Document and Entity Information
Document and Entity Information | 12 Months Ended |
Aug. 31, 2018shares | |
Entity Information [Line Items] | |
Entity Registrant Name | EXFO Inc. |
Entity Central Index Key | 1,116,284 |
Current Fiscal Year End Date | --08-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Ex Transition Period | false |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Aug. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Subordinate Voting Shares [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 23,472,995 |
Multiple Voting Shares [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 31,643,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Current assets | ||
Cash | $ 12,758 | $ 38,435 |
Short-term investments (note 6) | 2,282 | 775 |
Accounts receivable (note 6) | ||
Trade | 47,273 | 41,130 |
Other | 4,137 | 3,907 |
Income taxes and tax credits recoverable (note 20) | 4,790 | 4,955 |
Inventories (note 7) | 38,589 | 33,832 |
Prepaid expenses | 5,291 | 4,202 |
Other assets | 2,279 | 0 |
Total current assets | 117,399 | 127,236 |
Tax credits recoverable (note 20) | 47,677 | 38,111 |
Property, plant and equipment (notes 8 and 22) | 44,310 | 40,132 |
Intangible assets (notes 9 and 22) | 29,866 | 11,183 |
Goodwill (notes 9 and 22) | 39,892 | 35,077 |
Deferred income tax assets (note 20) | 4,714 | 6,555 |
Other assets | 686 | 947 |
Total assets | 284,544 | 259,241 |
Current liabilities | ||
Bank loan (note 10) | 10,692 | 0 |
Accounts payable and accrued liabilities (note 11) | 47,898 | 36,776 |
Provisions (note 11) | 2,954 | 3,889 |
Income taxes payable | 873 | 663 |
Deferred revenue | 16,556 | 11,554 |
Other liabilities | 3,197 | 0 |
Current portion of long-term debt (note 12) | 2,921 | 0 |
Total current liabilities | 85,091 | 52,882 |
Provisions (note 11) | 2,347 | 0 |
Deferred revenue | 6,947 | 6,257 |
Long-term debt (note 12) | 5,907 | 0 |
Deferred income tax liabilities (note 20) | 5,910 | 3,116 |
Other liabilities | 421 | 196 |
Total liabilities | 106,623 | 62,451 |
Commitments (note 13) | ||
Shareholders' equity | ||
Share capital (note 14) | 91,937 | 90,411 |
Contributed surplus | 18,428 | 18,184 |
Retained earnings | 114,906 | 127,160 |
Accumulated other comprehensive loss (note 15) | (47,350) | (38,965) |
Total shareholder' equity | 177,921 | 196,790 |
Total liabilities and stockholders' equity | $ 284,544 | $ 259,241 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | ||
Consolidated Statements of Earnings [Abstract] | ||||
Sales (note 22) | $ 269,546 | $ 243,301 | $ 232,583 | |
Cost of sales | [1] | 105,004 | 94,329 | 87,066 |
Selling and administrative | 98,794 | 86,256 | 82,169 | |
Net research and development | 57,154 | 47,168 | 42,687 | |
Depreciation of property, plant and equipment | 5,444 | 3,902 | 3,814 | |
Amortization of intangible assets | 10,327 | 3,289 | 1,172 | |
Change in fair value of cash contingent consideration | (670) | (383) | 0 | |
Interest and other (income) expense | 1,378 | 303 | (828) | |
Foreign exchange (gain) loss | (1,309) | 978 | (161) | |
Share in net loss of an associate (note 3) | 2,080 | 0 | 0 | |
Gain on deemed disposal of the investment in an associate (note 3) | (2,080) | 0 | 0 | |
Earnings (loss) before income taxes | (6,576) | 7,459 | 16,664 | |
Income taxes (note 20) | 5,678 | 6,608 | 7,764 | |
Net earnings (loss) for the year | (12,254) | 851 | 8,900 | |
Net loss for the year attributable to non-controlling interest | (352) | 0 | 0 | |
Net earnings (loss) for the year attributable to parent interest | $ (11,902) | $ 851 | $ 8,900 | |
Basic net earnings (loss) attributable to parent interest per share (in dollars per share) | $ (0.22) | $ 0.02 | $ 0.17 | |
Diluted net earnings (loss) attributable to parent interest per share (in dollars per share) | $ (0.22) | $ 0.02 | $ 0.16 | |
Basic weighted average number of shares outstanding (in shares) | 54,998 | 54,423 | 53,863 | |
Diluted weighted average number of shares outstanding (note 21) (in shares) | 54,998 | 55,555 | 54,669 | |
[1] | The cost of sales is exclusive of depreciation and amortization, shown separately. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Net earnings (loss) for the year | $ (12,254) | $ 851 | $ 8,900 |
Items that may be reclassified subsequently to net earnings | |||
Foreign currency translation adjustment | (6,491) | 8,262 | 707 |
Unrealized gains/losses on forward exchange contracts | (1,476) | 1,403 | 862 |
Reclassification of realized gains/losses on forward exchange contracts in net earnings | (972) | 423 | 2,797 |
Deferred income tax effect of gains/losses on forward exchange contracts | 554 | (479) | (935) |
Other comprehensive income (loss) | (8,385) | 9,609 | 3,431 |
Comprehensive income (loss) for the year | (20,639) | 10,460 | 12,331 |
