Commitments and Contingencies

9 Months Ended

May 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

a. Legal Proceedings

The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows.

b. Income Tax Examination

The Internal Revenue Service (“IRS”) completed its field examination of the Company’s tax returns for the fiscal years 2003 through 2005 and fiscal years 2006 through 2008 and issued Revenue Agent’s Reports (“RAR”) on April 30, 2010 and April 25, 2012, respectively. The proposed adjustments primarily related to the IRS contentions that (1) certain corporate expenses relate to services provided to foreign affiliates and therefore must be charged to those affiliates and (2) valuable intangible property was transferred to certain foreign affiliates without charge. On May 31, 2013, the IRS Office of Appeals issued a draft Statement – Income Tax Change that represents a tentative agreement on the fiscal year 2003 through 2008 proposed adjustments, which are substantially lower than the initial RAR proposed adjustments. However, as the final resolution of the audit has not been completed, the Company continues to provide for the uncertain tax position based on the more likely than not standards. The Company did not record any additional tax liabilities related to this Statement – Income Tax Change and believes that the final resolution will not have a material effect on the Company’s financial position or liquidity.