Postretirement and Other Employee Benefits (Tables)

12 Months Ended

Aug. 31, 2017

Postretirement and Other Employee Benefits [Abstract]

Reconciliation of Change in Benefit Obligations for Plans

The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands):

		Pension
		2017		2016
Change in projected benefit obligation
Beginning projected benefit obligation		$	182,278	$	161,230
Service cost			1,068		883
Interest cost			2,942		4,844
Actuarial (gain) loss			(10,147)		40,170
Settlements paid from plan assets			(2,133)		―
Total benefits paid			(6,790)		(5,587)
Plan participants’ contributions			27		27
Terminations			(106)		―
Effect of conversion to U.S. dollars			575		(19,289)
Ending projected benefit obligation		$	167,714	$	182,278
Change in plan assets
Beginning fair value of plan assets			143,702		134,808
Actual return on plan assets			2,582		29,734
Settlements paid from plan assets			(2,133)		―
Employer contributions			6,981		3,391
Benefits paid from plan assets			(3,759)		(5,268)
Plan participants’ contributions			27		27
Effect of conversion to U.S. dollars			(702)		(18,990)
Ending fair value of plan assets		$	146,698	$	143,702
Unfunded status		$	(21,016)	$	(38,576)
Amounts recognized in the Consolidated Balance Sheets
Accrued benefit liability, current		$	182	$	383
Accrued benefit liability, noncurrent		$	20,834	$	38,193
Accumulated other comprehensive loss (income)(1)
	Actuarial loss, net of tax	$	32,247	$	44,155
	Prior service credit, net of tax	$	(1,185)	$	(1,255)

Reconciliation of Changes in Pension Plan Assets

The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands):

		Pension
		2017		2016
Change in projected benefit obligation
Beginning projected benefit obligation		$	182,278	$	161,230
Service cost			1,068		883
Interest cost			2,942		4,844
Actuarial (gain) loss			(10,147)		40,170
Settlements paid from plan assets			(2,133)		―
Total benefits paid			(6,790)		(5,587)
Plan participants’ contributions			27		27
Terminations			(106)		―
Effect of conversion to U.S. dollars			575		(19,289)
Ending projected benefit obligation		$	167,714	$	182,278
Change in plan assets
Beginning fair value of plan assets			143,702		134,808
Actual return on plan assets			2,582		29,734
Settlements paid from plan assets			(2,133)		―
Employer contributions			6,981		3,391
Benefits paid from plan assets			(3,759)		(5,268)
Plan participants’ contributions			27		27
Effect of conversion to U.S. dollars			(702)		(18,990)
Ending fair value of plan assets		$	146,698	$	143,702
Unfunded status		$	(21,016)	$	(38,576)
Amounts recognized in the Consolidated Balance Sheets
Accrued benefit liability, current		$	182	$	383
Accrued benefit liability, noncurrent		$	20,834	$	38,193
Accumulated other comprehensive loss (income)(1)
	Actuarial loss, net of tax	$	32,247	$	44,155
	Prior service credit, net of tax	$	(1,185)	$	(1,255)

Schedule of Amounts Recognized in Balance Sheet [Table Text Block]

The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands):

		Pension
		2017		2016
Change in projected benefit obligation
Beginning projected benefit obligation		$	182,278	$	161,230
Service cost			1,068		883
Interest cost			2,942		4,844
Actuarial (gain) loss			(10,147)		40,170
Settlements paid from plan assets			(2,133)		―
Total benefits paid			(6,790)		(5,587)
Plan participants’ contributions			27		27
Terminations			(106)		―
Effect of conversion to U.S. dollars			575		(19,289)
Ending projected benefit obligation		$	167,714	$	182,278
Change in plan assets
Beginning fair value of plan assets			143,702		134,808
Actual return on plan assets			2,582		29,734
Settlements paid from plan assets			(2,133)		―
Employer contributions			6,981		3,391
Benefits paid from plan assets			(3,759)		(5,268)
Plan participants’ contributions			27		27
Effect of conversion to U.S. dollars			(702)		(18,990)
Ending fair value of plan assets		$	146,698	$	143,702
Unfunded status		$	(21,016)	$	(38,576)
Amounts recognized in the Consolidated Balance Sheets
Accrued benefit liability, current		$	182	$	383
Accrued benefit liability, noncurrent		$	20,834	$	38,193
Accumulated other comprehensive loss (income)(1)
	Actuarial loss, net of tax	$	32,247	$	44,155
	Prior service credit, net of tax	$	(1,185)	$	(1,255)

⁽¹⁾We anticipate amortizing $1.1 million and $(0.1) million, net of tax, of net actuarial loss and prior service credit balances, respectively, to net periodic cost in fiscal year 2018.