Comprehensive loss for the year attributable to non-controlling interest | (352) | 0 | 0 |
Comprehensive earnings (loss) for the year attributable to parent interest | $ (20,287) | $ 10,460 | $ 12,331 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Share Capital [Member] | Contributed Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Balance, beginning of period at Aug. 31, 2015 | $ 169,227 | $ 86,045 | $ 17,778 | $ 117,409 | $ (52,005) | |
Redemption of share capital (note 14) | (1,551) | (1,768) | 217 | 0 | 0 | |
Reclassification of stock-based compensation costs (note 14) | 0 | 1,239 | (1,239) | 0 | 0 | |
Stock-based compensation costs | 1,394 | 0 | 1,394 | 0 | 0 | |
Net earnings (loss) for the year | 8,900 | 0 | 0 | 8,900 | 0 | |
Other comprehensive income (loss) | ||||||
Foreign currency translation adjustment | 707 | 0 | 0 | 0 | 707 | |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | 2,724 | 0 | 0 | 0 | 2,724 | |
Comprehensive income (loss) for the year | 12,331 | |||||
Balance, end of period at Aug. 31, 2016 | 181,401 | 85,516 | 18,150 | 126,309 | (48,574) | |
Issuance of share capital (note 14) | 3,490 | 3,490 | 0 | 0 | 0 | |
Reclassification of stock-based compensation costs (note 14) | 0 | 1,405 | (1,405) | 0 | 0 | |
Stock-based compensation costs | 1,439 | 0 | 1,439 | 0 | 0 | |
Net earnings (loss) for the year | 851 | 0 | 0 | 851 | 0 | |
Other comprehensive income (loss) | ||||||
Foreign currency translation adjustment | 8,262 | 0 | 0 | 0 | 8,262 | |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | 1,347 | 0 | 0 | 0 | 1,347 | |
Comprehensive income (loss) for the year | 10,460 | |||||
Balance, end of period at Aug. 31, 2017 | 196,790 | 90,411 | 18,184 | 127,160 | (38,965) | $ 0 |
Reclassification of stock-based compensation costs (note 14) | 0 | 1,526 | (1,526) | 0 | 0 | 0 |
Stock-based compensation costs | 1,770 | 0 | 1,770 | 0 | 0 | 0 |
Business combination (note 3) | (3,662) | 0 | 0 | 0 | 0 | (3,662) |
Acquisition of non-controlling interest on acquisition of subsidiary (note 3) | 3,662 | 0 | 0 | (352) | 0 | 4,014 |
Net earnings (loss) for the year | (12,254) | 0 | 0 | (11,902) | 0 | (352) |
Other comprehensive income (loss) | ||||||
Foreign currency translation adjustment | (6,491) | 0 | 0 | 0 | (6,491) | 0 |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | (1,894) | 0 | 0 | 0 | (1,894) | 0 |
Comprehensive income (loss) for the year | (20,639) | |||||
Balance, end of period at Aug. 31, 2018 | $ 177,921 | $ 91,937 | $ 18,428 | $ 114,906 | $ (47,350) | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Other comprehensive income (loss) | |||
Changes in unrealized gains/losses on forward exchange contracts, deferred income taxes | $ 554 | $ (479) | $ (935) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Cash flows from operating activities | |||
Net earnings (loss) for the year | $ (12,254) | $ 851 | $ 8,900 |
Add (deduct) items not affecting cash | |||
Stock-based compensation costs | 1,748 | 1,477 | 1,378 |
Depreciation and amortization | 15,771 | 7,191 | 4,986 |
Write-off of capital assets | 592 | 0 | 0 |
Change in fair value of cash contingent consideration | (670) | (383) | 0 |
Deferred revenue | 1,998 | 1,723 | 4,238 |
Deferred income taxes | 1,368 | 1,054 | 1,578 |
Share in net loss of an associate | 2,080 | 0 | 0 |
Gain on deemed disposal of the investment in an associate | (2,080) | 0 | 0 |
Changes in foreign exchange gain/loss | (181) | 1,096 | (332) |
Cash flows from operations before changes in working capital | 8,372 | 13,009 | 20,748 |
Changes in non-cash operating items | |||
Accounts receivable | 7,275 | 3,955 | 2,682 |
Income taxes and tax credits | 86 | (2,386) | 939 |
Inventories | (1,020) | 911 | (4,713) |
Prepaid expenses | 57 | (918) | (280) |
Other assets | (1,311) | (121) | 170 |
Accounts payable and accrued liabilities and provisions | 1,033 | (1,745) | 4,882 |
Other liabilities | (122) | 165 | (65) |
Net cash flows from operating activities | 14,370 | 12,870 | 24,363 |
Cash flows from investing activities | |||
Additions to short-term investments | (1,550) | (2,910) | (3,546) |
Proceeds from disposal and maturity of short-term investments | 234 | 6,374 | 873 |
Purchases of capital assets (notes 8 and 9) | (10,452) | (7,175) | (4,356) |
Investment in an associate (note 3) | (12,530) | 0 | 0 |
Business combinations, net of cash acquired (note 3) | (19,600) | (12,792) | 0 |
Net cash flows from investing activities | (43,898) | (16,503) | (7,029) |
Cash flows from financing activities | |||
Bank loan | 11,061 | 0 | 0 |
Repayment of long-term debt | (1,688) | (1,480) | 0 |
Redemption of share capital (note 14) | 0 | 0 | (1,551) |
Other liabilities | (1,449) | 0 | 0 |
Acquisition of non-controlling interest (note 3) | (3,657) | 0 | 0 |
