of the Company’s stock option plans for the years ended August 31, 2021, 2020 and 2019 is presented below:

	Officers and Employees	Weighted Average Exercise Price
Options outstanding at August 31, 2018	99,190	$	50.17
Granted	9,086	$	122.64
Exercised	(7,022)	$	42.86
Forfeited or cancelled	—
Options outstanding at August 31, 2019	101,254	$	57.18
Granted	67,060	$	100.22
Exercised	(3,618)	$	34.21
Forfeited or cancelled	—
Options outstanding at August 31, 2020	164,696	$	75.21
Granted	15,594	$	97.88
Exercised	(7,546)	$	38.79
Forfeited or cancelled	(18,435)		100.62
Options outstanding at August 31, 2021	154,309	$	76.24
Options exercisable at August 31, 2021	102,705	$	64.41

The weighted average grant date fair value of options granted in the years ended August 31, 2021, 2020 and 2019 was $34.45, $29.79 and $40.12 per share, respectively.

84

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The total pretax intrinsic value of stock options exercised was $558, $311 and $403 for the years ended August 31, 2021, 2020, and 2019, respectively.

Excluding the effects of common stock reserved for issuance upon exercise of the 154,309 outstanding options, there were 949,220 shares of common stock available for future issuance under the Company’s 2013 Equity Incentive Plan on August 31, 2021. Based on historic experience, management estimates all outstanding stock options will vest.

The income tax benefit realized from stock options exercised, vesting of restricted stock and issuance of stock pursuant to grants of restricted stock units was $114, $149 and $157 for the years ended August 31, 2021, 2020 and 2019, respectively.

As of August 31, 2021, unrecognized expense related to all stock-based compensation described above was $3,687 (including $3,076 for restricted stock and $611 for stock options), which will be recognized over the next four fiscal years.

85

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 11—Segment Data

The Company is organized into three reportable operating segments: Adhesives, Sealants and Additives; Industrial Tapes; and Corrosion Protection and Waterproofing. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets.

The Adhesives, Sealants and Additives segment offers innovative and specialized product offerings consisting of both end-use products and intermediates that are generally used in, or integrated into, another company’s product. Demand for the segment’s product offerings is typically dependent upon general economic conditions. This segment leverages the core specialty chemical competencies of the Company, and serves diverse markets and applications. The segment sells predominantly into the transportation, appliances, medical, general industrial and environmental market verticals. The segment’s products include moisture protective coatings and customized sealant and adhesive systems for electronics, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning September 1, 2020, the Adhesives, Sealants and Additives segment includes the acquired operations of ABchimie, within the electronic and industrial coatings product line and beginning February 5, 2021, the acquired operations of ETi, within the functional additives product line.

The Industrial Tapes segment features wire and cable materials, specialty tapes, and other laminated and coated products. The segment derives its competitive advantage through its proven chemistries, diverse specialty offerings and the reliability its supply chain offers to end customers. These products are generally used in the assembly of other manufacturers’ products, with demand typically dependent upon general economic conditions. This segment sells mostly to established markets, with some exposure to growth opportunities through further development of existing products. Markets served include cable manufacturing, utilities and telecommunications, and electronics packaging. The segment’s offerings include insulating and conducting materials for wire and cable manufacturers, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing services, pulling and detection tapes used in the installation, measurement and location of fiber optic cable and water and natural gas lines, and cover tapes essential to delivering semiconductor components via tape and reel packaging.

The Corrosion Protection and Waterproofing segment is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. End markets include new and existing infrastructure projects on oil, gas, water and wastewater pipelines, highways and bridge decks, water and wastewater containment systems, and commercial buildings. The segment’s products include protective coatings for pipeline applications, coating and lining systems for waterproofing and liquid storage applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion joint systems for waterproofing applications in transportation and architectural markets. With sales generally dependent on outdoor project work, the segment experiences highly seasonal sales patterns.

86

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The following tables summarize information about the Company’s segments:

	Years Ended August 31,
	2021			2020			2019
Revenue
Adhesives, Sealants and Additives	$	126,864		$	96,208		$	104,796
Industrial Tapes		120,873			118,960			129,845
Corrosion Protection and Waterproofing		45,599			45,994			46,710
Total	$	293,336		$	261,162		$	281,351
Income before income taxes
Adhesives, Sealants and Additives	$	36,520	(a)	$	25,953		$	27,142	(g)
Industrial Tapes		37,407			31,237	(d)		28,216	(h)
Corrosion Protection and Waterproofing		15,913	(b)		16,638	(e)		15,909	(i)
Total for reportable segments		89,840			73,828			71,267
Corporate and common costs		(31,246)	(c)		(28,508)	(f)		(27,714)	(j)
Total	$	58,594		$	45,320		$	43,553
Includes the following costs by segment:
Adhesives, Sealants and Additives
Interest	$	116		$	98		$	177
Depreciation		1,065			994			1,467
Amortization		10,685			9,313			9,359
Industrial Tapes
Interest	$	83		$	111		$	216
Depreciation		1,718			1,746			1,755
Amortization		1,537			1,800			1,800
Corrosion Protection and Waterproofing
Interest	$	98		$	37		$	126
Depreciation		588			615			674
Amortization		636			463			1,286

(a) Includes $1,664 in loss on the upward adjustment of the performance-based earn out contingent consideration associated with the September 2020 acquisition of ABchimie and $977 in exit costs related to the movement of the sealants system business out of the Newark, CA location and into the Hickory, NC location during fiscal 2021

(b) Includes expense of $100 for the write-down of certain assets under construction

(c) Includes $128 in acquisition-related expense attributable to the February 2021 acquisition of the operations of ETi

(d) Includes $559 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first six months of fiscal 2020

(e) Includes $170 gain on the refund of a payment made in fiscal 2019 related to engineering studies performed to assess potential operational changes and further plant rationalization and consolidation and an expense of $405 for the write-down of certain assets under construction

(f) Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to the Company’s companywide ERP system, a $760 gain related to the April 2020 sale of the Company’s Pawtucket, RI location, a $1,791 gain related to the August 2020 sale of the Company’s Randolph, MA property, $183 in severance expense related to the May 2020 reduction in force, $85 in expenses related to the final transition out of the Pawtucket, RI facility, $155 of pension-related settlement costs due to the timing of lump-sum distribution and $274 in acquisition-related costs attributable to the September 2020 (fiscal 2021) acquisition of ABchimie

(g) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business

(h) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019, and $526 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the second half of fiscal 2019

(i) Includes $200 of expense related to engineering studies performed to assess potential future operational changes and further plant rationalization and consolidation, see note (e)

(j) Includes $511 of pension-related settlement costs due to the timing of lump-sum distributions

87

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

	August 31,		August 31,
	2021		2020
Total Assets
Adhesives, Sealants and Additives	$	161,968	$	129,457
Industrial Tapes		72,301		71,229
Corrosion Protection and Waterproofing		31,067		32,642
Total for reportable segments		265,336		233,328
Corporate and common assets		138,823		113,502
Total	$	404,159	$	346,830

Note 12—Export Sales and Foreign Operations

Export sales from continuing domestic operations to unaffiliated third parties were $33,439, $30,067 and $30,582 for the years ended August 31, 2021, 2020 and 2019, respectively. The increase in export sales in fiscal 2021 against fiscal 2020 in a reflection of the overall year-over-year increase in sales results.

The Company’s products are sold worldwide. Revenue for the years ended August 31, 2021, 2020 and 2019, are attributed to operations located in the following countries:

	Years Ended August 31,
	2021		2020		2019
Revenue
United States	$	245,476	$	226,690	$	248,281
United Kingdom		24,846		20,543		17,504
All other foreign (1)		23,014		13,929		15,566
Total	$	293,336	$	261,162	$	281,351

(1) Inclusive of sales originated from the Company’s French locations (including ABchimie for fiscal 2021), royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations.

88

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

As of August 31, 2021 and 2020, the Company had long-lived assets (defined as tangible assets providing the Company with a future economic benefit beyond the current year or operating period, including buildings, equipment and leasehold improvements) and goodwill and intangible assets, less accumulated amortization in the following countries:

	August 31,		August 31,
	2021		2020
Long-Lived Assets
United States
Property, plant and equipment, net	$	20,990	$	22,427
Goodwill and Intangible assets, less accumulated amortization		115,936		117,930
United Kingdom
Property, plant and equipment, net		2,174		2,320
Goodwill and Intangible assets, less accumulated amortization		3,905		4,403
All other foreign
Property, plant and equipment, net		1,103		827
Goodwill and Intangible assets, less accumulated amortization		24,979		1,269
Total
Property, plant and equipment, net	$	24,267	$	25,574
Goodwill and Intangible assets, less accumulated amortization	$	144,820	$	123,602

Note 13—Supplemental Cash Flow Data

Supplemental cash flow information for the years ended August 31, 2021, 2020 and 2019 is as follows:

	2021		2020		2019
Income taxes paid	$	17,074	$	11,186	$	11,714
Interest paid	$	245	$	230	$	728
Noncash Investing and Financing Activities
Common stock received for payment of stock option exercises	$	206	$	123	$	119
Property, plant and equipment additions included in accounts payable	$	256	$	92	$	67

89

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Supplemental cash flow information as related to acquisitions and divestitures for the years ended August 31, 2021, 2020 and 2019 is as follows:

	2021		2020		2019
Acquisition of Emerging Technologies, Inc (ETi)
Accounts receivable	$	481
Inventory		919
Prepaids and other current assets		8
Property, plant & equipment		7
Goodwill		2,451
Intangible assets		6,650
Accounts payable and accrued liabilities		(519)
Other liabilities (due to sellers)		(1,000)
Payments for acquisitions		(8,997)
Acquisition of ABchimie
Accounts receivable	$	697
Inventory		239
Prepaids and other current assets		696
Property, plant & equipment		245
Goodwill		13,055
Intangible assets		12,055
Operating lease right-of-use asset		473
Deferred tax liability		(3,387)
Accounts payable and accrued liabilities		(431)
Operating lease liabilities (inclusive of short- and long-term)		(473)
Other liabilities (due to sellers)		(928)
Payments for acquisitions, net of cash received		(22,241)
Sale of Randolph, MA Property
Asset held for sale			$	(14)
Gain on sale of real estate				(1,791)
Cash received from sale of real estate, net				1,805
Sale of Pawtucket, RI Location
Asset held for sale			$	(1,050)
Gain on sale of real estate				(760)
Cash received from sale of real estate, net				1,810
Sale of Fiber Optic Cable Components Product Line
Due from sale of business					$	(400)
Cash received from sale of product line, net of transaction costs						400

90

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 14—Acquisitions

Acquisition of Emerging Technologies, Inc. (“ETi”)

On February 5, 2021, the Company acquired certain assets of Emerging Technologies, Inc. (“ETi”), a superabsorbent polymers solutions provider, located in Greensboro, NC. The business was acquired for a purchase price of $9,997, comprising $8,997 paid on February 5, 2021 and an accrual of $1,000 to be paid out up to eighteen months after the purchase (included in accrued expenses at August 31, 2021), subsequent to final working capital adjustments, and excluding acquisition-related costs. As part of this transaction, Chase acquired substantially all working capital and fixed assets of the business and entered a multi-year lease at ETi’s existing location. The Company expensed $128 of acquisition-related costs in fiscal 2021 associated with this acquisition. The purchase was funded with available cash on hand. ETi is a solutions provider and formulator of absorbent polymers for use in the packaging, recreational, consumer, and sanitation markets. The acquisition broadens the Company’s superabsorbent polymers product offerings and formulation capabilities while expanding its market reach. The Company is currently in the process of finalizing purchase accounting regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed, and anticipates completion within the first half of fiscal 2022. Since the effective date of the acquisition, the financial results of ETi’s acquired operations have been included in the Company’s financial statements within the functional additives product line, contained within the Adhesives, Sealants and Additives operating segment. The ETi acquisition does not represent a significant business combination so pro forma financial information is not provided.

The excess of the purchase price over the net tangible and intangible assets acquired resulted in preliminary goodwill of $2,451 that is largely attributable to the synergies and economies of scale from combining the operations, technologies and research and development capabilities of ETi and Chase, particularly as they pertain to the expansion of the Company's product and service offerings, the established workforce and marketing efforts. This goodwill is deductible for income tax purposes.

Acquisition of ABchimie

On September 1, 2020 (first day of fiscal 2021), the Company acquired all the capital stock of ABchimie for €18,654 (approximately $22,241 at the time of the transaction) net of cash acquired, subsequent to final working capital adjustment, excluding acquisition-related costs totaling $274 recognized in fiscal 2020 and with a performance-based earn out (measured over four years post-acquisition) potentially worth an additional €7,000 (approximately $8,330 at the time of the transaction). The Company accrued $2,537 at August 31, 2021 within Other liabilities on the consolidated balance sheet related to its current estimate of the earn out. Following its initial recording at the acquisition date, a $1,664 increase in the performance-based earn out accrual was recorded within Loss on contingent consideration in the condensed consolidated statement of operations for the year ended August 31, 2021. See Note 16 to the consolidated financial statements for additional information on the estimate of contingent consideration payable.

ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and protection of electronic assemblies, with ‎further formulation, production, and research and development capabilities‎. The transaction was funded with available cash on hand. The financial results of the business are included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company finalized purchase accounting during the fourth quarter of fiscal 2021, with no significant change to amounts initially recorded. The ABchimie acquisition does not represent a significant business combination so pro forma financial information is not provided.

91

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The excess of the purchase price over the net tangible and intangible assets acquired resulted in goodwill preliminarily measured at $13,055 that is largely attributable to the synergies and economies of scale from combining the operations, technologies and research and development capabilities of ABchimie and Chase, particularly as they pertain to the expansion of the Company's product and service offerings, the established workforce and marketing efforts. A portion of this goodwill is deductible in the U.S. for calculation of GILTI period costs but is nondeductible for French income tax purposes.

Note 15—Revenue from Contracts with Customers

The Company accounts for revenue in accordance with ASC 606, “Revenue from Contracts with Customers,” adopted September 1, 2018 (beginning of fiscal 2019). This revenue is generated from the manufacture of specialty chemical products including coatings, linings, adhesives, sealants, specialty tapes, polymers and laminates. Certain of these manufactured products can incorporate customer-owned materials. The Company also recognizes, to a lesser extent, revenue through royalties and commissions from licensed manufacturers and from providing custom manufacturing-related services. The Company’s revenue recognition policies require the Company to make significant judgments and estimates. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers, which can be either at a point in time or over time based on contractual terms with customers. Revenue is generally recognized at a point in time when control passes upon either shipment to or receipt by the customer of the Company’s products, while revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition.

Contract Balances

The Company’s contract assets primarily relate to unbilled revenue for products currently in production at the Company’s facilities and which incorporate customer-owned material. Revenue is recognized in advance of billing to the customer in these specific circumstances, whereas billing is typically performed at the time of shipment to or receipt by the customer. Contract assets are included in prepaid expenses and other current assets on the Company’s consolidated balance sheet. The following table presents contract assets by reportable operating segment as of August 31, 2021 and 2020:

	August 31,		August 31,
	2021		2020
Contract Assets
Adhesives, Sealants and Additives	$	21	$	20
Industrial Tapes		82		21
Corrosion Protection and Waterproofing		25		41
Total	$	128	$	82

The Company did not have any contract liabilities as of August 31, 2021 and 2020.

92

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Disaggregated Revenue

The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the years ended August 31, 2021, 2020 and 2019 was as follows:

	Year Ended August 31, 2021
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	76,388	$	106,084	$	37,879	$	220,351
Asia		28,033		7,903		4,933		40,869
Europe		21,846		4,657		2,591		29,094
All other foreign		597		2,229		196		3,022
Total Revenue	$	126,864	$	120,873	$	45,599	$	293,336
	Year Ended August 31, 2020
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	64,711	$	105,911	$	36,252	$	206,874
Asia		17,877		7,150		6,361		31,388
Europe		13,201		3,286		3,047		19,534
All other foreign		419		2,613		334		3,366
Total Revenue	$	96,208	$	118,960	$	45,994	$	261,162
	Year Ended August 31, 2019
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	70,320	$	117,955	$	37,463	$	225,738
Asia		19,430		7,126		6,524		33,080
Europe		14,773		2,637		2,455		19,865
All other foreign		273		2,127		268		2,668
Total Revenue	$	104,796	$	129,845	$	46,710	$	281,351

Practical Expedients and Policy Elections

Shipping and Handling Policy Election — the Company has made an accounting policy election to record shipping and handling activities occurring after control has passed to the customer to be treated as a fulfillment cost rather than as a distinct performance obligation. Shipping and handling expenses consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded within cost of products and services sold. Amounts billed to customers as shipping and handling are classified as revenue when services are performed.

Considering Existence of a Significant Financing Component — as a practical expedient, an entity need not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a promised good or service to the customer and

93

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

when the customer pays for that good or service will be one year or less. Given the time between the Company transferring a promised good or service to the customer and the customer paying for that good or service is less than one year based on the terms of arrangements with customers, the Company does not adjust the promised amount of consideration for effects of a significant financing component.

Note 16—Fair Value Measurements

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers are: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company utilizes the best available information in measuring fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The financial assets classified as Level 1 and Level 2 as of August 31, 2021 and 2020 represent investments that are restricted for use in nonqualified retirement savings plans for certain key employees and directors.

The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of August 31, 2021 and 2020:

				Fair value measurement category
				Quoted prices		Significant other		Significant
	Fair value			in active markets		observable inputs		unobservable inputs
	measurement date	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Restricted investments	August 31, 2021	$	2,260	$	2,016	$	244	$	—
Restricted investments	August 31, 2020	$	1,619	$	1,395	$	224	$	—

The following table presents the fair value of the Company’s liabilities that are accounted for at fair value on a recurring basis as of August 31, 2021 and 2020:

				Fair value measurement category
				Quoted prices		Significant other		Significant
	Fair value			in active markets		observable inputs		unobservable inputs
	measurement date	Total		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Long-term debt	August 31, 2021	$	—	$	—	$	—	$	—
Contingent consideration	August 31, 2021	$	2,537	$	—	$	—	$	2,537
Long-term debt	August 31, 2020	$	—	$	—	$	—	$	—
Contingent consideration	August 31, 2020	$	—	$	—	$	—	$	—

The long-term debt (including any current portion of long-term debt) had no outstanding balance as of August 31, 2021 and 2020. The carrying value of the long-term debt approximates its fair value, as the interest rate is set based on the movement of the underlying market rates. See Note 6 to the consolidated financial statements for additional information on long-term debt.

94

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

In connection with accounting for the ABchimie acquisition on September 1, 2020, the Company recorded a contingent consideration liability included within Other liabilities on the consolidated balance sheet of €780 (approximately $928) on the acquisition date, representing the then fair value of contingent consideration payable upon the achievement of a performance-based target. The contingent consideration liability was valued using a Monte Carlo simulation model in an option pricing framework based on key inputs that are not all observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company assesses the fair value of the contingent consideration liability at each reporting period. Any subsequent changes in the estimated fair value of the liability are reflected in Loss on contingent consideration on the consolidated statement of operations until the liability is settled. As of August 31, 2021, the liability increased to $2,537 predominantly due to changes in non-market data assumptions as well as a shorter period to the payment date. See Note 14 to the consolidated financial statements for additional information on the acquisition of ABchimie.

Note 17—Net Income Per Share

The determination of earnings per share under the two-class method is as follows:

	Years Ended August 31,
	2021		2020		2019
Net income	$	44,920	$	34,157	$	32,711
Less: Allocated to participating securities		309		273		257
Available to common shareholders	$	44,611	$	33,884	$	32,454
Basic weighted average shares outstanding		9,383,085		9,359,940		9,334,232
Additional dilutive common stock equivalents		45,331		79,810		44,975
Diluted weighted average shares outstanding		9,428,416		9,439,750		9,379,207
Net income available to common shareholders, per common and common equivalent share
Basic	$	4.75	$	3.62	$	3.48
Diluted	$	4.73	$	3.59	$	3.46

For the years ended August 31, 2021, 2020 and 2019, stock options to purchase 59,508, 11,183 and 12,901 shares of common stock were outstanding but were not included in the calculation of diluted net income per share because their inclusion would be antidilutive. Included in the calculation of dilutive common stock equivalents are the unvested portion of restricted stock and stock options.

95

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 18—Accumulated Other Comprehensive Income

The changes in accumulated other comprehensive income (loss), net of tax, were as follows:

			Change in Funded		Foreign Currency
	Restricted		Status of		Translation
	Investments		Pension Plans		Adjustment		Total
Balance at August 31, 2019	$	154	$	(6,271)	$	(8,207)	$	(14,324)
Other comprehensive gains (losses) before reclassifications		143		(1,278)		3,163		2,028
Reclassifications to net income of previously deferred (gains) losses		(28)		620		—		592
Other comprehensive income (loss)		115		(658)		3,163		2,620
Adoption of ASU 2018-02		—		(1,388)		—		(1,388)
Balance at August 31, 2020	$	269	$	(8,317)	$	(5,044)	$	(13,092)
Balance at August 31, 2020	$	269	$	(8,317)	$	(5,044)	$	(13,092)
Other comprehensive gains (losses) before reclassifications		297		(159)		1,295		1,433
Reclassifications to net income of previously deferred (gains) losses		(48)		497		—		449
Other comprehensive income (loss)		249		338		1,295		1,882
Balance at August 31, 2021	$	518	$	(7,979)	$	(3,749)	$	(11,210)

96

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income:

	Amount of Gain (Loss) Reclassified from
	Accumulated Other Comprehensive Income
	(Loss) into Income
	Year Ended		Year Ended		Location of Gain (Loss) Reclassified from Accumulated
	August 31, 2021		August 31, 2020		Other Comprehensive Income (Loss) into Income
Gains on Restricted Investments:
Realized loss (gain) on sale of restricted investments	$	(65)	$	(37)	Selling, general and administrative expenses
Tax expense (benefit)		17		9
Gain net of tax	$	(48)	$	(28)
Loss on Funded Pension Plan adjustments:
Amortization of prior pension service costs and unrecognized losses	$	659	$	667	Other income (expense)
Settlement and curtailment loss		—		155	Other income (expense)
Tax expense (benefit)		(162)		(202)
Loss net of tax	$	497	$	620
Total net loss reclassified for the period	$	449	$	592

Note 19—Sale of Real Estate

Sale of Randolph, MA Property

In August 2020, the Company finalized the sale of its Randolph, MA property for net proceeds of $1,805. This transaction resulted in a gain of $1,791, which was recorded during the fourth quarter of fiscal 2020.

Sale of Pawtucket, RI Location

In April 2020, the Company finalized the sale of its Pawtucket, RI location for net proceeds of $1,810. This transaction resulted in a gain of $760, which was recorded during the third quarter of fiscal 2020.

97

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 20—Operations Optimization Costs

Relocation of Adhesives Systems Manufacturing to O'Hara Township, PA

During the third quarter of fiscal 2021, Chase announced to the employees at its Woburn, MA location that its adhesives systems operations, part of the Adhesives, Sealants and Additives segment’s electronic and industrial coatings product line, would be consolidating into the Company’s existing O'Hara Township, PA location. This rationalization and consolidation initiative-related announcement aligns with the second quarter announcement of the Company’s plan to move its sealant systems production from Newark, CA to Hickory, NC, described in more detail below. Chase Corporation obtained both the adhesive and sealants systems as part of its fiscal 2017 acquisition of the operations of Resin Designs. No expense was recognized related to the adhesive systems initiative during the second half of fiscal 2021, with the majority of future costs anticipated to occur in the first half of fiscal 2022.

Relocation of Sealants Systems Manufacturing to Hickory, NC

During the second quarter of fiscal 2021, Chase began moving the sealant systems operations, part of the Adhesives, Sealants and Additives segment’s electronic and industrial coatings product line, from its Newark, CA location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. The sealant systems operations and Newark, CA location came to Chase Corporation as part of the fiscal 2017 acquisition of the operations of Resin Designs, and the Company’s lease in Newark, CA terminated in fiscal 2021. The Company recognized $977 in expense related to the move in the nine-month period, ended August 31, 2021, and future costs related to this move are not anticipated to be significant to the consolidated financial statements.

Strategic Actions Taken Related to COVID-19

Fiscal 2020 saw the global spread of the coronavirus pandemic (COVID-19), which grew to create significant volatility, uncertainty and global economic disruption. During the third fiscal quarter of 2020, the Company implemented changes to its cost structure designed to address market changes brought on by COVID-19 and demonstrate its commitment to fiscal prudence: (a) the Company made a targeted reduction in its global workforce, contemplated pre-pandemic but catalyzed by COVID-19, which resulted in the recognition of $183 in severance costs during the period; and (b) the Company also instituted a temporary 20% reduction in the base salaries of its named executive officers and select members of senior management, as well as the cash compensation of the non-employee members of its Board of Directors. The reduction in force, which impacted operations in the Company’s U.S. facilities, and the adjustments in compensation, were both effective May 2020. The temporary executive and Board of Director compensation reductions were lifted on December 1, 2020, retroactive to September 1, 2020.

ERP System Upgrade

During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase Corporation is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around the facilities rationalization and consolidation initiative. The Company recognized $150 in expense related to these services in the first quarter of fiscal 2020, with no expense recognized in subsequent periods.

98

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Relocation of Pulling and Detection Manufacturing to Hickory, NC

During the third quarter of fiscal 2019, Chase Corporation began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. At the time, the pulling and detection operations were the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving, including moving internal research and development capabilities, was substantially completed during the second quarter of fiscal 2020. The Company recognized $559 in expense related to the move in the first half of fiscal 2020, having recognized $526 in expense during the second half of fiscal 2019. No costs were recognized in the second half of fiscal 2020 or in the year-ended August 31, 2021, and future costs related to this move are not anticipated to be significant to the consolidated financial statements.

Engineering Studies Related to Facility Consolidation and Rationalization Initiative

During the fourth quarter of fiscal 2019, the Company commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s facility rationalization and consolidation initiative. Chase Corporation completed its review of the data and recommendations provided by the study in the fourth quarter of fiscal 2020 (prior year). The Company recognized $200 in expense related to these services in fiscal 2019, and a gain of $170 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Also in the fourth quarter of fiscal 2020 and related to the recommendations of the commissioned engineering studies, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405 related to the machinery. The Company recognized an additional $100 in the fourth quarter of fiscal 2021, to fully write-down the equipment’s value. The Company may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined.

Closure of Pawtucket, RI Facility

On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018 (fiscal 2019), with no additional expense recognized in the remainder of fiscal 2019. The Company completed the sale of its Pawtucket, RI location to a third party in the third quarter of fiscal 2020 for net proceeds totaling $1,810, recognizing a gain on sale of real estate of $760. Also, during the third quarter of fiscal 2020, the Company recognized $85 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods.

99

CHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share amounts

Note 21—Commitments and Contingencies

The Company is involved from time to time in litigation incidental to the conduct of its business. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition, results of operations or cash flows, litigation is inherently unpredictable. Therefore, judgments could be rendered, or settlements agreed to that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where we assess the likelihood of loss as probable.

Note 22—Valuation and Qualifying Accounts

The following table sets forth activity in the Company’s accounts receivable and sales return reserve:

Year ended	Balance at Beginning of Year		Charges to Operations		Deductions to Reserves		Balance at End of Year
August 31, 2021	$	438	$	751	$	(738)	$	451
August 31, 2020	$	739	$	921	$	(1,222)	$	438
August 31, 2019	$	559	$	1,775	$	(1,595)	$	739

The following table sets forth activity in the Company’s warranty reserve (the warranty reserve is included within accrued expenses on the consolidated balance sheet):

Year ended	Balance at Beginning of Year		Charges to Operations		Deductions to Reserves		Balance at End of Year
August 31, 2021	$	—	$	—	$	—	$	—
August 31, 2020	$	37	$	—	$	(37)	$	—
August 31, 2019	$	—	$	37	$	—	$	37

100

Item 9 - Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9a – Controls and Procedures

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Company’s reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

The Company carries out a variety of ongoing procedures, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, to evaluate the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on the foregoing, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period covered by this report.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, our principal executive and principal financial officers, or persons performing similar functions, and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting based on the framework in “Internal Control — Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, our management concluded that our internal control over financial reporting was effective as of August 31, 2021. Grant Thornton LLP, an independent registered public accounting firm, audited the effectiveness of our internal control over financial reporting as of August 31, 2021.

101

Changes in Internal Control Over Financial Reporting

During the quarter ended August 31, 2021, the Company continued the process of refining financial internal controls on the operations associated with ABchimie, acquired in September 2020, and Emerging Technologies, Inc. (ETi), acquired in February 2021.

Other than the foregoing, there have not been any changes in the Company’s internal control over financial reporting during the quarter ended August 31, 2021 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

102

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders

Chase Corporation

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of Chase Corporation (a Massachusetts corporation) and subsidiaries (the “Company”) as of August 31, 2021, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of August 31, 2021, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended August 31, 2021, and our report dated November 15, 2021 expressed an unqualified opinion on those financial statements.

Basis for opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and limitations of internal control over financial reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Boston, Massachusetts

November 15, 2021

103

Item 9b – Other Information

Not applicable.

Item 9C – DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

104

PART III

Item 10 – Directors, Executive Officers and Corporate Governance

The information required by Item 10 of Form 10-K, relating to Directors of the Company, compliance with the reporting obligations under Section 16(a) of the Exchange Act, the Company’s code of ethics applicable to senior management, procedures for shareholder nominations to the Company’s Board of Directors, and the Company’s Audit Committee is incorporated by reference from the information contained in the Definitive Proxy Statement for the Annual Meeting of Stockholders, which is expected to be filed within 120 days after the Company’s fiscal year ended August 31, 2021. Information regarding the Company’s executive officers found in the section captioned “Information About Our Executive Officers” in Item 4A of Part I hereof is also incorporated by reference into this Item 10.

Item 11 – Executive Compensation

The information required by Item 11 of Form 10-K, relating to executive and director compensation and certain matters relating to the Company’s Compensation and Management Development Committee, is incorporated by reference from the information contained in the Definitive Proxy Statement for the Annual Meeting of Stockholders, which is expected to be filed within 120 days after the Company’s fiscal year ended August 31, 2021.

Item 12 – Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by Item 12 of Form 10-K, relating to the stock ownership of certain beneficial owners and management, is incorporated by reference from the information contained in the Definitive Proxy Statement for the Annual Meeting of Stockholders, which is expected to be filed within 120 days after the Company’s fiscal year ended August 31, 2021.

The following table summarizes the Company’s equity compensation plans as of August 31, 2021. Further details on the Company’s equity compensation plans are discussed in the notes to the Consolidated Financial Statements. The adoption of each of the Company’s equity compensation plans was approved by its shareholders.

	Number of shares of	Weighted
	Chase common	average exercise		Number of shares of
	stock to be issued	price of		Chase common stock
	upon the exercise of	outstanding		remaining available for
	outstanding options	options		future issuance
2005 Incentive Plan	34,076	$	33.05	—
2013 Equity Incentive Plan	120,233		88.49	949,220
Total	154,309	$	76.24	949,220

Item 13 – Certain Relationships and Related Transactions, and director independence

The information required by Item 13 of Form 10-K, relating to transactions with related persons and the independence of members of the Company’s Board of Directors, is incorporated by reference from the information contained in the Definitive Proxy Statement for the Annual Meeting of Stockholders, which is expected to be filed within 120 days after the Company’s fiscal year ended August 31, 2021.

Item 14 – Principal Accountant Fees and Services

The information required by Item 14 of Form 10-K, relating to fees paid to the Company’s independent registered public accounting firm and pre-approval policies of the Company’s Audit Committee, is incorporated by reference from the information contained in the Definitive Proxy Statement for the Annual Meeting of Stockholders, which is expected to be filed within 120 days after the Company’s fiscal year ended August 31, 2021.

105

PART IV

Item 15 – Exhibits and Financial Statement Schedules

(a)(1) and (2)Financial Statements and Schedules:

The financial statements are set forth under Item 8 of this Annual Report on Form 10-K. Financial statement schedules have been omitted since they are either not required, not applicable, or the information is otherwise included.

(a)(3)Exhibit Index:

Exhibit
Number	Description
3.1.1	Articles of Organization of Chase Corporation (incorporated by reference from Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2004, filed on November 24, 2004 (the “2004 Form 10-K”)).
3.1.2	Articles of Amendment to Articles of Organization of Chase Corporation (incorporated by reference from Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended February 29, 2008, filed on April 9, 2008).
3.2	Amended and Restated By-Laws (incorporated by reference from Exhibit 3.1 to the Company’s current report on Form 8-K filed on April 12, 2016).
4.1	Description of the Company’s Capital Stock (incorporated by reference from Exhibit 4.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2019, filed on November 13, 2019).
10.1	Amended and Restated Stock Agreement dated as of August 31, 2004, between the Company and Peter R. Chase (incorporated by reference to Exhibit 10 to the Company’s current report on Form 8-K filed on September 2, 2004).*
10.2	Chase Corporation Employee’s Supplemental Pension Plan effective January 1, 2008 (incorporated by reference from Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended May 31, 2008, filed on July 10, 2008). *
10.3.1	Chase Corporation Employee’s Supplemental Savings Plan, as Amended and Restated Effective December 31, 2016 (incorporated by reference from Exhibit 10.3.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2021, filed on November 12, 2020).*
10.3.2	Amendment No. 1 to the Amended and Restated Chase Corporation Employee’s Supplemental Savings Plan, dated July 15, 2020 (incorporated by reference from Exhibit 10.3.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2021, filed on November 12, 2020).*
10.3.3	Amendment No. 2 to the Chase Corporation Employee’s Supplemental Savings Plan, dated April 6, 2021 (incorporated by reference to Exhibit 10.3.3 to the Company’s Quarterly Report on Form 10Q for the quarter ended May 31, 2021, filed on July 12, 2021).*
10.4	Chase Corporation Non-Qualified Retirement Savings Plan for the Board of Directors, amended and restated effective January 1, 2009 (incorporated by reference from Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended February 28, 2009, filed on April 9, 2009). *

106

10.5	Severance Agreement between the Company and Peter R. Chase dated July 10, 2006 (incorporated by reference from Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended May 31, 2006, filed on July 17, 2006).*
10.6	Amended and Restated Severance Agreement between the Company and Adam P. Chase dated January 2, 2018 (incorporated by reference from Exhibit 10.1 to the Company’s current report on Form 8-K on January 8, 2018). *
10.7	Separation Agreement between the Company and Christian J. Talma effective January 15, 2021 (incorporated by reference from Exhibit 10.7.2 to the Company’s Quarterly Report on Form 10-Q for the period ended February 28, 2021, filed on April 8, 2021).*
10.8.1	Offer letter dated January 28, 2021 by and between Chase Corporation and Michael J. Bourque (incorporated by reference from Exhibit 10.1 to the Company’s current report on Form 8-K on February 3, 2021).*
10.8.2	Severance Agreement between the Company and Michael J. Bourque dated January 27, 2021 (incorporated by reference from Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended May 31, 2021, filed on July 12, 2021).*
10.8.3	Offer letter dated July 6, 2020 by and between Chase Corporation and Jeffery D. Haigh*
10.8.4	Severance Agreement between the Company and Jeffery D. Haigh dated November 11, 2021.*
10.9.1	2005 Equity Incentive Plan of Chase Corporation (incorporated by reference from Exhibit 10.1 to the Company's current report on Form 8-K filed on February 9, 2006).*
10.9.2	2013 Equity Incentive Plan of Chase Corporation (incorporated by reference from Exhibit A to the Company’s 2012 Proxy Statement filed on December 21, 2012).*
10.9.3	Form of restricted stock unit award issued for non-executive members of the Board of Directors (incorporated by reference from Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the period ended February 28, 2007, filed on April 16, 2007).*
10.9.4	Form of restricted stock unit award issued for members of Executive Management (incorporated by reference from Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the period ended February 28, 2007, filed on April 16, 2007).*
10.9.5	Form of restricted stock agreement issued for 2013 Equity Incentive Plan (incorporated by reference from Exhibit 10.9.5 to the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2019, filed on November 13, 2019).*
10.9.6	Form of stock option award issued (incorporated by reference from Exhibit 10.11.6 to the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2009, filed on November 16, 2009). *
10.10.1	Split Dollar Agreement between Chase Corporation and Peter R. Chase dated January 10, 2005 (incorporated by reference from Exhibit 10.2 to the Company’s current report on Form 8-K filed on January 14, 2005).*
10.10.2	Split Dollar Endorsement dated January 10, 2005 (incorporated by reference from Exhibit 10.3 to the Company’s current report on Form 8-K filed on January 14, 2005).*
10.11.1	FY 2021 Chase Corporation Annual Incentive Plan (incorporated by reference from Exhibit 99.1 to the Company's current report on Form 8-K filed on August 31, 2020).*

107

10.11.2		FY 2021 Chase Corporation Long Term Incentive Plan (incorporated by reference from Exhibit 99.2 to the Company's current report on Form 8-K filed on August 31, 2020).*
10.11.3		FY 2022 Chase Corporation Annual Incentive Plan.*
10.11.4		FY 2022 Chase Corporation Long Term Incentive Plan.*
10.12	Second Amended and Restated Credit Agreement, dated as of July 27, 2021 by and among Chase Corporation, NEPTCO Incorporated, the Guarantors, Bank of America, N.A., as administrative agent and Lenders party thereto (incorporated by reference from Exhibit 10.1 to the Company’s current report on Form 8-K for filed on August 2, 2021).
21	Subsidiaries of the Registrant
23	Consent of Independent Registered Public Accounting Firm – Grant Thornton LLP
31.1	Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of principal executive officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from the Chase Corporation Annual Report on Form 10-K for the fiscal year ended August 31, 2021 formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statement of Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) ​

*      Identifies management plan or compensatory plan or arrangement.

(b)   See (a)(3) above.

(c)    None.

ITEM 16 – FORM 10-K SUMMARY

None.

