Postretirement and Other Employee Benefits (Tables)

12 Months Ended

Aug. 31, 2012

Reconciliation of Change in Benefit Obligations for Plans

The following table provides a reconciliation of the change in the benefit obligations for the plans described above for fiscal years 2012 and 2011 (in thousands):

	Pension Benefits
	2012			2011
Beginning projected benefit obligation	$	137,874		$	133,683
Service cost		1,224			1,494
Interest cost		7,494			5,715
Actuarial (gain) loss		26,748			(5,502	)
Curtailment gain		—			(597	)
Total benefits paid		(6,264	)		(4,236	)
Plan participants’ contributions		213			69
Acquisitions		28,122			2,073
Effect of conversion to U.S. dollars		(5,091	)		5,175
Ending projected benefit obligation	$	190,320		$	137,874

Fair Values of Plan Assets by Asset Category

The fair values of the plan assets held by the Company by asset category for fiscal years 2012 and 2011 are as follows (in thousands):

						Fair Value Measurements Using Inputs Considered as:
	Fair Value at August  31, 2012		Asset Allocation			Level 1		Level 2		Level 3
Asset Category
Cash and cash equivalents	$	4,370		3	%	$	4,370	$	—		—
Equity Securities:
Global equity securities(a)		22,649		17	%		—		22,649		—
U.K. equity securities(b)		18,544		14	%		—		18,544		—
Canadian equity securities(c)		8,247		6	%		—		8,247		—
Debt Securities:
U.K. corporate bonds(d)		42,983		32	%		—		42,983		—
U.K. government bonds(e)		13,562		10	%		—		13,562		—
Canadian government bonds(f)		8,757		7	%		—		8,757		—
Other Investments:
Insurance contracts(g)		11,046		8	%		—		—		11,046
Commercial real estate(h)		1,987		2	%		—		—		1,987
Commercial mortgages(i)		1,285		1	%		—		—		1,285
Fair value of plan assets	$	133,430		100	%	$	4,370	$	114,742	$	14,318

						Fair Value Measurements Using Inputs Considered as:
	Fair Value at August 31, 2011		Asset Allocation			Level 1		Level 2		Level 3
Asset Category
Cash and cash equivalents	$	4,267		4	%	$	4,267	$	—		—
Equity Securities:
Global equity securities(a)		11,933		12	%		—		11,933		—
U.K. equity securities(b)		12,130		12	%		—		12,130		—
Debt Securities:
U.K. corporate bonds(d)		27,146		28	%		—		27,146		—
U.K. government bonds(e)		32,125		32	%		—		32,125		—
Insurance Contracts:
Insurance contracts(g)		11,636		12	%		—		—		11,636
Fair value of plan assets	$	99,237		100	%	$	4,267	$	83,334	$	11,636

^(a)  Global equity securities are categorized as Level 2 and include investments that aim to capture global equity market returns by tracking the Financial Times (London) Stock Exchange (“FTSE”) AW-World (ex-UK) Index and other similar indexes in Canada.

^(b) U.K. equity securities are categorized as Level 2 and include investments in a diversified portfolio that aims to capture the returns of the U.K. equity market. The portfolio tracks the FTSE All-Share Index and invests only in U.K. securities.

^(c)  Canadian equity securities are categorized as Level 2 and include investments in diversified portfolios that aim to capture the returns of Canadian small capitalization and dividend paying equities. The portfolios track the BMO Small Cap Index and the

S&P/TSX Capped Equity Index and invest only in Canadian securities.

^(d) U.K. corporate bonds are categorized as Level 2 and include U.K. corporate issued fixed income investments which are managed and tracked to the respective benchmark (AAA-AA-A Bonds-Over 15Y Index).

^(e)  U.K. government bonds are categorized as Level 2 and include U.K. government-issued fixed income investments which are managed and tracked to the respective benchmark (FTSE U.K. Over 15 Years Gilts Index and FTSE U.K. Over 5 Years Index-Linked).

^(f) Canadian government bonds are categorized as Level 2 and include Canadian government-issued fixed income investments which are managed and tracked to the respective benchmark (DEX Universe Bond Index).

^(g)  The assets related to The Netherlands plan consist of an insurance contract that guarantees the payment of the funded pension entitlements, as well as provides a profit share to the Company. The profit share in this contract is not based on actual investments, but, instead on a notional investment portfolio that is expected to return a pre-defined rate. Insurance contract assets are recorded at fair value, which is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract.

^(h) Commercial real estate investments are categorized as Level 3 and primarily consist of commercial properties located throughout the various provinces of Canada. The portfolio tracks the IPD Canadian Property Index and invests only in Canadian properties. These investments are recorded at their estimated fair value and are valued using unobservable inputs (Level 3 inputs), primarily by obtaining quarterly independent market appraisals. The unobservable inputs consist of estimated unrealized gains and losses due to changes in real estate market conditions, which have an immaterial impact on the fair value calculations of the real estate investments held.

