v3.26.3
Pension and Defined Contribution Plans
 12 Months Ended
Aug. 31, 2026
Retirement Benefits [Abstract]  
Pension and Defined Contribution Plans Pension and Defined Contribution Plans
Company-sponsored Pension Plans
We have several pension plans, both qualified and non-qualified, covering certain hourly and salaried employees. Benefits paid under these plans are based generally on employees’ years of service and/or compensation during the final years of employment. We historically have made at least the minimum annual contributions to the plans to the extent indicated by actuarial valuations and statutory requirements. Plan assets are invested primarily in fixed income securities and an insurance policy.
In the fourth quarter of fiscal 2025, we completed full and partial settlements of our domestic qualified defined benefit plans through the purchases of nonparticipating annuities and lump sum elections. Additionally, we terminated one of our international pension plans. As a result of these transactions, we recognized one-time, non-cash pension settlement charges totaling $30.9 million in the fourth quarter of fiscal 2025. These pension settlement charges are primarily related to the accelerated recognition of actuarial losses and are included within Miscellaneous expense, net in the Consolidated Statements of Comprehensive Income. The combined financial impact of the settlements and de-risking activities taken overall are reflected in the accompanying tables and disclosures within this note.
The following tables reflect the status of our domestic (U.S. based) and international pension plans as of the dates presented (in millions):
Domestic PlansInternational Plans
August 31,August 31,
2026202520262025
Change in benefit obligation:
Benefit obligation at beginning of year$56.7 $163.8 $31.9 $34.0 
Service cost3.2 4.6 1.0 0.8 
Interest cost2.9 7.8 2.1 1.9 
Actuarial (gains) losses(4.7)(12.1)0.5 (2.2)
Settlements— (95.2)— (1.4)
Benefits paid(3.8)(12.2)(2.7)(2.4)
Foreign currency and other— — 0.9 1.2 
Benefit obligation at end of year54.3 56.7 33.7 31.9 
Change in plan assets:
Fair value of plan assets at beginning of year26.4 134.5 28.9 34.6 
Actual loss on plan assets(0.7)(1.6)(0.5)(3.2)
Employer contributions3.4 0.9 — 1.0 
Benefits paid(3.8)(12.2)(1.5)(1.6)
Settlements— (95.2)— (2.6)
Foreign currency and other— — 0.1 0.7 
Fair value of plan assets at end of year25.3 26.4 27.0 28.9 
Funded status at the end of year$(29.0)$(30.3)$(6.7)$(3.0)
Amounts recognized in the consolidated balance sheets consist of:
Non-current assets$5.8 $5.4 $2.6 $4.3 
Current liabilities(3.4)(3.4)(0.4)(0.4)
Non-current liabilities(31.4)(32.3)(8.9)(6.9)
Net amount recognized in consolidated balance sheets$(29.0)$(30.3)$(6.7)$(3.0)
Accumulated benefit obligation$53.4 $55.6 $30.3 $29.0 
Pre-tax amounts in accumulated other comprehensive loss:
Prior service cost$— $— $(0.1)$(0.2)
Net actuarial loss(2.0)(4.8)14.0 12.4 
Amounts in accumulated other comprehensive loss
$(2.0)$(4.8)$13.9 $12.2 
Pensions plans in which benefit obligation exceeds plan assets:
Projected benefit obligation$34.8 $35.7 $9.3 $7.3 
Accumulated benefit obligation33.9 34.6 5.9 4.4 
Pensions plans in which plan assets exceed benefit obligation:
Projected benefit obligation$19.5 $21.0 $24.4 $24.6 
Accumulated benefit obligation19.5 21.0 24.4 24.6 
Plan assets25.3 26.4 27.0 28.9 
Service cost of net periodic pension cost is allocated between Cost of products sold, and may be capitalized into inventory as labor costs, and Selling, distribution, and administrative expenses in the Consolidated Statements of Comprehensive Income based on the function of the employee's services. All other components of net periodic pension cost are included within Miscellaneous expense, net in the Consolidated Statements of Comprehensive Income. We utilize a corridor approach to amortize cumulative unrecognized actuarial gains or losses over either the average expected future service of active participants or average life expectancy of plan participants based on each plan’s composition. The corridor is determined as the greater of the excess of 10% of plan assets or the projected benefit obligation at each valuation date. Amounts related to prior service cost are amortized over the average remaining expected future service period for active participants in each plan.
