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Income Taxes (Tables)
12 Months Ended
Aug. 31, 2020
Income Taxes [Abstract]  
Benefit (Provision) For Income Taxes From Continuing Operations



 

 

 

 

 

 



 

 

 

 

 

 

YEAR ENDED

 

 

 

 

 

 

AUGUST 31,

 

2020 

 

2019 

 

2018 

Current:

 

 

 

 

 

 

Federal

$

(15)

$

93 

$

29 

State

 

(87)

 

(14)

 

210 

Foreign

 

(1,145)

 

(2,745)

 

(2,947)



 

(1,247)

 

(2,666)

 

(2,708)



 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

Federal

 

2,306 

 

3,112 

 

1,426 

State

 

98 

 

102 

 

(314)

Foreign

 

(77)

 

(120)

 

(281)

Operating loss carryforward

 

(50)

 

(1,625)

 

2,636 

Adjustment for changes in U.S.

 

 

 

 

 

 

   income tax rates

 

 -

 

 -

 

1,654 

Valuation allowance

 

(11,261)

 

(418)

 

(2,780)



 

(8,984)

 

1,051 

 

2,341 



$

(10,231)

$

(1,615)

$

(367)



Allocation Of Total Income Tax Provision (Benefit)



 

 

 

 

 

 



 

 

 

 

 

 

YEAR ENDED

 

 

 

 

 

 

AUGUST 31,

 

2020 

 

2019 

 

2018 

Net loss

$

(10,231)

$

(1,615)

$

(367)

Other comprehensive income (loss)

 

16 

 

(5)

 

(75)



$

(10,215)

$

(1,620)

$

(442)



Income (Loss) From Continuing Operations Before Income Taxes



 

 

 

 

 

 



 

 

 

 

 

 

YEAR ENDED

 

 

 

 

 

 

AUGUST 31,

 

2020 

 

2019 

 

2018 

United States

$

3,062 

$

(1,910)

$

(8,960)

Foreign

 

(2,266)

 

2,502 

 

3,440 



$

796 

$

592 

$

(5,520)



Differences Between Income Taxes At The Statutory Federal Income Tax Rate And Income Taxes From Continuing Operations



 

 

 

YEAR ENDED 

AUGUST 31,

2020  2019  2018 

Federal statutory income tax rate

(21.0)%

(21.0)%

25.7% 

State income taxes, net of federal effect

16.9  (5.4) 2.6 

Effect of change in U.S. federal tax rate

 

-

 

-

30.0 

Valuation allowance

(1,412.9) (70.8) (50.4)

Executive stock options

199.9 

-

-

Foreign jurisdictions tax differential

1.4  (72.8) (6.8)

Tax differential on income subject to both U.S. and foreign taxes

11.9  (64.7) 2.3 

Uncertain tax positions

13.8  34.0  (5.1)

Non-deductible executive compensation

(18.2) (8.8) (2.7)

Non-deductible meals and entertainment

(22.3) (52.9) (8.9)

Payout of deferred compensation (NQDC)

6.1  0.3  4.4 

Other

(59.3) (10.7) 2.2 



(1,283.7)%

(272.8)%

(6.7)%



Significant Components Of Deferred Tax Assets And Liabilities



 

 

 

 



 

 

 

 

AUGUST 31,

 

2020 

 

2019 

Deferred income tax assets:

 

 

 

 

Foreign income tax credit

 

 

 

 

carryforward

$

9,150 

$

8,140 

Net operating loss carryforward

 

7,694 

 

7,516 

Sale and financing of corporate

 

 

 

 

headquarters

 

3,939 

 

4,431 

Bonus and other accruals

 

1,607 

 

1,622 

Stock-based compensation

 

1,431 

 

1,973 

Inventory and bad debt reserves

 

1,328 

 

1,376 

Deferred revenue

 

1,268 

 

829 

Other

 

530 

 

264 

Total deferred income tax assets

 

26,947 

 

26,151 

Less: valuation allowance

 

(15,076)

 

(3,815)

Net deferred income tax assets

 

11,871 

 

22,336 



 

 

 

 

Deferred income tax liabilities:

 

 

 

 

Intangibles step-ups – indefinite lived

 

(5,494)

 

(5,424)

Intangibles step-ups – finite lived

 

(2,786)

 

(3,406)

Intangible asset impairment and

 

 

 

 

amortization

 

(3,306)

 

(2,906)

Deferred commissions

 

(2,231)

 

(2,056)

Property and equipment depreciation

 

(1,904)

 

(2,880)

Unremitted earnings of foreign

 

 

 

 

subsidiaries

 

(354)

 

(456)

Other

 

 -

 

(343)