⁽ⁱ⁾ Commercial mortgage investments are categorized as Level 3 and primarily consist of mortgages on commercial properties located throughout the various provinces of Canada. The portfolio tracks the DEX Conventional Residential Mortgage Index and invests only in Canadian mortgages. These investments are recorded at their estimated fair value and are valued using unobservable inputs (Level 3 inputs), primarily by calculating expected future cash flows at interest rates applicable to new mortgages of similar types and terms. The unobservable inputs consist of estimated unrealized gains and losses due to defaults and other real estate market events and estimated interest rates, which both have an immaterial impact on the fair value calculations of the mortgage investments held.

Reconciliation of Changes in Pension Plan Assets

The following table provides a reconciliation of the changes in the pension plan assets for the year between measurement dates for fiscal years 2012 and 2011 (in thousands):

	Pension Benefits
	2012			2011
Beginning fair value of plan assets	$	99,237		$	85,571
Actual return on plan assets		13,980			8,209
Acquisitions		22,772			—
Employer contributions		4,546			3,754
Benefits paid from plan assets		(4,718	)		(3,536	)
Plan participants’ contributions		213			69
Effect of conversion to U.S. dollars		(2,600	)		5,170
Ending fair value of plan assets	$	133,430		$	99,237

Reconciliation of Funded Status of Plans to Consolidated Balance Sheets

The following table provides a reconciliation of the funded status of the plans to the Consolidated Balance Sheets for fiscal years 2012 and 2011 (in thousands):

	Pension Benefits
	2012			2011
Funded Status
Ending fair value of plan assets	$	133,430		$	99,237
Ending projected benefit obligation		(190,320	)		(137,874	)
Under or unfunded status	$	(56,890	)	$	(38,637	)
Consolidated Balance Sheet Information
Accrued benefit liability, current	$	(126	)	$	(95	)
Accrued benefit liability, noncurrent		(56,764	)		(38,542	)
Net liability recorded at August 31	$	(56,890	)	$	(38,637	)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	41,977		$	25,534
Prior service cost		(127	)		(173	)
Accumulated other comprehensive loss, before taxes	$	41,850		$	25,361

Estimated Amount that will be Amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost

The following table provides the estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal year 2013 (in thousands):

	Pension Benefits
Recognized net actuarial loss	$	2,441
Amortization of prior service cost		(25	)
Total	$	2,416

Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets

The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets for fiscal years 2012 and 2011 (in thousands):

	August 31,
	2012		2011
Projected benefit obligation	$	190,320	$	137,874
Accumulated benefit obligation		177,056		126,310
Fair value of plan assets		133,430		99,237

Information about Net Periodic Benefit Cost for Pension and Other Benefit Plans

The following table provides information about net periodic benefit cost for the pension and other benefit plans for fiscal years 2012, 2011 and 2010 (in thousands):

	Pension Benefits
	2012			2011			2010
Service cost	$	1,224		$	1,494		$	1,389
Interest cost		7,494			5,715			5,681
Expected long-term return on plan assets		(6,104	)		(4,474	)		(4,270	)
Recognized actuarial loss		1,207			2,073			1,303
Net curtailment gain		—			(1,903	)		—
Amortization of prior service cost		(26	)		(27	)		(115	)
Net periodic benefit cost	$	3,795		$	2,878		$	3,988

Estimated Future Benefit Payments

The estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands):

Fiscal Year Ending August 31,	Pension Benefits
2013	$	5,627
2014	$	6,093
2015	$	6,326
2016	$	6,638
2017	$	6,932
Years 2018 through 2022	$	45,298

Benefit Obligations

Weighted-Average Actuarial Assumptions

Weighted-average actuarial assumptions used to determine the benefit obligations for the plans for fiscal years 2012 and 2011 were as follows:

	Pension Benefits
	2012			2011
Expected long-term return on plan assets		4.2	%		4.2	%
Rate of compensation increase		3.3	%		4.2	%
Discount rate		3.2	%		4.9	%

Net Periodic Benefit Cost

Weighted-Average Actuarial Assumptions

Weighted-average actuarial assumptions used to determine net periodic benefit cost for the plans for fiscal years 2012, 2011 and 2010 were as follows:

	Pension Benefits
	2012			2011			2010
Expected long-term return on plan assets		4.2	%		4.2	%		4.0	%
Rate of compensation increase		3.3	%		4.2	%		3.9	%
Discount rate		3.2	%		4.9	%		4.1	%