Net cash flows from financing activities | 4,267 | (1,480) | (1,551) |
Effect of foreign exchange rate changes on cash | (416) | 340 | 1,561 |
Change in cash | (25,677) | (4,773) | 17,344 |
Cash - Beginning of year | 38,435 | 43,208 | 25,864 |
Cash - End of year | 12,758 | 38,435 | 43,208 |
Supplementary information | |||
Income taxes paid | $ 2,376 | $ 2,866 | $ 2,015 |
Nature of Activities and Incorp
Nature of Activities and Incorporation | 12 Months Ended |
Aug. 31, 2018 | |
Nature of Activities and Incorporation [Abstract] | |
Nature of Activities and Incorporation | 1 Nature of Activities and Incorporation EXFO Inc. and its subsidiaries (together "EXFO" or the "company") develops, manufactures and markets smarter network test, monitoring and analytics solutions for fixed and mobile communications service providers (CSPs), web-scale operators, as well as network equipment manufacturers in the global telecommunications industry. EXFO is a company incorporated under the Canada Business Corporations Act and is domiciled in Canada. The address of its headquarters is 400 Godin Avenue, Quebec City, Quebec, Canada, G1M 2K2. These consolidated financial statements were authorized for issue by the Board of Directors on November 27, 2018. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Aug. 31, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2 Basis of Presentation These consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards International Accounting Standards Board These IFRS consolidated financial statements have been prepared based on the following accounting policies: Basis of measurement These consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of derivative financial instruments, available-for-sale investments and the contingent liability. Consolidation These consolidated financial statements include the accounts of the company and its domestic and foreign subsidiaries. Intercompany accounts and transactions have been eliminated. Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sales of goods and services in the ordinary course of business. Sales of goods Revenue from sales of goods, which represent the majority of the sales of the company, is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually upon delivery of the goods. Revenue is recorded based on the price specified in the sales arrangements. Maintenance contracts Maintenance contracts are usually offered to customers for periods of 12 to 36 months. They generally include the right to unspecified software upgrades and enhancements on a when-and-if-available basis as well as customer service. Revenue from these contracts is recognized ratably over the terms of the maintenance contracts on a straight-line basis. Extended warranties Extended warranties are usually offered to customers for periods of 6 to 48 months. Revenue from these extended warranties is recognized ratably over the warranty period on a straight-line basis. Multiple-component arrangements When a sales arrangement includes multiple separately identifiable components such as goods, professional services, extended warranties, maintenance contracts, installation and training, the revenue recognition criteria are applied to each separately identifiable component. A component is considered separately identifiable if the delivered item has value to the customer on a stand-alone basis and the fair value associated with the component can be measured reliably. The company allocates the selling price of a multiple-component arrangement to each component based on the fair value of each component in relation to the fair value of the arrangement as a whole. Sales arrangements may include acceptance clauses. When a sales arrangement does include an acceptance provision, acceptance occurs upon the earliest of receipt of a written customer acceptance or expiration of the acceptance period. For these sales arrangements, the sale is recognized when acceptance occurs. Presentation currency The functional currency of the company is the Canadian dollar. The company has adopted the US dollar as its presentation currency as it is the most commonly used reporting currency in its industry. The consolidated financial statements are translated into the presentation currency as follows: assets and liabilities are translated at the exchange rate in effect on the date of the balance sheet; revenues and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive income in shareholders' equity. Foreign currency translation (a) Foreign currency transactions Transactions denominated in currencies other than the functional currency are translated into the relevant functional currency as follows: Monetary assets and liabilities are translated at the exchange rate in effect on the date of the balance sheet, and revenues and expenses