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EMPLOYEES' RETIREMENT PLANS EMPLOYEES' RETIREMENT PLANS (Tables)

12 Months Ended

Aug. 31, 2023

Changes in Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

The following tables include a reconciliation of the beginning and ending balances of the pension benefit obligation and the fair value of plan assets resulting from the U.K. Pension Plan and the U.S. Pension Plan and the related amounts recognized in the Company’s consolidated balance sheets as of August 31, 2023 and 2022:


	U.K. Pension Plan
(in thousands)	2023		2022
Benefit obligation at beginning of year	$	52,042	$	—
Acquisition	—		68,966

Interest cost	2,261		635


Actuarial gain	(5,354)		(11,107)
Benefits paid	(2,529)		(942)
Foreign currency translation	4,480		(5,510)
Benefit obligation at end of year	$	50,900	$	52,042

Fair value of plan assets at beginning of year	$	60,454	$	—
Acquisition	—		83,586

Actual loss on plan assets	(13,533)		(15,718)

Employer contributions	297		73

Benefits paid	(2,529)		(942)
Foreign currency translation	4,833		(6,545)
Fair value of plan assets at end of year	$	49,522	$	60,454
Funded status at end of year (net asset (liability) recognized in the consolidated balance sheets as of August 31,)	$	(1,378)	$	8,412

Amounts recognized in AOCI as of August 31,
Net actuarial loss	$	16,477	$	5,666


	U.S. Pension Plan
(in thousands)	2023		2022
Benefit obligation at beginning of year	$	26,568	$	33,687


Interest cost	—		709


Actuarial gain	(47)		(6,010)
Benefits paid	(466)		(1,818)

Settlement	(26,055)		—
Benefit obligation at end of year	$	—	$	26,568

Fair value of plan assets at beginning of year	$	24,440	$	34,126

Actuarial gain	(47)		—
Actual loss on plan assets	(1,966)		(7,407)
Administrative expenses	—		(461)
Employer contributions	4,094		—

Benefits paid	(466)		(1,818)

Settlement	(26,055)		—
Fair value of plan assets at end of year	$	—	$	24,440
Funded status at end of year (net liability recognized in the consolidated balance sheets as of August 31,)	$	—	$	(2,128)

Amounts recognized in AOCI as of August 31,
Net actuarial loss	$	—	$	2,278

Schedule of Net Periodic Benefit Costs

Components of net periodic benefit costs (gains) and other supplemental information are detailed below:


	U.K. Pension Plan
	Year Ended August 31,
(in thousands)	2023		2022


Interest cost	$	2,261	$	635
Expected return on plan assets	(2,589)		(1,067)


Total net periodic benefit gain	$	(328)	$	(432)

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net actuarial loss arising during measurement period	$	10,811	$	5,666


	U.S. Pension Plan
	Year Ended August 31,
(in thousands)	2023		2022		2021

Expected administrative expenses	$	—	$	50	$	290
Interest cost	—		709		724
Expected return on plan assets	—		(1,579)		(1,493)

Settlement	4,245		—		—
Total net periodic benefit (gain) cost	$	4,245	$	(820)	$	(479)

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net actuarial (gain) loss arising during measurement period	$	(2,278)	$	3,388	$	(4,344)

Schedule of Weighted-average Assumptions Used

Weighted average assumptions used to determine benefit obligations are detailed below:


	U.K. Pension Plan				U.S. Pension Plan
	2023		2022		2022
Effective discount rate for benefit obligations	5.3	%	4.3	%	4.7	%

Weighted average assumptions used to determine net periodic benefit cost are detailed below:


	U.K Pension Plan
	2023		2022
Effective rate for interest on benefit obligations	4.3	%	2.9	%

Expected long-term rate of return	4.6	%	4.0	%


	U.S. Pension Plan
	2022		2021
Effective rate for interest on benefit obligations	2.2	%	2.1	%

Expected long-term rate of return	5.0	%	5.0	%

Schedule of Allocation of Plan Assets

The U.K. Pension Plan's weighted average target allocation ranges and actual allocations as a percentage of plan assets, including the notional exposure of future contracts by asset categories, are detailed below:


	Pension Assets
	Target Percent			2023	2022
Fixed income securities	85.0%	to	90.0%	88.2%	71.4%
Equity securities	—	to	5.0	—	12.4
Cash and other	10.0	to	15.0	11.8	16.2
Total				100%	100%

The following table sets forth the fair value of the plan assets by asset class for the U.K. Pension Plan as of August 31, 2023 and 2022. Level 1 assets consist of cash and cash equivalents. Level 2 assets include funds invested in bonds and fixed income securities. Level 3 assets are measured at fair value using significant unobservable inputs and consist primarily of Secured Finance and Multistrategy Funds that invest in debt, loan and structured financial instruments in both public and private secured

finance markets.


			Fair Value at Measurement Date Using
(in thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of August 31, 2023:
Fixed income securities	$	43,654	$	—	$	40,497	$	3,157

Cash and other	5,868		376		5,356		136
Fair value of U.K. Pension Plan assets	$	49,522

As of August 31, 2022:
Fixed income securities	$	43,160	$	—	$	35,849	$	7,311
Equity securities	7,514		—		7,514		—
Cash and other	9,780		530		7,676		1,574
Fair value of U.K. Pension Plan assets	$	60,454

The changes in U.K. Pension Plan Level 3 assets related to actual return on plan assets, sales, transfers and foreign currency translation were immaterial from the Tensar Acquisition Date to August 31, 2022. The following table provides a reconciliation of U.K. Pension Plan Level 3 assets from August 31, 2022 to August 31, 2023:


(in thousands)	Level 3 Plan Assets
Balance at August 31, 2022	$	8,885
Sales	(4,997)
Actual return on plan assets:
Assets held as of the reporting date	134
Assets sold during the year	256
Transfers out of Level 3	(1,541)
Foreign currency translation	556
Balance at August 31, 2023	$	3,293

The following table sets forth the fair value of the plan assets by asset class for the U.S. Pension Plan as of the August 31, 2022 measurement date. All securities were traded on a national securities exchange and therefore were Level 1 assets in the fair value hierarchy.


(in thousands)	August 31, 2022
Fixed income securities	$	23,958

Cash and other	482
Fair value of U.S. Pension Plan assets	$	24,440

Schedule of Future Pension Benefit Payments

The following table provides the estimated aggregate pension benefit payments that are payable from the U.K Pension Plan to participants in future years:


(in thousands)	U.K. Pension Plan
2024	$	2,697
2025	2,764
2026	2,834
2027	2,905
2028	2,977
2029 through 2033	16,041