Total deferred income tax liabilities

 

(16,075)

 

(17,471)

Net deferred income taxes

$

(4,204)

$

4,865 



Deferred Income Tax Amounts Recorded On The Consolidated Balance Sheets



 

 

 

 



 

 

 

 

AUGUST 31,

 

2020 

 

2019 

Long-term assets

$

1,094 

$

5,045 

Long-term liabilities

 

(5,298)

 

(180)

  Net deferred income tax asset (liability)

$

(4,204)

$

4,865 



Summary of Operating Loss Carryforwards



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

Loss Carryforward

 

 

 

Loss

 

Loss

 

Operating

Loss Carryforward

 

Expires

 

 

 

Deductions

 

Deductions

 

Loss Carried

for Year Ended

 

August 31,

 

Amount

 

in Prior Years

 

in Current Year

 

Forward

December 31, 2014

 

2033

$

1,285 

$

(1,019)

$

(266)

$

 -

December 31, 2015

 

2034

 

1,491 

 

 -

 

(580)

 

911 

December 31, 2016

 

2035

 

3,052 

 

 -

 

 -

 

3,052 

July 15, 2017

 

 

 

 

 

 

 

 

 

 

   Acquired NOL

 

2036

 

1,117 

 

 -

 

 -

 

1,117 



 

 

 

6,945 

 

(1,019)

 

(846)

 

5,080 

August 31, 2017

 

2037

 

16,361 

 

(6,627)

 

(1,366)

 

8,368 

August 31, 2018

 

2038

 

10,506 

 

 -

 

 -

 

10,506 



 

 

$

33,812 

$

(7,646)

$

(2,212)

$

23,954 



Summary Of Tax Credit Carryforwards



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Credit Generated in

 

 

 

 

 

Credits Used

 

Credits Used

 

Credits

Fiscal Year Ended

 

Credit Expires

 

Credits

 

in Prior

 

in Current

 

Carried

August 31,

 

August 31,

 

Generated

 

Years

 

Year

 

Forward

2011

 

2021

$

3,445 

$

(414)

$

 -

$

3,031 

2012

 

2022

 

2,563 

 

(2,563)

 

 -

 

 -

2013

 

2023

 

2,815 

 

(2,815)

 

 -

 

 -

2014

 

2024

 

1,378 

 

(1,378)

 

 -

 

 -

2015

 

2025

 

1,422 

 

(1,422)

 

 -

 

 -

2016

 

2026

 

1,569 

 

(1,569)

 

 -

 

 -

2017

 

2027

 

1,804 

 

 -

 

 -

 

1,804 

2018

 

2028

 

1,727 

 

 -

 

 -

 

1,727 

2019

 

2029

 

1,578 

 

 -

 

 -

 

1,578 

2020

 

2030

 

1,010 

 

 -

 

 -

 

1,010 



 

 

$

19,311 

$

(10,161)

$

 -

$

9,150 



Activity In Deferred Income Tax Asset Valuation Allowance



 

 

 

 

 

 



 

 

 

 

 

 

YEAR ENDED

 

 

 

 

 

 

AUGUST 31,

 

2020

 

2019

 

2018

Beginning balance

$

3,815 

$

3,397 

$

612 

Charged to costs and expenses

 

11,269 

 

663 

 

3,035 

Deductions

 

(8)

 

(245)

 

(250)

Ending balance

$

15,076 

$

3,815 

$

3,397 



Reconciliation Of The Beginning And Ending Amount Of Gross Unrecognized Tax Benefits



 

 

 

 

 

 



 

 

 

 

 

 

YEAR ENDED

 

 

 

 

 

 

AUGUST 31,

 

2020 

 

2019 

 

2018 

Beginning balance

$

1,895 

$

2,111 

$

2,359 

Additions based on tax positions

 

 

 

 

 

 

related to the current year

 

172 

 

157 

 

27 

Additions for tax positions in

 

 

 

 

 

 

prior years

 

10 

 

 

367 

Reductions for tax positions of prior

 

 

 

 

 

 

years resulting from the lapse of

 

 

 

 

 

 

applicable statute of limitations

 

(289)

 

(370)

 

(253)

Other reductions for tax positions of

 

 

 

 

 

 

prior years

 

(148)

 

(10)

 

(389)

Ending balance

$

1,640 

$

1,895 

$

2,111 



Tax Years That Remain Subject To Examinations For Major Tax Jurisdictions

2013-2020

Canada and Australia

 2014-2020

Japan

 2015-2020

Germany, Switzerland, and Austria

 2016-2020

China

 2016-2020

United Kingdom, Singapore

 2016-2020

United States – state and local income tax

 2017-2020

United States – federal income tax