108

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Chase Corporation
By:	/s/ Adam P. Chase
	Adam P. Chase
	President and Chief Executive Officer
	November 15, 2021
By:	/s/ Michael J. Bourque
	Michael J. Bourque
	Treasurer and Chief Financial Officer
	November 15, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Peter R. Chase	Executive Chairman	November 15, 2021
Peter R. Chase
/s/ Adam P. Chase	Director, President and Chief Executive Officer (Principal Executive Officer)	November 15, 2021
Adam P. Chase
/s/ Michael J. Bourque	Treasurer and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)	November 15, 2021
Michael J. Bourque
/s/ Mary Claire Chase	Director	November 15, 2021
Mary Claire Chase
/s/ Thomas DeByle	Director	November 15, 2021
Thomas DeByle
/s/ John H. Derby III	Director	November 15, 2021
John H. Derby III
/s/ Chad A. McDaniel	Director	November 15, 2021
Chad A. McDaniel
/s/ Dana Mohler-Faria	Director	November 15, 2021
Dana Mohler-Faria
/s/ Joan Wallace-Benjamin	Director	November 15, 2021
Joan Wallace-Benjamin
/s/ Thomas Wroe, Jr	Director	November 15, 2021
Thomas Wroe, Jr.

109

EX-10..8.3

Exhibit 10.8.3

A Leading Manufacturer of Protective
Materials for High Reliability Applications Global Operations Center
295 University Avenue Westwood, MA 02324 Phone: 781.332.0700 Fax:781.332.0701 www.chasecorp.com

July 6, 2020

Jeffery Haigh

Dear Jeff,

It is with great pleasure that we extend to you an offer of employment with Chase Corporation as General Counsel, in our Westwood office with a start date to be determined.

This position is an exempt position reporting to Adam Chase, President & CEO. The details of the offer are outlined below:

● $230,000 annual base salary, paid at $8,846.15 bi-weekly

● Annual Bonus with a target of 25% of base pay ($57,500)

● Long-Term Incentive Plan (LTIP) with a target of 40% of your base pay to be outlined in a separate document.

● Sign-on equity grant of $50,000, restricted stock with a one-year cliff vesting period

● $1000/mo auto allowance paid with the first paycheck of each month

● 23 days PTO per calendar year

● Severance in the event of a change in control

● Eligibility for the Executive Non-Qualified Deferred Savings Plan

● Enrollment in our health insurance plans effective September 1, 2020 (if you start in July).

Your base salary will be reviewed annually. Any increase, if awarded, will be effective on September 1, 2021 after the completion of a formal performance evaluation. Your salary and performance will be reviewed on an annual basis thereafter.

We offer a comprehensive benefits package which will be reviewed during your new hire orientation. This offer is contingent upon a successful background check and your execution of an Employee Confidentiality, Non-Competition, Non-Solicitation, Patents and Inventions Agreement.

This offer is not a contract and supersedes any previous offer or representation. Your employment with Chase Corporation will be “at will”.

We look forward to you joining the team and supporting the growing Chase Corporation businesses. We are confident that your past experience and expertise will provide a solid foundation for our mutual benefit.

Please indicate your acceptance of this offer by signing below.

Yours truly,
Paula Eckel
Vice President, Human Resources
Accepted: Jeffery Haigh	Date:

EX-10..8.4

Exhibit 10.8.4

SEVERANCE AGREEMENT

This Agreement dated as of November 11, 2021 is by and between Chase Corporation, a Massachusetts corporation (the "Company"), and Jeffery D. Haigh, (the "Executive").

WHEREAS the Company and the Executive desire to enter into a Severance Agreement as set forth below (the "Agreement").

NOW, THEREFORE, the Company and the Executive hereby agree as follows:

Definitions. For purposes of this Agreement only, the following definitions shall apply:

"Cause" for termination of the Executive's employment by the Company means the occurrence of any of the following events:

i. the Executive's willful and continued failure to substantially perform his duties to the Company (other than any such failure resulting from the Employee's incapacity due to physical or mental illness), provided that the Company has delivered a written demand for substantial performance to the Executive specifically identifying the manner in which the Company believes that the Executive has not substantially performed his duties and that the Executive has not cured such failure within thirty (30) days after such demand or such longer period of time as may be provided by the Board in writing;

ii. willful conduct by the Executive which is demonstrably and materially injurious to the Company.

iii. material violation of any Company policy, including any code of conduct or standard of ethics of the Company applicable to the Executive, that could reasonably be expected to have a material adverse effect on the business or affairs of the Company.

iv. the Executive's conviction of, or pleading of guilty or nolo contendere to, a felony; or

v. the Executive's willful violation of any material provision of any confidentiality, nondisclosure, assignment of invention, noncompetition, or similar agreement, entered by the Executive in connection with his employment by the Company.

For purposes of this definition, no act or failure to act on the Executive's part shall be deemed "willful" unless done or omitted to be done by the Executive not in good faith and without reasonable belief that his action or omission was in the best interests of the Company.

"Change in Control" means the occurrence of any of the following events:

i. any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company's then outstanding securities;

ii. during any period of twelve (12) consecutive months (not including any period prior to the date of this Agreement), individuals who at the beginning of such period constitute the Board of Directors of the Company (the "Board") and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in subparagraphs (i), (ii) or (iii)) whose election by the Board or nomination for election by the Board or by the stockholders of the Company was

1

approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of such period or whose election or nomination  for election was previously so approved, cease for any reason to constitute a majority thereof;

iii. the stockholders of the Company approve and the Company consummates a merger or consolidation of the Company with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the combined voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no "person" (as hereinabove defined) acquires 50% or more of the combined voting power of the Company's then outstanding securities; or

iv. the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all, of the Company's assets.

"Disability" means such physical or mental incapacity as to make the Executive unable to perform the essential functions of his employment duties for a period of at least six (6) months with or without reasonable accommodation. If any question shall arise as to whether during any period the Executive is so disabled as to be unable to perform the essential functions of his employment duties with or without reasonable accommodation, the Executive may, and at the request of the Company shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive or the Executive's guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue. The Executive shall cooperate with any reasonable request of the physician in connection with such certification. If such question shall arise and the Executive shall fail to submit such certification, the Company's determination of such issue shall be binding on the Executive.

"Good Reason" means the occurrence, in connection with a Change in Control, of any of the following events without the Executive's prior written consent in an agreement expressly referencing this provision of this Agreement (provided that the Executive shall have given the Company prior written notice describing such event within 90 days of the initial existence of the condition(s) giving rise to the Good Reason and the matter shall not have been fully remedied by the Company within 30 days after receipt of such notice):

i. any reduction of the Executive's then existing annual base salary unless such reduction occurs simultaneously with a reduction in salaries applicable on a Company-wide basis in a generally uniform manner due to a material deterioration in the Company's financial condition;

ii. a greater than 10% reduction in the Executive's then existing annual cash bonus opportunities or other short-term cash incentive opportunities;

iii. a material diminution in the Executive's authority, duties or responsibilities, or the assignment of additional duties that are materially inconsistent with the title or office held by the Executive prior to the Change in Control except as had been agreed to by the Executive in a transition or succession plan;

iv. any other action or inaction that constitutes a material breach by the Company of this Agreement; and

v. any failure by the Company to obtain the assumption of this Agreement by  any successor or assign or the Company.

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2. Termination of Employment Without Cause. If the Executive's employment with the Company is terminated at any time by the Company without Cause, the Executive shall receive the benefits set forth in Section 4 hereof.

3. Change in Control. If, within twelve (12) months immediately following a Change in Control, the Executive's employment is terminated by the Company without Cause or the Executive terminates his employment with the Company for Good Reason, the Executive shall be entitled to the benefits set forth in Section 4.

4. Severance Benefits. Subject to the Executive's compliance with the terms of this Agreement (including but not limited to Sections 7, 9 and 10) upon termination of Executive's employment for reasons described in Section 2 or Section 3 above, the Company shall pay or provide the Executive with the severance benefits described in clauses 4(a) through 4(d) below (collectively, the "Severance Benefits"):

a)payment of an amount equal to one hundred percent (100%) of the Executive's base salary, in substantially equal installments in accordance with the Company's regular payroll practices, for a period of twelve (12) months, such amount to be paid at a rate equal, on an annualized basis, to the greater of his annual base salary in effect immediately prior to the Change in Control or his annual base salary in effect immediately prior to the termination of employment

b)payment of an amount equal to one hundred percent (100%) of the average of the annual cash bonuses paid to the Executive for the two (2) most recently completed fiscal years of  the Company immediately preceding the date of the Executive's termination of employment. If the termination of employment occurs after the close of a Company fiscal year but prior to payment of the bonus, the most recent bonus to be used for purposes of the foregoing calculation shall be the amount of the bonus as declared by the Board, or if no such declaration has yet to be made then the most recent bonus shall be the amount of the target bonus previously established for the Executive for the then-completed fiscal year. Such amount shall be paid in substantially equal installments in accordance with the Company's regular payroll practices for a period of twelve (12) months;

i. continued participation in the benefits in effect for Executive as of the date of termination of employment, subject to the terms and conditions of the respective plans and applicable law, for a period of twelve (12) months following the termination date; provided that to the extent that the Company's plans, programs and arrangements do not permit such continuation of Executive's participation following his termination of employment, the Company shall provide the Executive with an amount which is sufficient for him to purchase equivalent benefits, such amount to be paid quarterly in advance; provided, further, however, that if the Executive becomes employed by another employer and is eligible to receive medical or other welfare benefits under another employer-provided plan, the Executive's entitlement to participate in the Company's medical or other welfare benefit plans or to receive such alternate payments shall, to the extent such medical or welfare benefits are offered by the other employer, cease as of the date the Executive is eligible to participate in such plans, and the Executive shall notify the Company of his eligibility under such other plans; and

ii. reasonable costs of an outplacement service used by the Executive (up to $20,000  per full or partial calendar year) for a period not to exceed one year following termination of employment.

Subject to the timely execution and non-revocation of the Release described in Section 7 below, and the other terms and conditions of this Agreement (including Section 9 regarding restrictive covenants), the Severance Benefits described in this Section 4 shall commence to be paid and provided to the Executive with the first regular payroll period following the Executive's termination date.

In addition to the Severance Benefits described above, and regardless of whether the Executive executes the

3

Release, the Company shall (i) pay the Executive on his date of termination of employment any base salary that was earned but unpaid through the date of termination, (ii) pay the Executive any earned but unpaid vacation or other paid time-off in accordance with the Company's policies and applicable laws, and (iii) pay or provide, as the case may be, any earned and vested employee benefits (including equity awards) in accordance with the terms of the governing documents for such plans, programs or arrangements.

5. Death, Disability, Retirement or Other Termination of Employment. If the Executive's employment is terminated for any reason other than by the Company for Cause or by the Executive for Good Reason as set forth in Section 2 or Section 3 above (including by reason of the death, Disability, or retirement of the Executive), then Executive shall not be entitled to receive any payments or benefits under this Agreement but may be entitled to certain death, disability or retirement benefits offered by the Company pursuant to its employee benefit plans.

6. Taxes.

a)All Severance Benefits to be provided to the Executive under this Agreement will be subject to any required withholding of federal, state, and local income and employment taxes.

b)Notwithstanding anything in this Agreement to the contrary, if any of the Severance Benefits provided for in this Agreement together with any other payments and benefits which the Executive has the right to receive from the Company in connection with a change in control (the "Total Payments") would constitute a "parachute payment" as defined in Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the "Code"), the Executive shall receive the Total Payments unless (i) the after-tax amount that would be retained by the Executive (after taking into account all federal, state and local income taxes payable by the Executive and the amount of any excise taxes payable by the Executive under Section 4999 of the Code (the "Excise Taxes") if the Executive were to receive the Total Payments has a lesser aggregate value than (ii) the after-tax amount that would be retained by the Executive (after taking into account all federal, state and local income taxes payable by the Executive) if the Executive were to receive the Total Payments reduced to the largest amount as would result in no portion of the Total Payments being subject to the Excise Taxes (the "Reduced Payments"), in which case the Executive shall be entitled only to   the Reduced Payments. If the Executive is to receive the Reduced Payments, the Company shall reduce the Parachute Amount by reducing or eliminating the Severance Benefits under this Agreement in the order in which they first appear in Section 4 and then by reducing or eliminating any acceleration of vesting of equity awards in each case by the least amount necessary.

c)The parties to this Agreement intend that the Severance Benefits that may be provided under this Agreement shall be exempt from, or comply with, the requirements of Section 409A of the Code. Any Severance Benefits described in this Agreement that are due within the "short-term deferral period" as defined by Section 409A of the Code, or that qualify as "involuntary separation pay" within the meaning of the Section 409A regulations, shall not be treated as nonqualified deferred compensation unless applicable law requires otherwise. If any amount payable under this Agreement upon a termination of employment is determined by the Company to constitute nonqualified deferred compensation for purposes of Section 409 of the Code, such amount shall not be paid unless and until the Executive's termination of employment is also a "separation from service" within the meaning of Section 409A of the Code. To the extent that the Executive is a "specified employee" for purposes of Section 409A of the Code, any payment that constitutes nonqualified deferred compensation under Section 409A of the Code will not commence until the first business day after the date that is six months following the Executive's separation from service (the "Delayed Payment Date"). On the Delayed Payment Date, the Company will pay to the Executive a lump sum equal to all amounts that would have been paid during the period of the delay if the delay were not required by Section 409A of the Code and any remaining payments shall be paid as scheduled. For purposes of this Agreement, each payment in a series of payments shall be regarded as a "separate payment" within the meaning of Section 409A of the Code.

7. Release. The Executive's entitlement to receive the Severance Benefits contemplated by this Agreement hereof shall be contingent upon the Executive executing and not  revoking a release and covenant not to sue

4

in form and substance reasonably satisfactory to the Company (the "Release") within 45 days after his termination of employment. If such 45-day period begins in one calendar year and ends in another calendar year, any payments that are nonqualified deferred compensation for purposes of Section 409A of the Code shall commence in the later calendar year with the first such installment including any amounts that would have been paid during the period of delay if the delay were not required by Section 409A. By execution of this Agreement, the Executive hereby acknowledges and agrees that such payments are and shall be good and sufficient consideration for such Release.

8. No Duty to Mitigate. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and, except as contemplated by Section 4(b) hereof, any Severance Benefits payable to the Executive hereunder shall not be subject to reduction for any compensation received from other employment.

9. Restrictive Covenants. The Executive reaffirms the covenants set forth in the Confidentiality, Non-Competition, Non-Solicitation, Patents, and Inventions Agreement that he entered with the Company dated July 20, 2020 (the "Restrictive Covenant Agreement") which are incorporated in this Agreement by reference as if such covenants were set forth herein. The Executive further agrees that payment of any amounts and the provision of any benefits under this Agreement are subject to continued compliance with the Restrictive Covenant Agreement.

10. Clawback. In addition to the provisions of Section 9 (Restrictive Covenants), the Severance Benefits under this Agreement are subject to clawback, recoupment, recovery and set­ off in accordance with the written policies adopted by the Board from time to time for Company officers generally for compliance with and enforcement of the requirements of the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act and any other subsequently-enacted federal, state or local laws regarding clawback, recoupment, recovery or set­ off of compensation and benefits.

11. Indemnification; D&O Coverage. To the fullest extent permitted under the laws of the Commonwealth of Massachusetts as in effect from time to time, at all times during the Executive's term of employment with the Company and thereafter, the Executive shall continue to be entitled to the benefits of those provisions of the Certificate of Incorporation of the Company, as amended, the By-laws of the Company, as amended, and all other agreements with the Company or any of its parents, subsidiaries, affiliates, shareholders or members, as amended, that provide for the indemnification of the Executive in accordance with the terms of those provisions, and the  Company shall take no action to amend any such indemnification provision, nor permit any such indemnification provision to be amended, in any way that limits or reduces the extent of indemnification currently available to Executive except for any limitation or reduction that is applicable to all then-current and former officers and directors. At all times during the term of the Executive's employment with the Company and thereafter, the Company shall continue to include the Executive as an insured under its directors' and officers' liability insurance policy for so long as the Executive may be subject to any claim, on terms that are no less favorable to the Executive than the terms applicable to any of the Company's then-current officers and directors.  Noting in this Agreement shall be interpreted in a manner that shall impair any indemnification rights the Executive may have under any other agreement or arrangement with the Company or its subsidiaries.

12. Cooperation. The Executive agrees that following his termination of employment  for any reason, he will cooperate fully with the Company in the defense or prosecution of any government investigations and any government or third-party claims or actions now in existence or which may be brought or threatened in the future against or on behalf of the Company, including any claims or actions against its directors, officers, and employees, in which the Executive has personal knowledge of any relevant facts. The Executive's cooperation in connection with such claims or actions shall include him being available, within reason given the constraints of personal commitments, future employment, or job search activities, to assist with any audit, inspection, proceeding or other inquiry, and to act as a witness in connection with any litigation or other legal proceeding affecting the Company or its subsidiaries.

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13. Successors and Assigns.

a)This Agreement is personal to the Executive and is not assignable by the Executive, other than by will or the laws of descent and distribution, without the prior written consent of the Company.

b)This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

c)The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, "Company" shall mean the Company as defined above and any successor to its business and/or assets that assumes and agrees to perform this Agreement.

14.No Right to Continued Employment. Nothing contained in this Agreement shall be considered a contract of employment or construed as giving the Executive any right to be retained in the employ of the Company. Nothing in this Agreement shall otherwise restrict in any way the rights of the Company to terminate the Executive at any time and for any reason, with or without cause.

15. Miscellaneous.

a)Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles thereof.

b)Amendment; Waiver. This Agreement may not be modified or amended in any manner except by a written agreement executed by the parties hereto or their respective successors and legal representatives. The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed as waiver of any other provision of this Agreement, or of any subsequent breach by such party or a provision of this Agreement.

c)Entire Understanding. This Agreement constitutes the entire understanding and agreement between the parties hereto regarding the compensation and benefits payable to the Executive in the circumstances described herein, superseding all prior understandings and agreements, whether oral or written, including the Prior Agreement but excluding the Restrictive Covenant Agreement.

d)Fees and Expenses. The Company agrees to pay as incurred and within 30 days after submission of supporting documentation, to the full extent permitted by law, all legal fees and related expenses the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement) following a Change in Control.

e)Notices. All notices and other communications hereunder shall be in writing and shall be delivered by hand delivery, by a reputable overnight courier service, or by registered or certified mail, return receipt requested, postage prepaid, in each case addressed as follows:

If to the Company:

Chase Corporation

295 University Avenue

Westwood, MA 02090

Attention: Human Resources

6

If to the Executive:

Jeffery D. Haigh

at his last known residential address as set forth in the Company's records,

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Any notice or communication shall be deemed to be delivered upon the date of hand delivery, one day following delivery to an overnight courier service, or three days following mailing by registered or certified mail.

f)Headings. The headings of paragraphs herein are included solely for convenience of reference and shall not control the meaning of interpretations of any of the provisions of this Agreement.

g)Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

h)Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and each of which shall be deemed an original.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by it is duly authorized officer and the Executive has executed this Agreement as of the date first written above.

CHASE CORPORATION	Jeffery D. Haigh
By:	By:
Date:	Date:

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EX-10..11.3

Exhibit 10.11.3

CHASE CORPORATION

ANNUAL INCENTIVE PLAN

Fiscal Year 2022

The Company, in addition to salary and benefits provides further cash compensation to key employees based on achieving preset annual goals.

The plan is maintained and paid at the sole discretion of the Board of Directors and may be modified or suspended at any time by the Board.

Upon approval by the Board of Directors, the Chief Financial Officer will administer the plan.

It is the intent of the Board of Directors to exclude the effect of unusual events and expenses from the calculation. The Compensation and Management Development Committee is given the authority by the Board to use its discretion in determining relevant exclusions.

Targets, awards, opportunities and associated performance award methodology and eligibility requirements will be established by the Compensation and Management Development Committee for the Chief Executive Officer, the Chief Financial Officer and the General Counsel and approved by the Board of Directors. For senior management, the Executive Chairman and the Chief Executive Officer will jointly make recommendations to be approved by the Compensation and Management Development Committee. For all other employees, the Executive Chairman and the Chief Executive Officer will be the approval authority. See schedule below for award opportunities for the executive officers:

For fiscal year 2022, budgeted Adjusted EBITDA, less the effects of foreign transaction gain (loss), aka EBITDAX, is the target. Payment threshold is 80% of the target which yields 50% of individual award opportunity. There is a cap on the incentive payments of 200% achieved at 120% of the target performance.

Actual v. Target	Award Earned
80% of target	50	%
90% of target	75	%
100% of target	100	%
110% of target	150	%
120% of target	200	%

Payment is made in cash no later than 75 days from the close of the fiscal year.

Award Opportunity
Chief Executive Officer	100% of base salary for 100% achievement of target. At 80% of target award is 50% of base salary. For results in excess of 100% target, award increases to 200% of base salary at 120% of the target.
Chief Financial Officer	60% of base salary for 100% achievement of target. At 80% of target award is 30% of base salary. For results in excess of 100% target, award increases to 120% of base salary at 120% of the target.
General Counsel	25% of base salary for 100% achievement of target. At 80% of target award is 12.5% of base salary. For results in excess of 100% target, award increases to 50% of base salary at 120% of the target.

In addition to the financial targets the Compensation and Management Development Committee may choose to establish qualitative measurement criteria.  Together with the financial measures these are referred to as critical success factors (CSF).  When utilized, the Chief Executive Officer’s CSFs and appropriate weightings are approved by the Board.  The Executive Chairman and the Chief Executive Officer will jointly approve all others.

Other management and non-union bonus participants will have opportunities established by the Executive Chairman and the Chief Executive Officer.

To be eligible an employee must be on the active payroll when the bonus is paid and for at least 6 months prior to the end of the fiscal year.

EX-10..11.4

Exhibit 10.11.4

CHASE CORPORATION

Long Term Incentive Plan

Award Design and Grant Process

Fiscal Year Ending August 31, 2022

Key Provisions

1. There are three reward vehicles:  1) Performance-based restricted stock, 2) Time-vested restricted stock and 3) Stock options.  At least two will be used each year.  For the Chief Executive Officer and Chief Financial Officer, Fiscal Year 2022 performance shares will be 50%, time-vested restricted stock will be 25% and stock options will be 25%. For General Counsel, Fiscal Year 2022 time-vested restricted stock will be 50% and stock options will be 50%.

2. Time-vested restricted stock is fixed and not subject to performance measures and will vest at the end of the third fiscal year after the grant date (August 31, 2024), subject to grant date, pricing, and termination provisions listed below.

3. Stock options will be fixed based on a Black-Scholes calculation, and will vest in three equal annual allotments beginning on August 31, 2022 and be exercisable for 10 years.

4. Performance shares, designed to challenge and, when warranted, award executive leadership’s management of both the balance sheet and income statement, will be in the form of restricted stock subject to performance and other criteria as follows.

● Performance measure 1:

o Target is earnings per share (EPS) based on Fiscal Year 2022’s budget; by dividing net income by the number of diluted shares outstanding at August 31, 2021 (end of most recent fiscal year). Actual is net income for the measurement period divided by the same number of diluted shares used in the Target.

o Performance measurement period:  September 1, 2021 through August 31, 2022

o Vesting:  2 years after performance measurement period (August 31, 2024)

o Grant date:  first day of measurement period

o Stock price for award:  closing price for last trading day prior to grant date

o Threshold:  the point at which an award is earned (80% of the target).  Between threshold and target the award increases on a linear basis.

o Stretch area: performance in excess of target awarded at a higher rate (200% for 120% achievement of target) with a cap of 200%. Between target and cap award increases on a linear basis.

o Weighted value in award opportunity: 80%

Example:

● Individual opportunity is $50,000 at target; performance share opportunity (50%) is $25,000 at target; 80% of LTIP value relates to performance measure 1 (or $20,000).

● Stock price (8/31/2021) is $100.00

● Threshold is 80% of target

Performance	Payout % of Target		Vesting Shares	Reward Value
Threshold 80% of target	50	%	100	$	10,000
Target	100	%	200	$	20,000
Stretch at 120% of target	200	%	400	$	40,000

Plan metrics: standard performance measures are 80% threshold, 100% target and 120% maximum.

1

● Performance measure 2:

o Target is trailing three-year average Return on Invested Capital (“ROIC”) calculated using the budget for fiscal Year 2022 and prior two years’ (Fiscal years 2021 and 2020) actual results. Actual ROIC for the measurement period will be calculated using actual results for the three years ending August 31, 2022.

o Performance measurement period:  September 1, 2019 through August 31, 2022

o Vesting:  2 years after performance measurement period (August 31, 2024)

o Grant date: September 1, 2021, the first day of fiscal year 2022

o Stock price for award:  closing price for last trading day prior to grant date

o Threshold:  the point at which an award is earned (80% of the target).  Between threshold and target the award increases on a linear basis.

o Stretch area: performance in excess of target awarded at a higher rate (200% for 120% achievement of target) with a cap of 200%. Between target and cap award increases on a linear basis.

o ROIC defined as Earnings before Interest Expense and Income Tax, divided by the sum of equity and debt less cash on hand (ROIC = EBIT / (Equity + Debt - Cash)).

o Weighted value in award opportunity: 20%

Example:

● Individual opportunity is $50,000 at target; performance share opportunity (50%) is $25,000 at target; 20% of LTIP value relates to performance measure 2 (or $5,000).

● Stock price (8/31/2021) is $100.00

● Threshold is 80% of target

Performance	Payout % of Target		Vesting Shares	Reward Value
Threshold 80% of target	50	%	25	$	2,500
Target	100	%	50	$	5,000
Stretch at 120% of target	200	%	100	$	10,000

Plan metrics: standard performance measures are 80% threshold, 100% target and 120% maximum

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5. Termination provisions:

Termination Event	Year	Payment in Shares
Retirement	Pro-rated	Paid as scheduled
Voluntary	All shares forfeit	No payment
Without cause	Pro-rated	Paid as scheduled
With cause	All shares forfeit	No payment
Upon change of control	Acceleration at target	Paid at change of control
Death or disability	Pro-rated	Paid as scheduled

6. Eligibility:  key executives and others

Participant	Target % of Base Salary
Adam P. Chase	100	%
Michael J. Bourque	60	%
Jeffery D. Haigh	40	%

Award opportunities are set annually, and the plan is subject to the approval of the Compensation and Management Development (“C&MD”) Committee and may be modified from time to time.

FY 2022 SCHEDULE

● Q4 FY21           Board approves continuance of plan and sets grant date

● Q4 FY21           Goals and awards proposed by management for FY22

● Q4 FY21           C&MD Committee reviews and approves FY22 plan

● Q1 FY22           Management presents FY21 plan achievement

● Q1 FY22           C&MD Committee approves FY21 results

● Q1 FY23           Management presents FY22 plan achievement

● Q1 FY23           C&MD Committee approves FY22 results

● Q4 FY24           Vested FY22 shares are released to participant

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EX-21

Exhibit 21

SUBSIDIARIES OF THE REGISTRANT

Subsidiaries of Chase Corporation as of August 31, 2021 are as follows:

Name	Jurisdiction of Incorporation
ABchimie C.I.M. Industries, Inc.	France New Hampshire
Capital Services of New York, Inc.	New York
Chase & Sons Limited	United Kingdom
HumiSeal Europe SARL	France
HumiSeal Europe Limited	United Kingdom
HumiSeal India Private Limited	India
Chase Protective Coatings Limited	United Kingdom
NEPTCO Holdings, Inc.	Delaware
NEPTCO Incorporated	Rhode Island
NEPTCO (Suzhou) Materials Co., Ltd.	People’s Republic of China
NEPTCO JV LLC (wholly owned)	Delaware
Stewart Superabsorbents, LLC	North Carolina
Stewart SA, Inc.	North Carolina

EX-23.1

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have issued our reports dated November 15, 2021, with respect to the consolidated financial statements and internal control over financial reporting included in the Annual Report of Chase Corporation on Form 10-K for the year ended August 31, 2021. We consent to the incorporation by reference of said reports in the Registration Statements of Chase Corporation on Forms S-8 (File No. 333-189961 and File No. 333-131929).

/s/ GRANT THORNTON LLP

Boston, Massachusetts

November 15, 2021

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Adam P. Chase, certify that:

1. I have reviewed this Annual Report on Form 10-K of Chase Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  November 15, 2021
	/s/ Adam P. Chase
	Adam P. Chase President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Michael J. Bourque, certify that:

1. I have reviewed this Annual Report on Form 10-K of Chase Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  November 15, 2021
	/s/ Michael J. Bourque
	Michael J. Bourque Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officer of Chase Corporation (the "Company") hereby certifies that the Company's Annual Report on Form 10-K for the year ended August 31, 2021 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. This certificate is furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Date:  November 15, 2021

/s/ Adam P. Chase

Adam P. Chase

President and Chief Executive Officer

(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION

PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officer of Chase Corporation (the "Company") hereby certifies that the Company's Annual Report on Form 10-K for the year ended August 31, 2021 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. This certificate is furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Date:  November 15, 2021

/s/ Michael J. Bourque

Michael J. Bourque

Treasurer and Chief Financial Officer

(Principal Financial and Accounting Officer)

XML

Document and Entity Information - USD ($)	12 Months Ended
	Aug. 31, 2021	Oct. 31, 2021	Feb. 28, 2021
Document and Entity Information
Document Type	10-K
Document Period End Date	Aug. 31, 2021
Entity File Number	1-9852
Entity Registrant Name	CHASE CORPORATION
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	11-1797126
Entity Address, Address Line One	295 University Avenue
Entity Address, City or Town	Westwood
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02090
City Area Code	781
Local Phone Number	332-0700
Title of 12(b) Security	Common stock, $.10 par value
Trading Symbol	CCF
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,457,489
Document Annual Report	true
Document Transition Report	false
Entity Central Index Key	0000830524
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
ICFR Auditor Attestation Flag	true
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 573,033,000

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Current Assets
Cash and cash equivalents	$ 119,429	$ 99,068
Accounts receivable, less allowances of $451 and $438	46,212	36,993
Inventory	41,217	39,058
Prepaid expenses and other current assets	2,851	2,470
Prepaid income taxes and refunds due	3,255	231
Total current assets	212,964	177,820
Property, plant and equipment, less accumulated depreciation of $50,666 and $52,283	24,267	25,574
Other Assets
Goodwill	97,866	82,402
Intangible assets, less accumulated amortization of $91,484 and $78,351	46,954	41,200
Cash surrender value of life insurance	4,450	4,450
Restricted investments	2,260	1,619
Deferred income taxes	5,265	4,929
Operating lease right-of-use asset (Note 8)	9,312	8,821
Other assets	821	15
Total assets	404,159	346,830
Current Liabilities
Accounts payable	19,575	12,525
Accrued payroll and other compensation	7,179	5,751
Income taxes payable	761
Accrued expenses	5,407	4,867
Total current liabilities	32,922	23,143
Operating lease long-term liabilities (Note 8)	7,202	6,395
Deferred compensation	2,267	1,629
Accumulated pension obligation	9,416	10,930
Other liabilities	2,537
Deferred income taxes	3,301
Accrued income taxes	2,190	1,941
Commitments and contingencies (Notes 6, 8, 21)
Equity
First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued
Common stock, $.10 par value: Authorized 20,000,000 shares; 9,447,905 shares at August 31, 2021 and 9,439,082 shares at August 31, 2020 issued and outstanding	946	944
Additional paid-in capital	18,959	16,674
Accumulated other comprehensive loss	(11,210)	(13,092)
Retained earnings	335,629	298,266
Total equity	344,324	302,792
Total liabilities and equity	$ 404,159	$ 346,830

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 451	$ 438
Property, plant and equipment, accumulated depreciation (in dollars)	50,666	52,283
Intangible assets, accumulated amortization (in dollars)	$ 91,484	$ 78,351
First Serial Preferred Stock, par value (in dollars per share)	$ 1.00	$ 1.00
First Serial Preferred Stock, Authorized shares	100,000	100,000
First Serial Preferred Stock, issued shares	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, Authorized shares	20,000,000	20,000,000
Common stock, shares issued	9,447,905	9,439,082
Common stock, shares outstanding	9,447,905	9,439,082

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Revenue
Revenue	$ 293,336	$ 261,162	$ 281,351
Costs and Expenses
Cost of products and services sold	174,660	161,615	180,163
Selling, general and administrative expenses	52,100	49,364	48,707
Research and product development costs	4,056	4,007	4,021
Operations optimization costs (Note 20)	977	807	986
Acquisition-related costs (Note 14)	128	274
Gain on sale of real estate (Note 19)		(2,551)
Write-down of certain assets under construction (Note 20)	100	405
Loss on impairment of goodwill (Note 4)			2,410
Loss on contingent consideration (Note 14)	1,664
Operating income	59,651	47,241	45,064
Interest expense	(297)	(246)	(519)
Other income (expense)	(760)	(1,675)	(992)
Income before income taxes	58,594	45,320	43,553
Income taxes (Note 7)	13,674	11,163	10,842
Net income	$ 44,920	$ 34,157	$ 32,711
Net income available to common shareholders, per common and common equivalent share (Note17)
Basic	$ 4.75	$ 3.62	$ 3.48
Diluted	$ 4.73	$ 3.59	$ 3.46
Weighted average shares outstanding
Basic	9,383,085	9,359,940	9,334,232
Diluted	9,428,416	9,439,750	9,379,207
Cash dividends paid per share (in dollars per share)		$ 0.80	$ 0.80
Annual cash dividends declared per share	$ 0.80	$ 0.80	$ 0.80
Product
Revenue
Revenue	$ 289,802	$ 257,742	$ 276,839
Royalties and commissions
Revenue
Revenue	$ 3,534	$ 3,420	$ 4,512

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 44,920	$ 34,157	$ 32,711
Other comprehensive income (loss):
Net unrealized gain on restricted investments, net of tax	249	115	28
Change in funded status of pension plans, net of tax	338	(658)	(475)
Foreign currency translation adjustment	1,295	3,163	(1,541)
Total other comprehensive income (loss)	1,882	2,620	(1,988)
Comprehensive income	$ 46,802	$ 36,777	$ 30,723

XML

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss) Cumulative Effect Adjustment	Accumulated Other Comprehensive Income (Loss)	Retained Earnings Cumulative Effect Adjustment	Retained Earnings	Cumulative Effect Adjustment	Total
Balance at Aug. 31, 2018	$ 939	$ 13,104		$ (12,336)		$ 245,049		$ 246,756
Balance (in shares) at Aug. 31, 2018	9,396,947
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 1	(1)
Restricted stock grants, net of forfeitures (in shares)	8,818
Amortization of restricted stock grants		1,673						1,673
Amortization of stock option grants		503						503
Exercise of stock options	$ 1	300						301
Exercise of stock options (in shares)	7,022
Common stock received for payment of stock option exercises		(119)						(119)
Common stock received for payment of stock option exercises (in shares)	(954)
Common stock retained to pay statutory minimum withholding taxes on common stock	$ (1)	(1,109)						(1,110)
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares)	(11,085)
Cash dividend on common stock						(7,522)		(7,522)
Change in funded status of pension plans, net of tax				(475)				(475)
Foreign currency translation adjustment				(1,541)				(1,541)
Net unrealized gain (loss) on restricted investments, net of tax				28				28
Net income						32,711		32,711
Balance (ASU 606) at Aug. 31, 2019					$ 22		$ 22
Balance at Aug. 31, 2019	$ 940	14,351		(14,324)		270,260		271,227
Balance (in shares) at Aug. 31, 2019	9,400,748
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 5	(5)
Restricted stock grants, net of forfeitures (in shares)	45,621
Amortization of restricted stock grants		2,290						2,290
Amortization of stock option grants		918						918
Exercise of stock options		123						123
Exercise of stock options (in shares)	3,618
Common stock received for payment of stock option exercises		(123)						(123)
Common stock received for payment of stock option exercises (in shares)	(1,057)
Common stock retained to pay statutory minimum withholding taxes on common stock	$ (1)	(880)						(881)
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares)	(9,848)
Cash dividend on common stock						(7,539)		(7,539)
Change in funded status of pension plans, net of tax				(658)				(658)
Foreign currency translation adjustment				3,163				3,163
Net unrealized gain (loss) on restricted investments, net of tax				115				115
Net income						34,157		34,157
Balance (ASU 2018-02) at Aug. 31, 2020			$ (1,388)		$ 1,388
Balance at Aug. 31, 2020	$ 944	16,674	$ (1,388)	(13,092)		298,266		302,792
Balance (in shares) at Aug. 31, 2020	9,439,082
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 2	(2)
Restricted stock grants, net of forfeitures (in shares)	10,245
Amortization of restricted stock grants		2,351						2,351
Amortization of stock option grants		627						627
Exercise of stock options	$ 1	292						293
Exercise of stock options (in shares)	7,546
Common stock received for payment of stock option exercises		(206)						(206)
Common stock received for payment of stock option exercises (in shares)	(1,809)
Common stock retained to pay statutory minimum withholding taxes on common stock	$ (1)	(777)						(778)
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares)	(7,159)
Cash dividend on common stock						(7,557)		(7,557)
Change in funded status of pension plans, net of tax				338				338
Foreign currency translation adjustment				1,295				1,295
Net unrealized gain (loss) on restricted investments, net of tax				249				249
Net income						44,920		44,920
Balance at Aug. 31, 2021	$ 946	$ 18,959		$ (11,210)		$ 335,629		$ 344,324
Balance (in shares) at Aug. 31, 2021	9,447,905

XML

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
CONSOLIDATED STATEMENTS OF EQUITY
Cash dividends paid per share (in dollars per share)		$ 0.80	$ 0.80
Cash dividend on common stock per share (in dollars per share)	$ 0.80	$ 0.80	$ 0.80
Change in funded status of pension plans, tax	$ 585	$ 215	$ 218
Net unrealized gain (loss) on restricted investments, tax	$ 75	$ 40	$ 5

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 44,920	$ 34,157	$ 32,711
Adjustments to reconcile net income to net cash provided by operating activities
Gain on sale of real estate		(2,551)
Loss on impairment of goodwill			2,410
Write-down of certain assets under construction	100	405
Loss on contingent consideration	1,664
Depreciation	3,946	4,015	4,762
Amortization	12,858	11,576	12,445
Provision (recovery) of allowance for doubtful accounts and credit losses	11	(307)	183
Stock-based compensation	2,978	3,208	2,176
Realized gain on restricted investments	(65)	(37)	(11)
Pension curtailment and settlement loss		155	511
Deferred taxes	(908)	(769)	(2,312)
Increase (decrease) from changes in assets and liabilities
Accounts receivable	(7,921)	3,092	4,858
Inventory	(910)	3,562	(2,864)
Prepaid expenses and other assets	(490)	43	356
Accounts payable	6,164	260	(5,493)
Accrued compensation and other expenses	954	(1,865)	(1,536)
Accrued income taxes	(2,084)	790	1,339
Net cash provided by operating activities	61,217	55,734	49,535
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(2,441)	(1,371)	(2,488)
Cost to acquire intangible assets			(36)
Payments for acquisitions	(31,238)
Proceeds from sale of real estate		3,615
Proceeds from sale of businesses			400
Changes in restricted investments	(248)	(167)	(122)
Proceeds from settlement of life insurance policies			80
Net cash (used in) provided by investing activities	(33,927)	2,077	(2,166)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of principal on debt			(25,000)
Dividend paid	(7,557)	(7,539)	(7,522)
Proceeds from exercise of common stock options	87		182
Payments of taxes on stock options and restricted stock	(778)	(881)	(1,110)
Net cash used in financing activities	(8,248)	(8,420)	(33,450)
INCREASE IN CASH & CASH EQUIVALENTS	19,042	49,391	13,919
Effect of foreign exchange rates on cash	1,319	1,906	(976)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	99,068	47,771	34,828
CASH AND CASH EQUIVALENTS, END OF PERIOD	119,429	99,068	47,771
Non-cash Investing and Financing Activities
Common stock received for payment of stock option exercises	206	123	119
Property, plant and equipment additions included in accounts payable	$ 256	$ 92	$ 67

XML

Summary of Significant Accounting Policies

12 Months Ended

Aug. 31, 2021

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 1—Summary of Significant Accounting Policies

The principal accounting policies of Chase Corporation (the “Company”) and its subsidiaries are as follows:

Products and Markets

Our principal products are specialty tapes, laminates, adhesives, sealants, coatings and chemical intermediates that are sold by our salespeople, manufacturers' representatives and distributors.

