Summary of Significant Accounting Policies (Tables)

12 Months Ended

Aug. 31, 2017

Accounts receivable - Accounts receivable includes receivables from related parties (see Note 17 – Related Party Transactions) and is stated net of allowance for doubtful accounts of $1.8 million and $2.2 million as of August 31, 2017 and 2016, respectively.


	As of August 31,
(In thousands)	2017			2016			2015
Allowance for doubtful accounts
Balance at beginning of period	$	2,215		$	2,449		$	2,033
Additions, net of reversals		370			70			684
Usage		(891	)		(277	)		(108	)
Currency translation effect		74			(27	)		(160	)

Balance at end of period	$	1,768		$	2,215		$	2,449

Estimated Useful Lives

Depreciation is provided on the straight-line method over estimated useful lives which are as follows:


	Depreciable Life
Buildings and improvements		10 – 25 years
Machinery and equipment		3 – 15 years
Other		3 – 7 years

Components of Accumulated Other Comprehensive Loss, Net of Tax

Accumulated other comprehensive loss, net of tax as appropriate, consisted of the following:


(In thousands)	Unrealized Gain (Loss) on Derivative Financial Instruments			Foreign Currency Translation Adjustment⁽¹⁾			Other			Accumulated Other Comprehensive Loss
Balance, August 31, 2016	$	(5,492	)	$	(20,832	)	$	(429	)	$	(26,753	)
Other comprehensive loss before reclassifications		1,944			15,466			(665	)		16,745
Amounts reclassified from accumulated other comprehensive loss		3,729			–			–			3,729

Balance, August 31, 2017	$	181		$	(5,366	)	$	(1,094	)	$	(6,279	)

¹	Primarily relates to the foreign currency translation of the Company’s Leu functional currency operations in Romania and the Zloty functional currency operations in Poland to U.S. Dollars.

Amounts Reclassified out of Accumulated Other Comprehensive Loss

The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows:


	Year Ended August 31,						Financial Statement Caption
(In thousands)	2017			2016			Financial Statement Caption
(Gain) loss on derivative financial instruments:
Foreign exchange contracts	$	3,644		$	2,135		Revenue and Cost of revenue
Interest rate swap contracts		1,057			1,561		Interest and foreign exchange

		4,701			3,696		Total before tax
		(972	)		(1,152	)	Tax benefit

	$	3,729		$	2,544		Net of tax

Interest and Foreign Exchange

Interest and foreign exchange - Includes foreign exchange transaction gains and losses, amortization of loan fee expense, accretion of debt discounts and external interest expense.


(In thousands)	Years ended August 31,
(In thousands)	2017		2016			2015
Interest and foreign exchange:
Interest and other expense	$	23,519	$	17,268		$	18,975
Foreign exchange (gain) loss		673		(3,766	)		(7,796	)

	$	24,192	$	13,502		$	11,179