Net periodic pension cost during the periods presented included the following components before tax (in millions):
Domestic PlansInternational Plans
202620252024202620252024
Service cost$3.2 $4.6 $3.6 $1.0 $0.8 $0.9 
Interest cost2.9 7.8 7.8 2.1 1.9 2.0 
Expected return on plan assets(1.3)(6.7)(6.7)(1.5)(1.7)(2.0)
Amortization of prior service cost— — 0.1 — 0.1 — 
Recognized actuarial loss0.2 1.6 1.7 1.3 1.0 1.6 
Settlement loss (gain)— 33.2 — — (2.3)— 
Net periodic pension cost$5.0 $40.5 $6.5 $2.9 $(0.2)$2.5 
Weighted average assumptions used in computing the benefit obligation are as follows:
Domestic PlansInternational Plans
2026202520262025
Discount rate5.8 %5.3 %7.4 %6.9 %
Rate of compensation increase5.0 %5.0 %4.5 %4.5 %
Weighted average assumptions used in computing net periodic pension cost are as follows:
Domestic PlansInternational Plans
202620252024202620252024
Discount rate5.3 %4.9 %5.1 %6.9 %5.9 %5.9 %
Expected return on plan assets5.5 %5.3 %5.3 %6.0 %5.4 %4.7 %
Rate of compensation increase5.0 %5.0 %5.0 %4.5 %3.4 %3.5 %
It is our policy to adjust, on an annual basis, the discount rate used to determine the projected benefit obligation to approximate rates on high-quality, long-term obligations based on our estimated benefit payments available as of the measurement date. We use published yield curves to assist in the development of our discount rates. We estimate that a 100 basis point increase in the discount rate would reduce net periodic pension cost for fiscal 2026 approximately $0.3 million for the domestic plans and $0.4 million for the international plans. The expected return on plan assets is derived primarily from a periodic study of long-term historical rates of return on the fair value of our various asset classes included in our targeted pension plan asset allocation as well as future expectations. We estimate that each 100 basis point reduction in the expected return on plan assets would result in additional net periodic pension cost of $0.3 million and $0.3 million for domestic plans and international plans, respectively. We also evaluate the rate of compensation increase annually and adjust if necessary.
Our investment objective for domestic plan assets is to earn a rate of return sufficient to exceed the long-term growth of the plans’ liabilities without subjecting plan assets to undue risk. The plan assets are invested primarily in fixed income securities. We conduct a periodic strategic asset allocation study to form a basis for the allocation of pension assets between various asset categories. Specific allocation percentages are assigned to each asset category with minimum and maximum ranges established for each. The assets are then managed within these ranges. At August 31, 2026, the U.S. targeted asset allocation approximated 90% fixed income securities and 10% equity securities. Our investment objective for the international plan assets is to cover the value of the plans’ liabilities. At August 31, 2026, the international asset target allocation approximated 100% guaranteed insurance policies.
Our pension plan asset allocation by asset category as of the dates presented is as follows:
% of Plan Assets
Domestic PlansInternational Plans
2026202520262025
Equity securities5.1 %14.0 %— %— %
Fixed income securities80.7 %71.6 %1.5 %0.4 %
Multi-strategy investments— %— %— %— %
Real estate14.2 %14.4 %— %— %
Guaranteed insurance policy— %— %98.5 %99.6 %
Total100.0 %100.0 %100.0 %100.0 %
Domestic Plans' Assets
Our pension plan assets are stated at fair value based on quoted market prices in an active market, quoted redemption values, or estimates based on reasonable assumptions as of the most recent measurement period. See the Fair Value Measurements footnote for a description of the fair value guidance under U.S. GAAP. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. Certain pension assets valued at net asset value (“NAV”) per share as a practical expedient are excluded from the fair value hierarchy. Investments in pension plan assets as of August 31, 2026 and August 31, 2025 are described in further detail below.
Short-term Fixed Income Investments (Level 1): Short-term investments consist of money market funds, which are valued at the daily closing price as reported by the relevant fund.
Mutual Funds (Level 1): Mutual funds held by the domestic plans are open-end mutual funds that are registered with the Securities and Exchange Commission (“SEC”) and seek to either replicate or outperform a related index. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the domestic plans are deemed to be actively traded.
Collective Trust (Level 2): The collective trust seeks to outperform the overall small-cap stock market and is comprised primarily of small-cap equity securities with quoted prices in active markets for identical investments. The value of this fund is calculated on each business day based on its daily net asset value; however, the collective trust is not deemed to be actively traded.
Fixed Income Investments (Level 2): The fixed income investment seeks to maximize total return by investing primarily in a diversified portfolio of investment-grade fixed income securities, primarily publicly traded corporate bonds as well as U.S. government and municipal bonds. The investment is valued on each business day based on the values of the underlying holdings and is not actively traded.
U.S. Treasury Investments (Level 2): The domestic plans hold several fixed-income U.S. Treasury securities that are valued based on discounted future cash flows using rates currently available for debt of similar terms and maturity.