In our Adhesives, Sealants and Additives segment, these products consist of:

(i) moisture protective coatings and cleaning solutions, which are sold to the electronics industry for circuitry manufacturing, including circuitry used in automobiles, industrial controls and home appliances;

(ii) advanced adhesives, sealants, and coatings for automotive and industrial applications that require specialized bonding, encapsulating, environmental protection, or thermal management functionality;

(iii) polymeric microspheres utilized by various industries to allow for weight and density reduction and sound dampening;

(iv) polyurethane dispersions utilized for various coating products; and

(v) superabsorbent polymers utilized for water and liquid management, remediation and protection in diverse markets including wire and cable, medical, environmental, infrastructure, energy and consumer products.

In our Industrial Tapes segment, these products consist of:

(i) insulating and conducting materials for the manufacture of electrical and telephone wire and cable, electrical splicing, and terminating and repair tapes, which are marketed to wire and cable manufacturers;

(ii) laminated film foils, including EMI/RFI shielding tapes, used in communication and local area network (LAN) cable;

(iii) industrial coated or laminate products and custom manufacturing services sold into medical, consumer, automotive, packaging, energy, telecommunications and other specialized markets;

(iv) laminated durable papers, including laminated paper with an inner security barrier used in personal and mail-stream privacy protection, which are sold primarily to the envelope converting and commercial printing industries;

(v) pulling and detection tapes used in the installation, measurement and location of fiber optic cable, water and natural gas lines, and power, data and video cable for commercial buildings; and

(vi) cover tapes with reliable adhesive and anti-static properties essential to delivering semiconductor components via tape and reel packaging.

In our Corrosion Protection and Waterproofing segment, these products consist of:

(i) protective coatings, tapes and protectants for pipelines, valves, casings and other metals, which are sold to oil companies, gas companies and water/wastewater utilities for use in both the construction and maintenance of oil, gas, water and wastewater pipelines;

(ii) fluid applied coating and lining systems for use in the water and wastewater industry;

(iii) waterproofing tapes and coatings used in waterproofing of the exterior of both commercial and industrial structures;

(iv) waterproofing membranes for highway bridge deck metal supported surfaces, which are sold to municipal transportation authorities, and high-performance polymeric asphalt additives; and

(v) expansion and control joint systems designed for roads, bridges, stadiums and airport runways.

Basis of Presentation

The financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company uses the U.S. dollar as the functional currency for financial reporting. Certain reclassifications have been made to the prior year amounts to conform to the current year’s presentation.

Other Business Developments

During the third quarter of fiscal 2021, Chase announced to the employees at its Woburn, MA location that its adhesives systems operations, part of the Adhesive, Sealants and Additives segment’s electronic and industrial coatings product line, would be consolidating into the Company’s existing O'Hara Township, PA location. This rationalization and consolidation initiative-related announcement aligns with the second quarter announcement of the Company’s plan to move its sealant systems production from Newark, CA to Hickory, NC, described in more detail below. Chase Corporation obtained both the adhesive and sealants systems as part of its fiscal 2017 acquisition of the operations of Resin Designs. No expense was recognized related to the adhesive systems initiative during the second half of fiscal 2021, with the majority of future costs anticipated to occur in the first half of fiscal 2022.

On February 5, 2021, the Company acquired certain assets of Emerging Technologies, Inc. (“ETi”), a superabsorbent polymers solutions provider, located in Greensboro, NC. The business was acquired for a purchase price of $9,997, comprising $8,997 paid on February 5, 2021 and an accrual of $1,000 to be paid out up to eighteen months after purchase, subsequent to final working capital adjustments, and excluding acquisition-related costs. As part of this transaction, Chase acquired substantially all working capital and fixed assets of the business and entered a multi-year lease at ETi’s existing location. The Company expensed $128 of acquisition-related costs associated with this acquisition. The purchase was funded with available cash on hand. ETi is a solutions provider and formulator of absorbent polymers for use in the packaging, recreational, consumer, and sanitation markets. The acquisition broadens the Company’s superabsorbent polymers product offerings and formulation capabilities while expanding its market reach. The Company is currently in the process of finalizing purchase accounting, regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed, and anticipates completion within the first quarter of fiscal 2022. Since the effective date of the acquisition, the financial results of ETi’s acquired operations have been included in the Company’s financial statements within the functional additives product line, contained within the Adhesives, Sealants and Additives operating segment.

During the second quarter of fiscal 2021, Chase began moving the sealant systems operations, part of the Adhesive, Sealants and Additives segment’s electronic and industrial coatings product line, from its Newark, CA location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. The sealant systems operations and Newark, CA location came to Chase Corporation as part of the fiscal 2017 acquisition of the operations of Resin Designs, and the Company’s lease there terminated in fiscal 2021. The Company recognized $977 in expense related to the move in fiscal 2021.

On September 1, 2020 (the first day of fiscal 2021), the Company acquired all the capital stock of ABchimie for €18,654 (approximately $22,241 at the time of the transaction) net of cash acquired, subsequent to final working capital adjustment, excluding acquisition-related costs totaling $274 recognized in fiscal 2020 and with a potential earn out based on performance potentially worth an additional €7,000 (approximately $8,330 at the time of the transaction). ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and protection of electronic assemblies, with ‎further formulation, production, and research and development capabilities‎. The transaction was funded with cash on hand. The financial results of the business were included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company finalized purchase accounting during the fourth quarter of fiscal 2021, with no significant change to amounts initially recorded.

Fiscal 2020 saw the beginning of the global spread of the coronavirus pandemic (COVID-19), which grew to create significant volatility, uncertainty and global economic disruption. During the third fiscal quarter of 2020, the Company implemented changes to its cost structure designed to address market changes brought on by COVID-19 and demonstrate its commitment to fiscal prudence: (a) the Company made a targeted reduction in its global workforce, contemplated pre-pandemic but catalyzed by COVID-19, which resulted in the recognition of $183 in severance costs during the period; and (b) the Company also instituted a temporary 20% reduction in the base salaries of its named executive officers and select members of senior management, as well as the cash compensation of the non-employee members of its Board of Directors. The reduction in force, which impacted operations in the Company’s U.S. facilities, and the adjustments in compensation, were both effective May 2020. The executive officers’ and Board of Directors’ temporary compensation reductions were lifted on December 1, 2020, retroactive to September 1, 2020.

During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase Corporation is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around the facilities rationalization and consolidation initiative. The Company recognized $150 in expense related to these services in the first quarter of fiscal 2020, with no expense recognized in the second, third or fourth fiscal quarters. Given the ongoing nature of the review, an estimate of future costs, including those that may be capitalized, cannot currently be determined.

During the third quarter of fiscal 2019, the Company began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. At the time, the pulling and detection operations were the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving, including moving internal research and development capabilities, was substantially completed during the second quarter of fiscal 2020. The Company recognized $559 in expense related to the first half of fiscal 2020, having recognized $526 in expense during the second half of fiscal 2019. No costs were recognized in the second half of 2020 or during fiscal 2021, and future costs related to this move are not anticipated to be significant to the consolidated financial statements.

During the fourth quarter of fiscal 2019, Chase Corporation commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s ongoing facility rationalization and consolidation initiative. Chase completed its review of the data and recommendations provided by the study in the fourth quarter of

fiscal 2020. The Company recognized $200 in expense related to these services in fiscal 2019, and a gain of $170 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Also in the fourth quarter of fiscal 2020 and related to the recommendations of the commissioned engineering studies, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405 related to the machinery. The Company recognized an additional $100 in the fourth quarter of fiscal 2021, to fully write-down the equipment’s value. Chase may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined.

On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018, with no additional expense recognized in the remainder of fiscal 2019. The Company completed the sale of its Pawtucket, RI location to a third party in the third quarter of fiscal 2020 for net proceeds totaling $1,810, recognizing a gain on sale of real estate of $760. Also, during the third quarter of fiscal 2020, the Company recognized $85 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods.

The Company has evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, and other than the cash dividend announced on November 15, 2021 of $1.00 per share to shareholders of record on November 30, 2021 and payable on December 9, 2021, the Company is not aware of any other events or transactions that occurred subsequent to the balance sheet date, but prior to filing, that would require recognition or disclosure in its consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of demand deposit accounts or investment instruments that meet high credit quality standards such as money market funds, government securities, or commercial paper. The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents.

Credit risk related to cash and cash equivalents is limited based on the creditworthiness of the financial institutions at which these funds are held. We maintain cash balances in multiple banks. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250. Certain of our account balances exceed the FDIC limit. Cash balances held outside the United States totaled $26,309 as of August 31, 2021.

Accounts Receivable

As a result of the adoption of ASU 2016-13, the Company has updated its critical accounting policy related to trade accounts receivable and allowances for credit losses effective September 1, 2020 as follows:

All trade accounts receivable are reported net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our trade accounts receivable over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. The Company regularly performs detailed reviews of our pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. Receivables are written off against these reserves in the period they are determined to be uncollectable.

Prior to September 1, 2020, the Company evaluated the collectability of accounts receivable balances based on a combination of factors. In cases where the Company was aware of circumstances that may have impaired a specific customer’s ability to meet its financial obligations to it, a specific allowance against amounts due to the Company was recorded, and thereby reduced the net recognized receivable to the amount the Company reasonably believed would be collected. For all other customers, the Company recognized allowances for doubtful accounts based on the length of time the receivables were past due, industry and geographic factors, the current business environment and its historical experience.

Inventory

The Company values inventory at the lower of cost or net realizable value using the first in, first out (FIFO) method. Management assesses the recoverability of inventory based on types and levels of inventory held, forecasted demand and changes in technology. These assessments require management judgments and estimates, and valuation adjustments for excess and obsolete inventory may be recorded based on these assessments. We estimate excess and obsolescence exposures based upon assumptions about future demand, product transitions, and market conditions, and record adjustments to reduce inventories to their estimated net realizable value. The failure to accurately forecast demand may lead to additional excess and obsolete inventory and future charges.

Goodwill

The Company accounts for goodwill in accordance with ASC Topic 350, “Intangibles — Goodwill and Other.” The Company performs impairment reviews annually each fourth quarter and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable.

During the three-month period ended February 28, 2019 (fiscal 2019), the ordering patterns of the polyurethane dispersions reporting unit’s customers, especially those in the automotive industry, combined with a decrease in the reporting unit’s backlog of customer orders believed to be firm as of February 28, 2019, indicated that an impairment in the carrying value of the reporting unit might have occurred. The Company performed an impairment test on the indefinite-lived and long-lived assets related to the polyurethane dispersions reporting unit, now part of the Adhesives, Sealants and Additives operating segment and reporting unit (part of the former Industrial Materials segment during the second fiscal quarter of 2019), in accordance with ASC Topic 350, “Intangibles — Goodwill and Other” and ASC Topic 360, “Disclosure — Impairment or Disposal of Long-Lived Assets.” As a result of impairment testing, which included first testing long-lived assets other than goodwill for impairment under applicable guidance, the Company recorded a charge of $2,410 to loss on impairment of goodwill within the consolidated statement of operations during the quarter

ended February 28, 2019. The polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method).

The Company has adopted Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles — Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” When evaluating the potential impairment of goodwill, Chase first assesses a range of qualitative factors, including but not limited to, industry conditions, the competitive environment, changes in the market for our products and services, entity-specific factors such as strategy and changes in key personnel, and the overall financial performance for each of our reporting units relative to historical or projected future operating results. If after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then assess goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. If the fair value of a reporting unit is less than its carrying value, an impairment loss, limited to the amount of goodwill allocated to that reporting unit, is recorded. Fair values for reporting units are determined based on the income approach (discounted cash flow method).

For the annual fiscal 2021 fourth quarter review, no goodwill impairment, nor at-risk reporting units, was indicated as of August 31, 2021. For the annual fiscal 2021 goodwill impairment test, we performed a qualitative assessment of goodwill impairment and concluded that it was more likely than not that our reporting units' fair values exceeded their carrying values (i.e. indicated no impairment of goodwill). Accordingly, it was not necessary for us to perform the quantitative analysis.

Intangible Assets

Intangible assets consist of patents, formulas, trade names, customer relationships and trademarks. The Company capitalizes costs related to patent applications and technology agreements. The costs of these assets are amortized over the lesser of the useful life of the asset or its statutory life. Capitalized costs are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Property, Plant and Equipment

Property, plant and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Expenditures for maintenance repairs and minor renewals are charged to expense as incurred. Betterments and major renewals are capitalized. Upon retirement or other disposition of assets, related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is included in the determination of income or loss. The estimated useful lives of property, plant and equipment are as follows:

Buildings and improvements	15	to	40	years
Machinery and equipment	3	to	10	years

Leasehold improvements are depreciated over the lesser of the useful life or the term of the lease.

Restricted Investments and Deferred Compensation

The Company has a non-qualified deferred savings plan that covers its Board of Directors and a separate plan covering selected employees. Participants may elect to defer a portion of their compensation for payment in a future tax year. The plans are funded by trusteed assets that are restricted to the payment of deferred compensation or satisfaction of the Company’s general creditors. The Company’s restricted investments under the plans were $2,260 and $1,619 at August 31, 2021 and 2020, respectively, and corresponding deferred compensation liabilities were $2,267 and $1,629 at August 31, 2021 and 2020, respectively. The Company accounts for the restricted investments as available for sale by recording net unrealized gains or losses in other comprehensive income as a component of stockholders’ equity.

Revenue

Effective September 1, 2018 (fiscal 2019), the Company adopted accounting standard ASU No. 2014-09, “Revenue from Contracts with Customers” (ASC 606) using the modified retrospective method for contracts that were not completed as of August 31, 2018. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, whereby the cumulative impact of all prior periods is recorded in retained earnings or other impacted balance sheet line items upon adoption. The impact on the Company’s consolidated balance sheets, and statements of operations, equity or cash flows as of the adoption date as a result of applying ASC 606 have been reflected within those respective financial statements. The Company’s accounting policy has been updated to align with ASC 606.

The adoption of ASC 606 represents a change in accounting principle that provides enhanced revenue recognition disclosures. The Company accounts for revenue from contracts with customers when: (a) there is approval and commitment from both parties; (b) the rights of the parties are identified; (c) payment terms are identified; (d) the contract has commercial substance; and (e) collectability of consideration is probable. Revenue is primarily derived from customer purchase orders, master sales agreements, and negotiated contracts, all of which represent contracts with customers. See Note 15 to the consolidated financial statements for more information on our accounting for revenue.

Research and Product Development Costs

Research and product development costs are expensed as incurred and include primarily engineering salaries, overhead and materials used in connection with research and development projects. Research and development expense amounted to $4,056, $4,007 and $4,021 for the years ended August 31, 2021, 2020 and 2019, respectively, and was recorded within Research and product development costs on the consolidated statements of operations.

Pension Plans

The Company accounts for its pension plans following the requirements of ASC Topic 715, “Compensation —Retirement Benefits” (“ASC 715”). ASC 715 requires an employer to: (a) recognize in its statement of financial position the funded status of a benefit plan; (b) measure defined benefit plan assets and obligations as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise but are not recognized as components of net periodic benefit costs pursuant to prior existing guidance.

Stock-Based Compensation

In accordance with the accounting for stock-based compensation guidance, ASC Topic 718 “Compensation – Stock Compensation” (“ASC 718”), the Company measures and recognizes compensation expense for all share-based payment awards made to employees, directors and consultants based on estimated fair values. This includes restricted stock, restricted stock units and stock options. The guidance allows for the continued use of the simplified method as the Company has concluded that its historical share option exercise experience does not provide a reasonable basis for estimating expected term.

Stock-based compensation expense recognized in fiscal years 2021, 2020 and 2019 was $2,978, $3,208 and $2,176, respectively.

The fair value of options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions for the years ending August 31, 2021, 2020 and 2019:

	2021		2020		2019
Expected dividend yield	0.7	%	0.7	%	0.7	%
Expected life	6.0	years	6.0	years	6.0	years
Expected volatility	39.5	%	31.0	%	31.4	%
Risk-free interest rate	0.4	%	1.4	%	2.7	%

Expected volatility is determined by looking at a combination of historical volatility over the past six years as well as implied future volatility.

Translation of Foreign Currency

The financial position and results of operations of the Company’s HumiSeal Europe Ltd and Chase Protective Coatings Ltd businesses are measured using the British pound as the functional currency. The financial position and results of operations of the Company’s HumiSeal Europe SARL and ABchimie businesses in France are measured using euros as the functional currency. The financial position and results of the Company’s HumiSeal India Private Limited business in India are measured using the Indian rupee as the functional currency. The functional currency for all our other operations is the U.S. dollar. Revenue and expenses of these international businesses have been translated at average exchange rates. Foreign currency translation gains and losses are determined using current exchange rates for monetary items and historical exchange rates for other balance sheet items, and are recorded as a change in other comprehensive income (a component of stockholders’ equity). Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of these international operations are included in other income (expense) on the consolidated statements of operations and were gains (losses) of ($512), ($911) and ($48) for the fiscal years ended August 31, 2021, 2020 and 2019, respectively.

Income Taxes

The Company accounts for income taxes under the asset and liability method. Under this method, a deferred tax asset or liability is determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Tax credits are recorded as a reduction in income taxes. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company estimates contingent income tax liabilities based on the guidance for accounting for uncertain tax positions as prescribed in ASC Topic 740, “Income Taxes.” See Note 7 for more information on the Company’s income taxes, including information on the effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on our financial position and results of operations.

Net Income Per Share

The Company has unvested share-based payment awards with a right to receive nonforfeitable dividends, which are considered participating securities under ASC Topic 260, “Earnings Per Share” (“ASC 260”). The Company allocates earnings to participating securities and computes earnings per share using the two-class method.

Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments, unrealized gains and losses on marketable securities and adjustments related to the change in the funded status of the pension plans.

Segments

ASC Topic 280 “Segment Reporting” of the Financial Accounting Standards Board (“FASB”) codification establishes standards for reporting information about operating segments. The Company is organized into three reportable operating segments: Adhesives, Sealants and Additives; Industrial Tapes; and Corrosion Protection and Waterproofing. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets.

The Adhesives, Sealants and Additives segment offers innovative and specialized product offerings consisting of both end-use products and intermediates that are generally used in, or integrated into, another company’s products. Demand for the segment’s product offerings is typically dependent upon general economic conditions. The Adhesives, Sealants and Additives segment leverages the core specialty chemical competencies of the Company, and serves diverse markets and applications. The segment sells predominantly into the transportation, appliances, medical, general industrial and environmental market verticals. The segment’s products include moisture protective coatings and cleaners and customized sealant and adhesive systems for electronics, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning September 1, 2020 (first day of fiscal 2021), the Adhesives, Sealants and Additives segment includes the acquired operations of ABchimie, within the electronic and industrial coatings product line and beginning February 5, 2021, the acquired operations of Emerging Technologies, Inc. (“ETi”), within the functional additives product line.

The Industrial Tapes segment features wire and cable materials, specialty tapes, and other laminated and coated products. The segment derives its competitive advantage through its proven chemistries, diverse specialty offerings and the reliability its supply chain offers to end customers. These products are generally used in the assembly of other manufacturers’ products, with demand typically dependent upon general economic conditions. The Industrial Tapes segment sells mostly to established markets, with some exposure to growth opportunities through further development of existing products. Markets served include cable manufacturing, utilities and telecommunications, and electronics packaging. The segment’s offerings include insulating and conducting materials for wire and cable manufacturers, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing services, pulling and detection tapes used in the installation, measurement and location of fiber optic cable and water and natural gas lines, and cover tapes essential to delivering semiconductor components via tape and reel packaging.

The Corrosion Protection and Waterproofing segment is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. End markets include new and existing infrastructure projects on oil, gas, water and wastewater pipelines, highways and bridge decks, water and wastewater containment systems, and commercial buildings. The segment’s products include protective coatings for pipeline applications, coating and lining systems for waterproofing and liquid storage applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion joint systems for waterproofing applications in transportation and architectural markets. With sales generally dependent on outdoor project work, the segment experiences highly seasonal sales patterns.

Contingent Consideration

In connection with accounting for the ABchimie acquisition on September 1, 2020, the Company recorded a contingent consideration liability included within Other liabilities on the consolidated balance sheet. The contingent consideration liability was valued using a Monte Carlo simulation model in an option pricing framework based on key inputs requiring significant judgments and estimates to be made by the Company, including forecasts of future earnings over the multiyear period encompassed by the earnout, and that are not all observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company assesses the fair value of the contingent consideration liability at each reporting period. Any subsequent changes in the estimated fair value of the liability are reflected in Loss on contingent consideration on the consolidated statement of operations until the liability is settled. If fully realized, the contingent consideration due would total €7,000 (approximately $8,330 at the time of the initial transaction)

Recently Adopted Accounting Standards

Fiscal 2021

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The ASU applies to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the ASU do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients and that are retained through the end of the hedging relationship. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. ASU 2020-04 has not had, and the Company does not expect it to have in future periods, a material impact on the Company's consolidated financial statements and disclosures.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which modifies the measurement approach for credit losses on financial assets measured on an amortized cost basis from an 'incurred loss' method to an 'expected loss' method. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13. This amendment provides clarity and improves the codification to ASU 2016-13. The pronouncements are concurrently effective for fiscal years beginning after December 15, 2019 and interim periods therein. The Company adopted ASU 2016-13 on September 1, 2020, using the modified retrospective transition method which resulted in no material impact on the consolidated financial statements.

As a result of the adoption of ASU 2016-13, the Company has updated its critical accounting policy related to trade accounts receivable and allowances for credit losses effective September 1, 2020 from the critical accounting policies previously disclosed in our audited financial statements for the year ended August 31, 2020 as follows:

All trade accounts receivable are reported net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our trade accounts receivable over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. The Company regularly performs detailed reviews of our pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected.

Fiscal 2020

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements.” The updated guidance provided an optional transition method, which allows for the application of the standard as of the adoption date with no restatement of prior period amounts. The Company adopted the standard on September 1, 2019 (start of fiscal 2020) under the optional transition method described above. Consequently, historical financial information was not updated, and the disclosures required under the new standard are not provided for dates and periods prior to September 1, 2019.

The new standard provides several optional practical expedients in transition. The Company has elected to apply the “package of practical expedients” which allows it to not reassess i) whether existing or expired arrangements contain a lease, ii) the lease classification of existing or expired leases, or iii) whether previous initial direct costs would qualify for capitalization under the new lease standard. In preparation for adoption of the standard, the Company enhanced its internal controls to enable the preparation of financial information including the assessment of the impact of the standard. The initial adoption of the ASU resulted in the recognition of additional lease liabilities of $9,644 ($2,071 short-term and $7,573 long-term) and right-of-use assets of $10,200 as of September 1, 2019 on the consolidated balance sheet as it relates to the Company’s operating leases. The new standard did not have a material impact on the Company’s consolidated statement of operations or cash flows.

In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the current enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. Therefore, the Company adopted ASU 2018-02 in the first quarter of the year ending August 31, 2020, and has elected to reclassify the income tax effects of the Tax Reform related to its pension funding from accumulated other comprehensive loss to retained earnings.

Fiscal 2019

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amended guidance establishes a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance, including industry-specific guidance.

The amended guidance clarifies that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the amended guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 was effective for the Company’s interim and annual reporting periods beginning September 1, 2018 (fiscal 2019), and could have been adopted using either a full retrospective or modified retrospective transition method.

The Company adopted the amended guidance and all related amendments using the modified retrospective approach on September 1, 2018. The Company recognized the cumulative effect of initially applying the new revenue standard to all open contracts requiring recognition over time that were not completed on the date of adoption as an adjustment to the opening balance of retained earnings.

At the adoption date, the cumulative impact of revenue that would have been recognized over time was $80. The related adoption impact to retained earnings was $22, net of tax. The impact to net sales and net income as a result of applying ASC 606 was an increase of $67 and $5, respectively, for the year ended August 31, 2019. See Note 26 — “Revenue from Contracts with Customers” for further discussion of the effects of adoption.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230).” This ASU provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The Company adopted ASU No. 2016-15 on September 1, 2018, and the adoption did not have a material effect on its financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.”  The new guidance dictates that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The Company adopted the ASU on September 1, 2018. The adoption had no material effect on the financial statements and related disclosures in fiscal 2021, 2020 or 2019. The effect ASU No. 2017-01 will have on the financial statements and related disclosures of the Company in future periods will be dependent on the nature of potential future acquisitions and divestitures.

In March 2017, the FASB issued ASU No. 2017-07, “Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715, Compensation — Retirement Benefits. The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The ASU also allows only the service cost component to be eligible for capitalization when applicable (e.g., as a cost of internally manufactured inventory or a self-constructed asset). The Company adopted ASU No. 2017-07 on September 1, 2018.

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Inventory

12 Months Ended

Aug. 31, 2021

Inventory

Inventory

Note 2—Inventory

Inventory consisted of the following as of August 31, 2021 and 2020:

	August 31,		August 31,
	2021		2020
Raw materials	$	24,055	$	18,993
Work in process		5,928		7,761
Finished goods		11,234		12,304
Total Inventory	$	41,217	$	39,058

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Property, Plant and Equipment

12 Months Ended

Aug. 31, 2021

Property, Plant and Equipment

Property, Plant and Equipment

Note 3—Property, Plant and Equipment

Property, plant and equipment consisted of the following as of August 31, 2021 and 2020:

	August 31,		August 31,
	2021		2020
Land and improvements	$	5,020	$	4,997
Buildings		16,904		17,992
Machinery and equipment		49,505		51,942
Leasehold improvements		2,891		2,212
Construction in progress		613		714
		74,933		77,857
Accumulated depreciation		(50,666)		(52,283)
Property, plant and equipment, net	$	24,267	$	25,574

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Goodwill and Other Intangibles

12 Months Ended

Aug. 31, 2021

Goodwill and Other Intangibles

Goodwill and Other Intangibles

Note 4—Goodwill and Intangible Assets

The changes in the carrying value of goodwill, by operating segment, were as follows:

	Adhesives, Sealants and Additives		Industrial Tapes		Corrosion Protection and Waterproofing		Consolidated
Balance at August 31, 2019	$	50,090	$	21,215	$	10,681	$	81,986
Foreign currency translation adjustment		397		—		19		416
Balance at August 31, 2020	$	50,487	$	21,215	$	10,700	$	82,402
Acquisition of ABchimie		13,055		—		—		13,055
Acquisition of Emerging Technologies, Inc.		2,451		—		—		2,451
Foreign currency translation adjustment		(48)		—		6		(42)
Balance at August 31, 2021	$	65,945	$	21,215	$	10,706	$	97,866

The Company’s goodwill is allocated to each reporting unit based on the nature of the products manufactured by the respective business combinations that originally created the goodwill. The Company has identified a total of three reporting units, corresponding to its three reportable operating segments that are used to evaluate the possible impairment of goodwill. Goodwill impairment exists when the carrying amount of goodwill exceeds its fair value. Assessments of possible impairment of goodwill are made when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable through future operations. Additionally, testing for possible impairment of recorded goodwill and certain intangible asset balances is required annually. The amount and timing of any impairment charges based on these assessments require the estimation of future cash flows and the fair market value of the related assets based on management’s best estimates of certain key factors, including future selling prices and volumes; operating, raw material and energy costs; and various other projected operating and economic factors, including the anticipated future impact of the coronavirus disease 2019 (COVID-19) pandemic. When testing, fair values of the reporting units and the related implied fair values of their respective goodwill are established using discounted cash flows.

The Company adopted Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles — Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” When evaluating the potential impairment of goodwill, we first assess a range of qualitative factors, including but not limited to, industry conditions, the competitive environment, changes in the market for our products and services, entity-specific factors such as strategy and changes in key personnel, and the overall financial performance for each of our reporting units relative to historical or projected future operating results. If after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then assess goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. If the fair value of a reporting unit is less than its carrying value, an impairment loss, limited to the amount of goodwill allocated to that reporting unit, is recorded. Fair values for reporting units are determined based on the income approach (discounted cash flow method).

During the three-month period ended February 28, 2019 (fiscal 2019), the ordering patterns of the polyurethane dispersions reporting unit’s customers, especially those in the automotive industry, combined with a decrease in the reporting unit’s backlog of customer orders believed to be firm as of February 28, 2019, indicated that an impairment in the carrying value of the reporting unit might have occurred. The Company performed an impairment test on the indefinite-lived and long-lived assets related to the polyurethane dispersions reporting unit, now part of the Adhesives, Sealants and Additives operating segment and reporting unit (part of the former Industrial Materials segment during the second fiscal quarter of 2019), in accordance with ASC Topic 350, “Intangibles — Goodwill and Other” and ASC Topic 360, “Disclosure — Impairment or Disposal of Long-Lived Assets.” As a result of impairment testing, which included first testing long-lived assets other than goodwill for impairment under applicable guidance, the Company recorded a charge of $2,410 to loss on impairment of goodwill within the consolidated statement of operations during the quarter ended February 28, 2019. The polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method).

The Company performs impairment reviews annually each fourth quarter and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable. For the annual fiscal 2021 goodwill impairment test, we performed a qualitative assessment of goodwill impairment and concluded that it was more likely than not that our reporting units' fair values exceeded their carrying values (i.e. indicated no impairment of goodwill). Accordingly, it was not necessary for us to perform the quantitative analysis.

As of August 31, 2021 and 2020, the Company had a total goodwill balance of $97,866 and $82,402, respectively, related to its acquisitions, of which $30,697 and $31,591 respectively, remained deductible for income taxes.

Intangible assets subject to amortization consisted of the following as of August 31, 2021 and 2020:

	Weighted Average		Gross Carrying		Accumulated		Net Carrying
	Amortization Period		Value		Amortization		Value
August 31, 2021
Patents and agreements	14.6	years	$	1,760	$	1,715	$	45
Formulas and technology	7.9	years		10,987		9,769		1,218
Trade names	5.9	years		8,836		8,285		551
Customer lists and relationships	9.2	years		116,855		71,715		45,140
			$	138,438	$	91,484	$	46,954
August 31, 2020
Patents and agreements	14.6	years	$	1,760	$	1,705	$	55
Formulas and technology	7.8	years		10,250		9,121		1,129
Trade names	5.8	years		8,575		7,781		794
Customer lists and relationships	9.1	years		98,966		59,744		39,222
			$	119,551	$	78,351	$	41,200

Aggregate amortization expense related to intangible assets for the years ended August 31, 2021, 2020 and 2019 was $12,858, $11,576 and $12,445, respectively. As of August 31, 2021 estimated amortization expense for the next five fiscal years is as follows:

Years ending August 31,
2022	11,862
2023	8,746
2024	7,538
2025	5,939
2026	5,144

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Cash Surrender Value of Life Insurance

12 Months Ended

Aug. 31, 2021

Cash Surrender Value of Life Insurance.

Cash Surrender Value of Life Insurance

Note 5—Cash Surrender Value of Life Insurance

The Company recognized cash surrender value of a life insurance policy with the following carrier as of August 31, 2021 and 2020:

	2021		2020
John Hancock	$	4,450	$	4,450
Cash surrender value of life insurance policies	$	4,450	$	4,450

The policy is subject to periodic review. The Company currently intends to maintain the policy through the life or retirement of the insured, and records at the premium paid balance.

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Long-Term Debt

12 Months Ended

Aug. 31, 2021

Long-Term Debt

Long-Term Debt

Note 6—Long-Term Debt

Long-term debt consisted of the following at August 31, 2021 and 2020:

	2021		2020
All-revolving credit facility with a borrowing capacity of $150,000	$	—	$	—
All-revolving credit facility with a borrowing capacity of $200,000		—		—
Long-term debt	$	—	$	—

On July 27, 2021 (the fourth quarter of fiscal 2021), the Company entered into the Second Amended and Restated Credit Agreement (the “New Credit Agreement”) by and among the Company (the “Chase Borrower”), NEPTCO Incorporated (“NEPTCO”), the guarantor subsidiaries party thereto, the financial institutions party thereto as Lenders, and Bank of America, N.A., as administrative agent, with participation from Wells Fargo Bank, N.A., PNC Bank, N.A. and JPMorgan Chase Bank, N.A. The New Credit Agreement was entered into to amend, restate and extend the Company’s preexisting Amended and Restated Credit Agreement (the “Prior Credit Agreement”), which previously had a maturity date of December 15, 2021 and is discussed in more detail below, and to provide for additional liquidity to finance acquisitions, working capital and capital expenditures, and for other general corporate purposes. Under the New Credit Agreement, Chase obtained an increased revolving credit loan (the “New Revolving Facility”), with borrowing capabilities not to exceed $200,000 at any time, with the ability to request an increase in this amount by an additional $100,000 at the individual or collective option of any of the Lenders. The applicable interest rate for the New Revolving Facility and New Term Loan (defined below) is based on the effective London Interbank Offered Rate (LIBOR) plus a range of 1.00% to 1.75%, depending on the consolidated net leverage ratio of Chase and its subsidiaries. At August 31, 2021, there was no outstanding principal balance, and as such, no applicable interest rate.

The New Credit Agreement has a five-year term with interest payments due at the end of the applicable LIBOR period (but in no event less frequently than the three-month anniversary of the commencement of such LIBOR period) and principal payment due at the expiration of the agreement, July 27, 2026. The New Credit Agreement contains provisions that may replace LIBOR as the benchmark index under certain circumstances. In addition, the Company may elect a base rate option for all or a portion of the New Revolving Facility, in which case interest payments shall be due with respect to such portion of the New Revolving Facility on the last business day of each quarter. Subject to certain conditions set forth in the New Credit Agreement, the Company may elect to convert all or a portion of the outstanding New Revolving Facility into a new term loan twice during the term of the New Revolving Facility (each, a “New Term Loan”, and collectively with the New Revolving Facility, the “New Credit Facility”), which New Term Loan shall be payable quarterly in equal installments sufficient to amortize the original principal amount of such Term Loan on a ten year amortization schedule.

The outstanding balance on the New Credit Facility is guaranteed by all of Chase’s direct and indirect domestic subsidiaries, which collectively had a carrying value of approximately $283,610 at August 31, 2021. The New Credit Facility is subject to restrictive covenants under the New Credit Agreement, and financial covenants that require Chase and its subsidiaries to maintain certain financial ratios on a consolidated basis, including a consolidated net leverage ratio of 3.25 to 1.00 and a consolidated interest coverage ratio of 3.50 to 1.00 (both defined in the New Credit Agreement). Chase Corporation was in compliance with the debt covenants as of August 31, 2021. The New Credit Agreement also places certain Lender-approval requirements as to the size of permitted acquisitions which may be entered into by the Company and its subsidiaries, and allows for a temporary step-up in the allowed consolidated leverage ratio for the four fiscal quarters ending after certain designated acquisitions. Prepayment is allowed by the New Credit Agreement at any

time during the term of the agreement, subject to customary notice requirements and the payment of customary LIBOR breakage fees.

In connection with entry into the New Credit Agreement, Chase amended and restated its Prior Credit Agreement, the Revolving Facility which was substantially available as of July 27, 2021, and the Term Loan option of which was never utilized, and which together fully constituted the Prior Credit Agreement.

The Prior Credit Agreement was an all-revolving credit facility with a borrowing capacity of $150,000, which could be increased by an additional $50,000 at the request of the Company and the individual or collective option of any of the lenders, and with an interest rate based on the effective LIBOR plus an additional amount in the range of 1.00% to 1.75%, depending on our consolidated net leverage ratio or, at the Company’s option, at the bank’s base lending rate.

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Income Taxes

12 Months Ended

Aug. 31, 2021

Income Taxes

Income Taxes

Note 7—Income Taxes

The Company has applied the U.S. statutory Federal rate of 21%, enacted as part of the Tax Cuts and Jobs Act (the “Tax Act”) in December 2017, for fiscal years end August 31, 2021, 2020 and 2019.

In fiscal 2019, the Company began recognizing an additional component of total Federal tax expense, the tax on Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Act, which became applicable to the Company in fiscal 2019. The Company elected to account for GILTI as a period cost, and therefore included GILTI expense in the effective tax rate calculation. This provision did not have a material effect on the effective tax rate for the years ended August 31, 2021, 2020 and 2019.

