Retirement Plans

12 Months Ended

Aug. 31, 2020

Compensation And Retirement Disclosure [Abstract]

Retirement Plans

Note 17 – Retirement Plans

The Company has defined contribution profit‑sharing plans covering substantially all of its full-time U.S. employees.  Participants may voluntarily contribute a percentage of compensation, but not in excess of the maximum allowed under the Internal Revenue Code.  The plans provide for a matching contribution by the Company.  The Company’s total contributions charged to expense under the plans were $1.2 million, $1.2 million, and $1.7 million for the years ended August 31, 2020, 2019, and 2018, respectively. 

A supplementary non‑qualified, non‑funded retirement plan for five former executives is also maintained.  Plan benefits are based on the executive’s average total compensation during the three highest compensation years of employment.  This unfunded supplemental retirement plan is not subject to the minimum funding requirements of ERISA.  While the plan is unfunded, the Company has purchased life insurance policies on certain former executives named in this supplemental retirement plan to provide funding for this liability.  The cash surrender values of these insurance policies are recorded as other noncurrent assets.

As of August 31, 2020 and 2019, the funded status of the supplemental retirement plan was recorded in the consolidated balance sheets.  The Company utilizes an August 31 measurement date for plan obligations related to the supplemental retirement plan.  As this is an unfunded retirement plan, the funded status is equal to the benefit obligation.

The funded status of the plan and the net amount recognized in the accompanying balance sheets as of August 31 is as follows:  

	August 31,
($ in thousands)	2020			2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	6,559		$	6,404
Interest cost		208			246
Actuarial loss		667			439
Benefits paid		(530	)		(530	)
Benefit obligation at end of year	$	6,904		$	6,559

Amounts recognized in the statement of financial position consist of:

	August 31,
($ in thousands)	2020		2019
Other current liabilities	$	530	$	530
Pension benefit liabilities		6,374		6,029
Net amount recognized	$	6,904	$	6,559

The before-tax amounts recognized in accumulated other comprehensive loss consists of:

	August 31,
($ in thousands)	2020			2019
Net actuarial loss	$	(4,242	)	$	(3,801	)

For the years ended August 31, 2020 and 2019, the Company assumed a discount rate of 2.2 percent and 3.3 percent, respectively, for the determination of the liability. The assumptions used to determine benefit obligations

and costs are selected based on current and expected market conditions.  The discount rate is based on a hypothetical portfolio of long-term corporate bonds with cash flows approximating the timing of expected benefit payments.

For the years ended August 31, 2020, 2019, and 2018, the Company assumed a discount rate of 3.3 percent, 4.0 percent, and 3.7 percent, respectively, for the determination of the net periodic benefit cost.  The components of the net periodic benefit cost for the supplemental retirement plan recorded within other income (expense) on the consolidated statement of earnings are as follows:

	For the years ended August 31,
($ in thousands)	2020		2019		2018
Interest cost	$	208	$	246	$	243
Net amortization and deferral		226		199		206
Total	$	434	$	445	$	449

The estimated actuarial loss for the supplemental retirement plan that will be amortized, on a pre-tax basis, from accumulated other comprehensive loss into net periodic benefit cost during fiscal 2021 will be $0.3 million.

The Company’s future annual contributions to the supplemental retirement plan will be equal to expected net benefit payments since the plan is unfunded.  The following net benefit payments are expected to be paid:

Fiscal years	$ in thousands
2021	$	521
2022		513
2023		504
2024		494
2025		483
Thereafter		4,389
	$	6,904