Income Taxes (Tables)

12 Months Ended

Aug. 31, 2012

INCOME TAXES [Abstract]

Schedule of Income from Continuing Operations Before Taxes

Income (loss) from continuing operations before taxes is as follows:

	Year Ended August 31,
	2012			2011			2010
	(In thousands)
U.S.	$	(4,637	)	$	(20,564	)	$	(34,178	)
Foreign	70,605			78,031			74,109
Income from continuing operations before taxes	$	65,968		$	57,467		$	39,931

Schedule of Components of Income Tax Expense (Benefit)

The provisions for U.S. and foreign income taxes consist of the following: 

	Year Ended August 31,
	2012			2011			2010
	(In thousands)
Current taxes:
U.S.	$	228		$	(414	)	$	3,298
Foreign	22,927			19,920			14,325
Total current tax expense (benefit)	23,155			19,506			17,623
Deferred taxes:
U.S.	16			(65		)	(22,134		)
Foreign	(9,252		)	(3,659		)	92
Total deferred tax expense (benefit)	(9,236		)	(3,724		)	(22,042		)
Total income tax expense (benefit)	$	13,919		$	15,782		$	(4,419	)

Reconciliation of Statutory U.S. Federal Income Tax Rate

A reconciliation of the statutory U.S. federal income tax rate with the effective tax rates of 21.1% in 2012, 27.5% in 2011, and (11.1)% in 2010 is as follows: 

	2012					2011					2010
	Amount			% of Pretax Income		Amount			% of Pretax Income		Amount			% of Pretax Income
	(In thousands, except for %s)
Statutory U.S. tax rate	$	23,089		35.0	%	$	20,113		35.0	%	$	13,979		35.0	%
Impact of foreign taxes at less than U.S. statutory tax rate	(12,195		)	(18.5	)	(15,126		)	(26.3	)	(16,190		)	(40.5	)
U.S. and foreign losses with no tax benefit	1,745			2.6		6,896			12.0		9,551			23.9
U.S. restructuring and other U.S. unusual charges with no benefit	1,029			1.6		3,871			6.7		4,820			12.1
Italy valuation allowance	(2,380		)	(3.6	)	—			—		1,715			4.3
Establishment (resolution) of uncertain tax positions	1,718			2.6		(221		)	(0.4	)	33			0.1
ICO historical tax attributes	—			—		—			—		3,250			8.1
U.S. valuation allowance reversal	—			—		—			—		(22,156		)	(55.5	)
Other	913			1.4		249			0.5		579			1.4
Total income tax expense (benefit)	$	13,919		21.1	%	$	15,782		27.5	%	$	(4,419	)	(11.1	)%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and (liabilities) consist of the following at August 31, 2012 and August 31, 2011: 

	2012			2011
	(In thousands)
Pensions	$	11,761		$	8,046
Inventory reserves	713			980
Bad debt reserves	1,334			2,411
Accruals	6,499			5,214
Postretirement benefits other than pensions	6,489			7,305
Depreciation	1,789			2,913
Net operating loss carryforwards	14,311			8,537
Foreign tax credit carryforwards	32,322			38,498
Alternative minimum tax carryforwards	4,452			4,447
Other	22,576			24,101
Gross deferred tax assets	102,246			102,452
Valuation allowance	(50,696		)	(60,578		)
Total deferred tax assets	51,550			41,874
Depreciation	(18,382		)	(20,238		)
Intangibles	(28,046		)	(21,867		)
Other	(2,016		)	(1,033		)
Gross deferred tax liabilities	(48,444		)	(43,138		)
Net deferred tax assets (liabilities)	$	3,106		$	(1,264	)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits is as follows: 

	2012			2011			2010
	(In thousands)
Beginning balance	$	4,716		$	2,614		$	1,549
Decreases related to prior year tax positions	(390		)	(31		)	(314		)
Increases related to prior year tax positions	2,360			1,346			1,534
Increases related to current year tax positions	627			677			250
Settlements	—			(101		)	—
Lapse of statute of limitations	4			(161		)	(167		)
Foreign currency impact	(440		)	372			(238		)
Ending balance	$	6,877		$	4,716		$	2,614