The Company concluded that the Base Erosion and Anti Abuse Tax (“BEAT”) provision of the Tax Act, which also became applicable to the Company in fiscal 2019, had no effect on our effective tax rate for fiscal 2021, 2020 or 2019.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, included a technical correction to the Tax Act which will allow accelerated deductions for qualified improvement property. The Company is currently evaluating the impact of the CARES Act, but at present does not expect that the qualified improvement property correction nor other provisions of the CARES Act would result in a material tax benefit to us in future periods. The CARES Act had no material effect on the effective tax rate for fiscal 2021 and 2020.

In July 2020, the United States Internal Revenue Service (“IRS”) released final regulations (TD 9901) that ease documentation standards and provide greater flexibility for taxpayers claiming the deduction for Foreign-Derived Intangible Income (“FDII”). During fiscal 2021, the Company’s effective tax rate included an FDII deduction benefit of $665. Also during fiscal 2021, the Company favorably resolved multiple uncertain tax positions and established international management fee and other transactions which resulted in $933 of tax benefit and $791 of tax expense, respectively.

Domestic and foreign pre-tax income for the years ended August 31, 2021, 2020 and 2019 was:

	Year Ended August 31,
	2021		2020		2019
United States	$	52,182	$	42,027	$	37,088
Foreign		6,412		3,293		6,465
	$	58,594	$	45,320	$	43,553

The provision (benefit) for income taxes for the years ended August 31, 2021, 2020 and 2019 was:

	Year Ended August 31,
	2021		2020		2019
Current:
Federal	$	11,677	$	9,157	$	9,880
State		782		1,813		1,699
Foreign		2,123		962		1,575
Total current income tax provision		14,582		11,932		13,154
Deferred:
Federal		(832)		(520)		(1,699)
State		(124)		(184)		(529)
Foreign		48		(65)		(84)
Total deferred income tax benefit		(908)		(769)		(2,312)
Total income tax provision	$	13,674	$	11,163	$	10,842

The provision (benefit) for income taxes differs from the amount computed by applying the Federal statutory income tax rate to income before income taxes. The Company’s combined federal, state and foreign effective tax rate as a percentage of income before taxes for fiscal 2021, 2020 and 2019, net of offsets generated by federal, state and foreign tax benefits, was 23.3%, 24.6% and 24.9%, respectively. The following is a reconciliation of the effective income tax rate with the U.S. Federal statutory income tax rate for the years ended August 31, 2021, 2020 and 2019:

	Year Ended August 31,
	2021		2020		2019
Federal statutory rates	21.0	%	21.0	%	21.0	%
Adjustment resulting from the tax effect of:
State and local taxes, net of federal benefit	2.3	%	3.0	%	2.1	%
Foreign tax rate differential	(0.3)	%	0.0	%	0.1	%
Adjustment to uncertain tax position	0.1	%	(1.1)	%	1.0	%
Transaction costs not deductible	0.0	%	0.5	%	0.0	%
Research credit generated	(0.1)	%	(0.1)	%	(0.3)	%
Stock Compensation	(0.3)	%	(0.3)	%	(0.4)	%
Permanent items	1.1	%	0.9	%	1.1	%
GILTI and Subpart F, net of foreign tax credit	0.3	%	0.3	%	0.6	%
Other	(0.4)	%	0.4	%	(0.4)	%
Change in valuation allowance	0.0	%	0.0	%	0.1	%
Deferred income tax remeasurement	0.1	%	0.0	%	0.0	%
Foreign Derived Intangible Income	(1.1)	%	0.0	%	0.0	%
Performance-based earnout contingency	0.6	%	0.0	%	0.0	%
Effective income tax rate	23.3	%	24.6	%	24.9	%

The following table summarizes the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities:

	As of August 31,
	2021		2020
Deferred tax assets:
Allowance for doubtful accounts	$	320	$	309
Inventories		520		994
Accruals		966		504
Warranty reserve		6		14
Pension accrual		2,386		2,749
Deferred compensation		545		391
Foreign currency loss on previously taxed income		96		96
Loan finance costs		3		7
Restricted stock grants		327		823
Non-qualified stock options		347		211
Lease liability		2,328		2,354
Foreign net operating loss, net of valuation allowance		192		247
Other		41		572
		8,077		9,271
Deferred tax liabilities:
Prepaid liabilities		(18)		(16)
Foreign intangibles		(3,156)		—
Right-of-use asset		(2,280)		(2,693)
Depreciation and amortization		(659)		(1,633)
		(6,113)		(4,342)
Net deferred tax assets (liabilities)	$	1,964	$	4,929

As of August 31, 2021, the Company had $599 of gross foreign operating loss carry forwards to offset future taxable income, the net balance of which was included within deferred income taxes. The net operating losses will begin to expire in fiscal year ending August 31, 2025.

Chase Corporation is required to apply a valuation allowance to reduce the deferred tax assets reported if based on the weight of the evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of August 31, 2021, the Company determined that a valuation allowance was not needed.

Consistent with the Company’s practice prior to the passage of the Tax Act, we do not currently take the position that undistributed foreign subsidiaries’ earnings are considered to be permanently reinvested.

A summary of the Company’s adjustments to its uncertain tax positions, included within long-term accrued income taxes on the consolidated balance sheet, in fiscal years ended August 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
Balance, at beginning of the year	$	1,941	$	2,324	$	1,889
Increase for tax positions related to the current year		—		101		55
Increase (decrease) for tax positions related to prior years		1,180		(609)		300
Decreases for settlement of uncertain tax positions		(705)		—		—
Increase for interest and penalties		208		125		106
Decrease for lapses of statute of limitations		(434)		—		(26)
Balance, at end of year	$	2,190	$	1,941	$	2,324

The unrecognized tax benefits mentioned above include an aggregate of $487 of accrued interest and penalty balances related to uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. An increase in accrued interest and penalty charges of approximately $208, net of Federal tax expense, was recorded as a tax expense during the current fiscal year. The Company anticipates that its accrual for uncertain tax positions could change by approximately $510 over the next twelve-month period due to statute of limitations expiration.

The Company is subject to U.S. Federal income tax, as well as to income tax of multiple state, local and foreign tax jurisdictions. The statute of limitations for all material U.S. Federal, state, and local tax filings remains open for fiscal years subsequent to 2017. For foreign jurisdictions, the statute of limitations remains open in the U.K and France for fiscal years subsequent to 2017.

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Leases

12 Months Ended

Aug. 31, 2021

Leases

Leases

Note 8—Leases

Effective September 1, 2019 (the start of fiscal 2020), the Company adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective approach and utilizing the effective date as its date of initial application. The Company has elected to apply the ‘package of practical expedients’ which allows it to not reassess i) whether existing or expired arrangements contain a lease, ii) the lease classification of existing or expired leases, or iii) whether previous initial direct costs would qualify for capitalization under the new lease standard.

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets and short-term and long-term lease liabilities, as applicable. The Company does not have any financing leases that are material in nature.

Operating lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company believes it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment.

The Company has elected not to recognize leases with an original term of one year or less on the balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew.

The following table presents the right-of-use asset and short-term and long-term lease liabilities amounts recorded on the consolidated balance sheet as of August 31, 2021 and 2020:

	August 31,		August 31,
	2021		2020
Assets
Operating lease right-of-use asset	$	9,312	$	8,821
Liabilities
Current (accrued expenses)	$	1,515	$	1,865
Operating lease long-term liabilities		7,202		6,395
Total lease liability	$	8,717	$	8,260

Lease cost

The components of lease costs for the years ended August 31, 2021 and 2020 are as follows:

	Year Ended August 31,
	2021		2020
Operating lease cost (a)	$	3,772	$	3,783

(a) Includes short-term leases and variable lease costs (e.g. common area maintenance), which are immaterial. ​ ​

Maturity of lease liability

The maturity of the Company's lease liabilities on August 31, 2021 was as follows:

	Future Operating
Year ending August 31,	Lease Payments
2022		1,750
2023		1,596
2024		1,519
2025		1,358
2026		1,075
2027 and thereafter		2,330
Less: Interest		(911)
Present value of lease liabilities	$	8,717

The weighted average remaining lease term and discount rates are as follows:

	August 31,			August 31,
	2021			2020
Lease Term and Discount Rate
Weighted average remaining lease term (years)
Operating leases		6.8			5.5
Weighted average discount rate (percentage)
Operating leases		3.1	%		3.1	%

Other Information

Supplemental cash flow information related to leases is as follows:

	Year Ended August 31,
	2021		2020
Operating cash outflows from operating leases	$	2,266	$	2,444
Total cash paid for amounts included in the measurement of lease liabilities	$	2,266	$	2,444

Total rental expense for all operating leases amounted to $3,772, $3,783 and $3,734 for the years ended August 31, 2021, 2020 and 2019, respectively.

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Benefits and Pension Plans

12 Months Ended

Aug. 31, 2021

Benefits and Pension Plans

Benefits and Pension Plans

Note 9—Benefits and Pension Plans

401(k) Plans

The Company has a defined contribution plan adopted pursuant to section 401(k) of the Internal Revenue Code of 1986 (the “Chase 401(k) Plan”). Any qualified employee who has attained age 21 and has been employed by the Company for at least three months may contribute a portion of his or her salary to the plan and the Company will match 100% of the first one percent of salary contributed and 50% thereafter, up to an amount equal to three and one-half percent of such employee’s annual salary.

The Company’s contribution expense for all 401(k) plans was $844, $852 and $787 for the years ended August 31, 2021, 2020 and 2019, respectively.

Non-Qualified Deferred Savings Plans

The Company has a non-qualified deferred savings plan covering the Board of Directors and a separate plan covering selected employees. Participants may elect to defer a portion of their compensation for future payment. The plans are funded by trusteed assets that are restricted to the payment of deferred compensation or satisfaction of the Company’s general creditors. The Company’s liability under the plans was $2,267 and $1,629 on August 31, 2021 and 2020, respectively.

Pension Plans

The Company has noncontributory defined benefit pension plans covering employees of certain divisions of the Company. The Company has a funded, qualified plan (“Qualified Plan”) and an unfunded supplemental plan (“Supplemental Plan”) designed to maintain benefits for certain employees at the plan formula level. The plans provide

for pension benefits determined by a participant’s years of service and final average compensation. The Qualified Plan assets consist of separate pooled investment accounts with a trust company. The measurement date for the plans is August 31, 2021.

Effective December 1, 2008, a “soft freeze” in the Qualified Plan was adopted whereby no new employees hired would be admitted to the Qualified Plan, with the exception of employees who were members of the International Association of Machinists and Aerospace Workers Union whose contract was amended in June 2012 to include a soft freeze with an effective date of July 15, 2012. All eligible participants who were admitted to the plan prior to the applicable soft freeze dates continue to accrue benefits as detailed in the plan agreements.

Through our wholly-owned subsidiary NEPTCO, the Company had a third defined benefit pension plan (“NEPTCO Pension Plan”) covering our union employees at our Pawtucket facility. This plan was frozen effective October 31, 2006, and as a result, no new participants could enter the plan and the benefits of current participants were frozen as of that date. The benefits were based on years of service and the employee’s average compensation during the earlier of five years before retirement, or October 31, 2006. The NEPTCO Pension Plan assets consisted of separate pooled investment accounts with a trust company. The measurement date for the NEPTCO Pension Plan was historically the same as the Company’s fiscal year end.

In August 2019, the Board of Directors approved a plan to terminate the NEPTCO Pension Plan. The Company established November 15, 2019 as the plan termination date and during fiscal 2020 performed the administrative actions required to carry out the termination. No balance related to the NEPTCO defined benefit plan was carried on the Company’s consolidated balance sheet as of August 31, 2021 or 2020.

The following tables reflect the status of the Company’s pension plans for the years ended August 31, 2021 2020 and 2019:

	Year Ended August 31,
	2021		2020		2019
Change in benefit obligation
Projected benefit obligation at beginning of year	$	20,663	$	20,087	$	21,860
Service cost		366		295		283
Interest cost		341		451		696
Actuarial (gain) loss		645		2,253		995
Benefits paid		(1,754)		(2,423)		(3,747)
Projected benefit obligation at end of year	$	20,261	$	20,663	$	20,087
Change in plan assets
Fair value of plan assets at beginning of year	$	8,168	$	7,859	$	9,855
Actual return on plan assets		1,301		868		181
Employer contribution		1,565		1,864		1,570
Benefits paid		(1,754)		(2,423)		(3,747)
Fair value of plan assets at end of year	$	9,280	$	8,168	$	7,859
Funded status at end of year	$	(10,981)	$	(12,495)	$	(12,228)

	Year Ended August 31,
	2021		2020		2019
Amounts recognized in consolidated balance sheets
Noncurrent assets	$	—	$	—	$	—
Current liabilities		(1,565)		(1,565)		(1,743)
Noncurrent liabilities		(9,416)		(10,930)		(10,485)
Net amount recognized in consolidated balance sheets	$	(10,981)	$	(12,495)	$	(12,228)
Actuarial present value of benefit obligation and funded status
Accumulated benefit obligations	$	17,898	$	18,307	$	18,244
Projected benefit obligations	$	20,261	$	20,663	$	20,087
Plan assets at fair value	$	9,280	$	8,168	$	7,859
Amounts recognized in accumulated other comprehensive income
Prior service cost	$	40	$	44	$	47
Net actuarial loss		9,674		10,595		9,638
Adjustment to pre-tax accumulated other comprehensive income	$	9,714	$	10,639	$	9,685

	Year Ended August 31,
	2021		2020		2019
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain)/loss	$	(884)	$	711	$	1,863
Amortization of loss		(656)		(664)		(472)
Supplemental plan assumption change		619		1,065		(620)
Amortization of prior service cost		(3)		(3)		(3)
Effect of settlement on accumulated other comprehensive income		—		(155)		(511)
Total recognized in other comprehensive income		(924)		954		257
Net periodic pension cost		975		1,178		1,537
Total recognized in net periodic pension cost and other comprehensive income	$	51	$	2,132	$	1,794
Estimated amounts that will be amortized from accumulated comprehensive income over the next fiscal year
Prior service cost	$	3	$	3	$	3
Net actuarial loss		593		656		500

Prior service cost arose from the amendment of the plan’s benefit schedules to comply with the Tax Reform Act of 1986 and adoption of the unfunded supplemental pension plan.

Components of net periodic pension cost for the fiscal years ended August 31, 2021, 2020 and 2019 included the following:

	2021		2020		2019
Components of net periodic benefit cost
Service cost	$	366	$	295	$	283
Interest cost		341		451		696
Expected return on plan assets		(391)		(390)		(428)
Amortization of prior service cost		3		3		3
Amortization of accumulated loss		656		664		472
Curtailment and settlement loss		—		155		511
Net periodic benefit cost	$	975	$	1,178	$	1,537

Weighted average assumptions used to determine benefit obligations as of August 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
Discount rate
Qualified plan	2.15	%	1.92	%	2.58	%
Supplemental plan	1.95	%	1.65	%	2.37	%
NEPTCO plan	—	%	—	%	2.29	%
Rate of compensation increase
Qualified and Supplemental plan	3.50	%	3.50	%	3.50	%
NEPTCO plan	—	%	—	%	—	%

Weighted average assumptions used to determine net periodic benefit cost for the years ended August 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
Discount rate
Qualified plan	1.92	%	2.58	%	3.80	%
Supplemental plan	1.65	%	2.37	%	3.57	%
NEPTCO plan	—	%	2.29	%	3.59	%
Expected long-term return on plan assets
Qualified plan	5.25	%	5.60	%	5.40	%
Supplemental plan	—	%	—	%	—	%
NEPTCO plan	—	%	5.60	%	5.40	%
Rate of compensation increase
Qualified and Supplemental plan	3.50	%	3.50	%	3.50	%
NEPTCO plan	—	%	—	%	—	%

It is the Company’s policy to evaluate, on an annual basis, the discount rate used to determine the projected benefit obligation to approximate rates on high quality, long-term obligations. The Moody’s Corporate Aa Bond index has generally been used as a benchmark for this purpose, with adjustments made if the duration of the index differed from that of the plan. The discount rate is determined by matching the expected payouts from the respective plans to the spot rates inherent in the FTSE Pension Discount Curve (formerly Citigroup Pension Discount Curve). A single rate is then developed, that when applied to the expected cash flows, results in the same present value as determined using the various spot rates. The Company believes that this approach produces the most appropriate approximation of the plan liability.

The Company estimates that each 100-basis point reduction in the discount rate would result in additional (decreased) net periodic pension cost, the Company’s primary pension obligation, of approximately $41 for the Qualified Plan and ($49) for the Supplemental Plan. The expected return on plan assets is derived from a periodic study of long-term historical rates of return on the various asset classes included in the Company’s targeted pension plan asset allocation. The Company estimates that each 100-basis point reduction in the expected return on plan assets would result in additional net periodic pension cost of approximately $75 for the Qualified Plan. No rate of return is assumed for the Supplemental Plan since that plan is currently not funded. The rate of compensation increase is also evaluated and is adjusted by the Company, if necessary, periodically.

Qualified Plan Assets

The investment policy for the Qualified Plan is based on ERISA standards for prudent investing. The fundamental goal underlying the investment policy is to ensure that the assets of the plans are invested in a prudent manner to meet the obligations of the plans as these obligations come due. The primary investment objectives include providing a total return which will promote the goal of benefit security by attaining an appropriate ratio of plan assets to plan obligations, to provide for real asset growth while also tracking plan obligations, to diversify investments across and within asset classes, to reduce the impact of losses in single investments, and to follow investment practices that comply with applicable laws and regulations.

The primary policy objectives will be met by investing assets to achieve a reasonable tradeoff between return and risk relative to the plan’s obligations. This includes investing a portion of the assets in funds selected in part to hedge the interest rate sensitivity to plan obligations.

The Qualified Plan assets are invested in a diversified mix of both domestic and foreign equity investments and fixed income securities. Asset manager performance is reviewed at least annually and benchmarked against the peer universe for the given investment style. The Company’s expected return for the Qualified Plan is 4.85%. To determine the expected long-term rate of return on the assets for the Qualified Plan, the Company considered the historical and expected return on the plan assets, as well as the current and expected allocation of the plan assets.

Asset allocation is monitored on an ongoing basis relative to the established asset class targets. The interaction between plan assets and benefit obligations is periodically studied to assist in the establishment of strategic asset allocation targets. The investment policy permits variances from the targets within certain parameters. Asset rebalancing occurs when the underlying asset class allocations move outside these parameters, at which time the asset allocation is rebalanced back to the policy target weight.

The Qualified Plan has the following target allocation and weighted average asset allocations as of August 31, 2021, 2020 and 2019:

	Target
	Allocation		Percentage of Plan Assets as of August 31,
Asset Category	Range		2021		2020		2019
Equity securities	10-80	%	46	%	49	%	44	%
Debt securities	20-70	%	54	%	51	%	56	%
Other	0-100	%	—	%	—	%	—	%
Total	100	%	100	%	100	%	100	%

NEPTCO Pension Plan Assets

Prior to the NEPTCO Pensions Plan’s termination and full payout in fiscal 2020, the investment policy for the NEPTCO Pension Plan was based on ERISA standards for prudent investing. The fundamental goal underlying the investment policy was to ensure that the assets of the plans were invested in a prudent manner to meet the obligations of the plan as these obligations come due. The primary investment objectives included maximization of return within reasonable and prudent levels of risk, provision of returns comparable to returns for similar investment options, provision of exposure to a wide range of investment opportunities in various asset classes and vehicles, control of administrative and management costs, and provision of appropriate diversification within investment vehicles.

The primary policy objectives were met by investing assets to achieve a reasonable tradeoff between return and risk relative to the plan’s obligations. This included investing a portion of the assets in funds selected in part to hedge the interest rate sensitivity to plan obligations.

The NEPTCO Pension Plan assets were invested in a diversified mix of fixed income, and both domestic and foreign equity investments. The ongoing monitoring of investments was a regular and disciplined process and confirmed that the criteria remain satisfied. The process of monitoring investment performance relative to specified guidelines was consistently applied.

Historically, to determine the expected long-term rate of return on the assets for the NEPTCO Pension Plan, the Company considered the historical and expected return on the plan assets, as well as the current and expected allocation of the plan assets.

Given the plan’s termination and full payout in 2020, the plan no longer holds assets as of August 31, 2021 and 2020. The NEPTCO Pension Plan had the following target allocation and weighted average asset allocations as of August 31, 2021, 2020 and 2019:

	Target
	Allocation		Percentage of Plan Assets as of August 31,
Asset Category	Range		2021		2020		2019
Equity securities	10-80	%	—	%	—	%	44	%
Debt securities	20-70	%	—	%	—	%	56	%
Other	0-100	%	—	%	—	%	—	%
Total	100	%	—	%	—	%	100	%

Fair Market Value of Pension Plan Assets

The Company is required to categorize pension plan assets using a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The following table presents the Company’s pension plan assets at August 31, 2021 and 2020 by asset category:

			Fair value measurements at								Fair value measurements at
			August 31, 2021								August 31, 2020
					Significant								Significant
			Quoted prices		other		Significant				Quoted prices		other		Significant
			in active		observable		unobservable				in active		observable		unobservable
	August 31,		markets		inputs		inputs		August 31,		markets		inputs		inputs
	2021		(Level 1)		(Level 2)		(Level 3)		2020		(Level 1)		(Level 2)		(Level 3)
Asset Category
Equity securities	$	4,241	$	4,241	$	—	$	—	$	3,986	$	3,986	$	—	$	—
Debt securities		5,039		5,039		—		—		4,182		4,182		—		—
Total	$	9,280	$	9,280	$	—	$	—	$	8,168	$	8,168	$	—	$	—

Level 1 Assets: The fair values of the common stocks, corporate bonds and U.S. Government securities included in this tier are based on the closing price reported on the active market where the individual securities are traded.

Estimated Future Benefit Payments

The following pension benefit payments (which include expected future service) are assumed to be paid in each of the following fiscal years based on the participants’ normal retirement age, and giving consideration to the termination of the NEPTCO Pension plan:

Year ending August 31,	Pension Benefits
2022	$	3,150
2023		2,333
2024		1,997
2025		1,818
2026		1,785
2027-2031	$	4,875

The Company contributed $1,565, $1,864 and $1,570 to fund its obligations under the pension plans for the years ended August 31, 2021, 2020 and 2019, respectively, including final cash outlays related to the termination of the NEPTCO plan in fiscal 2020. The Company plans to make the necessary contributions during fiscal 2022 to ensure its pension plans continue to be adequately funded given the current market conditions and does not anticipate a material change from amounts contributed during the current fiscal year.

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Stockholders' Equity

12 Months Ended

Aug. 31, 2021

Stockholders' Equity

Stockholders' Equity

Note 10—Stockholders’ Equity

2013 Equity Incentive Plan

In October 2012, the Company adopted, and the stockholders subsequently approved, the 2013 Equity Incentive Plan (the “2013 Plan”). The 2013 Plan permits the grant of restricted stock, stock options, deferred stock, stock payments or other awards to employees, participating officers, directors, consultants and advisors who are linked directly to increases in shareholder value. The aggregate number of shares available for grant under the 2013 Plan was initially 1,200,000. Additional shares may become available in connection with share splits, share dividends or similar transactions. As of August 31, 2021, 949,220 shares remained available for future grant under the 2013 Plan.

2005 Incentive Plan

In November 2005, the Company adopted, and the stockholders subsequently approved, the 2005 Incentive Plan (the “2005 Plan”). The 2005 Plan permits the grant of restricted stock, stock options, deferred stock, stock payments or other awards to employees, participating officers, directors, consultants and advisors who are linked directly to increases in shareholder value. The aggregate number of shares available for grant under the 2005 Plan was initially 1,000,000. The Company is no longer granting equity awards under the 2005 Plan. Options to purchase 34,076 shares of common stock remained outstanding under the 2005 Plan as of August 31, 2021.

Restricted Stock

Employees and Executive Management

During the first quarter of fiscal 2016, a grant of 5,000 restricted shares was made to a non-executive member of management with a vesting date of October 20, 2020. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2016, the Board of Directors of the Company approved the fiscal year 2017 LTIP for the executive officers and other members of management. The 2017 LTIP was an equity-based plan with a grant date of September 1, 2016. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 5,399 shares in the aggregate, subject to adjustment based on fiscal 2017 results, with a vesting date of August 31, 2019, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 5,367 shares in the aggregate, with a vesting date of August 31, 2019, for which compensation expense was recognized on a ratable basis over the vesting period.

Based on the fiscal year 2017 financial results, 5,399 additional shares of restricted stock (total of 10,798 shares) were earned and granted subsequent to the end of fiscal year 2017 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award.

In August 2016, the Board of Directors of the Company also approved equity retention agreements with certain executive officers. The equity-based retention agreements had a grant date of September 1, 2016. In addition to the stock option component described below, the equity retention agreements contained a time-based restricted stock grant of 16,312 shares in the aggregate, with 7,768 shares having a vesting date of August 31, 2019, and 8,544 shares initially having a vesting date of August 31, 2021. The latter award was amended in August 2017 to vest in five equal annual installments over the five-year period following the grant date. Compensation expense was recognized on a ratable basis over the vesting period.

During the first quarter of fiscal 2017, additional grants totaling 8,805 shares of restricted stock were issued to non-executive members of management with a vesting date of August 31, 2021. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2017, the Board of Directors of the Company approved the fiscal year 2018 LTIP for the executive officers and other members of management. The 2018 LTIP was an equity-based plan with a grant date of September 1, 2017. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 4,249 shares in the aggregate, subject to adjustment based on fiscal 2018 results, with a vesting date of August 31, 2020, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,473 shares in the aggregate, with a vesting date of August 31, 2020, for which compensation expense was recognized on a ratable basis over the vesting period.

Based on the fiscal year 2018 financial results, 572 additional shares of restricted stock (total of 4,821 shares) were earned and granted subsequent to the end of fiscal year 2018 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award.

During the third quarter of fiscal 2018, an additional grant totaling 192 shares of restricted stock was issued to a non-executive member of management with a vesting date of August 31, 2020. Compensation expense was recognized on a ratable basis over the vesting period.

During the fourth quarter of fiscal 2018, an additional grant totaling 609 shares of restricted stock was issued to an executive member of management with a vesting date of August 20, 2019. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2018, the Board of Directors of the Company approved the fiscal year 2019 LTIP for the executive officers and other members of management. The 2019 LTIP was an equity-based plan with a grant date of September 1, 2018. In addition to the stock option component described below, the plan contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 3,541 shares in the aggregate, subject to adjustment based on fiscal 2019 results, with a vesting date of August 31, 2021, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,068 shares in the aggregate, with a vesting date of August 31, 2021, for which compensation expense was recognized on a ratable basis over the vesting period.

In September 2018, restricted stock in the amount of 2,472 shares related to a first quarter of fiscal 2017 grant was forfeited in conjunction with the termination of employment of a non-executive member of management of the Company.

During the fourth quarter of fiscal 2019, an additional grant of restricted stock was made related to the 2019 LTIP grant in conjunction with an amendment to the equity compensation program for a promoted employee. The additional grant contained the following restricted stock components: (a) a performance and service-based restricted stock grant of 211 shares in the aggregate, subject to adjustment based on fiscal 2019 results, with a vesting date of August 31, 2021, for which compensation expense was recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 132 shares in the aggregate, with a vesting date of August 31, 2021, for which compensation expense was recognized on a ratable basis over the vesting period.

In August 2019, restricted stock in the amount of 833 shares related to the 2019 LTIP grant was forfeited in conjunction with an amendment in the equity compensation agreement of an employee.

Based on the fiscal year 2019 financial results, 2,694 shares of restricted stock already granted under the 2019 LTIP were forfeited subsequent to the end of fiscal year 2019 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award. Compensation expense relating to the remaining portion was recognized on a ratable basis over the vesting period.

In August 2019, the Board of Directors of the Company approved the fiscal year 2020 LTIP for the executive officers and other members of management. The 2020 LTIP is an equity-based plan with a grant date of September 1, 2019 and contains the following equity components: (a) a performance and service-based restricted stock grant of 3,697 shares in the aggregate, subject to adjustment based on fiscal 2020 results, with a vesting date of August 31, 2022, for which compensation expense is being recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,689 shares in the aggregate, with a vesting date of August 31, 2022, for which compensation expense is being recognized on a ratable basis over the vesting period.

In August 2019, the Board of Directors of the Company approved equity retention agreements with certain executive officers. The equity-based retention agreements have a grant date of September 1, 2019 and contained time-based restricted stock grants of 15,945 shares in the aggregate, and have a vesting date of August 31, 2022. Compensation expense is being recognized on a ratable basis over the vesting period.

During the second quarter of fiscal 2020, additional grants of 432,616 and 18,720 shares of restricted stock (total of 19,768) were issued to non-executive members of management with vesting dates of December 31, 2021, 2022 and 2024, respectively. Compensation expense is being recognized on a ratable basis over the vesting period.

In May 2020, restricted stock in the amount of 432 shares related to a second quarter of fiscal 2020 grant was forfeited in conjunction with the termination of employment of a non-executive member of management of the Company.

During the fourth quarter of fiscal 2020, two additional grants totaling 481 shares and 261 shares of restricted stock were issued to two non-executive members of management, with vesting dates of July 27, 2021 and June 15, 2021, respectively. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2020, the Board of Directors of the Company approved the fiscal year 2021 LTIP for the executive officers and other members of management. The 2021 LTIP is an equity-based plan with a grant date of September 1, 2020 and contains the following equity components: (a) a performance and service-based restricted stock grant of 3,798 shares in the aggregate, subject to adjustment based on fiscal 2021 results, with a vesting date of August 31, 2023, for which compensation expense is recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 4,919 shares in the aggregate, with a vesting date of August 31, 2023, for which compensation expense is recognized on a ratable basis over the vesting period.

In the first quarter of 2021, restricted stock in the amount of 952 shares related to the second quarter of fiscal 2020 grant was forfeited in conjunction with the termination of employment of non-executive members of management of the Company.

In January 2021, restricted stock in the amount of 4,409 shares of common stock were forfeited in conjunction with the termination without cause of a now former executive of the Company.

In February 2021, a performance and service-based restricted stock grant totaling 521 shares, and a time-vesting restricted stock grant in the amount of 261 shares was granted in conjunction with the appointment of a new executive of the Company. The restricted shares vest on the same terms as those granted under the 2021 LTIP in September 2020. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

In the fourth quarter of 2021, restricted stock in the amount of 447 shares related to the second quarter of fiscal 2020 grant was forfeited in conjunction with the termination of employment of non-executive members of management of the Company.

Non-employee Consultants and Advisors

In February 2021, restricted stock in the amount of 2,306 shares were granted to a consultant of the Company, with a two-year vesting term including continued service requirements. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

Non-employee Board of Directors

In February 2018, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 2,779 shares of restricted stock for service for the period from January 31, 2018 through January 31, 2019. The shares of restricted stock vested at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month vesting period.

In February 2019, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 4,599 shares of restricted stock for service for the period from January 31, 2019 through January 31, 2020. The shares of restricted stock vested at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month vesting period.

In February 2020, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 4,906 shares of restricted stock for service for the period from January 31, 2020 through January 31, 2021. The shares of restricted stock vested at the conclusion of this service period. Compensation was recognized on a ratable basis over the twelve-month vesting period.

In December 2020, restricted stock in the amount of 110 shares were granted to certain non-employee members of the board of directors in relation to their service on the board. These shares vested during the second fiscal quarter of 2021.

In February 2021, as part of their standard compensation for board service, non-employee members of the Board received a total grant of 4,525 shares of restricted stock for service for the period from January 31, 2021 through January 31, 2022. The shares of restricted stock will vest at the conclusion of this service period. Compensation is being recognized on a ratable basis over the twelve-month vesting period.

A summary of the transactions of the Company’s restricted stock plans for the years ended August 31, 2021, 2020 and 2019 is presented below:

	Non Employee Directors	Weighted Average Grant Date Fair Value		Non Employee Consultants and Advisors	Weighted Average Grant Date Fair Value		Officers and Employees	Weighted Average Grant Date Fair Value
Unvested restricted stock at August 31, 2018	2,779	$	101.05	—			65,579	$	61.85
Granted	4,599	$	101.92	—			7,524	$	121.64
Vested	(2,779)	$	101.05	—			(25,443)	$	65.79
Forfeited or cancelled	—			—			(3,305)	$	79.39
Unvested restricted stock at August 31, 2019	4,599	$	101.92	—			44,355	$	67.18
Granted	4,906	$	95.59	—			43,841	$	108.47
Vested	(4,599)	$	101.92	—			(25,195)	$	61.51
Forfeited or cancelled	—			—			(3,126)	$	123.19
Unvested restricted stock at August 31, 2020	4,906	$	95.59	—			59,875	$	97.72
Granted	4,635	$	104.09	2,306	$	108.42	9,499	$	98.10
Vested	(5,016)	$	95.59	—			(19,978)	$	80.13
Forfeited or cancelled	—			—			(6,195)	$	103.86
Unvested restricted stock at August 31, 2021	4,525	$	104.09	2,306	$	108.42	43,201	$	107.37

Stock Options

In August 2016, the Board of Directors of the Company approved the fiscal year 2017 LTIP for the executive officers and other members of management. The 2017 LTIP is an equity-based plan with a grant date of September 1, 2016 and included options to purchase 15,028 shares of common stock in the aggregate with an exercise price of $64.37 per share. The options vested in three equal annual installments ending on August 31, 2019. Of the options granted, 5,596 options will expire on August 31, 2026, and 9,432 options will expire on September 1, 2026. Compensation expense was recognized over the period of the award consistent with the vesting terms.

In August 2016, the Board of Directors of the Company approved equity retention agreements with certain executive officers. The equity-based retention agreements have a grant date of September 1, 2016 and included options to purchase 23,563 shares of common stock in the aggregate with an exercise price of $64.37 per share. These options cliff vested on August 31, 2019 and will expire on August 31, 2026. Compensation expense was recognized over the period of the award consistent with the vesting terms.

In August 2017, the Board of Directors of the Company approved the fiscal year 2018 LTIP for the executive officers and other members of management. The 2018 LTIP is an equity-based plan with a grant date of September 1, 2017 and included options to purchase 9,622 shares of common stock in the aggregate with an exercise price of $93.50 per share. The options vested in three equal annual installments ending on August 31, 2020. Of the options granted, 4,591 options will expire on August 31, 2027, and 5,031 options will expire on September 1, 2027. Compensation expense was recognized over the period of the award consistent with the vesting terms.

During the third quarter of fiscal 2018, an additional grant of options to purchase 606 shares of common stock with an exercise price of $104.00 was issued to a non-executive member of management. The options vested in three equal annual installments ending on August 31, 2020 and will expire on March 1, 2028. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2018, the Board of Directors of the Company approved the fiscal year 2019 LTIP for the executive officers and other members of management. The 2019 LTIP was an equity-based plan with a grant date of September 1, 2018 and included options to purchase 8,603 shares of common stock in the aggregate with an exercise price of $123.95 per share. The options vested in three equal annual installments ending on August 31, 2021. Of the options granted, 3,927 options will expire on August 31, 2028, and 4,676 options will expire on September 1, 2028. Compensation expense was recognized over the period of the award consistent with the vesting terms.

During the fourth quarter of fiscal 2019, an additional grant of 483 options to purchase shares of common stock with an exercise price of $99.38 per share was made related to the 2019 LTIP grant and in conjunction with an amendment to the equity compensation program for a promotion of an employee. The options vested in three equal installments on August 31, 2019, 2020 and 2021, and will expire on August 31, 2028. Compensation expense was recognized on a ratable basis over the vesting period.

In August 2019, the Board of Directors of the Company approved the fiscal year 2020 LTIP for the executive officers and other members of management. The 2020 LTIP is an equity-based plan with a grant date of September 1, 2019 and included options to purchase 13,418 shares of common stock in the aggregate with an exercise price of $100.22 per share. The options vest in three equal annual installments ending on August 31, 2022. Of the options granted, 6,218 options will expire on August 31, 2029, and 7,200 options will expire on September 1, 2029. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

In August 2019, the Board of Directors of the Company also approved equity retention agreements with certain executive officers. The equity-based retention agreements have a grant date of September 1, 2019 and contain stock options to purchase 53,642 shares of common stock in the aggregate with an exercise price of $100.22 per share. The options will cliff vest on August 31, 2022 and will expire on August 31, 2029. Compensation expense is being recognized on a ratable basis over the vesting period.

In August 2020, the Board of Directors of the Company approved the fiscal year 2021 LTIP for the executive officers and other members of management. The 2020 LTIP is an equity-based plan with a grant date of September 1, 2020 and included options to purchase 14,845 shares of common stock in the aggregate with an exercise price of $97.57 per share. The options vest in three equal annual installments ending on August 31, 2023. Of the options granted, 5,391 options will expire on August 31, 2030, and 9,454 options will expire on September 1, 2030. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

In January 2021, options to purchase 18,129 shares of common stock were forfeited in conjunction with the termination without cause of a now former executive of the Company. Options to purchase an additional 306 shares of common stock were forfeited in April 2021 related to this same termination.

In February 2021, options to purchase 749 shares of common stock with an exercise price of $104.04 per share were granted in conjunction with the appointment of a new executive of the Company. The stock options vest on the same terms as those granted in September 2020 under the 2021 LTIP. Compensation expense is being recognized over the period of the award consistent with the vesting terms.