are translated at the exchange rate in effect on the date of the transaction. Non-monetary assets and liabilities measured at historical cost and denominated in a foreign currency are translated using the exchange rate at the date of the transaction, whereas non-monetary items that are measured at fair value and denominated in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Foreign exchange gains and losses arising from such translation are included in the consolidated statements of earnings. (b) Foreign operations Each foreign operation determines its own functional currency and items included in the financial statements of each foreign operation are measured using that functional currency. The financial statements of each foreign operation that has a functional currency different from the company are translated into Canadian dollars as follows: assets and liabilities are translated at the exchange rate in effect on the date of the balance sheet; revenues and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive income in shareholders' equity. Financial instruments The classification of financial instruments depends on the intended purpose when the financial instruments were acquired or issued, as well as on their characteristics and designation by the company. Classification Financial assets Cash Loans and receivables Short-term investments Available for sale Accounts receivable Loans and receivables Other assets Loans and receivables Forward exchange contracts Derivatives used for hedging Financial liabilities Bank loan Other financial liabilities Accounts payable and accrued liabilities Other financial liabilities Other liabilities Other financial liabilities Long-term debt Other financial liabilities Contingent liability Financial liabilities at fair value through profit or loss Forward exchange contracts Derivatives used for hedging Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or are not classified in any of the other categories. They are initially recognized at fair value plus transaction costs and are subsequently measured at fair value. After their initial recognition, any changes in their fair value are reflected in other comprehensive income. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After their initial measurement at fair value Other financial liabilities Other financial liabilities are non-derivative financial liabilities initially measured at fair value Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss are non-derivative financial liabilities initially measured at fair value and are subsequently measured at fair value. After their initial recognition, any changes in their fair value are reflected in the consolidated statements of earnings. Derivative financial instruments and hedging activities Forward exchange contracts are utilized by the company to manage its foreign currency exposure. Forward exchange contracts are entered into by the company to hedge anticipated US-dollar-denominated sales and the related accounts receivable as well as Indian-rupee-denominated operating expenses and the related accounts payable. The company's policy is not to utilize those derivative financial instruments for trading or speculative purposes. The company's forward exchange contracts, which are designated as cash flow hedging instruments, qualify for hedge accounting. They are initially recorded at fair value and subsequently measured at fair value. The fair value of forward exchange contracts is determined using quoted prices and forward exchange rates at the balance sheet date, with the resulting value discounted back to present value. After initial recognition, the effective portion of changes in their fair value is reflected in other comprehensive income. Any ineffective portion is recognized immediately in the consolidated statements of earnings. Upon recognition of related hedged sales and operating expenses, accumulated changes in fair value of forward exchange contracts are respectively reclassified in sales and net research and development expenses in the consolidated statements of earnings. At the inception of a hedge relationship, the company formally designates and documents the hedge relationship to which the company wishes to apply hedge accounting, the risk management objectives, the hedging instrument, the hedged item and the method used to test effectiveness. The company assesses effectiveness of the hedge relationship at inception and on an ongoing basis using the dollar-offset method. Fair value hierarchy The company classifies its derivative and non-derivative financial assets and liabilities measured at fair value using the fair value hierarchy as follows: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset and liability, either directly or indirectly; Level 3: Unobservable inputs for the asset or liability. The company's short-term investments, forward exchange contracts and contingent liability are measured at fair value at each balance sheet date. The company's short-term investments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The company's forward exchange contracts are classified within Level 2 of the fair value hierarchy because they are valued using quoted prices and forward foreign exchange rates at the balance sheet dates. The company's contingent liability is classified within level 3 of the fair value hierarchy because it is valued using unobservable inputs such as expected future sales of Ontology. Short-term investments All investments with original terms to maturity of three months or less and that are not required for the purposes of meeting short-term cash requirements are classified as short-term investments. Inventories Inventories are valued on an average cost basis, at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. The cost of work in progress and finished goods includes material, labor and an allocation of manufacturing overhead. Property, plant and equipment and depreciation Property, plant and equipment are recorded at cost, net of accumulated depreciation and accumulated impairment losses. Such cost is reduced by related research and development tax credits. Depreciation is provided on a straight-line basis over the estimated useful lives of the asset as follows: Term Land improvements 15 years Buildings 20 to 60 years Equipment 3 to 15 years Leasehold improvements The lesser of useful life and remaining lease term The assets' residual values and useful lives are reviewed at each financial year-end, and adjusted prospectively, if appropriate. Intangible assets, goodwill and amortization Intangible assets Intangible assets with finite useful lives primarily include the cost of core technology, customer relationships and software. The cost of intangible assets acquired in a business combination is the fair value of the assets at the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is provided on a straight-line basis over the estimated useful lives of two to eight years for core technologies, three months to five years for customer relationships, one year for brand name, and two and eight years for software. None of the company's intangible assets were developed internally. The amortization method and the useful lives of intangible assets are reviewed at each financial year-end, and adjusted prospectively, if appropriate. Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value of net identifiable assets acquired, and is allocated to each cash-generating unit (CGU) or group of CGUs that are expected to benefit from the related business combination. A group of CGUs represents the lowest level within the company at which the goodwill is monitored for internal management purposes, which is not higher than an operating segment. Goodwill is not amortized but must be tested for impairment on an annual basis or more frequently if events or circumstances indicate that it might be impaired. Research and development All costs related to research are expensed as incurred, net of related tax credits and grants. Development costs are expensed as incurred, net of related tax credits and grants, unless they meet the recognition criteria of IAS 38, " Intangible Assets The company elected to account for non-refundable research and development tax credits under IAS 20, " Accounting for Governmental Grants and Disclosures of Governmental Assistance Impairment of non-financial assets The company assesses at each reporting date whether there is an indication that the carrying value of property, plant and equipment and finite-life intangible assets may not be recoverable. Non-financial assets that are not amortized (such as goodwill) are subject to an annual impairment test. If any indication exists, or when annual impairment testing is required, the company estimates the asset or asset group's recoverable amount. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). The recoverable amount is the higher of an asset or CGU's fair value less costs of disposal and its value in use. Where the carrying value of an asset or CGU exceeds its recoverable amount, the asset or the CGU is considered impaired and is written down to its recoverable amount. The company performs its annual goodwill impairment test in the fourth quarter of each fiscal year. For property, plant and equipment and finite-life intangible assets, the reversal of impairment is limited so that the carrying value of the asset does not exceed its recoverable amount, nor exceed the carrying value that would have been determined, net of depreciation or amortization, had no impairment loss been