Information about Net Periodic Benefit Cost for Plans

Net Periodic Benefit Cost
	The following table provides information about the net periodic benefit cost for the plans for fiscal years 2017, 2016 and 2015
(in thousands):
			Pension
			2017		2016		2015
		Service cost	$	1,068	$	883	$	1,054
		Interest cost		2,942		4,844		5,554
		Expected long-term return on plan assets		(4,206)		(5,560)		(5,778)
		Recognized actuarial loss		1,929		1,046		1,723
		Net curtailment gain		―		―		(2,542)
		Amortization of prior service credit		(138)		(139)		(147)
		Net settlement loss		1,472		―		―
		Net periodic benefit cost	$	3,067	$	1,074	$	(136)

Weighted-Average Actuarial Assumptions

Assumptions
	Weighted-average actuarial assumptions used to determine net periodic benefit cost and projected benefit obligation
for the plans for the fiscal years 2017, 2016 and 2015 were as follows:
			Pension
			2017		2016		2015
	Net periodic benefit cost:
		Expected long-term return on plan assets(1)	3.3	%	4.3	%	4.4	%
		Rate of compensation increase	2.7	%	2.4	%	3.2	%
		Discount rate	1.9	%	2.9	%	1.8	%
	Projected benefit obligation:
		Expected long-term return on plan assets	4.0	%	3.3	%	4.4	%
		Rate of compensation increase	4.4	%	4.1	%	4.3	%
		Discount rate(2)	2.3	%	1.7	%	3.2	%

⁽¹⁾The expected return on plan assets assumption used in calculating net periodic benefit cost is based on historical return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan.

⁽²⁾The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash outflow of retirement benefits. Other assumptions include demographic factors such as retirement, mortality and turnover.

Fair Values of Plan Assets by Asset Category

Fair Value
	The fair values of the plan assets held by the Company by asset category are as follows (in thousands):
				August 31, 2017					August 31, 2016
		Fair Value				Asset					Asset
		Hierarchy		Fair Value		Allocation			Fair Value		Allocation
Asset Category
Cash and cash equivalents(1)			Level 1	$	5,760		4	%	$	3,565		3	%
Equity Securities:
Global equity securities(2)(3)			Level 2		41,971		29	%		41,515		29	%
Debt Securities:
Corporate bonds(3)			Level 2		41,987		29	%		41,993		29	%
Government bonds(3)			Level 2		41,738		28	%		40,495		28	%
Other Investments:
Insurance contracts(4)			Level 3		15,242		10	%		16,134		11	%
Fair value of plan assets				$	146,698		100	%	$	143,702		100	%

⁽¹⁾Carrying value approximates fair value.

⁽²⁾Investments in equity securities by companies incorporated, listed or domiciled in developed and/or emerging market countries.

⁽³⁾Investments in global equity securities, corporate bonds, government securities and government bonds are valued using the quoted prices of securities with similar characteristics.

⁽⁴⁾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 and 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.

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

Accumulated Benefit Obligation
	The following table provides information for the plans with an accumulated benefit obligation for fiscal years
2017 and 2016 (in thousands):
			August 31,
			2017		2016
		Projected benefit obligation	$	167,714	$	182,278
		Accumulated benefit obligation	$	158,971	$	171,589
		Fair value of plan assets	$	146,698	$	143,702

Estimated Future Benefit Payments

Cash Flows

The Company expects to make cash contributions between $2.7 million and $3.5 million to its funded pension plans during fiscal year 2018. The estimated future benefit payments, which reflect expected future service, are as follows (in thousands):

Fiscal Year Ended August 31,	Amount
2018	$	4,245
2019		4,438
2020		5,249
2021		4,759
2022		5,182
2023 through 2027		32,743