The following table summarizes information about stock options outstanding as of August 31, 2021:

		Options Outstanding						Options Exercisable
Exercise Prices		Number Outstanding	Weighted Avg. Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Exercisable	Weighted Average Exercise Price		Aggregate Intrinsic Value
$	16.00	2,533	1.1	$	16.00	$	250	2,533	$	16.00	$	250
$	29.72	10,925	2.0	$	29.72	$	926	10,925	$	29.72	$	926
$	35.50	13,372	3.0	$	35.50	$	1,056	13,372	$	35.50	$	1,056
$	39.50	12,753	4.0	$	39.50	$	956	12,753	$	39.50	$	956
$	64.37	32,920	5.0	$	64.37	$	1,650	32,920	$	64.37	$	1,650
$	93.50	8,704	6.0	$	93.50	$	183	8,704	$	93.50	$	183
$	97.57	13,579	9.0	$	97.57	$	230	4,526	$	97.57	$	77
$	100.22	50,024	8.0	$	100.22	$	714	7,972	$	100.22	$	114
$	104.00	606	6.5	$	104.00	$	6	606	$	104.00	$	6
$	104.04	749	9.0	$	104.04	$	8	250	$	104.04	$	3
$	123.95	8,144	7.0	$	123.95	$	—	8,144	$	123.95	$	—
		154,309	6.0	$	76.24	$	5,979	102,705	$	64.41	$	5,221

Options are granted with an exercise price that is equal to the closing market value of the Company’s common stock on the day preceding the grant date, which is determined not to be materially different from the opening market value on the date of grant.

A summary of the transactions of the Company’s stock option plans for the years ended August 31, 2021, 2020 and 2019 is presented below:

	Officers and Employees	Weighted Average Exercise Price
Options outstanding at August 31, 2018	99,190	$	50.17
Granted	9,086	$	122.64
Exercised	(7,022)	$	42.86
Forfeited or cancelled	—
Options outstanding at August 31, 2019	101,254	$	57.18
Granted	67,060	$	100.22
Exercised	(3,618)	$	34.21
Forfeited or cancelled	—
Options outstanding at August 31, 2020	164,696	$	75.21
Granted	15,594	$	97.88
Exercised	(7,546)	$	38.79
Forfeited or cancelled	(18,435)		100.62
Options outstanding at August 31, 2021	154,309	$	76.24
Options exercisable at August 31, 2021	102,705	$	64.41

The weighted average grant date fair value of options granted in the years ended August 31, 2021, 2020 and 2019 was $34.45, $29.79 and $40.12 per share, respectively.

The total pretax intrinsic value of stock options exercised was $558, $311 and $403 for the years ended August 31, 2021, 2020, and 2019, respectively.

Excluding the effects of common stock reserved for issuance upon exercise of the 154,309 outstanding options, there were 949,220 shares of common stock available for future issuance under the Company’s 2013 Equity Incentive Plan on August 31, 2021. Based on historic experience, management estimates all outstanding stock options will vest.

The income tax benefit realized from stock options exercised, vesting of restricted stock and issuance of stock pursuant to grants of restricted stock units was $114, $149 and $157 for the years ended August 31, 2021, 2020 and 2019, respectively.

As of August 31, 2021, unrecognized expense related to all stock-based compensation described above was $3,687 (including $3,076 for restricted stock and $611 for stock options), which will be recognized over the next four fiscal years.

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Segment Data

12 Months Ended

Aug. 31, 2021

Segment Data

Segment Data

Note 11—Segment Data

The Company is organized into three reportable operating segments: Adhesives, Sealants and Additives; Industrial Tapes; and Corrosion Protection and Waterproofing. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets.

The Adhesives, Sealants and Additives segment offers innovative and specialized product offerings consisting of both end-use products and intermediates that are generally used in, or integrated into, another company’s product. Demand for the segment’s product offerings is typically dependent upon general economic conditions. This segment leverages the core specialty chemical competencies of the Company, and serves diverse markets and applications. The segment sells predominantly into the transportation, appliances, medical, general industrial and environmental market verticals. The segment’s products include moisture protective coatings and customized sealant and adhesive systems for electronics, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning September 1, 2020, the Adhesives, Sealants and Additives segment includes the acquired operations of ABchimie, within the electronic and industrial coatings product line and beginning February 5, 2021, the acquired operations of ETi, within the functional additives product line.

The Industrial Tapes segment features wire and cable materials, specialty tapes, and other laminated and coated products. The segment derives its competitive advantage through its proven chemistries, diverse specialty offerings and the reliability its supply chain offers to end customers. These products are generally used in the assembly of other manufacturers’ products, with demand typically dependent upon general economic conditions. This segment sells mostly to established markets, with some exposure to growth opportunities through further development of existing products. Markets served include cable manufacturing, utilities and telecommunications, and electronics packaging. The segment’s offerings include insulating and conducting materials for wire and cable manufacturers, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing services, pulling and detection tapes used in the installation, measurement and location of fiber optic cable and water and natural gas lines, and cover tapes essential to delivering semiconductor components via tape and reel packaging.

The Corrosion Protection and Waterproofing segment is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. End markets include new and existing infrastructure projects on oil, gas, water and wastewater pipelines, highways and bridge decks, water and wastewater containment systems, and commercial buildings. The segment’s products include protective coatings for pipeline applications, coating and lining systems for waterproofing and liquid storage applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion joint systems for waterproofing applications in transportation and architectural markets. With sales generally dependent on outdoor project work, the segment experiences highly seasonal sales patterns.

The following tables summarize information about the Company’s segments:

	Years Ended August 31,
	2021			2020			2019
Revenue
Adhesives, Sealants and Additives	$	126,864		$	96,208		$	104,796
Industrial Tapes		120,873			118,960			129,845
Corrosion Protection and Waterproofing		45,599			45,994			46,710
Total	$	293,336		$	261,162		$	281,351
Income before income taxes
Adhesives, Sealants and Additives	$	36,520	(a)	$	25,953		$	27,142	(g)
Industrial Tapes		37,407			31,237	(d)		28,216	(h)
Corrosion Protection and Waterproofing		15,913	(b)		16,638	(e)		15,909	(i)
Total for reportable segments		89,840			73,828			71,267
Corporate and common costs		(31,246)	(c)		(28,508)	(f)		(27,714)	(j)
Total	$	58,594		$	45,320		$	43,553
Includes the following costs by segment:
Adhesives, Sealants and Additives
Interest	$	116		$	98		$	177
Depreciation		1,065			994			1,467
Amortization		10,685			9,313			9,359
Industrial Tapes
Interest	$	83		$	111		$	216
Depreciation		1,718			1,746			1,755
Amortization		1,537			1,800			1,800
Corrosion Protection and Waterproofing
Interest	$	98		$	37		$	126
Depreciation		588			615			674
Amortization		636			463			1,286

(a) Includes $1,664 in loss on the upward adjustment of the performance-based earn out contingent consideration associated with the September 2020 acquisition of ABchimie and $977 in exit costs related to the movement of the sealants system business out of the Newark, CA location and into the Hickory, NC location during fiscal 2021

(b) Includes expense of $100 for the write-down of certain assets under construction

(c) Includes $128 in acquisition-related expense attributable to the February 2021 acquisition of the operations of ETi

(d) Includes $559 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first six months of fiscal 2020

(e) Includes $170 gain on the refund of a payment made in fiscal 2019 related to engineering studies performed to assess potential operational changes and further plant rationalization and consolidation and an expense of $405 for the write-down of certain assets under construction

(f) Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to the Company’s companywide ERP system, a $760 gain related to the April 2020 sale of the Company’s Pawtucket, RI location, a $1,791 gain related to the August 2020 sale of the Company’s Randolph, MA property, $183 in severance expense related to the May 2020 reduction in force, $85 in expenses related to the final transition out of the Pawtucket, RI facility, $155 of pension-related settlement costs due to the timing of lump-sum distribution and $274 in acquisition-related costs attributable to the September 2020 (fiscal 2021) acquisition of ABchimie

(g) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business

(h) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019, and $526 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the second half of fiscal 2019

(i) Includes $200 of expense related to engineering studies performed to assess potential future operational changes and further plant rationalization and consolidation, see note (e)

(j) Includes $511 of pension-related settlement costs due to the timing of lump-sum distributions

	August 31,		August 31,
	2021		2020
Total Assets
Adhesives, Sealants and Additives	$	161,968	$	129,457
Industrial Tapes		72,301		71,229
Corrosion Protection and Waterproofing		31,067		32,642
Total for reportable segments		265,336		233,328
Corporate and common assets		138,823		113,502
Total	$	404,159	$	346,830

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Export Sales and Foreign Operations

12 Months Ended

Aug. 31, 2021

Segment Data and Foreign Operations

Export Sales and Foreign Operations

Note 12—Export Sales and Foreign Operations

Export sales from continuing domestic operations to unaffiliated third parties were $33,439, $30,067 and $30,582 for the years ended August 31, 2021, 2020 and 2019, respectively. The increase in export sales in fiscal 2021 against fiscal 2020 in a reflection of the overall year-over-year increase in sales results.

The Company’s products are sold worldwide. Revenue for the years ended August 31, 2021, 2020 and 2019, are attributed to operations located in the following countries:

	Years Ended August 31,
	2021		2020		2019
Revenue
United States	$	245,476	$	226,690	$	248,281
United Kingdom		24,846		20,543		17,504
All other foreign (1)		23,014		13,929		15,566
Total	$	293,336	$	261,162	$	281,351

(1) Inclusive of sales originated from the Company’s French locations (including ABchimie for fiscal 2021), royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations.

As of August 31, 2021 and 2020, the Company had long-lived assets (defined as tangible assets providing the Company with a future economic benefit beyond the current year or operating period, including buildings, equipment and leasehold improvements) and goodwill and intangible assets, less accumulated amortization in the following countries:

	August 31,		August 31,
	2021		2020
Long-Lived Assets
United States
Property, plant and equipment, net	$	20,990	$	22,427
Goodwill and Intangible assets, less accumulated amortization		115,936		117,930
United Kingdom
Property, plant and equipment, net		2,174		2,320
Goodwill and Intangible assets, less accumulated amortization		3,905		4,403
All other foreign
Property, plant and equipment, net		1,103		827
Goodwill and Intangible assets, less accumulated amortization		24,979		1,269
Total
Property, plant and equipment, net	$	24,267	$	25,574
Goodwill and Intangible assets, less accumulated amortization	$	144,820	$	123,602

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Supplemental Cash Flow Data

12 Months Ended

Aug. 31, 2021

Supplemental Cash Flow Data

Supplemental Cash Flow Data

Note 13—Supplemental Cash Flow Data

Supplemental cash flow information for the years ended August 31, 2021, 2020 and 2019 is as follows:

	2021		2020		2019
Income taxes paid	$	17,074	$	11,186	$	11,714
Interest paid	$	245	$	230	$	728
Noncash Investing and Financing Activities
Common stock received for payment of stock option exercises	$	206	$	123	$	119
Property, plant and equipment additions included in accounts payable	$	256	$	92	$	67

Supplemental cash flow information as related to acquisitions and divestitures for the years ended August 31, 2021, 2020 and 2019 is as follows:

	2021		2020		2019
Acquisition of Emerging Technologies, Inc (ETi)
Accounts receivable	$	481
Inventory		919
Prepaids and other current assets		8
Property, plant & equipment		7
Goodwill		2,451
Intangible assets		6,650
Accounts payable and accrued liabilities		(519)
Other liabilities (due to sellers)		(1,000)
Payments for acquisitions		(8,997)
Acquisition of ABchimie
Accounts receivable	$	697
Inventory		239
Prepaids and other current assets		696
Property, plant & equipment		245
Goodwill		13,055
Intangible assets		12,055
Operating lease right-of-use asset		473
Deferred tax liability		(3,387)
Accounts payable and accrued liabilities		(431)
Operating lease liabilities (inclusive of short- and long-term)		(473)
Other liabilities (due to sellers)		(928)
Payments for acquisitions, net of cash received		(22,241)
Sale of Randolph, MA Property
Asset held for sale			$	(14)
Gain on sale of real estate				(1,791)
Cash received from sale of real estate, net				1,805
Sale of Pawtucket, RI Location
Asset held for sale			$	(1,050)
Gain on sale of real estate				(760)
Cash received from sale of real estate, net				1,810
Sale of Fiber Optic Cable Components Product Line
Due from sale of business					$	(400)
Cash received from sale of product line, net of transaction costs						400

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Acquisitions

12 Months Ended

Aug. 31, 2021

Acquisitions

Acquisitions

Note 14—Acquisitions

Acquisition of Emerging Technologies, Inc. (“ETi”)

On February 5, 2021, the Company acquired certain assets of Emerging Technologies, Inc. (“ETi”), a superabsorbent polymers solutions provider, located in Greensboro, NC. The business was acquired for a purchase price of $9,997, comprising $8,997 paid on February 5, 2021 and an accrual of $1,000 to be paid out up to eighteen months after the purchase (included in accrued expenses at August 31, 2021), subsequent to final working capital adjustments, and excluding acquisition-related costs. As part of this transaction, Chase acquired substantially all working capital and fixed assets of the business and entered a multi-year lease at ETi’s existing location. The Company expensed $128 of acquisition-related costs in fiscal 2021 associated with this acquisition. The purchase was funded with available cash on hand. ETi is a solutions provider and formulator of absorbent polymers for use in the packaging, recreational, consumer, and sanitation markets. The acquisition broadens the Company’s superabsorbent polymers product offerings and formulation capabilities while expanding its market reach. The Company is currently in the process of finalizing purchase accounting regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed, and anticipates completion within the first half of fiscal 2022. Since the effective date of the acquisition, the financial results of ETi’s acquired operations have been included in the Company’s financial statements within the functional additives product line, contained within the Adhesives, Sealants and Additives operating segment. The ETi acquisition does not represent a significant business combination so pro forma financial information is not provided.

The excess of the purchase price over the net tangible and intangible assets acquired resulted in preliminary goodwill of $2,451 that is largely attributable to the synergies and economies of scale from combining the operations, technologies and research and development capabilities of ETi and Chase, particularly as they pertain to the expansion of the Company's product and service offerings, the established workforce and marketing efforts. This goodwill is deductible for income tax purposes.

Acquisition of ABchimie

On September 1, 2020 (first day of fiscal 2021), the Company acquired all the capital stock of ABchimie for €18,654 (approximately $22,241 at the time of the transaction) net of cash acquired, subsequent to final working capital adjustment, excluding acquisition-related costs totaling $274 recognized in fiscal 2020 and with a performance-based earn out (measured over four years post-acquisition) potentially worth an additional €7,000 (approximately $8,330 at the time of the transaction). The Company accrued $2,537 at August 31, 2021 within Other liabilities on the consolidated balance sheet related to its current estimate of the earn out. Following its initial recording at the acquisition date, a $1,664 increase in the performance-based earn out accrual was recorded within Loss on contingent consideration in the condensed consolidated statement of operations for the year ended August 31, 2021. See Note 16 to the consolidated financial statements for additional information on the estimate of contingent consideration payable.

ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and protection of electronic assemblies, with ‎further formulation, production, and research and development capabilities‎. The transaction was funded with available cash on hand. The financial results of the business are included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company finalized purchase accounting during the fourth quarter of fiscal 2021, with no significant change to amounts initially recorded. The ABchimie acquisition does not represent a significant business combination so pro forma financial information is not provided.

The excess of the purchase price over the net tangible and intangible assets acquired resulted in goodwill preliminarily measured at $13,055 that is largely attributable to the synergies and economies of scale from combining the operations, technologies and research and development capabilities of ABchimie and Chase, particularly as they pertain to the expansion of the Company's product and service offerings, the established workforce and marketing efforts. A portion of this goodwill is deductible in the U.S. for calculation of GILTI period costs but is nondeductible for French income tax purposes.

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Revenue from Contracts with Customers

12 Months Ended

Aug. 31, 2021

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Note 15—Revenue from Contracts with Customers

The Company accounts for revenue in accordance with ASC 606, “Revenue from Contracts with Customers,” adopted September 1, 2018 (beginning of fiscal 2019). This revenue is generated from the manufacture of specialty chemical products including coatings, linings, adhesives, sealants, specialty tapes, polymers and laminates. Certain of these manufactured products can incorporate customer-owned materials. The Company also recognizes, to a lesser extent, revenue through royalties and commissions from licensed manufacturers and from providing custom manufacturing-related services. The Company’s revenue recognition policies require the Company to make significant judgments and estimates. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers, which can be either at a point in time or over time based on contractual terms with customers. Revenue is generally recognized at a point in time when control passes upon either shipment to or receipt by the customer of the Company’s products, while revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. The Company analyzes several factors, including but not limited to, the nature of the products being sold and contractual terms and conditions in contracts with customers to help the Company make such judgments about revenue recognition.

Contract Balances

The Company’s contract assets primarily relate to unbilled revenue for products currently in production at the Company’s facilities and which incorporate customer-owned material. Revenue is recognized in advance of billing to the customer in these specific circumstances, whereas billing is typically performed at the time of shipment to or receipt by the customer. Contract assets are included in prepaid expenses and other current assets on the Company’s consolidated balance sheet. The following table presents contract assets by reportable operating segment as of August 31, 2021 and 2020:

	August 31,		August 31,
	2021		2020
Contract Assets
Adhesives, Sealants and Additives	$	21	$	20
Industrial Tapes		82		21
Corrosion Protection and Waterproofing		25		41
Total	$	128	$	82

The Company did not have any contract liabilities as of August 31, 2021 and 2020.

Disaggregated Revenue

The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the years ended August 31, 2021, 2020 and 2019 was as follows:

	Year Ended August 31, 2021
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	76,388	$	106,084	$	37,879	$	220,351
Asia		28,033		7,903		4,933		40,869
Europe		21,846		4,657		2,591		29,094
All other foreign		597		2,229		196		3,022
Total Revenue	$	126,864	$	120,873	$	45,599	$	293,336
	Year Ended August 31, 2020
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	64,711	$	105,911	$	36,252	$	206,874
Asia		17,877		7,150		6,361		31,388
Europe		13,201		3,286		3,047		19,534
All other foreign		419		2,613		334		3,366
Total Revenue	$	96,208	$	118,960	$	45,994	$	261,162
	Year Ended August 31, 2019
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	70,320	$	117,955	$	37,463	$	225,738
Asia		19,430		7,126		6,524		33,080
Europe		14,773		2,637		2,455		19,865
All other foreign		273		2,127		268		2,668
Total Revenue	$	104,796	$	129,845	$	46,710	$	281,351

Practical Expedients and Policy Elections

Shipping and Handling Policy Election — the Company has made an accounting policy election to record shipping and handling activities occurring after control has passed to the customer to be treated as a fulfillment cost rather than as a distinct performance obligation. Shipping and handling expenses consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded within cost of products and services sold. Amounts billed to customers as shipping and handling are classified as revenue when services are performed.

Considering Existence of a Significant Financing Component — as a practical expedient, an entity need not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a promised good or service to the customer and

when the customer pays for that good or service will be one year or less. Given the time between the Company transferring a promised good or service to the customer and the customer paying for that good or service is less than one year based on the terms of arrangements with customers, the Company does not adjust the promised amount of consideration for effects of a significant financing component.

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Fair Value Measurements

12 Months Ended

Aug. 31, 2021

Fair Value Measurements

Fair Value Measurements

Note 16—Fair Value Measurements

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers are: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company utilizes the best available information in measuring fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The financial assets classified as Level 1 and Level 2 as of August 31, 2021 and 2020 represent investments that are restricted for use in nonqualified retirement savings plans for certain key employees and directors.

The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of August 31, 2021 and 2020:

				Fair value measurement category
				Quoted prices		Significant other		Significant
	Fair value			in active markets		observable inputs		unobservable inputs
	measurement date	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Restricted investments	August 31, 2021	$	2,260	$	2,016	$	244	$	—
Restricted investments	August 31, 2020	$	1,619	$	1,395	$	224	$	—

The following table presents the fair value of the Company’s liabilities that are accounted for at fair value on a recurring basis as of August 31, 2021 and 2020:

				Fair value measurement category
				Quoted prices		Significant other		Significant
	Fair value			in active markets		observable inputs		unobservable inputs
	measurement date	Total		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Long-term debt	August 31, 2021	$	—	$	—	$	—	$	—
Contingent consideration	August 31, 2021	$	2,537	$	—	$	—	$	2,537
Long-term debt	August 31, 2020	$	—	$	—	$	—	$	—
Contingent consideration	August 31, 2020	$	—	$	—	$	—	$	—

The long-term debt (including any current portion of long-term debt) had no outstanding balance as of August 31, 2021 and 2020. The carrying value of the long-term debt approximates its fair value, as the interest rate is set based on the movement of the underlying market rates. See Note 6 to the consolidated financial statements for additional information on long-term debt.

In connection with accounting for the ABchimie acquisition on September 1, 2020, the Company recorded a contingent consideration liability included within Other liabilities on the consolidated balance sheet of €780 (approximately $928) on the acquisition date, representing the then fair value of contingent consideration payable upon the achievement of a performance-based target. The contingent consideration liability was valued using a Monte Carlo simulation model in an option pricing framework based on key inputs that are not all observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company assesses the fair value of the contingent consideration liability at each reporting period. Any subsequent changes in the estimated fair value of the liability are reflected in Loss on contingent consideration on the consolidated statement of operations until the liability is settled. As of August 31, 2021, the liability increased to $2,537 predominantly due to changes in non-market data assumptions as well as a shorter period to the payment date. See Note 14 to the consolidated financial statements for additional information on the acquisition of ABchimie.

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Net Income Per Share

12 Months Ended

Aug. 31, 2021

Net Income Per Share

Net Income Per Share

Note 17—Net Income Per Share

The determination of earnings per share under the two-class method is as follows:

	Years Ended August 31,
	2021		2020		2019
Net income	$	44,920	$	34,157	$	32,711
Less: Allocated to participating securities		309		273		257
Available to common shareholders	$	44,611	$	33,884	$	32,454
Basic weighted average shares outstanding		9,383,085		9,359,940		9,334,232
Additional dilutive common stock equivalents		45,331		79,810		44,975
Diluted weighted average shares outstanding		9,428,416		9,439,750		9,379,207
Net income available to common shareholders, per common and common equivalent share
Basic	$	4.75	$	3.62	$	3.48
Diluted	$	4.73	$	3.59	$	3.46

For the years ended August 31, 2021, 2020 and 2019, stock options to purchase 59,508, 11,183 and 12,901 shares of common stock were outstanding but were not included in the calculation of diluted net income per share because their inclusion would be antidilutive. Included in the calculation of dilutive common stock equivalents are the unvested portion of restricted stock and stock options.

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Accumulated Other Comprehensive Income

12 Months Ended

Aug. 31, 2021

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

Note 18—Accumulated Other Comprehensive Income

The changes in accumulated other comprehensive income (loss), net of tax, were as follows:

			Change in Funded		Foreign Currency
	Restricted		Status of		Translation
	Investments		Pension Plans		Adjustment		Total
Balance at August 31, 2019	$	154	$	(6,271)	$	(8,207)	$	(14,324)
Other comprehensive gains (losses) before reclassifications		143		(1,278)		3,163		2,028
Reclassifications to net income of previously deferred (gains) losses		(28)		620		—		592
Other comprehensive income (loss)		115		(658)		3,163		2,620
Adoption of ASU 2018-02		—		(1,388)		—		(1,388)
Balance at August 31, 2020	$	269	$	(8,317)	$	(5,044)	$	(13,092)
Balance at August 31, 2020	$	269	$	(8,317)	$	(5,044)	$	(13,092)
Other comprehensive gains (losses) before reclassifications		297		(159)		1,295		1,433
Reclassifications to net income of previously deferred (gains) losses		(48)		497		—		449
Other comprehensive income (loss)		249		338		1,295		1,882
Balance at August 31, 2021	$	518	$	(7,979)	$	(3,749)	$	(11,210)

The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income:

	Amount of Gain (Loss) Reclassified from
	Accumulated Other Comprehensive Income
	(Loss) into Income
	Year Ended		Year Ended		Location of Gain (Loss) Reclassified from Accumulated
	August 31, 2021		August 31, 2020		Other Comprehensive Income (Loss) into Income
Gains on Restricted Investments:
Realized loss (gain) on sale of restricted investments	$	(65)	$	(37)	Selling, general and administrative expenses
Tax expense (benefit)		17		9
Gain net of tax	$	(48)	$	(28)
Loss on Funded Pension Plan adjustments:
Amortization of prior pension service costs and unrecognized losses	$	659	$	667	Other income (expense)
Settlement and curtailment loss		—		155	Other income (expense)
Tax expense (benefit)		(162)		(202)
Loss net of tax	$	497	$	620
Total net loss reclassified for the period	$	449	$	592

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Sale of Real Estate

12 Months Ended

Aug. 31, 2021

Sale of Real Estate

Sale of Real Estate

Note 19—Sale of Real Estate

Sale of Randolph, MA Property

In August 2020, the Company finalized the sale of its Randolph, MA property for net proceeds of $1,805. This transaction resulted in a gain of $1,791, which was recorded during the fourth quarter of fiscal 2020.

Sale of Pawtucket, RI Location

In April 2020, the Company finalized the sale of its Pawtucket, RI location for net proceeds of $1,810. This transaction resulted in a gain of $760, which was recorded during the third quarter of fiscal 2020.

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Operations Optimization Costs

12 Months Ended

Aug. 31, 2021

Operations Optimization Costs

Operations Optimization Costs

Note 20—Operations Optimization Costs

Relocation of Adhesives Systems Manufacturing to O'Hara Township, PA

During the third quarter of fiscal 2021, Chase announced to the employees at its Woburn, MA location that its adhesives systems operations, part of the Adhesives, Sealants and Additives segment’s electronic and industrial coatings product line, would be consolidating into the Company’s existing O'Hara Township, PA location. This rationalization and consolidation initiative-related announcement aligns with the second quarter announcement of the Company’s plan to move its sealant systems production from Newark, CA to Hickory, NC, described in more detail below. Chase Corporation obtained both the adhesive and sealants systems as part of its fiscal 2017 acquisition of the operations of Resin Designs. No expense was recognized related to the adhesive systems initiative during the second half of fiscal 2021, with the majority of future costs anticipated to occur in the first half of fiscal 2022.

Relocation of Sealants Systems Manufacturing to Hickory, NC

During the second quarter of fiscal 2021, Chase began moving the sealant systems operations, part of the Adhesives, Sealants and Additives segment’s electronic and industrial coatings product line, from its Newark, CA location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. The sealant systems operations and Newark, CA location came to Chase Corporation as part of the fiscal 2017 acquisition of the operations of Resin Designs, and the Company’s lease in Newark, CA terminated in fiscal 2021. The Company recognized $977 in expense related to the move in the nine-month period, ended August 31, 2021, and future costs related to this move are not anticipated to be significant to the consolidated financial statements.

Strategic Actions Taken Related to COVID-19

Fiscal 2020 saw the global spread of the coronavirus pandemic (COVID-19), which grew to create significant volatility, uncertainty and global economic disruption. During the third fiscal quarter of 2020, the Company implemented changes to its cost structure designed to address market changes brought on by COVID-19 and demonstrate its commitment to fiscal prudence: (a) the Company made a targeted reduction in its global workforce, contemplated pre-pandemic but catalyzed by COVID-19, which resulted in the recognition of $183 in severance costs during the period; and (b) the Company also instituted a temporary 20% reduction in the base salaries of its named executive officers and select members of senior management, as well as the cash compensation of the non-employee members of its Board of Directors. The reduction in force, which impacted operations in the Company’s U.S. facilities, and the adjustments in compensation, were both effective May 2020. The temporary executive and Board of Director compensation reductions were lifted on December 1, 2020, retroactive to September 1, 2020.

ERP System Upgrade

During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase Corporation is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around the facilities rationalization and consolidation initiative. The Company recognized $150 in expense related to these services in the first quarter of fiscal 2020, with no expense recognized in subsequent periods.

Relocation of Pulling and Detection Manufacturing to Hickory, NC

During the third quarter of fiscal 2019, Chase Corporation began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. At the time, the pulling and detection operations were the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving, including moving internal research and development capabilities, was substantially completed during the second quarter of fiscal 2020. The Company recognized $559 in expense related to the move in the first half of fiscal 2020, having recognized $526 in expense during the second half of fiscal 2019. No costs were recognized in the second half of fiscal 2020 or in the year-ended August 31, 2021, and future costs related to this move are not anticipated to be significant to the consolidated financial statements.

Engineering Studies Related to Facility Consolidation and Rationalization Initiative

During the fourth quarter of fiscal 2019, the Company commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s facility rationalization and consolidation initiative. Chase Corporation completed its review of the data and recommendations provided by the study in the fourth quarter of fiscal 2020 (prior year). The Company recognized $200 in expense related to these services in fiscal 2019, and a gain of $170 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Also in the fourth quarter of fiscal 2020 and related to the recommendations of the commissioned engineering studies, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405 related to the machinery. The Company recognized an additional $100 in the fourth quarter of fiscal 2021, to fully write-down the equipment’s value. The Company may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined.

Closure of Pawtucket, RI Facility

On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018 (fiscal 2019), with no additional expense recognized in the remainder of fiscal 2019. The Company completed the sale of its Pawtucket, RI location to a third party in the third quarter of fiscal 2020 for net proceeds totaling $1,810, recognizing a gain on sale of real estate of $760. Also, during the third quarter of fiscal 2020, the Company recognized $85 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods.

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Commitments and Contingencies

12 Months Ended

Aug. 31, 2021

Commitments and Contingencies

Commitments and Contingencies

Note 21—Commitments and Contingencies

The Company is involved from time to time in litigation incidental to the conduct of its business. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition, results of operations or cash flows, litigation is inherently unpredictable. Therefore, judgments could be rendered, or settlements agreed to that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where we assess the likelihood of loss as probable.

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Valuation and Qualifying Accounts

12 Months Ended

Aug. 31, 2021

Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

Note 22—Valuation and Qualifying Accounts

The following table sets forth activity in the Company’s accounts receivable and sales return reserve:

Year ended	Balance at Beginning of Year		Charges to Operations		Deductions to Reserves		Balance at End of Year
August 31, 2021	$	438	$	751	$	(738)	$	451
August 31, 2020	$	739	$	921	$	(1,222)	$	438
August 31, 2019	$	559	$	1,775	$	(1,595)	$	739

The following table sets forth activity in the Company’s warranty reserve (the warranty reserve is included within accrued expenses on the consolidated balance sheet):

Year ended	Balance at Beginning of Year		Charges to Operations		Deductions to Reserves		Balance at End of Year
August 31, 2021	$	—	$	—	$	—	$	—
August 31, 2020	$	37	$	—	$	(37)	$	—
August 31, 2019	$	—	$	37	$	—	$	37

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Aug. 31, 2021

Summary of Significant Accounting Policies

Products and Markets

Products and Markets

Our principal products are specialty tapes, laminates, adhesives, sealants, coatings and chemical intermediates that are sold by our salespeople, manufacturers' representatives and distributors.

In our Adhesives, Sealants and Additives segment, these products consist of:

(i) moisture protective coatings and cleaning solutions, which are sold to the electronics industry for circuitry manufacturing, including circuitry used in automobiles, industrial controls and home appliances;

(ii) advanced adhesives, sealants, and coatings for automotive and industrial applications that require specialized bonding, encapsulating, environmental protection, or thermal management functionality;

(iii) polymeric microspheres utilized by various industries to allow for weight and density reduction and sound dampening;

(iv) polyurethane dispersions utilized for various coating products; and

(v) superabsorbent polymers utilized for water and liquid management, remediation and protection in diverse markets including wire and cable, medical, environmental, infrastructure, energy and consumer products.

In our Industrial Tapes segment, these products consist of:

(i) insulating and conducting materials for the manufacture of electrical and telephone wire and cable, electrical splicing, and terminating and repair tapes, which are marketed to wire and cable manufacturers;

(ii) laminated film foils, including EMI/RFI shielding tapes, used in communication and local area network (LAN) cable;

(iii) industrial coated or laminate products and custom manufacturing services sold into medical, consumer, automotive, packaging, energy, telecommunications and other specialized markets;

(iv) laminated durable papers, including laminated paper with an inner security barrier used in personal and mail-stream privacy protection, which are sold primarily to the envelope converting and commercial printing industries;

(v) pulling and detection tapes used in the installation, measurement and location of fiber optic cable, water and natural gas lines, and power, data and video cable for commercial buildings; and

(vi) cover tapes with reliable adhesive and anti-static properties essential to delivering semiconductor components via tape and reel packaging.

In our Corrosion Protection and Waterproofing segment, these products consist of:

(i) protective coatings, tapes and protectants for pipelines, valves, casings and other metals, which are sold to oil companies, gas companies and water/wastewater utilities for use in both the construction and maintenance of oil, gas, water and wastewater pipelines;

(ii) fluid applied coating and lining systems for use in the water and wastewater industry;

(iii) waterproofing tapes and coatings used in waterproofing of the exterior of both commercial and industrial structures;

(iv) waterproofing membranes for highway bridge deck metal supported surfaces, which are sold to municipal transportation authorities, and high-performance polymeric asphalt additives; and

(v) expansion and control joint systems designed for roads, bridges, stadiums and airport runways.

Basis of Presentation

Basis of Presentation

The financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company uses the U.S. dollar as the functional currency for financial reporting. Certain reclassifications have been made to the prior year amounts to conform to the current year’s presentation.

Other Business Developments

Other Business Developments

During the third quarter of fiscal 2021, Chase announced to the employees at its Woburn, MA location that its adhesives systems operations, part of the Adhesive, Sealants and Additives segment’s electronic and industrial coatings product line, would be consolidating into the Company’s existing O'Hara Township, PA location. This rationalization and consolidation initiative-related announcement aligns with the second quarter announcement of the Company’s plan to move its sealant systems production from Newark, CA to Hickory, NC, described in more detail below. Chase Corporation obtained both the adhesive and sealants systems as part of its fiscal 2017 acquisition of the operations of Resin Designs. No expense was recognized related to the adhesive systems initiative during the second half of fiscal 2021, with the majority of future costs anticipated to occur in the first half of fiscal 2022.

On February 5, 2021, the Company acquired certain assets of Emerging Technologies, Inc. (“ETi”), a superabsorbent polymers solutions provider, located in Greensboro, NC. The business was acquired for a purchase price of $9,997, comprising $8,997 paid on February 5, 2021 and an accrual of $1,000 to be paid out up to eighteen months after purchase, subsequent to final working capital adjustments, and excluding acquisition-related costs. As part of this transaction, Chase acquired substantially all working capital and fixed assets of the business and entered a multi-year lease at ETi’s existing location. The Company expensed $128 of acquisition-related costs associated with this acquisition. The purchase was funded with available cash on hand. ETi is a solutions provider and formulator of absorbent polymers for use in the packaging, recreational, consumer, and sanitation markets. The acquisition broadens the Company’s superabsorbent polymers product offerings and formulation capabilities while expanding its market reach. The Company is currently in the process of finalizing purchase accounting, regarding a final allocation of the purchase price to tangible and identifiable intangible assets assumed, and anticipates completion within the first quarter of fiscal 2022. Since the effective date of the acquisition, the financial results of ETi’s acquired operations have been included in the Company’s financial statements within the functional additives product line, contained within the Adhesives, Sealants and Additives operating segment.

During the second quarter of fiscal 2021, Chase began moving the sealant systems operations, part of the Adhesive, Sealants and Additives segment’s electronic and industrial coatings product line, from its Newark, CA location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. The sealant systems operations and Newark, CA location came to Chase Corporation as part of the fiscal 2017 acquisition of the operations of Resin Designs, and the Company’s lease there terminated in fiscal 2021. The Company recognized $977 in expense related to the move in fiscal 2021.

On September 1, 2020 (the first day of fiscal 2021), the Company acquired all the capital stock of ABchimie for €18,654 (approximately $22,241 at the time of the transaction) net of cash acquired, subsequent to final working capital adjustment, excluding acquisition-related costs totaling $274 recognized in fiscal 2020 and with a potential earn out based on performance potentially worth an additional €7,000 (approximately $8,330 at the time of the transaction). ABchimie is a Corbelin, France headquartered solutions provider for the cleaning and protection of electronic assemblies, with ‎further formulation, production, and research and development capabilities‎. The transaction was funded with cash on hand. The financial results of the business were included in the Company's fiscal 2021 financial statements within the Adhesives, Sealants and Additives operating segment in the electronic and industrial coatings product line. The Company finalized purchase accounting during the fourth quarter of fiscal 2021, with no significant change to amounts initially recorded.

Fiscal 2020 saw the beginning of the global spread of the coronavirus pandemic (COVID-19), which grew to create significant volatility, uncertainty and global economic disruption. During the third fiscal quarter of 2020, the Company implemented changes to its cost structure designed to address market changes brought on by COVID-19 and demonstrate its commitment to fiscal prudence: (a) the Company made a targeted reduction in its global workforce, contemplated pre-pandemic but catalyzed by COVID-19, which resulted in the recognition of $183 in severance costs during the period; and (b) the Company also instituted a temporary 20% reduction in the base salaries of its named executive officers and select members of senior management, as well as the cash compensation of the non-employee members of its Board of Directors. The reduction in force, which impacted operations in the Company’s U.S. facilities, and the adjustments in compensation, were both effective May 2020. The executive officers’ and Board of Directors’ temporary compensation reductions were lifted on December 1, 2020, retroactive to September 1, 2020.

During the first quarter of fiscal 2020, the Company commissioned third party led studies regarding the potential upgrading of the Company’s current worldwide ERP system. Chase Corporation is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around the facilities rationalization and consolidation initiative. The Company recognized $150 in expense related to these services in the first quarter of fiscal 2020, with no expense recognized in the second, third or fourth fiscal quarters. Given the ongoing nature of the review, an estimate of future costs, including those that may be capitalized, cannot currently be determined.

During the third quarter of fiscal 2019, the Company began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. At the time, the pulling and detection operations were the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving, including moving internal research and development capabilities, was substantially completed during the second quarter of fiscal 2020. The Company recognized $559 in expense related to the first half of fiscal 2020, having recognized $526 in expense during the second half of fiscal 2019. No costs were recognized in the second half of 2020 or during fiscal 2021, and future costs related to this move are not anticipated to be significant to the consolidated financial statements.

