Income Taxes

3 Months Ended

Nov. 30, 2012

INCOME TAXES [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

As of November 30, 2012, the Company's gross unrecognized tax benefits totaled $6.9 million. If recognized, $5.3 million of the total unrecognized tax benefits would favorably affect the Company's effective tax rate. The Company reports interest and penalties related to income tax matters in income tax expense. As of November 30, 2012, the Company had approximately $1.2 million of accrued interest and penalties on unrecognized tax benefits.

The Company is open to potential income tax examinations in Germany from fiscal 2005 onward, in the U.S. from fiscal 2009 onward and in Belgium from fiscal 2012 onward. The Company is open to potential examinations from fiscal 2007 onward for most other foreign jurisdictions.

The amount of unrecognized tax benefits is expected to change in the next 12 months; however, the change is not expected to have a significant impact on the financial position of the Company.

A reconciliation of the statutory U.S. federal income tax rate with the effective tax rates is as follows:

	Three months ended					Three months ended
	November 30, 2012					November 30, 2011
	(In thousands, except for %’s)
Statutory U.S. tax rate	$	5,454		35.0	%	$	5,815		35.0	%
Amount of foreign taxes at less than U.S. statutory tax       rate	(3,386		)	(21.7	)	(3,317		)	(20.0	)
U.S. and foreign losses with no tax benefit	778			5.0		659			4.0
U.S. restructuring and other U.S. unusual charges with       no benefit	323			2.1		110			0.7
Italy valuation allowance	—			—		(747		)	(4.5	)
Establishment (resolution) of uncertain tax positions	169			1.1		31			0.2
Other	99			0.6		100			0.6
Total income tax expense (benefit)	$	3,437		22.1	%	$	2,651		16.0	%

The effective tax rate for the three months ended November 30, 2012 and 2011 are less than the U.S. statutory rate primarily because of the Company's overall foreign rate being less than the U.S. statutory rate. These favorable effects on the Company's tax rate were partially offset by no tax benefits being recognized for the U.S. and certain foreign losses as well as establishment of uncertain tax positions. The change in the effective tax rate as compared with the same period last year was driven primarily by an adjustment of the Italy valuation allowance.