v3.26.3
Retirement Plans
 12 Months Ended
Aug. 31, 2026
Retirement Benefits [Abstract]  
Retirement Plans

Note 15 – 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 $1.4 million, $1.3 million, and $1.4 million for the years ended August 31, 2026, 2025, and 2024, 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, 2026 and 2025, 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)

 

2026

 

 

2025

 

Change in benefit obligation:

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

3,892

 

 

$

4,697

 

Interest cost

 

 

198

 

 

 

226

 

Actuarial loss (gain)

 

 

11

 

 

 

(557

)

Benefits paid

 

 

(469

)

 

 

(474

)

Benefit obligation at end of year

 

$

3,632

 

 

$

3,892

 

 

Amounts recorded in the consolidated balance sheets for the pension benefit obligation consist of:

 

 

 

August 31,

 

($ in thousands)

 

2026

 

 

2025

 

Other current liabilities

 

$

469

 

 

$

474

 

Other non-current liabilities

 

 

3,163

 

 

 

3,418

 

Net amount recognized

 

$

3,632

 

 

$

3,892

 

 

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

 

 

 

August 31,

 

($ in thousands)

 

2026

 

 

2025

 

Net actuarial loss

 

$

(1,610

)

 

$

(1,732

)

 

 

For the years ended August 31, 2026 and 2025, the Company assumed a discount rate of 5.9 percent and 5.4 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, 2026, 2025, and 2024, the Company assumed a discount rate of 5.4 percent, 5.1 percent, and 5.0 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)

 

2026

 

 

2025

 

 

2024

 

Interest cost

 

$

198

 

 

$

226

 

 

$

232

 

Net amortization and deferral

 

 

133

 

 

 

193

 

 

 

191

 

Total

 

$

331

 

 

$

419

 

 

$

423

 

 

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 2027 will be $0.1 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

 

 2027

 

$

451

 

 2028

 

 

437

 

 2029

 

 

421

 

 2030

 

 

403

 

 2031

 

 

384

 

Thereafter

 

 

1,536

 

 

 

$

3,632