During the fourth quarter of fiscal 2019, Chase Corporation commissioned engineering studies of certain legacy operations, machinery and locations related to the Company’s ongoing facility rationalization and consolidation initiative. Chase completed its review of the data and recommendations provided by the study in the fourth quarter of

fiscal 2020. The Company recognized $200 in expense related to these services in fiscal 2019, and a gain of $170 in fiscal 2020, as certain amounts expensed in fiscal 2019 were refunded. Also in the fourth quarter of fiscal 2020 and related to the recommendations of the commissioned engineering studies, the Company wrote down the value of certain non-operating production assets related to the pipeline coatings product line, within the Corrosion Protection and Waterproofing segment. Given the nature and prospects of the equipment, the Company determined its then carrying value exceeded its fair value and recognized an expense of $405 related to the machinery. The Company recognized an additional $100 in the fourth quarter of fiscal 2021, to fully write-down the equipment’s value. Chase may utilize third party engineering, IT and other professional services firms in the future for similar optimization-related work. Given the ongoing nature of the facility rationalization and consolidation initiative, an estimate of future costs cannot currently be determined.

On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018, with no additional expense recognized in the remainder of fiscal 2019. The Company completed the sale of its Pawtucket, RI location to a third party in the third quarter of fiscal 2020 for net proceeds totaling $1,810, recognizing a gain on sale of real estate of $760. Also, during the third quarter of fiscal 2020, the Company recognized $85 in final Pawtucket, RI transition and exit costs, with no further costs related to this initiative anticipated in future periods.

The Company has evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, and other than the cash dividend announced on November 15, 2021 of $1.00 per share to shareholders of record on November 30, 2021 and payable on December 9, 2021, the Company is not aware of any other events or transactions that occurred subsequent to the balance sheet date, but prior to filing, that would require recognition or disclosure in its consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of demand deposit accounts or investment instruments that meet high credit quality standards such as money market funds, government securities, or commercial paper. The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents.

Credit risk related to cash and cash equivalents is limited based on the creditworthiness of the financial institutions at which these funds are held. We maintain cash balances in multiple banks. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250. Certain of our account balances exceed the FDIC limit. Cash balances held outside the United States totaled $26,309 as of August 31, 2021.

Accounts Receivable

Accounts Receivable

As a result of the adoption of ASU 2016-13, the Company has updated its critical accounting policy related to trade accounts receivable and allowances for credit losses effective September 1, 2020 as follows:

All trade accounts receivable are reported net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our trade accounts receivable over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. The Company regularly performs detailed reviews of our pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. Receivables are written off against these reserves in the period they are determined to be uncollectable.

Prior to September 1, 2020, the Company evaluated the collectability of accounts receivable balances based on a combination of factors. In cases where the Company was aware of circumstances that may have impaired a specific customer’s ability to meet its financial obligations to it, a specific allowance against amounts due to the Company was recorded, and thereby reduced the net recognized receivable to the amount the Company reasonably believed would be collected. For all other customers, the Company recognized allowances for doubtful accounts based on the length of time the receivables were past due, industry and geographic factors, the current business environment and its historical experience.

Inventory

Inventory

The Company values inventory at the lower of cost or net realizable value using the first in, first out (FIFO) method. Management assesses the recoverability of inventory based on types and levels of inventory held, forecasted demand and changes in technology. These assessments require management judgments and estimates, and valuation adjustments for excess and obsolete inventory may be recorded based on these assessments. We estimate excess and obsolescence exposures based upon assumptions about future demand, product transitions, and market conditions, and record adjustments to reduce inventories to their estimated net realizable value. The failure to accurately forecast demand may lead to additional excess and obsolete inventory and future charges.

Goodwill

Goodwill

The Company accounts for goodwill in accordance with ASC Topic 350, “Intangibles — Goodwill and Other.” The Company performs impairment reviews annually each fourth quarter and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable.

During the three-month period ended February 28, 2019 (fiscal 2019), the ordering patterns of the polyurethane dispersions reporting unit’s customers, especially those in the automotive industry, combined with a decrease in the reporting unit’s backlog of customer orders believed to be firm as of February 28, 2019, indicated that an impairment in the carrying value of the reporting unit might have occurred. The Company performed an impairment test on the indefinite-lived and long-lived assets related to the polyurethane dispersions reporting unit, now part of the Adhesives, Sealants and Additives operating segment and reporting unit (part of the former Industrial Materials segment during the second fiscal quarter of 2019), in accordance with ASC Topic 350, “Intangibles — Goodwill and Other” and ASC Topic 360, “Disclosure — Impairment or Disposal of Long-Lived Assets.” As a result of impairment testing, which included first testing long-lived assets other than goodwill for impairment under applicable guidance, the Company recorded a charge of $2,410 to loss on impairment of goodwill within the consolidated statement of operations during the quarter

ended February 28, 2019. The polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method).

The Company has adopted Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles — Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” When evaluating the potential impairment of goodwill, Chase first assesses a range of qualitative factors, including but not limited to, industry conditions, the competitive environment, changes in the market for our products and services, entity-specific factors such as strategy and changes in key personnel, and the overall financial performance for each of our reporting units relative to historical or projected future operating results. If after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then assess goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. If the fair value of a reporting unit is less than its carrying value, an impairment loss, limited to the amount of goodwill allocated to that reporting unit, is recorded. Fair values for reporting units are determined based on the income approach (discounted cash flow method).

For the annual fiscal 2021 fourth quarter review, no goodwill impairment, nor at-risk reporting units, was indicated as of August 31, 2021. For the annual fiscal 2021 goodwill impairment test, we performed a qualitative assessment of goodwill impairment and concluded that it was more likely than not that our reporting units' fair values exceeded their carrying values (i.e. indicated no impairment of goodwill). Accordingly, it was not necessary for us to perform the quantitative analysis.

Intangible Assets

Intangible Assets

Intangible assets consist of patents, formulas, trade names, customer relationships and trademarks. The Company capitalizes costs related to patent applications and technology agreements. The costs of these assets are amortized over the lesser of the useful life of the asset or its statutory life. Capitalized costs are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Expenditures for maintenance repairs and minor renewals are charged to expense as incurred. Betterments and major renewals are capitalized. Upon retirement or other disposition of assets, related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is included in the determination of income or loss. The estimated useful lives of property, plant and equipment are as follows:

Buildings and improvements	15	to	40	years
Machinery and equipment	3	to	10	years

Leasehold improvements are depreciated over the lesser of the useful life or the term of the lease.

Restricted Investments and Deferred Compensation

Restricted Investments and Deferred Compensation

The Company has a non-qualified deferred savings plan that covers its Board of Directors and a separate plan covering selected employees. Participants may elect to defer a portion of their compensation for payment in a future tax year. The plans are funded by trusteed assets that are restricted to the payment of deferred compensation or satisfaction of the Company’s general creditors. The Company’s restricted investments under the plans were $2,260 and $1,619 at August 31, 2021 and 2020, respectively, and corresponding deferred compensation liabilities were $2,267 and $1,629 at August 31, 2021 and 2020, respectively. The Company accounts for the restricted investments as available for sale by recording net unrealized gains or losses in other comprehensive income as a component of stockholders’ equity.

Revenue

Revenue

Effective September 1, 2018 (fiscal 2019), the Company adopted accounting standard ASU No. 2014-09, “Revenue from Contracts with Customers” (ASC 606) using the modified retrospective method for contracts that were not completed as of August 31, 2018. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, whereby the cumulative impact of all prior periods is recorded in retained earnings or other impacted balance sheet line items upon adoption. The impact on the Company’s consolidated balance sheets, and statements of operations, equity or cash flows as of the adoption date as a result of applying ASC 606 have been reflected within those respective financial statements. The Company’s accounting policy has been updated to align with ASC 606.

The adoption of ASC 606 represents a change in accounting principle that provides enhanced revenue recognition disclosures. The Company accounts for revenue from contracts with customers when: (a) there is approval and commitment from both parties; (b) the rights of the parties are identified; (c) payment terms are identified; (d) the contract has commercial substance; and (e) collectability of consideration is probable. Revenue is primarily derived from customer purchase orders, master sales agreements, and negotiated contracts, all of which represent contracts with customers. See Note 15 to the consolidated financial statements for more information on our accounting for revenue.

Research and Product Development Costs

Research and Product Development Costs

Research and product development costs are expensed as incurred and include primarily engineering salaries, overhead and materials used in connection with research and development projects. Research and development expense amounted to $4,056, $4,007 and $4,021 for the years ended August 31, 2021, 2020 and 2019, respectively, and was recorded within Research and product development costs on the consolidated statements of operations.

Pension Plan

Pension Plans

The Company accounts for its pension plans following the requirements of ASC Topic 715, “Compensation —Retirement Benefits” (“ASC 715”). ASC 715 requires an employer to: (a) recognize in its statement of financial position the funded status of a benefit plan; (b) measure defined benefit plan assets and obligations as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise but are not recognized as components of net periodic benefit costs pursuant to prior existing guidance.

Stock Based Compensation

Stock-Based Compensation

In accordance with the accounting for stock-based compensation guidance, ASC Topic 718 “Compensation – Stock Compensation” (“ASC 718”), the Company measures and recognizes compensation expense for all share-based payment awards made to employees, directors and consultants based on estimated fair values. This includes restricted stock, restricted stock units and stock options. The guidance allows for the continued use of the simplified method as the Company has concluded that its historical share option exercise experience does not provide a reasonable basis for estimating expected term.

Stock-based compensation expense recognized in fiscal years 2021, 2020 and 2019 was $2,978, $3,208 and $2,176, respectively.

The fair value of options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions for the years ending August 31, 2021, 2020 and 2019:

	2021		2020		2019
Expected dividend yield	0.7	%	0.7	%	0.7	%
Expected life	6.0	years	6.0	years	6.0	years
Expected volatility	39.5	%	31.0	%	31.4	%
Risk-free interest rate	0.4	%	1.4	%	2.7	%

Expected volatility is determined by looking at a combination of historical volatility over the past six years as well as implied future volatility.

Translation of Foreign Currency

Translation of Foreign Currency

The financial position and results of operations of the Company’s HumiSeal Europe Ltd and Chase Protective Coatings Ltd businesses are measured using the British pound as the functional currency. The financial position and results of operations of the Company’s HumiSeal Europe SARL and ABchimie businesses in France are measured using euros as the functional currency. The financial position and results of the Company’s HumiSeal India Private Limited business in India are measured using the Indian rupee as the functional currency. The functional currency for all our other operations is the U.S. dollar. Revenue and expenses of these international businesses have been translated at average exchange rates. Foreign currency translation gains and losses are determined using current exchange rates for monetary items and historical exchange rates for other balance sheet items, and are recorded as a change in other comprehensive income (a component of stockholders’ equity). Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of these international operations are included in other income (expense) on the consolidated statements of operations and were gains (losses) of ($512), ($911) and ($48) for the fiscal years ended August 31, 2021, 2020 and 2019, respectively.

Income Taxes

Income Taxes

The Company accounts for income taxes under the asset and liability method. Under this method, a deferred tax asset or liability is determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Tax credits are recorded as a reduction in income taxes. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company estimates contingent income tax liabilities based on the guidance for accounting for uncertain tax positions as prescribed in ASC Topic 740, “Income Taxes.” See Note 7 for more information on the Company’s income taxes, including information on the effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on our financial position and results of operations.

Net Income Per Share

Net Income Per Share

The Company has unvested share-based payment awards with a right to receive nonforfeitable dividends, which are considered participating securities under ASC Topic 260, “Earnings Per Share” (“ASC 260”). The Company allocates earnings to participating securities and computes earnings per share using the two-class method.

Comprehensive Income

Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments, unrealized gains and losses on marketable securities and adjustments related to the change in the funded status of the pension plans.

Segments

Segments

ASC Topic 280 “Segment Reporting” of the Financial Accounting Standards Board (“FASB”) codification establishes standards for reporting information about operating segments. The Company is organized into three reportable operating segments: Adhesives, Sealants and Additives; Industrial Tapes; and Corrosion Protection and Waterproofing. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets.

The Adhesives, Sealants and Additives segment offers innovative and specialized product offerings consisting of both end-use products and intermediates that are generally used in, or integrated into, another company’s products. Demand for the segment’s product offerings is typically dependent upon general economic conditions. The Adhesives, Sealants and Additives segment leverages the core specialty chemical competencies of the Company, and serves diverse markets and applications. The segment sells predominantly into the transportation, appliances, medical, general industrial and environmental market verticals. The segment’s products include moisture protective coatings and cleaners and customized sealant and adhesive systems for electronics, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning September 1, 2020 (first day of fiscal 2021), the Adhesives, Sealants and Additives segment includes the acquired operations of ABchimie, within the electronic and industrial coatings product line and beginning February 5, 2021, the acquired operations of Emerging Technologies, Inc. (“ETi”), within the functional additives product line.

The Industrial Tapes segment features wire and cable materials, specialty tapes, and other laminated and coated products. The segment derives its competitive advantage through its proven chemistries, diverse specialty offerings and the reliability its supply chain offers to end customers. These products are generally used in the assembly of other manufacturers’ products, with demand typically dependent upon general economic conditions. The Industrial Tapes segment sells mostly to established markets, with some exposure to growth opportunities through further development of existing products. Markets served include cable manufacturing, utilities and telecommunications, and electronics packaging. The segment’s offerings include insulating and conducting materials for wire and cable manufacturers, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing services, pulling and detection tapes used in the installation, measurement and location of fiber optic cable and water and natural gas lines, and cover tapes essential to delivering semiconductor components via tape and reel packaging.

The Corrosion Protection and Waterproofing segment is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. End markets include new and existing infrastructure projects on oil, gas, water and wastewater pipelines, highways and bridge decks, water and wastewater containment systems, and commercial buildings. The segment’s products include protective coatings for pipeline applications, coating and lining systems for waterproofing and liquid storage applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion joint systems for waterproofing applications in transportation and architectural markets. With sales generally dependent on outdoor project work, the segment experiences highly seasonal sales patterns.

Contingent Consideration

Contingent Consideration

In connection with accounting for the ABchimie acquisition on September 1, 2020, the Company recorded a contingent consideration liability included within Other liabilities on the consolidated balance sheet. The contingent consideration liability was valued using a Monte Carlo simulation model in an option pricing framework based on key inputs requiring significant judgments and estimates to be made by the Company, including forecasts of future earnings over the multiyear period encompassed by the earnout, and that are not all observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company assesses the fair value of the contingent consideration liability at each reporting period. Any subsequent changes in the estimated fair value of the liability are reflected in Loss on contingent consideration on the consolidated statement of operations until the liability is settled. If fully realized, the contingent consideration due would total €7,000 (approximately $8,330 at the time of the initial transaction)

Recently Issued Accounting Standards and Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

Fiscal 2021

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The ASU applies to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the ASU do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients and that are retained through the end of the hedging relationship. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. ASU 2020-04 has not had, and the Company does not expect it to have in future periods, a material impact on the Company's consolidated financial statements and disclosures.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which modifies the measurement approach for credit losses on financial assets measured on an amortized cost basis from an 'incurred loss' method to an 'expected loss' method. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13. This amendment provides clarity and improves the codification to ASU 2016-13. The pronouncements are concurrently effective for fiscal years beginning after December 15, 2019 and interim periods therein. The Company adopted ASU 2016-13 on September 1, 2020, using the modified retrospective transition method which resulted in no material impact on the consolidated financial statements.

As a result of the adoption of ASU 2016-13, the Company has updated its critical accounting policy related to trade accounts receivable and allowances for credit losses effective September 1, 2020 from the critical accounting policies previously disclosed in our audited financial statements for the year ended August 31, 2020 as follows:

All trade accounts receivable are reported net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our trade accounts receivable over the life of the underlying assets. Assets with similar risk characteristics are pooled together for determination of their current expected credit losses. The Company regularly performs detailed reviews of our pooled assets to evaluate the collectability of receivables based on a combination of past, current, and future financial and qualitative factors that may affect customers’ ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected.

Fiscal 2020

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements.” The updated guidance provided an optional transition method, which allows for the application of the standard as of the adoption date with no restatement of prior period amounts. The Company adopted the standard on September 1, 2019 (start of fiscal 2020) under the optional transition method described above. Consequently, historical financial information was not updated, and the disclosures required under the new standard are not provided for dates and periods prior to September 1, 2019.

The new standard provides several optional practical expedients in transition. The Company has elected to apply the “package of practical expedients” which allows it to not reassess i) whether existing or expired arrangements contain a lease, ii) the lease classification of existing or expired leases, or iii) whether previous initial direct costs would qualify for capitalization under the new lease standard. In preparation for adoption of the standard, the Company enhanced its internal controls to enable the preparation of financial information including the assessment of the impact of the standard. The initial adoption of the ASU resulted in the recognition of additional lease liabilities of $9,644 ($2,071 short-term and $7,573 long-term) and right-of-use assets of $10,200 as of September 1, 2019 on the consolidated balance sheet as it relates to the Company’s operating leases. The new standard did not have a material impact on the Company’s consolidated statement of operations or cash flows.

In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the current enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. Therefore, the Company adopted ASU 2018-02 in the first quarter of the year ending August 31, 2020, and has elected to reclassify the income tax effects of the Tax Reform related to its pension funding from accumulated other comprehensive loss to retained earnings.

Fiscal 2019

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amended guidance establishes a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance, including industry-specific guidance.

The amended guidance clarifies that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the amended guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 was effective for the Company’s interim and annual reporting periods beginning September 1, 2018 (fiscal 2019), and could have been adopted using either a full retrospective or modified retrospective transition method.

The Company adopted the amended guidance and all related amendments using the modified retrospective approach on September 1, 2018. The Company recognized the cumulative effect of initially applying the new revenue standard to all open contracts requiring recognition over time that were not completed on the date of adoption as an adjustment to the opening balance of retained earnings.

At the adoption date, the cumulative impact of revenue that would have been recognized over time was $80. The related adoption impact to retained earnings was $22, net of tax. The impact to net sales and net income as a result of applying ASC 606 was an increase of $67 and $5, respectively, for the year ended August 31, 2019. See Note 26 — “Revenue from Contracts with Customers” for further discussion of the effects of adoption.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230).” This ASU provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The Company adopted ASU No. 2016-15 on September 1, 2018, and the adoption did not have a material effect on its financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.”  The new guidance dictates that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The Company adopted the ASU on September 1, 2018. The adoption had no material effect on the financial statements and related disclosures in fiscal 2021, 2020 or 2019. The effect ASU No. 2017-01 will have on the financial statements and related disclosures of the Company in future periods will be dependent on the nature of potential future acquisitions and divestitures.

In March 2017, the FASB issued ASU No. 2017-07, “Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715, Compensation — Retirement Benefits. The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The ASU also allows only the service cost component to be eligible for capitalization when applicable (e.g., as a cost of internally manufactured inventory or a self-constructed asset). The Company adopted ASU No. 2017-07 on September 1, 2018.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Aug. 31, 2021

Summary of Significant Accounting Policies

Schedule of estimated useful lives of property, plant and equipment

Buildings and improvements	15	to	40	years
Machinery and equipment	3	to	10	years

Schedule of weighted average assumptions used to estimate the fair value of options granted on the date of grant using the Black-Scholes option pricing model

	2021		2020		2019
Expected dividend yield	0.7	%	0.7	%	0.7	%
Expected life	6.0	years	6.0	years	6.0	years
Expected volatility	39.5	%	31.0	%	31.4	%
Risk-free interest rate	0.4	%	1.4	%	2.7	%

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Inventory (Tables)

12 Months Ended

Aug. 31, 2021

Inventory

Schedule of inventory

	August 31,		August 31,
	2021		2020
Raw materials	$	24,055	$	18,993
Work in process		5,928		7,761
Finished goods		11,234		12,304
Total Inventory	$	41,217	$	39,058

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Property, Plant and Equipment (Tables)

12 Months Ended

Aug. 31, 2021

Property, Plant and Equipment

Schedule of property, plant and equipment

	August 31,		August 31,
	2021		2020
Land and improvements	$	5,020	$	4,997
Buildings		16,904		17,992
Machinery and equipment		49,505		51,942
Leasehold improvements		2,891		2,212
Construction in progress		613		714
		74,933		77,857
Accumulated depreciation		(50,666)		(52,283)
Property, plant and equipment, net	$	24,267	$	25,574

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Goodwill and Other Intangibles (Tables)

12 Months Ended

Aug. 31, 2021

Goodwill and Other Intangibles

Schedule of changes in the carrying value of goodwill

	Adhesives, Sealants and Additives		Industrial Tapes		Corrosion Protection and Waterproofing		Consolidated
Balance at August 31, 2019	$	50,090	$	21,215	$	10,681	$	81,986
Foreign currency translation adjustment		397		—		19		416
Balance at August 31, 2020	$	50,487	$	21,215	$	10,700	$	82,402
Acquisition of ABchimie		13,055		—		—		13,055
Acquisition of Emerging Technologies, Inc.		2,451		—		—		2,451
Foreign currency translation adjustment		(48)		—		6		(42)
Balance at August 31, 2021	$	65,945	$	21,215	$	10,706	$	97,866

Schedule of intangible assets subject to amortization

	Weighted Average		Gross Carrying		Accumulated		Net Carrying
	Amortization Period		Value		Amortization		Value
August 31, 2021
Patents and agreements	14.6	years	$	1,760	$	1,715	$	45
Formulas and technology	7.9	years		10,987		9,769		1,218
Trade names	5.9	years		8,836		8,285		551
Customer lists and relationships	9.2	years		116,855		71,715		45,140
			$	138,438	$	91,484	$	46,954
August 31, 2020
Patents and agreements	14.6	years	$	1,760	$	1,705	$	55
Formulas and technology	7.8	years		10,250		9,121		1,129
Trade names	5.8	years		8,575		7,781		794
Customer lists and relationships	9.1	years		98,966		59,744		39,222
			$	119,551	$	78,351	$	41,200

Schedule of estimated amortization expense

Years ending August 31,
2022	11,862
2023	8,746
2024	7,538
2025	5,939
2026	5,144

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Cash Surrender Value of Life Insurance (Tables)

12 Months Ended

Aug. 31, 2021

Cash Surrender Value of Life Insurance.

Schedule of cash surrender value of life insurance policies

	2021		2020
John Hancock	$	4,450	$	4,450
Cash surrender value of life insurance policies	$	4,450	$	4,450

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Long-Term Debt (Tables)

12 Months Ended

Aug. 31, 2021

Long-Term Debt

Schedule of long-term debt

	2021		2020
All-revolving credit facility with a borrowing capacity of $150,000	$	—	$	—
All-revolving credit facility with a borrowing capacity of $200,000		—		—
Long-term debt	$	—	$	—

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Income Taxes (Tables)

12 Months Ended

Aug. 31, 2021

Income Taxes

Schedule of domestic and foreign pre-tax income

	Year Ended August 31,
	2021		2020		2019
United States	$	52,182	$	42,027	$	37,088
Foreign		6,412		3,293		6,465
	$	58,594	$	45,320	$	43,553

Schedule of provision (benefit) for income taxes

	Year Ended August 31,
	2021		2020		2019
Current:
Federal	$	11,677	$	9,157	$	9,880
State		782		1,813		1,699
Foreign		2,123		962		1,575
Total current income tax provision		14,582		11,932		13,154
Deferred:
Federal		(832)		(520)		(1,699)
State		(124)		(184)		(529)
Foreign		48		(65)		(84)
Total deferred income tax benefit		(908)		(769)		(2,312)
Total income tax provision	$	13,674	$	11,163	$	10,842

Schedule of reconciliation of the effective income tax rate with the U.S. federal statutory income tax rate

	Year Ended August 31,
	2021		2020		2019
Federal statutory rates	21.0	%	21.0	%	21.0	%
Adjustment resulting from the tax effect of:
State and local taxes, net of federal benefit	2.3	%	3.0	%	2.1	%
Foreign tax rate differential	(0.3)	%	0.0	%	0.1	%
Adjustment to uncertain tax position	0.1	%	(1.1)	%	1.0	%
Transaction costs not deductible	0.0	%	0.5	%	0.0	%
Research credit generated	(0.1)	%	(0.1)	%	(0.3)	%
Stock Compensation	(0.3)	%	(0.3)	%	(0.4)	%
Permanent items	1.1	%	0.9	%	1.1	%
GILTI and Subpart F, net of foreign tax credit	0.3	%	0.3	%	0.6	%
Other	(0.4)	%	0.4	%	(0.4)	%
Change in valuation allowance	0.0	%	0.0	%	0.1	%
Deferred income tax remeasurement	0.1	%	0.0	%	0.0	%
Foreign Derived Intangible Income	(1.1)	%	0.0	%	0.0	%
Performance-based earnout contingency	0.6	%	0.0	%	0.0	%
Effective income tax rate	23.3	%	24.6	%	24.9	%

Summary of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

	As of August 31,
	2021		2020
Deferred tax assets:
Allowance for doubtful accounts	$	320	$	309
Inventories		520		994
Accruals		966		504
Warranty reserve		6		14
Pension accrual		2,386		2,749
Deferred compensation		545		391
Foreign currency loss on previously taxed income		96		96
Loan finance costs		3		7
Restricted stock grants		327		823
Non-qualified stock options		347		211
Lease liability		2,328		2,354
Foreign net operating loss, net of valuation allowance		192		247
Other		41		572
		8,077		9,271
Deferred tax liabilities:
Prepaid liabilities		(18)		(16)
Foreign intangibles		(3,156)		—
Right-of-use asset		(2,280)		(2,693)
Depreciation and amortization		(659)		(1,633)
		(6,113)		(4,342)
Net deferred tax assets (liabilities)	$	1,964	$	4,929

Summary of the Company's adjustments to its uncertain tax positions

	2021		2020		2019
Balance, at beginning of the year	$	1,941	$	2,324	$	1,889
Increase for tax positions related to the current year		—		101		55
Increase (decrease) for tax positions related to prior years		1,180		(609)		300
Decreases for settlement of uncertain tax positions		(705)		—		—
Increase for interest and penalties		208		125		106
Decrease for lapses of statute of limitations		(434)		—		(26)
Balance, at end of year	$	2,190	$	1,941	$	2,324

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Leases (Tables)

12 Months Ended

Aug. 31, 2021

Leases

Schedule of Lessee's balance sheet disclosure

	August 31,		August 31,
	2021		2020
Assets
Operating lease right-of-use asset	$	9,312	$	8,821
Liabilities
Current (accrued expenses)	$	1,515	$	1,865
Operating lease long-term liabilities		7,202		6,395
Total lease liability	$	8,717	$	8,260

Schedule of components of lease costs

	Year Ended August 31,
	2021		2020
Operating lease cost (a)	$	3,772	$	3,783

(a) Includes short-term leases and variable lease costs (e.g. common area maintenance), which are immaterial. ​ ​

Schedule of Maturity of lease liability

	Future Operating
Year ending August 31,	Lease Payments
2022		1,750
2023		1,596
2024		1,519
2025		1,358
2026		1,075
2027 and thereafter		2,330
Less: Interest		(911)
Present value of lease liabilities	$	8,717

Schedule of weighted average remaining lease term and discount rates

	August 31,			August 31,
	2021			2020
Lease Term and Discount Rate
Weighted average remaining lease term (years)
Operating leases		6.8			5.5
Weighted average discount rate (percentage)
Operating leases		3.1	%		3.1	%

Schedule of supplemental cash flow information

	Year Ended August 31,
	2021		2020
Operating cash outflows from operating leases	$	2,266	$	2,444
Total cash paid for amounts included in the measurement of lease liabilities	$	2,266	$	2,444

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Benefits and Pension Plans (Tables)

12 Months Ended

Aug. 31, 2021

Pensions and Other Postretirement Benefits

Schedule of the status of the Company's pension plans

	Year Ended August 31,
	2021		2020		2019
Change in benefit obligation
Projected benefit obligation at beginning of year	$	20,663	$	20,087	$	21,860
Service cost		366		295		283
Interest cost		341		451		696
Actuarial (gain) loss		645		2,253		995
Benefits paid		(1,754)		(2,423)		(3,747)
Projected benefit obligation at end of year	$	20,261	$	20,663	$	20,087
Change in plan assets
Fair value of plan assets at beginning of year	$	8,168	$	7,859	$	9,855
Actual return on plan assets		1,301		868		181
Employer contribution		1,565		1,864		1,570
Benefits paid		(1,754)		(2,423)		(3,747)
Fair value of plan assets at end of year	$	9,280	$	8,168	$	7,859
Funded status at end of year	$	(10,981)	$	(12,495)	$	(12,228)

	Year Ended August 31,
	2021		2020		2019
Amounts recognized in consolidated balance sheets
Noncurrent assets	$	—	$	—	$	—
Current liabilities		(1,565)		(1,565)		(1,743)
Noncurrent liabilities		(9,416)		(10,930)		(10,485)
Net amount recognized in consolidated balance sheets	$	(10,981)	$	(12,495)	$	(12,228)
Actuarial present value of benefit obligation and funded status
Accumulated benefit obligations	$	17,898	$	18,307	$	18,244
Projected benefit obligations	$	20,261	$	20,663	$	20,087
Plan assets at fair value	$	9,280	$	8,168	$	7,859
Amounts recognized in accumulated other comprehensive income
Prior service cost	$	40	$	44	$	47
Net actuarial loss		9,674		10,595		9,638
Adjustment to pre-tax accumulated other comprehensive income	$	9,714	$	10,639	$	9,685

	Year Ended August 31,
	2021		2020		2019
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain)/loss	$	(884)	$	711	$	1,863
Amortization of loss		(656)		(664)		(472)
Supplemental plan assumption change		619		1,065		(620)
Amortization of prior service cost		(3)		(3)		(3)
Effect of settlement on accumulated other comprehensive income		—		(155)		(511)
Total recognized in other comprehensive income		(924)		954		257
Net periodic pension cost		975		1,178		1,537
Total recognized in net periodic pension cost and other comprehensive income	$	51	$	2,132	$	1,794
Estimated amounts that will be amortized from accumulated comprehensive income over the next fiscal year
Prior service cost	$	3	$	3	$	3
Net actuarial loss		593		656		500

Schedule of components of net periodic benefit cost

	2021		2020		2019
Components of net periodic benefit cost
Service cost	$	366	$	295	$	283
Interest cost		341		451		696
Expected return on plan assets		(391)		(390)		(428)
Amortization of prior service cost		3		3		3
Amortization of accumulated loss		656		664		472
Curtailment and settlement loss		—		155		511
Net periodic benefit cost	$	975	$	1,178	$	1,537

Schedule of weighted-average assumptions used to determine benefit obligations

	2021		2020		2019
Discount rate
Qualified plan	2.15	%	1.92	%	2.58	%
Supplemental plan	1.95	%	1.65	%	2.37	%
NEPTCO plan	—	%	—	%	2.29	%
Rate of compensation increase
Qualified and Supplemental plan	3.50	%	3.50	%	3.50	%
NEPTCO plan	—	%	—	%	—	%

Schedule of weighted-average assumptions used to determine net periodic benefit cost

	2021		2020		2019
Discount rate
Qualified plan	1.92	%	2.58	%	3.80	%
Supplemental plan	1.65	%	2.37	%	3.57	%
NEPTCO plan	—	%	2.29	%	3.59	%
Expected long-term return on plan assets
Qualified plan	5.25	%	5.60	%	5.40	%
Supplemental plan	—	%	—	%	—	%
NEPTCO plan	—	%	5.60	%	5.40	%
Rate of compensation increase
Qualified and Supplemental plan	3.50	%	3.50	%	3.50	%
NEPTCO plan	—	%	—	%	—	%

Schedule of pension plans' assets by asset category

			Fair value measurements at								Fair value measurements at
			August 31, 2021								August 31, 2020
					Significant								Significant
			Quoted prices		other		Significant				Quoted prices		other		Significant
			in active		observable		unobservable				in active		observable		unobservable
	August 31,		markets		inputs		inputs		August 31,		markets		inputs		inputs
	2021		(Level 1)		(Level 2)		(Level 3)		2020		(Level 1)		(Level 2)		(Level 3)
Asset Category
Equity securities	$	4,241	$	4,241	$	—	$	—	$	3,986	$	3,986	$	—	$	—
Debt securities		5,039		5,039		—		—		4,182		4,182		—		—
Total	$	9,280	$	9,280	$	—	$	—	$	8,168	$	8,168	$	—	$	—

Schedule of pension benefit payments (which include expected future service) expected to be paid

Year ending August 31,	Pension Benefits
2022	$	3,150
2023		2,333
2024		1,997
2025		1,818
2026		1,785
2027-2031	$	4,875

Qualified Plan

Pensions and Other Postretirement Benefits

Schedule of target allocation and weighted-average asset allocations

	Target
	Allocation		Percentage of Plan Assets as of August 31,
Asset Category	Range		2021		2020		2019
Equity securities	10-80	%	46	%	49	%	44	%
Debt securities	20-70	%	54	%	51	%	56	%
Other	0-100	%	—	%	—	%	—	%
Total	100	%	100	%	100	%	100	%

NEPTCO | Qualified Plan

Pensions and Other Postretirement Benefits

Schedule of target allocation and weighted-average asset allocations

	Target
	Allocation		Percentage of Plan Assets as of August 31,
Asset Category	Range		2021		2020		2019
Equity securities	10-80	%	—	%	—	%	44	%
Debt securities	20-70	%	—	%	—	%	56	%
Other	0-100	%	—	%	—	%	—	%
Total	100	%	—	%	—	%	100	%

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Stockholders' Equity (Tables)

12 Months Ended

Aug. 31, 2021

Stockholders' Equity

Summary of restricted stock plan

	Non Employee Directors	Weighted Average Grant Date Fair Value		Non Employee Consultants and Advisors	Weighted Average Grant Date Fair Value		Officers and Employees	Weighted Average Grant Date Fair Value
Unvested restricted stock at August 31, 2018	2,779	$	101.05	—			65,579	$	61.85
Granted	4,599	$	101.92	—			7,524	$	121.64
Vested	(2,779)	$	101.05	—			(25,443)	$	65.79
Forfeited or cancelled	—			—			(3,305)	$	79.39
Unvested restricted stock at August 31, 2019	4,599	$	101.92	—			44,355	$	67.18
Granted	4,906	$	95.59	—			43,841	$	108.47
Vested	(4,599)	$	101.92	—			(25,195)	$	61.51
Forfeited or cancelled	—			—			(3,126)	$	123.19
Unvested restricted stock at August 31, 2020	4,906	$	95.59	—			59,875	$	97.72
Granted	4,635	$	104.09	2,306	$	108.42	9,499	$	98.10
Vested	(5,016)	$	95.59	—			(19,978)	$	80.13
Forfeited or cancelled	—			—			(6,195)	$	103.86
Unvested restricted stock at August 31, 2021	4,525	$	104.09	2,306	$	108.42	43,201	$	107.37

Summary of information about stock options outstanding

		Options Outstanding						Options Exercisable
Exercise Prices		Number Outstanding	Weighted Avg. Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Exercisable	Weighted Average Exercise Price		Aggregate Intrinsic Value
$	16.00	2,533	1.1	$	16.00	$	250	2,533	$	16.00	$	250
$	29.72	10,925	2.0	$	29.72	$	926	10,925	$	29.72	$	926
$	35.50	13,372	3.0	$	35.50	$	1,056	13,372	$	35.50	$	1,056
$	39.50	12,753	4.0	$	39.50	$	956	12,753	$	39.50	$	956
$	64.37	32,920	5.0	$	64.37	$	1,650	32,920	$	64.37	$	1,650
$	93.50	8,704	6.0	$	93.50	$	183	8,704	$	93.50	$	183
$	97.57	13,579	9.0	$	97.57	$	230	4,526	$	97.57	$	77
$	100.22	50,024	8.0	$	100.22	$	714	7,972	$	100.22	$	114
$	104.00	606	6.5	$	104.00	$	6	606	$	104.00	$	6
$	104.04	749	9.0	$	104.04	$	8	250	$	104.04	$	3
$	123.95	8,144	7.0	$	123.95	$	—	8,144	$	123.95	$	—
		154,309	6.0	$	76.24	$	5,979	102,705	$	64.41	$	5,221

Summary of the transactions of the Company's stock option plans

	Officers and Employees	Weighted Average Exercise Price
Options outstanding at August 31, 2018	99,190	$	50.17
Granted	9,086	$	122.64
Exercised	(7,022)	$	42.86
Forfeited or cancelled	—
Options outstanding at August 31, 2019	101,254	$	57.18
Granted	67,060	$	100.22
Exercised	(3,618)	$	34.21
Forfeited or cancelled	—
Options outstanding at August 31, 2020	164,696	$	75.21
Granted	15,594	$	97.88
Exercised	(7,546)	$	38.79
Forfeited or cancelled	(18,435)		100.62
Options outstanding at August 31, 2021	154,309	$	76.24
Options exercisable at August 31, 2021	102,705	$	64.41

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Segment Data (Tables)

12 Months Ended

Aug. 31, 2021

Segment Data

Summary of information about the Company's reportable segments

	Years Ended August 31,
	2021			2020			2019
Revenue
Adhesives, Sealants and Additives	$	126,864		$	96,208		$	104,796
Industrial Tapes		120,873			118,960			129,845
Corrosion Protection and Waterproofing		45,599			45,994			46,710
Total	$	293,336		$	261,162		$	281,351
Income before income taxes
Adhesives, Sealants and Additives	$	36,520	(a)	$	25,953		$	27,142	(g)
Industrial Tapes		37,407			31,237	(d)		28,216	(h)
Corrosion Protection and Waterproofing		15,913	(b)		16,638	(e)		15,909	(i)
Total for reportable segments		89,840			73,828			71,267
Corporate and common costs		(31,246)	(c)		(28,508)	(f)		(27,714)	(j)
Total	$	58,594		$	45,320		$	43,553
Includes the following costs by segment:
Adhesives, Sealants and Additives
Interest	$	116		$	98		$	177
Depreciation		1,065			994			1,467
Amortization		10,685			9,313			9,359
Industrial Tapes
Interest	$	83		$	111		$	216
Depreciation		1,718			1,746			1,755
Amortization		1,537			1,800			1,800
Corrosion Protection and Waterproofing
Interest	$	98		$	37		$	126
Depreciation		588			615			674
Amortization		636			463			1,286

(a) Includes $1,664 in loss on the upward adjustment of the performance-based earn out contingent consideration associated with the September 2020 acquisition of ABchimie and $977 in exit costs related to the movement of the sealants system business out of the Newark, CA location and into the Hickory, NC location during fiscal 2021

(b) Includes expense of $100 for the write-down of certain assets under construction

(c) Includes $128 in acquisition-related expense attributable to the February 2021 acquisition of the operations of ETi

(d) Includes $559 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first six months of fiscal 2020

(e) Includes $170 gain on the refund of a payment made in fiscal 2019 related to engineering studies performed to assess potential operational changes and further plant rationalization and consolidation and an expense of $405 for the write-down of certain assets under construction

(f) Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to the Company’s companywide ERP system, a $760 gain related to the April 2020 sale of the Company’s Pawtucket, RI location, a $1,791 gain related to the August 2020 sale of the Company’s Randolph, MA property, $183 in severance expense related to the May 2020 reduction in force, $85 in expenses related to the final transition out of the Pawtucket, RI facility, $155 of pension-related settlement costs due to the timing of lump-sum distribution and $274 in acquisition-related costs attributable to the September 2020 (fiscal 2021) acquisition of ABchimie

(g) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business

(h) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019, and $526 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the second half of fiscal 2019

(i) Includes $200 of expense related to engineering studies performed to assess potential future operational changes and further plant rationalization and consolidation, see note (e)

(j) Includes $511 of pension-related settlement costs due to the timing of lump-sum distributions

Schedule of total assets for the Company's reportable segments

	August 31,		August 31,
	2021		2020
Total Assets
Adhesives, Sealants and Additives	$	161,968	$	129,457
Industrial Tapes		72,301		71,229
Corrosion Protection and Waterproofing		31,067		32,642
Total for reportable segments		265,336		233,328
Corporate and common assets		138,823		113,502
Total	$	404,159	$	346,830

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Export Sales and Foreign Operations (Tables)

12 Months Ended

Aug. 31, 2021

Segment Data and Foreign Operations

Schedule of revenue by country

	Years Ended August 31,
	2021		2020		2019
Revenue
United States	$	245,476	$	226,690	$	248,281
United Kingdom		24,846		20,543		17,504
All other foreign (1)		23,014		13,929		15,566
Total	$	293,336	$	261,162	$	281,351

(1) Inclusive of sales originated from the Company’s French locations (including ABchimie for fiscal 2021), royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations.