recognized for the asset in prior periods. Impairment losses on goodwill are not reversed. Leases Operating leases are leases for which the company does not assume substantially all the risks and rewards of ownership of the asset. Operating lease rentals are charged to the consolidated statements of earnings on a straight-line basis over the lease term. As at August 31, 2017 and 2018, all significant leases of the company were classified as operating leases. Government grants Grants related to operating expenses are included in earnings when the related expenses are incurred. Grants related to capital expenditures are deducted from the related assets. Grants are included in the consolidated statements of earnings or deducted from the related assets, provided there is reasonable assurance that the company has complied and will comply with all the conditions related to the grants and that the grants will be received. Warranty The company offers its customers basic warranties of one to three years, depending on the specific products and terms of the purchase agreement. The company's typical warranties require it to repair or replace defective products during the warranty period at no cost to the customer. Costs related to basic warranties are accrued at the time of shipment, based upon estimates of expected rework and warranty costs to be incurred. Costs associated with separately priced extended warranties are expensed as incurred. Income taxes Income taxes comprise current and deferred income taxes. Current income taxes Current income tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered or paid to the taxation authorities. Income tax rates used to calculate the amount are those that are enacted or substantively enacted at the balance sheet dates in the tax jurisdictions where the company generates taxable income/loss. Deferred income taxes The company provides for deferred income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on deductible or taxable temporary differences between financial statement values and tax values of assets and liabilities as well as the carry-forward of unused tax losses and deductions, using enacted or substantively enacted income tax rates at the balance sheet dates, that are expected to be in effect for the years in which the assets are expected to be recovered or the liabilities to be settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable income will be available against which the deductible temporary differences as well as unused tax losses and deductions can be utilized. Deferred tax liabilities are recognized for all taxable temporary differences and for taxable temporary differences arising on investments in subsidiaries, except where the reversal of these temporary differences can be controlled, and it is probable that the differences will not reverse in the foreseeable future. Deferred income tax assets and liabilities are presented as non-current in the consolidated balance sheets. Uncertain tax positions The company is subject to income tax laws and regulations in several jurisdictions. There are many transactions and calculations during the course of business for which the ultimate tax determination is uncertain. The company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk. These provisions are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The company reviews the adequacy of these provisions at the end of the reporting periods and any changes in the provisions are recognized in the consolidated statements of earnings when they occur. However, it is possible that at some future dates, liabilities in excess of the company's provisions could result from audits by, or litigation with, the relevant taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will be recognized in the consolidated statement of earnings in the period in which such determination is made. Earnings per share Basic earnings per share are calculated by dividing net earnings attributable to common equity holders of the company by the weighted average number of common shares outstanding during the year. Diluted earnings per share are calculated by dividing net earnings attributable to common equity holders of the company by the weighted average number of common shares outstanding during the year, plus the effect of dilutive potential common shares outstanding during the year. This method requires that diluted earnings per share be calculated (using the treasury stock method) as if all dilutive potential common shares had been exercised at the latest at the beginning of the year or on the date of issuance, as the case may be, and that the funds obtained thereby (plus an amount equivalent to the unamortized portion of related stock-based compensation costs) be used to purchase common shares