Real Estate Fund (NAV): The real estate fund invests primarily in commercial real estate and includes mortgage loans that are backed by the associated property's investment objective. The fund seeks real estate returns, risk, and liquidity appropriate to a core fund. The fund also seeks to provide current income with the potential for long-term capital appreciation. This investment is valued based on the NAV per share, without further adjustment. The NAV, as provided by the fund's trustee, is used as a practical expedient to estimate fair value and is therefore excluded from the fair value hierarchy. NAV is based on the fair value of the underlying investments. Investors may request to redeem all or any portion of their shares on a quarterly basis. Each investor must provide a written redemption request at least sixty days prior to the end of the quarter for which the request is to be effective. If insufficient funds are available to honor all redemption requests at any point in time, available funds will be allocated pro-rata based on the total number of shares held by each investor. All decisions regarding whether to honor redemption requests are made by the fund’s board of directors.
The following tables present the fair value of the domestic pension plan assets by major category as of the dates presented (in millions):
Fair Value
as of		Fair Value Measurements
August 31, 2026Level 1Level 2Level 3
Assets included in the fair value hierarchy:
Fixed-income investments$10.4 $— $10.4 $— 
U.S. Treasury investments9.7 — 9.7 — 
Mutual funds1.2 1.2 — — 
Collective trust: Domestic small cap equities0.1 — 0.1 — 
Short-term fixed income investments0.3 0.3 — — 
Total assets in the fair value hierarchy21.7 
Assets calculated at net asset value:
Real estate fund3.6 
Total assets at net asset value3.6 
Total assets at fair value$25.3 
Fair Value
as of		Fair Value Measurements
August 31, 2025Level 1Level 2Level 3
Assets included in the fair value hierarchy:
Fixed-income investments$10.9 $— $10.9 $— 
US Treasury investments5.2 — 5.2 — 
Mutual funds3.1 3.1 — — 
Collective trust: Domestic small cap equities0.6 — 0.6 — 
Short-term fixed income investments2.8 2.8 — — 
Total assets in the fair value hierarchy22.6 
Assets calculated at net asset value:
Real estate fund3.8 
Total assets at net asset value3.8 
Total assets at fair value$26.4 
International Plans' Investments
During the second quarter of fiscal 2025, we entered into a buy-in insurance policy to transfer our U.K. pension assets to a third-party insurance company. As of August 31, 2025, the remaining plan assets consist primarily of the buy-in insurance policy. The fair value of the related insurance assets are set equal to the insured liabilities, which are comprised of the projected benefit obligations associated with the plan (Level 3). The unobservable inputs for the fair value of the insurance policy include the discount rate and rate of compensation increases utilized in the actuarial valuation of the related projected benefit obligation.
In the fourth fiscal quarter of fiscal 2025, we terminated one of our pension plans in Mexico. As a part of this termination, no plan assets remain.
The following tables present the fair value of the international pension plan assets by major category as of the dates presented (in millions):
Fair Value
as of		Fair Value Measurements
August 31, 2026Level 1Level 2Level 3
Short-term fixed income investments$0.4 $0.4 $— $— 
Insurance policy26.6 — — 26.6 
Total assets at fair value$27.0 
Fair Value
as of		Fair Value Measurements
August 31, 2025Level 1Level 2Level 3
Short-term fixed income investments$0.1 $0.1 $— $— 
Insurance policy28.8 — — 28.8 
Total assets at fair value$28.9 
The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) (in millions):
Year Ended August 31,
20262025
Beginning balance$28.8 $— 
Purchases— 32.0 
Unrealized loss(2.2)(3.2)
Ending balance$26.6 $28.8 
We do not expect to contribute to the remaining plans in fiscal 2027 based on the funded status of the plans as well as current legal minimum funding requirements.
Benefit payments, including payments from funded benefit plan trusts, are expected to be paid as follows during the years ending August 31 (in millions):
Domestic PlansInternational Plans
2027$4.0 $2.1 
20286.8 2.2 
20295.9 2.4 
20304.7 2.6 
20314.8 2.8 
2032-203624.6 18.5 
Defined Contribution Plans
We have defined contribution plans to which both employees and the Company make contributions. Employer matching amounts are allocated in accordance with the participants’ investment elections for elective deferrals and totaled $16.2 million, $14.9 million, and $11.7 million for the years ended August 31, 2026, 2025, and 2024, respectively. At August 31, 2026, assets of certain domestic defined contribution plans included shares of our common stock with a market value of approximately $10.3 million, which represented approximately 1.4% of the total fair market value of the assets in those defined contribution plans.