Schedule of long-lived assets by country

	August 31,		August 31,
	2021		2020
Long-Lived Assets
United States
Property, plant and equipment, net	$	20,990	$	22,427
Goodwill and Intangible assets, less accumulated amortization		115,936		117,930
United Kingdom
Property, plant and equipment, net		2,174		2,320
Goodwill and Intangible assets, less accumulated amortization		3,905		4,403
All other foreign
Property, plant and equipment, net		1,103		827
Goodwill and Intangible assets, less accumulated amortization		24,979		1,269
Total
Property, plant and equipment, net	$	24,267	$	25,574
Goodwill and Intangible assets, less accumulated amortization	$	144,820	$	123,602

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Supplemental Cash Flow Data (Tables)

12 Months Ended

Aug. 31, 2021

Supplemental Cash Flow Data

Schedule of supplemental cash flow information

	2021		2020		2019
Income taxes paid	$	17,074	$	11,186	$	11,714
Interest paid	$	245	$	230	$	728
Noncash Investing and Financing Activities
Common stock received for payment of stock option exercises	$	206	$	123	$	119
Property, plant and equipment additions included in accounts payable	$	256	$	92	$	67

Supplemental cash flow information as related to acquisitions and divestitures for the years ended August 31, 2021, 2020 and 2019 is as follows:

	2021		2020		2019
Acquisition of Emerging Technologies, Inc (ETi)
Accounts receivable	$	481
Inventory		919
Prepaids and other current assets		8
Property, plant & equipment		7
Goodwill		2,451
Intangible assets		6,650
Accounts payable and accrued liabilities		(519)
Other liabilities (due to sellers)		(1,000)
Payments for acquisitions		(8,997)
Acquisition of ABchimie
Accounts receivable	$	697
Inventory		239
Prepaids and other current assets		696
Property, plant & equipment		245
Goodwill		13,055
Intangible assets		12,055
Operating lease right-of-use asset		473
Deferred tax liability		(3,387)
Accounts payable and accrued liabilities		(431)
Operating lease liabilities (inclusive of short- and long-term)		(473)
Other liabilities (due to sellers)		(928)
Payments for acquisitions, net of cash received		(22,241)
Sale of Randolph, MA Property
Asset held for sale			$	(14)
Gain on sale of real estate				(1,791)
Cash received from sale of real estate, net				1,805
Sale of Pawtucket, RI Location
Asset held for sale			$	(1,050)
Gain on sale of real estate				(760)
Cash received from sale of real estate, net				1,810
Sale of Fiber Optic Cable Components Product Line
Due from sale of business					$	(400)
Cash received from sale of product line, net of transaction costs						400

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Revenue from Contracts with Customers (Tables)

12 Months Ended

Aug. 31, 2021

Revenue from Contracts with Customers

Schedule of contract assets by reportable operating segment

	August 31,		August 31,
	2021		2020
Contract Assets
Adhesives, Sealants and Additives	$	21	$	20
Industrial Tapes		82		21
Corrosion Protection and Waterproofing		25		41
Total	$	128	$	82

Schedule of disaggregation of revenue

	Year Ended August 31, 2021
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	76,388	$	106,084	$	37,879	$	220,351
Asia		28,033		7,903		4,933		40,869
Europe		21,846		4,657		2,591		29,094
All other foreign		597		2,229		196		3,022
Total Revenue	$	126,864	$	120,873	$	45,599	$	293,336
	Year Ended August 31, 2020
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	64,711	$	105,911	$	36,252	$	206,874
Asia		17,877		7,150		6,361		31,388
Europe		13,201		3,286		3,047		19,534
All other foreign		419		2,613		334		3,366
Total Revenue	$	96,208	$	118,960	$	45,994	$	261,162
	Year Ended August 31, 2019
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	70,320	$	117,955	$	37,463	$	225,738
Asia		19,430		7,126		6,524		33,080
Europe		14,773		2,637		2,455		19,865
All other foreign		273		2,127		268		2,668
Total Revenue	$	104,796	$	129,845	$	46,710	$	281,351

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Fair Value Measurements (Tables)

12 Months Ended

Aug. 31, 2021

Fair Value Measurements

Schedule of financial assets and liabilities that were accounted for at fair value on a recurring basis

				Fair value measurement category
				Quoted prices		Significant other		Significant
	Fair value			in active markets		observable inputs		unobservable inputs
	measurement date	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Restricted investments	August 31, 2021	$	2,260	$	2,016	$	244	$	—
Restricted investments	August 31, 2020	$	1,619	$	1,395	$	224	$	—

				Fair value measurement category
				Quoted prices		Significant other		Significant
	Fair value			in active markets		observable inputs		unobservable inputs
	measurement date	Total		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Long-term debt	August 31, 2021	$	—	$	—	$	—	$	—
Contingent consideration	August 31, 2021	$	2,537	$	—	$	—	$	2,537
Long-term debt	August 31, 2020	$	—	$	—	$	—	$	—
Contingent consideration	August 31, 2020	$	—	$	—	$	—	$	—

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Net Income Per Share (Tables)

12 Months Ended

Aug. 31, 2021

Net Income Per Share

Schedule of determination of earnings per share under the two-class method

	Years Ended August 31,
	2021		2020		2019
Net income	$	44,920	$	34,157	$	32,711
Less: Allocated to participating securities		309		273		257
Available to common shareholders	$	44,611	$	33,884	$	32,454
Basic weighted average shares outstanding		9,383,085		9,359,940		9,334,232
Additional dilutive common stock equivalents		45,331		79,810		44,975
Diluted weighted average shares outstanding		9,428,416		9,439,750		9,379,207
Net income available to common shareholders, per common and common equivalent share
Basic	$	4.75	$	3.62	$	3.48
Diluted	$	4.73	$	3.59	$	3.46

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Aug. 31, 2021

Accumulated Other Comprehensive Income

Schedule of components of accumulated other comprehensive income (loss)

			Change in Funded		Foreign Currency
	Restricted		Status of		Translation
	Investments		Pension Plans		Adjustment		Total
Balance at August 31, 2019	$	154	$	(6,271)	$	(8,207)	$	(14,324)
Other comprehensive gains (losses) before reclassifications		143		(1,278)		3,163		2,028
Reclassifications to net income of previously deferred (gains) losses		(28)		620		—		592
Other comprehensive income (loss)		115		(658)		3,163		2,620
Adoption of ASU 2018-02		—		(1,388)		—		(1,388)
Balance at August 31, 2020	$	269	$	(8,317)	$	(5,044)	$	(13,092)
Balance at August 31, 2020	$	269	$	(8,317)	$	(5,044)	$	(13,092)
Other comprehensive gains (losses) before reclassifications		297		(159)		1,295		1,433
Reclassifications to net income of previously deferred (gains) losses		(48)		497		—		449
Other comprehensive income (loss)		249		338		1,295		1,882
Balance at August 31, 2021	$	518	$	(7,979)	$	(3,749)	$	(11,210)

Summary of the reclassifications from accumulated other comprehensive income (loss) to the condensed consolidated statements of income

	Amount of Gain (Loss) Reclassified from
	Accumulated Other Comprehensive Income
	(Loss) into Income
	Year Ended		Year Ended		Location of Gain (Loss) Reclassified from Accumulated
	August 31, 2021		August 31, 2020		Other Comprehensive Income (Loss) into Income
Gains on Restricted Investments:
Realized loss (gain) on sale of restricted investments	$	(65)	$	(37)	Selling, general and administrative expenses
Tax expense (benefit)		17		9
Gain net of tax	$	(48)	$	(28)
Loss on Funded Pension Plan adjustments:
Amortization of prior pension service costs and unrecognized losses	$	659	$	667	Other income (expense)
Settlement and curtailment loss		—		155	Other income (expense)
Tax expense (benefit)		(162)		(202)
Loss net of tax	$	497	$	620
Total net loss reclassified for the period	$	449	$	592

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Valuation and Qualifying Accounts (Tables)

12 Months Ended

Aug. 31, 2021

Valuation and Qualifying Accounts

Schedule of Company's accounts receivable reserve

Year ended	Balance at Beginning of Year		Charges to Operations		Deductions to Reserves		Balance at End of Year
August 31, 2021	$	438	$	751	$	(738)	$	451
August 31, 2020	$	739	$	921	$	(1,222)	$	438
August 31, 2019	$	559	$	1,775	$	(1,595)	$	739

Schedule of Company's warranty reserve

Year ended	Balance at Beginning of Year		Charges to Operations		Deductions to Reserves		Balance at End of Year
August 31, 2021	$	—	$	—	$	—	$	—
August 31, 2020	$	37	$	—	$	(37)	$	—
August 31, 2019	$	—	$	37	$	—	$	37

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Summary of Significant Accounting Policies - Acquisition (Details) $ / shares in Units, € in Thousands, £ in Thousands, $ in Thousands						1 Months Ended	3 Months Ended								6 Months Ended			9 Months Ended		12 Months Ended
	Nov. 15, 2021 $ / shares	Feb. 05, 2021 USD ($)	Sep. 01, 2020 USD ($)	Sep. 01, 2020 EUR (€)	Jun. 25, 2018	Apr. 30, 2020 USD ($)	Aug. 31, 2021 USD ($)	Feb. 28, 2021 USD ($)	Aug. 31, 2020 USD ($)	May 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Nov. 30, 2019 USD ($)	Nov. 30, 2018 USD ($)	Aug. 31, 2018 USD ($)	Aug. 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Aug. 31, 2019 USD ($)	Aug. 31, 2021 USD ($)	Aug. 31, 2019 USD ($)	Aug. 31, 2021 USD ($) $ / shares	Aug. 31, 2020 USD ($) $ / shares	Aug. 31, 2019 USD ($) $ / shares	Sep. 30, 2020 USD ($)	Sep. 30, 2020 EUR (€)	Sep. 01, 2020 EUR (€)	Sep. 01, 2020 GBP (£)
Basis of Presentation
Consideration paid in cash																				$ 31,238
Exit costs related to facilities																				977	$ 807	$ 986
Severance costs										$ 183
Percentage of temporary reduction in the base salaries of its named Executive Officers and select members of Senior Management, as well as the cash compensation of the non-employee members of the Board										20.00%
Asset Impairment Charges																				$ 100	405
Gain on sale of property																					$ 2,551
Annual cash dividends declared per share | $ / shares	$ 1.00																			$ 0.80	$ 0.80	$ 0.80
Newark
Basis of Presentation
Exit costs related to facilities																		$ 977		$ 977
Granite Falls Location
Basis of Presentation
Exit costs related to facilities															$ 0	$ 559	$ 526			0
Fiber Optic Cable Components Product Line
Basis of Presentation
Proceeds from the sale of property																						$ 400
Cash received from sale																	$ 400		$ 400			400
Pawtucket, RI manufacturing facility
Basis of Presentation
Exit costs related to facilities										$ 85			$ 260	$ 1,272					$ 0
Transition period					2 months
Proceeds from the sale of property						$ 1,810				1,810											$ 1,810
Gain on sale of property						$ 760				760										760
Anticipated future exit costs										0
Emerging Technologies
Basis of Presentation
Purchase price		$ 9,997
Consideration paid in cash		8,997																		8,997
Consideration to be paid		$ 1,000																		1,000
Threshold period within which the accrued consideration will be paid		18 months
Acquisition related expenses								$ 128												128
ABchime
Basis of Presentation
Consideration paid in cash																				22,241
Consideration to be paid																				928
Acquisition related expenses																					274
Consideration paid in cash			$ 22,241	€ 18,654
Potential earn out			$ 8,330																				$ 8,330	€ 7,000	€ 7,000	£ 7,000
Outside the United States
Basis of Presentation
Cash							$ 26,309											$ 26,309		26,309
Engineering Studies related to Facility Consolidation and Rationalization Initiative
Basis of Presentation
Business development cost							0		$ 0	$ 0	$ 0	$ 150										$ 200
Gain on refund																					170
Asset Impairment Charges							$ 100													$ 405
Gain on sale of property																					$ 170

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Summary of Significant Accounting Policies - PPE (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Aug. 31, 2021 USD ($)	Feb. 28, 2019 USD ($)	Aug. 31, 2021 segment	Aug. 31, 2019 USD ($)
Goodwill
Number of reporting units			3
Number of operating segments			3
Loss on impairment of goodwill | $	$ 0	$ 2,410		$ 2,410
Buildings and improvements | Minimum
Property, plant and equipment
Estimated useful life			15 years
Buildings and improvements | Maximum
Property, plant and equipment
Estimated useful life			40 years
Machinery and equipment | Minimum
Property, plant and equipment
Estimated useful life			3 years
Machinery and equipment | Maximum
Property, plant and equipment
Estimated useful life			10 years

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Summary of Significant Accounting Policies - Restricted Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Restricted Investments and Deferred Compensation
Restricted investments	$ 2,260	$ 1,619
Deferred compensation liabilities	2,267	1,629
Research and Product Development Costs
Research and development expense	4,056	4,007	$ 4,021
Stock Based Compensation
Stock-based compensation expense	$ 2,978	$ 3,208	$ 2,176
Weighted average assumptions used to estimate the fair value of options granted
Expected Dividend yield (as a percent)	0.70%	0.70%	0.70%
Expected life	6 years	6 years	6 years
Expected volatility (as a percent)	39.50%	31.00%	31.40%
Risk-free interest rate (as a percent)	0.40%	1.40%	2.70%

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Summary of Significant Accounting Policies - Translation of Foreign Currency (Details) € in Thousands, £ in Thousands, $ in Thousands	Aug. 31, 2021 USD ($)	Sep. 30, 2020 EUR (€)	Sep. 30, 2020 USD ($)	Sep. 01, 2020 EUR (€)	Sep. 01, 2020 USD ($)	Sep. 01, 2020 GBP (£)	Aug. 31, 2020 USD ($)	Aug. 31, 2019 USD ($)
Foreign currency translation adjustment
Translation of Foreign Currency
Foreign currency translation adjustment	$ (512)						$ (911)	$ (48)
ABchime
Translation of Foreign Currency
Potential earn out		€ 7,000	$ 8,330	€ 7,000	$ 8,330	£ 7,000

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Summary of Significant Accounting Policies - ASU update (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Sep. 01, 2018	Nov. 30, 2017	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019	Sep. 01, 2019
Recently Adopted Accounting Pronouncements
Package of practical expedients			true
Operating lease liability			$ 8,717	$ 8,260
Operating lease liability, short-term			1,515	1,865
Operating lease long-term liabilities			7,202	6,395
Operating lease right-of-use asset (Note 8)			$ 9,312	$ 8,821
Statutory tax rate (as a percent)		35.00%	21.00%	21.00%	21.00%
Net sales			$ 293,336	$ 261,162	$ 281,351
Retained earnings			335,629	298,266
Net income			44,920	34,157	32,711
Selling, general and administrative expense			$ 52,100	$ 49,364	48,707
ASU 2016-02
Recently Adopted Accounting Pronouncements
Operating lease liability						$ 9,644
Operating lease liability, short-term						2,071
Operating lease long-term liabilities						7,573
Operating lease right-of-use asset (Note 8)						$ 10,200
ASU 606
Recently Adopted Accounting Pronouncements
Net sales					67
Retained earnings	$ 22
Net income					$ 5
Cumulative Effect Adjustment | ASU 606
Recently Adopted Accounting Pronouncements
Net sales	$ 80

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Inventory (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Inventory
Raw materials	$ 24,055	$ 18,993
Work in process	5,928	7,761
Finished goods	11,234	12,304
Total Inventory	$ 41,217	$ 39,058

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Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Property, plant and equipment
Property, plant and equipment, gross	$ 74,933	$ 77,857
Accumulated depreciation	(50,666)	(52,283)
Property, plant and equipment, net	24,267	25,574
Land and improvements
Property, plant and equipment
Property, plant and equipment, gross	5,020	4,997
Buildings
Property, plant and equipment
Property, plant and equipment, gross	16,904	17,992
Machinery and equipment
Property, plant and equipment
Property, plant and equipment, gross	49,505	51,942
Leasehold improvements
Property, plant and equipment
Property, plant and equipment, gross	2,891	2,212
Construction in progress
Property, plant and equipment
Property, plant and equipment, gross	$ 613	$ 714

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Goodwill and Other Intangibles - Goodwill (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Aug. 31, 2021 USD ($)	Feb. 28, 2019 USD ($)	Aug. 31, 2021 USD ($) segment	Aug. 31, 2020 USD ($)	Aug. 31, 2019 USD ($)
Changes in the carrying value of goodwill
Balance at the beginning of the period			$ 82,402	$ 81,986
Foreign currency translation adjustment			(42)	416
Balance at the end of the period	$ 97,866		$ 97,866	82,402	$ 81,986
Number of reporting units | segment			3
Number of operating segments | segment			3
Loss on impairment of goodwill	0	$ 2,410			2,410
Goodwill deductible for income tax purposes	30,697		$ 30,697	31,591
ABchime
Changes in the carrying value of goodwill
Acquisitions			13,055
Balance at the end of the period	13,055		13,055
Emerging Technologies
Changes in the carrying value of goodwill
Acquisitions			2,451
Balance at the end of the period	2,451		2,451
Adhesives, Sealants and Additives
Changes in the carrying value of goodwill
Balance at the beginning of the period			50,487	50,090
Foreign currency translation adjustment			(48)	397
Balance at the end of the period	65,945		65,945	50,487	50,090
Adhesives, Sealants and Additives | ABchime
Changes in the carrying value of goodwill
Acquisitions			13,055
Adhesives, Sealants and Additives | Emerging Technologies
Changes in the carrying value of goodwill
Acquisitions			2,451
Industrial Tapes
Changes in the carrying value of goodwill
Balance at the beginning of the period			21,215	21,215
Balance at the end of the period	21,215		21,215	21,215	21,215
Corrosion Protection and Waterproofing
Changes in the carrying value of goodwill
Balance at the beginning of the period			10,700	10,681
Foreign currency translation adjustment			6	19
Balance at the end of the period	$ 10,706		$ 10,706	$ 10,700	$ 10,681

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Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Goodwill and Other Intangibles
Gross Carrying Value	$ 138,438	$ 119,551
Accumulated Amortization	91,484	78,351
Net Carrying Value	46,954	41,200
Aggregate amortization expense	12,858	$ 11,576	$ 12,445
Estimated amortization expense
2022	11,862
2023	8,746
2024	7,538
2025	5,939
2026	$ 5,144
Patents and agreements
Goodwill and Other Intangibles
Weighted-Average Amortization Period	14 years 7 months 6 days	14 years 7 months 6 days
Gross Carrying Value	$ 1,760	$ 1,760
Accumulated Amortization	1,715	1,705
Net Carrying Value	$ 45	$ 55
Formulas and technology
Goodwill and Other Intangibles
Weighted-Average Amortization Period	7 years 10 months 24 days	7 years 9 months 18 days
Gross Carrying Value	$ 10,987	$ 10,250
Accumulated Amortization	9,769	9,121
Net Carrying Value	$ 1,218	$ 1,129
Trade names
Goodwill and Other Intangibles
Weighted-Average Amortization Period	5 years 10 months 24 days	5 years 9 months 18 days
Gross Carrying Value	$ 8,836	$ 8,575
Accumulated Amortization	8,285	7,781
Net Carrying Value	$ 551	$ 794
Customer lists and relationships
Goodwill and Other Intangibles
Weighted-Average Amortization Period	9 years 2 months 12 days	9 years 1 month 6 days
Gross Carrying Value	$ 116,855	$ 98,966
Accumulated Amortization	71,715	59,744
Net Carrying Value	$ 45,140	$ 39,222

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Cash Surrender Value of Life Insurance (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Cash Surrender Value of Life Insurance
Cash surrender value of life insurance	$ 4,450	$ 4,450
John Hancock
Cash Surrender Value of Life Insurance
Cash surrender value of life insurance, gross	$ 4,450	$ 4,450

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Long-Term Debt (Details) - USD ($) $ in Thousands	Jul. 27, 2021	Dec. 15, 2016	Aug. 31, 2021	Aug. 31, 2020
Long-term debt
Long-term Debt.			$ 0	$ 0
All-revolving credit facility with a borrowing capacity of $150,000
Long-term debt
Maximum borrowing capacity		$ 150,000	150,000
Additional borrowing capacity		$ 50,000
All-revolving credit facility with a borrowing capacity of $150,000 | London Interbank Offered Rate (LIBOR) | Minimum
Long-term debt
Interest rate margin on variable rate basis (as a percent)		1.00%
All-revolving credit facility with a borrowing capacity of $150,000 | London Interbank Offered Rate (LIBOR) | Maximum
Long-term debt
Interest rate margin on variable rate basis (as a percent)		1.75%
All-revolving credit facility with a borrowing capacity of $200,000
Long-term debt
Maximum borrowing capacity			200,000
New Credit Agreement
Long-term debt
Maximum borrowing capacity	$ 200,000
Additional borrowing capacity	$ 100,000
Net leverage ratio	3.25
Consolidated interest coverage ratio	3.50
Carrying value of direct and indirect domestic subsidiaries			$ 283,610
Applicable interest rate (as a percent)			0.00%
Term of debt	5 years
Amount drawn remained outstanding			$ 0
Term of potential debt	10 years
New Credit Agreement | London Interbank Offered Rate (LIBOR)
Long-term debt
Interest payment due	3 months
New Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum
Long-term debt
Interest rate margin on variable rate basis (as a percent)	1.00%
New Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum
Long-term debt
Interest rate margin on variable rate basis (as a percent)	1.75%

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Nov. 30, 2017	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Effective income tax rate
Effective income tax rate		23.30%	24.60%	24.90%
Statutory tax rate (as a percent)	35.00%	21.00%	21.00%	21.00%
FDII deduction benefit		$ 665
Income tax benefit related to resolution of uncertain tax positions		933
Income tax expense related to establishment of international management fee charges		791
Additional component of total federal expense		$ 11,677	$ 9,157	$ 9,880

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Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Nov. 30, 2017	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Domestic and foreign pre-tax income
United States		$ 52,182	$ 42,027	$ 37,088
Foreign		6,412	3,293	6,465
Income before income taxes		58,594	45,320	43,553
Current:
Federal		11,677	9,157	9,880
State		782	1,813	1,699
Foreign		2,123	962	1,575
Total current income tax provision		14,582	11,932	13,154
Deferred:
Federal		(832)	(520)	(1,699)
State		(124)	(184)	(529)
Foreign		48	(65)	(84)
Total deferred income tax provision (benefit)		(908)	(769)	(2,312)
Total income tax provision		$ 13,674	$ 11,163	$ 10,842
Reconciliation of the effective income tax rate on continuing operations with the U.S. federal statutory income tax rate
Federal statutory rates (as a percent)	35.00%	21.00%	21.00%	21.00%
Adjustment resulting from the tax effect of:
State and local taxes, net of federal benefit (as a percent)		2.30%	3.00%	2.10%
Foreign tax rate differential (as a percent)		(0.30%)	0.00%	0.10%
Adjustment to uncertain tax position (as a percent)		(0.10%)	1.10%	(1.00%)
Transaction costs not deductible		0.00%	0.50%	0.00%
Research credit generated (as a percent)		(0.10%)	(0.10%)	(0.30%)
Stock Compensation (as a percent)		(0.30%)	(0.30%)	(0.40%)
Permanent items (as a percent)		1.10%	0.90%	1.10%
GILTI and Subpart F, net of foreign tax credit		0.30%	0.30%	0.60%
Other (as a percent)		(0.40%)	0.40%	(0.40%)
Change in valuation allowance (as a percent)		0.00%	0.00%	0.10%
Deferred income tax remeasurement (as a percent)		0.10%	0.00%	0.00%
Foreign Derived Intangible Income		(1.10%)	0.00%	0.00%
Performance-based earnout contingency		0.60%	0.00%	0.00%
Effective income tax rate (as a percent)		23.30%	24.60%	24.90%

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Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Deferred tax assets:
Allowance for doubtful accounts	$ 320	$ 309
Inventories	520	994
Accruals	966	504
Warranty reserve	6	14
Pension accrual	2,386	2,749
Deferred compensation	545	391
Foreign currency loss on previously taxed income	96	96
Loan finance costs	3	7
Restricted stock grants	327	823
Non-qualified stock options	347	211
Lease liability	2,328	2,354
Foreign net operating loss, net of valuation allowance	192	247
Other	41	572
Deferred tax assets, net	8,077	9,271
Deferred tax liabilities:
Prepaid liabilities	(18)	(16)
Foreign intangibles	(3,156)
Right-of-use asset	(2,280)	(2,693)
Depreciation and amortization	(659)	(1,633)
Noncurrent deferred tax liabilities	(6,113)	(4,342)
Net deferred tax assets (liabilities)	1,964	4,929
Gross foreign operating loss carry forwards	599
Adjustments to uncertain tax positions
Balance, at beginning of the year	1,941	2,324	$ 1,889
Increase for tax positions related to the current year		101	55
Increase (decrease) for tax positions related to prior years	1,180	(609)	300
Increase for interest and penalties	208	125	106
Decreases for settlement of uncertain tax positions	(705)
Decrease for lapses of statute of limitations	(434)		(26)
Balance, at end of year	2,190	$ 1,941	$ 2,324
Accrued balances related to uncertain tax positions
Accrued interest and penalty	487
Increase in accrued interest and penalty charges recorded as tax benefit	208
Anticipated change in uncertain tax positions over the next twelve-months	$ 510

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Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Leases
Package of practical expedients	true
Assets
Operating leas e right-of-use asset	$ 9,312	$ 8,821
Liabilities
Current (accrued expense)	$ 1,515	$ 1,865
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current	Accrued Liabilities, Current
Operating lease long-term liabilities	$ 7,202	$ 6,395
Total lease liability	$ 8,717	$ 8,260

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Leases - Components Of Lease Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Leases
Operating lease cost	$ 3,772	$ 3,783	$ 3,734

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Leases - Maturity Of Lease Liability (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Maturity of lease liability
2022	$ 1,750
2023	1,596
2024	1,519
2025	1,358
2026	1,075
2027 and thereafter	2,330
Less: Interest	(911)
Lease liabilities	$ 8,717	$ 8,260

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Leases - Weighted Average Remaining Lease Term (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Operating lease
Operating leases, Weighted average remaining lease term (years)	6 years 9 months 18 days	5 years 6 months
Operating leases, Weighted average discount rate (percentage)	3.10%	3.10%
Operating cash outflows from operating leases	$ 2,266	$ 2,444
Total cash paid for amounts included in the measurement of lease liabilities	$ 2,266	$ 2,444

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Benefits and Pension Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Benefits and Pension Plans
Percent of participant's compensation	3.50%
Eligibility age for defined contribution plan	21 years
Minimum eligibility service period	3 months
Employer match of employee contributions of first percent of eligible compensation (as a percent)	100.00%
Percentage of eligible compensation, matched 100% by employer	1.00%
Employer match of employee contributions after the first percent of eligible compensation (as a percent)	50.00%
Maximum percentage of employee's annual salary, matched by employer	3.50%
Contribution expense	$ 844	$ 852	$ 787
Non-Qualified Deferred Savings Plan
Recorded liability for Board of Directors and selected employees savings plan	$ 2,267	$ 1,629

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Benefits and Pension Plans - Changes in Plan Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Change in benefit obligation
Projected benefit obligation at beginning of year	$ 20,663	$ 20,087	$ 21,860
Service cost	366	295	283
Interest cost	341	451	696
Actuarial (gain) loss	645	2,253	995
Benefits paid	(1,754)	(2,423)	(3,747)
Projected benefit obligation at end of year	20,261	20,663	20,087
Change in plan assets
Fair value of plan assets at beginning of year	8,168	7,859	9,855
Actual return on plan assets	1,301	868	181
Employer contribution	1,565	1,864	1,570
Benefits paid	(1,754)	(2,423)	(3,747)
Fair value of plan assets at end of year	9,280	8,168	7,859
Funded status
Funded status at end of year	(10,981)	(12,495)	(12,228)
Amounts recognized in consolidated balance sheets
Current liabilities	(1,565)	(1,565)	(1,743)
Noncurrent liabilities	(9,416)	(10,930)	(10,485)
Net amount recognized in consolidated balance sheets	(10,981)	(12,495)	(12,228)
Actuarial present value of benefit obligation and funded status
Accumulated benefit obligations	17,898	18,307	18,244
Projected benefit obligations	20,261	20,663	20,087
Plan assets at fair value	9,280	8,168	7,859
Amounts recognized in accumulated other comprehensive income
Prior service cost	40	44	47
Net actuarial loss	9,674	10,595	9,638
Adjustment to pre-tax accumulated other comprehensive income	9,714	10,639	9,685
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain)/loss	(884)	711	1,863
Amortization of loss	(656)	(664)	(472)
Supplemental plan assumption change	619	1,065	(620)
Amortization of prior service cost	(3)	(3)	(3)
Effect of settlement on accumulated other comprehensive income		(155)	(511)
Total recognized in other comprehensive income	(924)	954	257
Net periodic pension cost	975	1,178	1,537
Total recognized in net periodic pension cost and other comprehensive income	51	2,132	1,794
Estimated amounts that will be amortized from accumulated comprehensive income over the next fiscal year
Prior service cost	3	3	3
Net actuarial loss	593	656	500
Components of net periodic benefit cost
Service cost	366	295	283
Interest cost	341	451	696
Expected return on plan assets	(391)	(390)	(428)
Amortization of prior service cost	3	3	3
Amortization of accumulated loss	656	664	472
Curtailment and settlement loss		155	511
Net periodic benefit cost	975	1,178	$ 1,537
NEPTCO
Change in plan assets
Fair value of plan assets at beginning of year	0
Fair value of plan assets at end of year	$ 0	$ 0
NEPTCO | Union Employees
Pensions and Other Postretirement Benefits
Period before retirement for determination of employee's average compensation	5 years

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Benefits and Pension Plans - Weighted Average Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Weighted-average assumptions used to determine benefit obligations
Rate of compensation increase (as a percent)	3.50%	3.50%	3.50%
Weighted-average assumptions used to determine net periodic benefit cost
Rate of compensation increase (as a percent)	3.50%	3.50%	3.50%
Qualified Plan
Weighted-average assumptions used to determine benefit obligations
Discount rate (as a percent)	2.15%	1.92%	2.58%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)	1.92%	2.58%	3.80%
Expected long term return on plan assets (as a percent)	5.25%	5.60%	5.40%
Reduction in discount rate used to estimate additional net periodic pension cost (as a percent)	1.00%
Additional net periodic pension cost from each 100 basis point reduction in the discount rate	$ 41
Reduction in expected return on plan assets used to estimate the increase in net periodic pension cost (as a percent)	1.00%
Additional net periodic pension cost from each 100 basis point reduction in the expected return on plan assets	$ 75
Supplemental plan
Weighted-average assumptions used to determine benefit obligations
Discount rate (as a percent)	1.95%	1.65%	2.37%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)	1.65%	2.37%	3.57%
Additional net periodic pension cost from each 100 basis point reduction in the discount rate	$ (49)
NEPTCO | Qualified Plan
Weighted-average assumptions used to determine benefit obligations
Discount rate (as a percent)			2.29%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)		2.29%	3.59%
Expected long term return on plan assets (as a percent)		5.60%	5.40%

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Benefits and Pension Plans - Asset Categories (Details)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Qualified Plan
Target allocation and weighted-average asset allocations
Expected long term return on plan assets (as a percent)	4.85%
Qualified Plan
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	100.00%	100.00%	100.00%
Percentage of Plan Assets	100.00%	100.00%	100.00%
Expected long term return on plan assets (as a percent)	5.25%	5.60%	5.40%
Equity Securities | Qualified Plan
Target allocation and weighted-average asset allocations
Percentage of Plan Assets	46.00%	49.00%	44.00%
Equity Securities | Qualified Plan | Minimum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	10.00%	10.00%	10.00%
Equity Securities | Qualified Plan | Maximum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	80.00%	80.00%	80.00%
Debt Securities | Qualified Plan
Target allocation and weighted-average asset allocations
Percentage of Plan Assets	54.00%	51.00%	56.00%
Debt Securities | Qualified Plan | Minimum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	20.00%	20.00%	20.00%
Debt Securities | Qualified Plan | Maximum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	70.00%	70.00%	70.00%
Other | Qualified Plan | Minimum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	0.00%	0.00%	0.00%
Other | Qualified Plan | Maximum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	100.00%	100.00%	100.00%
NEPTCO | Qualified Plan
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	100.00%	100.00%	100.00%
Percentage of Plan Assets			100.00%
Expected long term return on plan assets (as a percent)		5.60%	5.40%
NEPTCO | Equity Securities
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	80.00%	80.00%	80.00%
NEPTCO | Equity Securities | Qualified Plan
Target allocation and weighted-average asset allocations
Percentage of Plan Assets			44.00%
NEPTCO | Equity Securities | Qualified Plan | Minimum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	10.00%	10.00%	10.00%
NEPTCO | Debt Securities | Qualified Plan
Target allocation and weighted-average asset allocations
Percentage of Plan Assets			56.00%
NEPTCO | Debt Securities | Qualified Plan | Minimum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	20.00%	20.00%	20.00%
NEPTCO | Debt Securities | Qualified Plan | Maximum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	70.00%	70.00%	70.00%
NEPTCO | Other | Qualified Plan | Minimum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	0.00%	0.00%	0.00%
NEPTCO | Other | Qualified Plan | Maximum
Target allocation and weighted-average asset allocations
Total target allocation (as a percent)	100.00%	100.00%	100.00%

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Benefits and Pension Plans - Fair Value (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Pensions and Other Postretirement Benefits
Fair value of plan assets	$ 9,280	$ 8,168	$ 7,859	$ 9,855
Equity securities
Pensions and Other Postretirement Benefits
Fair value of plan assets	4,241	3,986
Debt securities
Pensions and Other Postretirement Benefits
Fair value of plan assets	5,039	4,182
Quoted prices in active markets (Level 1)
Pensions and Other Postretirement Benefits
Fair value of plan assets	9,280	8,168
Quoted prices in active markets (Level 1) | Equity securities
Pensions and Other Postretirement Benefits
Fair value of plan assets	4,241	3,986
Quoted prices in active markets (Level 1) | Debt securities
Pensions and Other Postretirement Benefits
Fair value of plan assets	$ 5,039	$ 4,182

XML

Benefits and Pension Plans - Future Benefit Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Estimated future pension benefit payments
2022	$ 3,150
2023	2,333
2024	1,997
2025	1,818
2026	1,785
2027-2031	4,875
Employer contribution	$ 1,565	$ 1,864	$ 1,570