of the company at the average market price of the common shares during the year. Stock-based compensation Equity-settled awards The company's stock options, restricted share units and deferred share units are equity-settled awards. The company accounts for stock-based compensation costs on equity-settled awards using the Black-Scholes option valuation model. The fair value of equity-settled awards is measured at the date of grant. Stock-based compensation costs are amortized to expense over the vesting periods together with a corresponding change in contributed surplus in shareholders' equity. For equity-settled awards with graded vesting, each tranche is considered a separate grant with a different vesting date and fair value, and each tranche is accounted for separately. Cash-settled awards The company's stock appreciation rights are cash-settled awards. The company accounts for stock-based compensation costs on cash-settled awards using the Black-Scholes option valuation model. The fair value of the cash-settled awards is remeasured at the end of each reporting period, with any changes in the fair value recognized in the consolidated statements of earnings. Operating segments Operating segments are defined as components of an entity engaged in business activities from which it may earn revenues and incur expenses, and whose operating results are regularly reviewed by the chief operating decision maker (CODM) to make decisions about resources to be allocated to segments and assess their performance and for which discrete information is available. The function of the CODM is performed by the Chief Executive Officer who reviews consolidated results for the purposes of allocating resources and evaluating performance. Accordingly, the company determines that it has one operating segment as of, and for the years ended August 31, 2016, 2017 and 2018. Entity-wide disclosures are presented in note 22. Critical accounting judgments in applying accounting policies and estimates The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses as well as the disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those judgments, estimates and assumptions. Critical judgments, estimates and assumptions are the following: Critical judgments in applying accounting policies (a) Determination of functional currency The company operates in multiple countries and generates revenue and incurs expenses in several currencies, namely the Canadian dollar, the US dollar, the euro, the British pound, the Indian rupee and the CNY (Chinese currency). The determination of the functional currency of the company and its subsidiaries may require significant judgment. In determining the functional currency of the company and its subsidiaries, management takes into account primary, secondary and tertiary indicators. When indicators are mixed, and the functional currency is not obvious, management uses its judgment to determine the functional currency. (b) Determination of cash generating units and allocation of goodwill For the purpose of impairment testing, goodwill must be allocated to each CGU or group of CGUs that are expected to benefit from the synergies of the business combination. Initial allocation and possible reallocation of goodwill to a CGU or a group of CGUs requires judgment. Critical estimates and assumptions (a) Inventories The company states its inventories at the lower of cost, determined on an average cost basis, and net realizable value, and provides reserves for excess and obsolete inventories. The company determines its reserves for excess and obsolete inventories based on the quantities on hand at the reporting dates compared to foreseeable needs, taking into account changes in demand, technology or market. (b) Income taxes The company is subject to income tax laws and regulations in several jurisdictions. Under these laws and regulations, uncertainties exist with respect to the interpretation of complex tax laws and regulations and the amount and timing of future taxable income. The company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk based on its interpretation of laws and regulations. In addition, management has made reasonable estimates and assumptions to determine the amount of deferred tax assets that can be recognized in the consolidated financial statements, based upon the likely timing and level of anticipated future taxable income together with tax planning strategies. The ultimate realization of the company's deferred income tax assets is dependent upon the generation of sufficient future taxable income during the periods in which those assets are expected to be realized. (c) Tax credits recoverable Tax credits are recorded provided that there is reasonable assurance that the company has complied and will