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Stockholders' Equity (Details)						1 Months Ended												3 Months Ended									12 Months Ended
	Sep. 01, 2020 installment $ / shares shares	Sep. 01, 2019 installment $ / shares shares	Sep. 01, 2018 installment $ / shares shares	Sep. 01, 2017 shares	Sep. 01, 2016 installment shares	Apr. 30, 2021 shares	Feb. 28, 2021 $ / shares shares	Jan. 31, 2021 shares	Dec. 31, 2020 shares	May 31, 2020 shares	Feb. 29, 2020 shares	Aug. 31, 2019 $ / shares shares	Feb. 28, 2019 shares	Sep. 30, 2018 $ / shares shares	Feb. 28, 2018 shares	Aug. 31, 2017 installment $ / shares shares	Aug. 31, 2016 installment $ / shares shares	Aug. 31, 2021 $ / shares shares	Nov. 30, 2020 $ / shares shares	Aug. 31, 2020 item individual $ / shares shares	Feb. 29, 2020 shares	Aug. 31, 2019 installment $ / shares shares	Aug. 31, 2018 $ / shares shares	May 31, 2018 installment $ / shares shares	Nov. 30, 2016 shares	Nov. 30, 2015 shares	Aug. 31, 2021 $ / shares shares	Aug. 31, 2020 item individual $ / shares shares	Aug. 31, 2019 $ / shares shares	Aug. 31, 2018 $ / shares shares	Oct. 31, 2012 shares	Nov. 30, 2005 shares
Non-employee members of BOD
Stock-Based Compensation
Shares granted																											4,635	4,906	4,599
Number of Shares
Unvested restricted stock, beginning balance (in shares)	4,906	4,599	2,779											2,779					4,906								4,906	4,599	2,779
Granted (in shares)																											4,635	4,906	4,599
Vested (in shares)																											(5,016)	(4,599)	(2,779)
Unvested restricted stock, ending balance (in shares)												4,599						4,525		4,906		4,599	2,779				4,525	4,906	4,599	2,779
Weighted Average Grant Date Fair Value
Unvested restricted stock, beginning balance (in dollars per share) | $ / shares	$ 95.59	$ 101.92	$ 101.05											$ 101.05					$ 95.59								$ 95.59	$ 101.92	$ 101.05
Granted (in dollars per share) | $ / shares																											104.09	95.59	101.92
Vested (in dollars per share) | $ / shares																											95.59	101.92	101.05
Unvested restricted stock, ending balance (in dollars per share) | $ / shares												$ 101.92						$ 104.09		$ 95.59		$ 101.92	$ 101.05				$ 104.09	$ 95.59	$ 101.92	$ 101.05
Officers and employees
Stock-Based Compensation
Shares granted																											9,499	43,841	7,524
Weighted Average Exercise Price (in dollars per share) | $ / shares																		64.41									$ 64.41
Shares forfeited																											6,195	3,126	3,305
Exercise price (in dollar per share) | $ / shares												$ 57.18						$ 76.24		$ 75.21		$ 57.18	$ 50.17				$ 76.24	$ 75.21	$ 57.18	$ 50.17
Number of Shares
Unvested restricted stock, beginning balance (in shares)	59,875	44,355	65,579											65,579					59,875								59,875	44,355	65,579
Granted (in shares)																											9,499	43,841	7,524
Vested (in shares)																											(19,978)	(25,195)	(25,443)
Forfeited or cancelled (in shares)																											(6,195)	(3,126)	(3,305)
Unvested restricted stock, ending balance (in shares)												44,355						43,201		59,875		44,355	65,579				43,201	59,875	44,355	65,579
Weighted Average Grant Date Fair Value
Unvested restricted stock, beginning balance (in dollars per share) | $ / shares	$ 97.72	$ 67.18	$ 61.85											$ 61.85					$ 97.72								$ 97.72	$ 67.18	$ 61.85
Granted (in dollars per share) | $ / shares																											98.10	108.47	121.64
Vested (in dollars per share) | $ / shares																											80.13	61.51	65.79
Forfeited or cancelled (in dollars per share) | $ / shares																											103.86	123.19	79.39
Unvested restricted stock, ending balance (in dollars per share) | $ / shares												$ 67.18						$ 107.37		$ 97.72		$ 67.18	$ 61.85				$ 107.37	$ 97.72	$ 67.18	$ 61.85
Non Employee Consultants and Advisors
Stock-Based Compensation
Shares granted																											2,306
Number of Shares
Granted (in shares)																											2,306
Unvested restricted stock, ending balance (in shares)																		2,306									2,306
Weighted Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares																											$ 108.42
Unvested restricted stock, ending balance (in dollars per share) | $ / shares																		$ 108.42									$ 108.42
Stock options
Stock-Based Compensation
Common stock available for future issuance (in shares)																		949,220									949,220
Weighted Average Exercise Price (in dollars per share) | $ / shares																		$ 64.41									$ 64.41
Stock options | Executive officers and other members of management
Stock-Based Compensation
Number of equal annual installments | installment	3	3
Stock options | Former executive officer
Stock-Based Compensation
Shares authorized								18,129
Shares forfeited						306
Number of Shares
Forfeited or cancelled (in shares)						(306)
Stock options | Executive officers | August 31, 2019 vesting date
Stock-Based Compensation
Shares authorized																	23,563
Exercise price (in dollar per share) | $ / shares																	$ 64.37
Restricted stock
Stock-Based Compensation
Shares forfeited														2,472														2,694
Number of Shares
Forfeited or cancelled (in shares)														(2,472)														(2,694)
Restricted stock | Non-executive members of management
Stock-Based Compensation
Number of grants | item																				2								2
Number of non-executive members of management | individual																				2								2
Shares forfeited										432								447	952
Number of Shares
Forfeited or cancelled (in shares)										(432)								(447)	(952)
Restricted stock | Non-executive members of management | July 27, 2021 vesting date
Stock-Based Compensation
Shares granted																				481
Number of Shares
Granted (in shares)																				481
Restricted stock | Non-executive members of management | June 15, 2021 vesting date
Stock-Based Compensation
Shares granted																				261
Number of Shares
Granted (in shares)																				261
Restricted stock | Former executive officer
Stock-Based Compensation
Shares forfeited								4,409
Number of Shares
Forfeited or cancelled (in shares)								(4,409)
Restricted stock | Non-employee members of BOD
Stock-Based Compensation
Shares granted							4,525		110		4,906		4,599		2,779
Vesting period							12 months				12 months		12 months		12 months
Number of Shares
Granted (in shares)							4,525		110		4,906		4,599		2,779
Restricted stock | Non Employee Consultants and Advisors
Stock-Based Compensation
Shares granted							2,306
Vesting period							2 years
Number of Shares
Granted (in shares)							2,306
Performance and service based restricted stock
Stock-Based Compensation
Shares granted							521
Number of Shares
Granted (in shares)							521
Time-based restricted stock
Stock-Based Compensation
Shares granted							261
Number of Shares
Granted (in shares)							261
Time-based restricted stock | Executive officers
Stock-Based Compensation
Shares granted					16,312
Number of equal annual installments | installment					5
Vesting period					5 years
Number of Shares
Granted (in shares)					16,312
Time-based restricted stock | Executive officers | August 31, 2019 vesting date
Stock-Based Compensation
Shares granted					7,768
Number of Shares
Granted (in shares)					7,768
Time-based restricted stock | Executive officers | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted					8,544
Number of Shares
Granted (in shares)					8,544
2013 Plan
Stock-Based Compensation
Shares authorized																															1,200,000
Common stock available for future issuance (in shares)																		949,220									949,220
2005 Incentive Plan
Stock-Based Compensation
Shares authorized																																1,000,000
Common stock available for future issuance (in shares)																		34,076									34,076
2016 LTIP | Restricted stock | Non-executive members of management | October 20, 2020 Vesting date
Stock-Based Compensation
Shares granted																										5,000
Number of Shares
Granted (in shares)																										5,000
2017 LTIP | Executive officers and other members of management
Stock-Based Compensation
Adjusted shares																														5,399
2017 LTIP | Non-employee members of BOD
Stock-Based Compensation
Cumulative shares granted																														10,798
2017 LTIP | Stock options | Executive officers and other members of management
Stock-Based Compensation
Shares authorized																	15,028
Stock options expiring earlier (in shares)																	5,596
Stock options expiring later (in shares)																	9,432
Number of equal annual allotments in which awards will vest | installment																	3
Exercise price (in dollar per share) | $ / shares																	$ 64.37
2017 LTIP | Restricted stock | Non-executive members of management | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted																									8,805
Number of Shares
Granted (in shares)																									8,805
2017 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2019 vesting date
Stock-Based Compensation
Shares granted					5,399
Number of Shares
Granted (in shares)					5,399
2017 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2019 vesting date
Stock-Based Compensation
Shares granted					5,367
Number of Shares
Granted (in shares)					5,367
2018 LTIP | Executive officers and other members of management
Stock-Based Compensation
Shares granted																													572
Cumulative shares granted																													4,821
Number of Shares
Granted (in shares)																													572
2018 LTIP | Stock options | Non-executive members of management
Stock-Based Compensation
Shares authorized																								606
Number of equal annual allotments in which awards will vest | installment																								3
Exercise price (in dollar per share) | $ / shares																								$ 104.00
2018 LTIP | Stock options | Executive officers and other members of management
Stock-Based Compensation
Shares authorized																9,622
Number of equal annual installments | installment																3
Stock options expiring earlier (in shares)																4,591
Stock options expiring later (in shares)																5,031
Exercise price (in dollar per share) | $ / shares																$ 93.50
2018 LTIP | Restricted stock | Non-executive members of management | 31 August, 2020 vesting date
Stock-Based Compensation
Shares granted																								192
Number of Shares
Granted (in shares)																								192
2018 LTIP | Restricted stock | Executive officers | August 20, 2019 vesting date
Stock-Based Compensation
Shares granted																							609
Number of Shares
Granted (in shares)																							609
2018 LTIP | Performance and service based restricted stock | Executive officers and other members of management | 31 August, 2020 vesting date
Stock-Based Compensation
Shares granted				4,249
Number of Shares
Granted (in shares)				4,249
2018 LTIP | Time-based restricted stock | Executive officers and other members of management | 31 August, 2020 vesting date
Stock-Based Compensation
Shares granted				3,473
Number of Shares
Granted (in shares)				3,473
2019 LTIP | Stock options | Non-executive members of management
Stock-Based Compensation
Shares authorized												483										483							483
Number of equal annual allotments in which awards will vest | installment																						3
Exercise price (in dollar per share) | $ / shares												$ 99.38										$ 99.38							$ 99.38
2019 LTIP | Stock options | Executive officers and other members of management
Stock-Based Compensation
Shares granted			8,603
Number of equal annual allotments in which awards will vest | installment			3
Exercise price (in dollar per share) | $ / shares			$ 123.95
Number of Shares
Granted (in shares)			8,603
2019 LTIP | Stock options | Executive officers and other members of management | August 31, 2028 vesting date
Stock-Based Compensation
Shares forfeited			3,927
Number of Shares
Forfeited or cancelled (in shares)			(3,927)
2019 LTIP | Stock options | Executive officers and other members of management | September 1, 2028 Vesting date
Stock-Based Compensation
Shares forfeited			4,676
Number of Shares
Forfeited or cancelled (in shares)			(4,676)
2019 LTIP | Restricted stock
Stock-Based Compensation
Shares forfeited												833
Number of Shares
Forfeited or cancelled (in shares)												(833)
2019 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted			3,541																			211
Number of Shares
Granted (in shares)			3,541																			211
2019 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted			3,068																			132
Number of Shares
Granted (in shares)			3,068																			132
2020 LTIP | Stock options | Executive officers and other members of management
Stock-Based Compensation
Shares authorized		13,418
Weighted Average Exercise Price (in dollars per share) | $ / shares		$ 100.22
Stock options expiring earlier (in shares)		6,218
Stock options expiring later (in shares)		7,200
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2021 vesting date
Stock-Based Compensation
Shares granted																					432,616
Number of Shares
Granted (in shares)																					432,616
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2022 vesting date
Stock-Based Compensation
Shares granted																					18,720
Number of Shares
Granted (in shares)																					18,720
2020 LTIP | Restricted stock | Non-executive members of management | December 31 2024 vesting date
Stock-Based Compensation
Shares granted																					19,768
Number of Shares
Granted (in shares)																					19,768
2020 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2022 vesting date
Stock-Based Compensation
Shares granted		3,697
Number of Shares
Granted (in shares)		3,697
2020 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2022 vesting date
Stock-Based Compensation
Shares granted		3,689
Number of Shares
Granted (in shares)		3,689
2021 LTIP | Stock options | Executive officers and other members of management
Stock-Based Compensation
Shares authorized	14,845
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 97.57
Stock options expiring earlier (in shares)	5,391
Stock options expiring later (in shares)	9,454
2021 LTIP | Stock options | Non Employee Consultants and Advisors
Stock-Based Compensation
Shares granted							749
Number of Shares
Granted (in shares)							749
Weighted Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares							$ 104.04
2021 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2023 vesting date
Stock-Based Compensation
Shares granted	3,798
Number of Shares
Granted (in shares)	3,798
2021 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2023 vesting date
Stock-Based Compensation
Shares granted	4,919
Number of Shares
Granted (in shares)	4,919
Equity Retention Agreement | Stock options | Executive officers | August 31, 2022 vesting date
Stock-Based Compensation
Shares authorized		53,642
Exercise price (in dollar per share) | $ / shares		$ 100.22
Equity Retention Agreement | Time-based restricted stock | Executive officers | August 31, 2022 vesting date
Stock-Based Compensation
Shares granted		15,945
Number of Shares
Granted (in shares)		15,945

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Stockholders' Equity - Additional Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended				12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2019	Feb. 28, 2018	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Additional disclosures
Unrecognized expense related to all stock-based compensation (in dollars)					$ 3,687
Period over which unrecognized expense related to all stock based compensation will be recognized					4 years
2005 Incentive Plan
Additional disclosures
Common stock available for future issuance (in shares)					34,076
Non-employee members of BOD
Additional disclosures
Outstanding at the end of the period (in shares)					4,525	4,906	4,599	2,779
Officers and employees
Options Exercisable
Number Exercisable (in shares)					102,705
Weighted Average Exercise Price (in dollars per share)					$ 64.41
Options outstanding
Options outstanding at the beginning of the period (in shares)					164,696	101,254	99,190
Granted (in shares)					15,594	67,060	9,086
Exercised (in shares)					(7,546)	(3,618)	(7,022)
Forfeited or cancelled (in shares)					(18,435)
Options outstanding at the end of the period (in shares)					154,309	164,696	101,254
Weighted Average Exercise Price
Options outstanding at the beginning of the period (in dollars per share)					$ 75.21	$ 57.18	$ 50.17
Exercise price (in dollars per share)					97.88	100.22	122.64
Exercised (in dollars per share)					38.79	34.21	42.86
Forfeited or cancelled (in dollars per share)					100.62
Options outstanding at the end of the period (in dollars per share)					$ 76.24	$ 75.21	$ 57.18
Additional disclosures
Outstanding at the end of the period (in shares)					43,201	59,875	44,355	65,579
Stock options
Options Outstanding
Number Outstanding (in shares)					154,309
Weighted Avg. Remaining Contractual Life					6 years
Weighted Average Exercise Price (in dollars per share)					$ 76.24
Aggregate Intrinsic Value (in dollars)					$ 5,979
Options Exercisable
Number Exercisable (in shares)					102,705
Weighted Average Exercise Price (in dollars per share)					$ 64.41
Aggregate Intrinsic Value (in dollars)					$ 5,221
Additional disclosures
Weighted average grant date fair value of options granted (in dollars per share)					$ 34.45	$ 29.79	$ 40.12
Total pretax intrinsic value of stock options exercised (in dollars)					$ 558	$ 311	$ 403
Common stock available for future issuance (in shares)					949,220
Tax (expense) / benefit realized from stock options exercised, vesting of restricted stock and issuance of stock pursuant to grants of restricted stock units (in dollars)					$ 114	149	$ 157
Unrecognized expense related to all stock-based compensation (in dollars)					$ 611
Stock options | $16.00
Options Outstanding
Number Outstanding (in shares)					2,533
Weighted Avg. Remaining Contractual Life					1 year 1 month 6 days
Weighted Average Exercise Price (in dollars per share)					$ 16.00
Aggregate Intrinsic Value (in dollars)					$ 250
Options Exercisable
Number Exercisable (in shares)					2,533
Weighted Average Exercise Price (in dollars per share)					$ 16.00
Aggregate Intrinsic Value (in dollars)					$ 250
Stock options | $29.72
Options Outstanding
Number Outstanding (in shares)					10,925
Weighted Avg. Remaining Contractual Life					2 years
Weighted Average Exercise Price (in dollars per share)					$ 29.72
Aggregate Intrinsic Value (in dollars)					$ 926
Options Exercisable
Number Exercisable (in shares)					10,925
Weighted Average Exercise Price (in dollars per share)					$ 29.72
Aggregate Intrinsic Value (in dollars)					$ 926
Stock options | $35.50
Options Outstanding
Number Outstanding (in shares)					13,372
Weighted Avg. Remaining Contractual Life					3 years
Weighted Average Exercise Price (in dollars per share)					$ 35.50
Aggregate Intrinsic Value (in dollars)					$ 1,056
Options Exercisable
Number Exercisable (in shares)					13,372
Weighted Average Exercise Price (in dollars per share)					$ 35.50
Aggregate Intrinsic Value (in dollars)					$ 1,056
Stock options | $39.50
Options Outstanding
Number Outstanding (in shares)					12,753
Weighted Avg. Remaining Contractual Life					4 years
Weighted Average Exercise Price (in dollars per share)					$ 39.50
Aggregate Intrinsic Value (in dollars)					$ 956
Options Exercisable
Number Exercisable (in shares)					12,753
Weighted Average Exercise Price (in dollars per share)					$ 39.50
Aggregate Intrinsic Value (in dollars)					$ 956
Stock options | $64.37
Options Outstanding
Number Outstanding (in shares)					32,920
Weighted Avg. Remaining Contractual Life					5 years
Weighted Average Exercise Price (in dollars per share)					$ 64.37
Aggregate Intrinsic Value (in dollars)					$ 1,650
Options Exercisable
Number Exercisable (in shares)					32,920
Weighted Average Exercise Price (in dollars per share)					$ 64.37
Aggregate Intrinsic Value (in dollars)					$ 1,650
Stock options | $93.50
Options Outstanding
Number Outstanding (in shares)					8,704
Weighted Avg. Remaining Contractual Life					6 years
Weighted Average Exercise Price (in dollars per share)					$ 93.50
Aggregate Intrinsic Value (in dollars)					$ 183
Options Exercisable
Number Exercisable (in shares)					8,704
Weighted Average Exercise Price (in dollars per share)					$ 93.50
Aggregate Intrinsic Value (in dollars)					$ 183
Stock options | 100.22
Options Outstanding
Number Outstanding (in shares)					50,024
Weighted Avg. Remaining Contractual Life					8 years
Weighted Average Exercise Price (in dollars per share)					$ 100.22
Aggregate Intrinsic Value (in dollars)					$ 714
Options Exercisable
Number Exercisable (in shares)					7,972
Weighted Average Exercise Price (in dollars per share)					$ 100.22
Aggregate Intrinsic Value (in dollars)					$ 114
Stock options | 104.00
Options Outstanding
Number Outstanding (in shares)					606
Weighted Avg. Remaining Contractual Life					6 years 6 months
Weighted Average Exercise Price (in dollars per share)					$ 104.00
Aggregate Intrinsic Value (in dollars)					$ 6
Options Exercisable
Number Exercisable (in shares)					606
Weighted Average Exercise Price (in dollars per share)					$ 104.00
Aggregate Intrinsic Value (in dollars)					$ 6
Stock options | 123.95
Options Outstanding
Number Outstanding (in shares)					8,144
Weighted Avg. Remaining Contractual Life					7 years
Weighted Average Exercise Price (in dollars per share)					$ 123.95
Options Exercisable
Number Exercisable (in shares)					8,144
Weighted Average Exercise Price (in dollars per share)					$ 123.95
Stock options | 97.57
Options Outstanding
Number Outstanding (in shares)					13,579
Weighted Avg. Remaining Contractual Life					9 years
Weighted Average Exercise Price (in dollars per share)					$ 97.57
Aggregate Intrinsic Value (in dollars)					$ 230
Options Exercisable
Number Exercisable (in shares)					4,526
Weighted Average Exercise Price (in dollars per share)					$ 97.57
Aggregate Intrinsic Value (in dollars)					$ 77
Stock options | 104.04
Options Outstanding
Number Outstanding (in shares)					749
Weighted Avg. Remaining Contractual Life					9 years
Weighted Average Exercise Price (in dollars per share)					$ 104.04
Aggregate Intrinsic Value (in dollars)					$ 8
Options Exercisable
Number Exercisable (in shares)					250
Weighted Average Exercise Price (in dollars per share)					$ 104.04
Aggregate Intrinsic Value (in dollars)					$ 3
Restricted stock
Additional disclosures
Unrecognized expense related to all stock-based compensation (in dollars)						$ 3,076
Restricted stock | Non-employee members of BOD
Stockholders' Equity
Vesting period	12 months	12 months	12 months	12 months

XML

Segment Data (Details) $ in Thousands	1 Months Ended					3 Months Ended					6 Months Ended			9 Months Ended	12 Months Ended
	Feb. 28, 2021 USD ($)	Sep. 30, 2020 USD ($)	Aug. 31, 2020 USD ($)	May 31, 2020 USD ($)	Apr. 30, 2020 USD ($)	Aug. 31, 2021 USD ($)	May 31, 2020 USD ($)	Feb. 28, 2019 USD ($)	Nov. 30, 2018 USD ($)	Aug. 31, 2018 USD ($)	Aug. 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Aug. 31, 2019 USD ($)	Aug. 31, 2019 USD ($)	Aug. 31, 2021 USD ($) segment	Aug. 31, 2020 USD ($)	Aug. 31, 2019 USD ($)
Segment data
Revenue															$ 293,336	$ 261,162	$ 281,351
Income before income taxes															58,594	45,320	43,553
Total assets			$ 346,830			$ 404,159					$ 346,830				404,159	346,830
Interest															297	246	519
Depreciation															3,946	4,015	4,762
Amortization															$ 12,858	11,576	12,445
Loss on upward adjustment of performance based earn out contingent consideration		$ 1,664
Loss on impairment of goodwill						0		$ 2,410									2,410
Number of operating segments | segment															3
Severance costs							$ 183
Write-down of certain assets under construction															$ 100	405
Expenses related to acquisition	$ 128														128	274
Pension related settlement costs																(155)	(511)
Gain on sale of real estate (Note 19)																2,551
Exit costs related to facilities															977	807	986
Pawtucket, RI manufacturing facility
Segment data
Gain on sale of real estate (Note 19)					$ 760		760								760
Exit costs related to facilities							$ 85		$ 260	$ 1,272				$ 0
Granite Falls Location
Segment data
Exit costs related to facilities											0	$ 559	$ 526		0
Adhesives, Sealants and Additives
Segment data
Revenue															126,864	96,208	104,796
Income before income taxes															36,520	25,953	27,142
Total assets			129,457			161,968					129,457				161,968	129,457
Interest															116	98	177
Depreciation															1,065	994	1,467
Amortization															10,685	9,313	9,359
Loss on impairment of goodwill								$ 2,410							2,410
Industrial Tapes
Segment data
Revenue															120,873	118,960	129,845
Income before income taxes															37,407	31,237	28,216
Total assets			71,229			72,301					71,229				72,301	71,229
Interest															83	111	216
Depreciation															1,718	1,746	1,755
Amortization															1,537	1,800	1,800
Industrial Tapes | Pawtucket, RI manufacturing facility
Segment data
Exit costs related to facilities									$ 260
Corrosion Protection and Waterproofing
Segment data
Revenue															45,599	45,994	46,710
Income before income taxes															15,913	16,638	15,909
Total assets			32,642			31,067					32,642				31,067	32,642
Interest															98	37	126
Depreciation															588	615	674
Amortization															636	463	1,286
Construction Materials | Engineering Studies related to Facility Consolidation and Rationalization Initiative
Segment data
Write-down on certain other structural composites assets																	405
Gain on refund																	170
Reportable segments
Segment data
Income before income taxes															89,840	73,828	71,267
Total assets			233,328			265,336					233,328				265,336	233,328
Corporate and common costs
Segment data
Income before income taxes															(31,246)	(28,508)	$ (27,714)
Total assets			113,502			$ 138,823					$ 113,502				138,823	113,502
Severance costs				$ 183											183
Expenses related to acquisition															274
Pension related settlement costs															511
Pension related settlement costs															155
Corporate and common costs | Pawtucket, RI manufacturing facility
Segment data
Exit costs related to facilities															85
Corporate and common costs | Randolph, MA - Property
Segment data
Gain on sale of real estate (Note 19)			$ 1,791												1,791
Corporate and common costs | Engineering Studies related to Facility Consolidation and Rationalization Initiative
Segment data
Business development cost															$ 150	$ 200

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Export Sales and Foreign Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Concentration risk
Export sales	$ 33,439	$ 30,067	$ 30,582
Revenue	293,336	261,162	281,351
Property, plant and equipment, net	24,267	25,574
United States
Concentration risk
Revenue	245,476	226,690	248,281
United Kingdom
Concentration risk
Revenue	24,846	20,543	17,504
All other Foreign
Concentration risk
Revenue	23,014	13,929	$ 15,566
Long-lived assets
Concentration risk
Property, plant and equipment, net	24,267	25,574
Goodwill and Intangible assets, less accumulated amortization	144,820	123,602
Long-lived assets | United States
Concentration risk
Property, plant and equipment, net	20,990	22,427
Goodwill and Intangible assets, less accumulated amortization	115,936	117,930
Long-lived assets | United Kingdom
Concentration risk
Property, plant and equipment, net	2,174	2,320
Goodwill and Intangible assets, less accumulated amortization	3,905	4,403
Long-lived assets | All other Foreign
Concentration risk
Property, plant and equipment, net	1,103	827
Goodwill and Intangible assets, less accumulated amortization	$ 24,979	$ 1,269

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Supplemental Cash Flow Data (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended	12 Months Ended
	Feb. 05, 2021	Aug. 31, 2020	Apr. 30, 2020	May 31, 2020	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019	Sep. 01, 2020
Supplemental Cash Flow Data
Income taxes paid					$ 17,074	$ 11,186	$ 11,714
Interest paid					245	230	728
Common stock received for payment of stock option exercises					206	123	119
Property, plant and equipment additions included in accounts payable					256	92	67
Acquisition of certain assets
Goodwill		$ 82,402			97,866	82,402	81,986
Payments for acquisitions					(31,238)
Sale of business
Gain on sale of real estate						(2,551)
Randolph, MA - Property
Sale of business
Asset held for sale		(14)				(14)
Gain on sale of real estate		(1,791)				(1,791)
Cash proceeds		1,805				1,805
Pawtucket, RI manufacturing facility
Sale of business
Asset held for sale		$ (1,050)				(1,050)
Gain on sale of real estate			$ (760)			(760)
Cash proceeds			$ 1,810	$ 1,810		$ 1,810
Fiber Optic Cable Components Product Line
Sale of business
Due from sale of business							(400)
Cash proceeds							$ 400
Emerging Technologies
Acquisition of certain assets
Accounts receivable					481
Inventory					919
Prepaid expenses and other current assets					8
Property, plant and equipment					7
Goodwill	$ 2,451				2,451
Intangible assets					6,650
Accounts payable and accrued expenses					(519)
Other liabilities (due to sellers)	(1,000)				(1,000)
Payments for acquisitions	$ (8,997)				(8,997)
ABchime
Acquisition of certain assets
Accounts receivable					697
Inventory					239
Prepaid expenses and other current assets					696
Property, plant and equipment					245
Goodwill					13,055			$ 13,055
Intangible assets					12,055
Operating lease right-of-use asset					473
Deferred tax liability					(3,387)
Accounts payable and accrued expenses					(431)
Operating lease liabilities (inclusive of short- and long-term)					(473)
Other liabilities (due to sellers)					(928)
Payments for acquisitions					$ (22,241)

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Acquisitions (Details) € in Thousands, £ in Thousands, $ in Thousands				3 Months Ended	12 Months Ended
	Feb. 05, 2021 USD ($)	Sep. 01, 2020 USD ($)	Sep. 01, 2020 EUR (€)	Feb. 28, 2021 USD ($)	Aug. 31, 2021 USD ($)	Aug. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2020 EUR (€)	Sep. 01, 2020 EUR (€)	Sep. 01, 2020 GBP (£)	Aug. 31, 2019 USD ($)
Acquisitions
Consideration paid in cash					$ 31,238
Loss on contingent consideration (Note 14)					1,664
Goodwill					97,866	$ 82,402					$ 81,986
Emerging Technologies
Acquisitions
Consideration paid in cash	$ 8,997				8,997
Purchase price	9,997
Consideration to be paid	$ 1,000				1,000
Threshold period within which the accrued consideration will be paid	18 months
Acquisition related expenses				$ 128	128
Goodwill	$ 2,451				2,451
ABchime
Acquisitions
Consideration paid in cash		$ 22,241	€ 18,654
Consideration paid in cash					22,241
Consideration to be paid					928
Acquisition related expenses						$ 274
Performance-based earn out measurement period		4 years	4 years
Potential earn out		$ 8,330					$ 8,330	€ 7,000	€ 7,000	£ 7,000
Accrued earn out		928			2,537				€ 780
Loss on contingent consideration (Note 14)					1,664
Goodwill		$ 13,055			$ 13,055

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Revenue from Contracts with Customers - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Contract Assets
Contract assets	$ 128	$ 82
Contract liabilities		0
Adhesives, Sealants and Additives
Contract Assets
Contract assets	21	20
Industrial Tapes
Contract Assets
Contract assets	82	21
Corrosion Protection and Waterproofing
Contract Assets
Contract assets	$ 25	$ 41

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Revenue from Contracts with Customers - Disaggregation of revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Revenue from Contracts with Customers
Revenue	$ 293,336	$ 261,162	$ 281,351
Practical expedient - financing component	true
North America
Revenue from Contracts with Customers
Revenue	$ 220,351	206,874	225,738
Asia
Revenue from Contracts with Customers
Revenue	40,869	31,388	33,080
Europe
Revenue from Contracts with Customers
Revenue	29,094	19,534	19,865
All other foreign
Revenue from Contracts with Customers
Revenue	3,022	3,366	2,668
Adhesives, Sealants and Additives
Revenue from Contracts with Customers
Revenue	126,864	96,208	104,796
Adhesives, Sealants and Additives | North America
Revenue from Contracts with Customers
Revenue	76,388	64,711	70,320
Adhesives, Sealants and Additives | Asia
Revenue from Contracts with Customers
Revenue	28,033	17,877	19,430
Adhesives, Sealants and Additives | Europe
Revenue from Contracts with Customers
Revenue	21,846	13,201	14,773
Adhesives, Sealants and Additives | All other foreign
Revenue from Contracts with Customers
Revenue	597	419	273
Industrial Tapes
Revenue from Contracts with Customers
Revenue	120,873	118,960	129,845
Industrial Tapes | North America
Revenue from Contracts with Customers
Revenue	106,084	105,911	117,955
Industrial Tapes | Asia
Revenue from Contracts with Customers
Revenue	7,903	7,150	7,126
Industrial Tapes | Europe
Revenue from Contracts with Customers
Revenue	4,657	3,286	2,637
Industrial Tapes | All other foreign
Revenue from Contracts with Customers
Revenue	2,229	2,613	2,127
Corrosion Protection and Waterproofing
Revenue from Contracts with Customers
Revenue	45,599	45,994	46,710
Corrosion Protection and Waterproofing | North America
Revenue from Contracts with Customers
Revenue	37,879	36,252	37,463
Corrosion Protection and Waterproofing | Asia
Revenue from Contracts with Customers
Revenue	4,933	6,361	6,524
Corrosion Protection and Waterproofing | Europe
Revenue from Contracts with Customers
Revenue	2,591	3,047	2,455
Corrosion Protection and Waterproofing | All other foreign
Revenue from Contracts with Customers
Revenue	$ 196	$ 334	$ 268

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Fair Value Measurements (Details) € in Thousands, $ in Thousands	Aug. 31, 2021 USD ($)	Sep. 01, 2020 USD ($)	Sep. 01, 2020 EUR (€)	Aug. 31, 2020 USD ($)
Fair value measurements
Long term debt outstanding	$ 0			$ 0
ABchime
Fair value measurements
Contingent consideration	2,537	$ 928	€ 780
Recurring basis
Fair value measurements
Restricted investments	2,260			1,619
Contingent consideration	2,537
Recurring basis | Quoted prices in active markets (Level 1)
Fair value measurements
Restricted investments	2,016			1,395
Recurring basis | Significant other observable inputs (Level 2)
Fair value measurements
Restricted investments	244			$ 224
Recurring basis | Significant unobservable inputs (Level 3)
Fair value measurements
Contingent consideration	$ 2,537

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Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Basic Earnings per Share
Net income	$ 44,920	$ 34,157	$ 32,711
Less: Allocated to participating securities	309	273	257
Available to common shareholders	$ 44,611	$ 33,884	$ 32,454
Basic weighted average shares outstanding	9,383,085	9,359,940	9,334,232
Net income per share - Basic (in dollars per share)	$ 4.75	$ 3.62	$ 3.48
Diluted Earnings per Share
Net income	$ 44,920	$ 34,157	$ 32,711
Basic weighted average shares outstanding	9,383,085	9,359,940	9,334,232
Additional dilutive common stock equivalents (in shares)	45,331	79,810	44,975
Diluted weighted average shares outstanding	9,428,416	9,439,750	9,379,207
Net income per share - Diluted (in dollars per share)	$ 4.73	$ 3.59	$ 3.46
Antidilutive securities
Antidilutive stock options excluded from computation of earnings per share amount (in shares)	59,508	11,183	12,901

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Accumulated other comprehensive income
Balance	$ 302,792	$ 271,227	$ 246,756
Total other comprehensive income (loss)	1,882	2,620	(1,988)
Adoption of ASU 2018-02	344,324	302,792	271,227
Balance	344,324	302,792	271,227
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income
Balance	(13,092)	(14,324)	(12,336)
Other comprehensive gains (losses) before reclassifications	1,433	2,028
Reclassifications to net income of previously deferred (gains) losses	449	592
Total other comprehensive income (loss)	1,882	2,620
Adoption of ASU 2018-02	(11,210)	(13,092)	(14,324)
Balance	(11,210)	(13,092)	(14,324)
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect Adjustment
Accumulated other comprehensive income
Balance	(1,388)
Adoption of ASU 2018-02		(1,388)
Balance		(1,388)
Restricted investments
Accumulated other comprehensive income
Balance	269	154
Other comprehensive gains (losses) before reclassifications	297	143
Reclassifications to net income of previously deferred (gains) losses	(48)	(28)
Total other comprehensive income (loss)	249	115
Adoption of ASU 2018-02	518	269	154
Balance	518	269	154
Change in funded status of pension plans
Accumulated other comprehensive income
Balance	(8,317)	(6,271)
Other comprehensive gains (losses) before reclassifications	(159)	(1,278)
Reclassifications to net income of previously deferred (gains) losses	497	620
Total other comprehensive income (loss)	338	(658)
Adoption of ASU 2018-02	(7,979)	(8,317)	(6,271)
Balance	(7,979)	(8,317)	(6,271)
Change in funded status of pension plans | Cumulative Effect Adjustment
Accumulated other comprehensive income
Balance	(1,388)
Adoption of ASU 2018-02		(1,388)
Balance		(1,388)
Foreign currency translation adjustment
Accumulated other comprehensive income
Balance	(5,044)	(8,207)
Other comprehensive gains (losses) before reclassifications	1,295	3,163
Total other comprehensive income (loss)	1,295	3,163
Adoption of ASU 2018-02	(3,749)	(5,044)	(8,207)
Balance	$ (3,749)	$ (5,044)	$ (8,207)

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Accumulated Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Accumulated other comprehensive income
Selling, general and administrative expenses	$ (52,100)	$ (49,364)	$ (48,707)
Amortization of prior pension service costs and unrecognized losses	3	3	3
Settlement and curtailment loss		(155)	(511)
Tax expense (benefit)	(13,674)	(11,163)	(10,842)
Net income (loss)	44,920	34,157	$ 32,711
Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Net income (loss)	449	592
Restricted investments | Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Selling, general and administrative expenses	(65)	(37)
Tax expense (benefit)	17	9
Net income (loss)	(48)	(28)
Change in funded status of pension plans | Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Tax expense (benefit)	(162)	(202)
Net income (loss)	497	620
Change in funded status of pension plans | Reclassification out of accumulated other comprehensive income (loss) | Other income (expense)
Accumulated other comprehensive income
Amortization of prior pension service costs and unrecognized losses	$ 659	667
Settlement and curtailment loss		$ 155

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Sale of Real Estate (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	12 Months Ended
	Aug. 31, 2020	Apr. 30, 2020	May 31, 2020	Aug. 31, 2020
Assets held for sale
Gain on sale of assets				$ 2,551
Randolph, MA - Property
Assets held for sale
Proceeds from the sale of property	$ 1,805			1,805
Gain on sale of assets	$ 1,791			1,791
Pawtucket, RI manufacturing facility
Assets held for sale
Proceeds from the sale of property		$ 1,810	$ 1,810	1,810
Gain on sale of assets		$ 760		$ 760

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Operations Optimization Costs (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended							6 Months Ended				9 Months Ended		12 Months Ended
	Jun. 25, 2018	Apr. 30, 2020	Aug. 31, 2021	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Nov. 30, 2018	Aug. 31, 2018	Aug. 31, 2021	Aug. 31, 2020	Feb. 29, 2020	Aug. 31, 2019	Aug. 31, 2021	Aug. 31, 2019	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Operations Optimization Costs
Percentage of temporary reduction in the base salaries of its named Executive Officers and select members of Senior Management, as well as the cash compensation of the non-employee members of the Board					20.00%
Severance costs					$ 183
Write-down of certain assets under construction																$ 100	$ 405
Exit costs related to facilities																977	807	$ 986
Gain on sale of property																	2,551
Newark
Operations Optimization Costs
Exit costs related to facilities														$ 977		977
Granite Falls Location
Operations Optimization Costs
Exit costs related to facilities											$ 0	$ 559	$ 526			0
Pawtucket, RI manufacturing facility
Operations Optimization Costs
Restructuring Period	2 months
Exit costs related to facilities					85			$ 260	$ 1,272						$ 0
Anticipated future exit costs					0
Proceeds from the sale of property		$ 1,810			1,810												1,810
Gain on sale of property		$ 760			760											760
Engineering Studies related to Facility Consolidation and Rationalization Initiative
Operations Optimization Costs
Business Development			$ 0	$ 0	$ 0	$ 0	$ 150											$ 200
Write-down of certain assets under construction			$ 100													$ 405
Gain on sale of property																	$ 170
Adhesives, Sealants and Additives
Operations Optimization Costs
Restructuring cost										$ 0

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Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Accounts receivable reserve
Changes in valuation allowances and reserves
Balance at Beginning of Year	$ 438	$ 739	$ 559
Charges to Operations	751	921	1,775
Deductions to Reserves	(738)	(1,222)	(1,595)
Balance at End of Year	451	438	739
Warranty reserve
Changes in valuation allowances and reserves
Balance at Beginning of Year	0	37
Charges to Operations			37
Deductions to Reserves		(37)
Balance at End of Year	$ 0	$ 0	$ 37