comply with all the conditions related to the tax credits and that the tax credits will be received. The ultimate recovery of the company's non-refundable tax credits is dependent upon the generation of sufficient future taxable income during the tax credits carry-forward periods. Management has made reasonable estimates and assumptions to determine the amount of non-refundable tax credits that can be recognized in the consolidated financial statements, based upon the likely timing and level of anticipated future taxable income together with tax planning strategies (note 20). (d) Impairment of non-financial assets Impairment exists when the carrying value of an asset or group of assets (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation for the company's CGUs is based on a market approach that relies on unobservable inputs based on valuation multiples and recent transactions for comparable assets or businesses, within the same industry. The company applies judgment in making adjustments to the unobservable inputs for factors such as size, risk profile or profitability. The company also considers the company's value derived from its market capitalization, adjusting for a control premium considered appropriate based on other comparable companies with significant controlling interests. Depending on the market evidence available, the company, from time to time, may further supplement this market approach with an income approach that considers discounted cash flows to determine fair value less costs of disposal, as well as the nature and magnitude of research and development activities carried out by the CGU. The discounted cash flow model involves significant judgment with respect to estimating cash flows (based on market participant assumptions) and the appropriate discount rate. (e) Purchase price allocation in business combinations The fair value of the total consideration transferred in business combinations (purchase price) must be allocated based on estimated fair value of acquired net assets at the date of acquisition. Allocating the purchase price requires management to make estimates and judgments to determine assets acquired and liabilities assumed, useful lives of certain long-lived assets and the respective fair value of assets acquired, and liabilities assumed; this may require the use of unobservable inputs, including management's expectations of future revenue growth, operating costs and profit margins as well as discount rates. New IFRS pronouncements not yet adopted Financial instruments The final version of IFRS 9, " Financial Instruments Financial Instruments: Recognition and Measurement Revenue from contracts with customers IFRS 15, " Revenue from Contracts with Customers The company has performed an assessment to identify significant areas of impact between the company's current accounting treatment under IAS 18, " Revenue The company performed a quantitative analysis of the main areas of impact as of September 1, 2018, and it does not expect the new standard to materially impact its consolidated financial statements. Leases IFRS 16, Leases IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e., the customer (lessee) and the supplier (lessor). IFRS 16 will supersede IAS 17, " Leases ", and related interpretations. This new standard is effective for annual periods beginning on or after January 1, 2019, with earlier adoption permitted if IFRS 15, " Revenue from Contracts with Customers ", is also applied. Foreign Currency Transactions and Advance Consideration IFRIC 22, " Foreign Currency Transactions and Advance Consideration Uncertainty over Income Tax Treatments IFRIC 23, " Uncertainty over Income Tax Treatments |
Business Combinations
Business Combinations | 12 Months Ended |
Aug. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | 3 Business Combinations Fiscal 2018 Astellia S.A. (business combination achieved in stages) On September 8, 2017, the company acquired a 33.1% interest in Astellia S.A. (Astellia), a publicly traded company on the NYSE Euronext Paris stock exchange. Astellia is a provider of network and subscriber intelligence-enabling mobile operators to drive service quality, maximize operational efficiency, reduce churn and increase revenue. Its vendor-independent, real-time monitoring and troubleshooting solution is used to optimize networks end-to-end from radio to core. The purchase price amounted to €10 per share for a total cash consideration of €8,567,500 (US$10,311,100). On October 10, 2017, the company reached an agreement with Astellia to acquire Astellia's remaining shares, at a share price of €10, for a total consideration of €17,321,380 (US$21,357,500) by way of a public tender offer. The public offering opened on December 15, 2017 and closed on January 26, 2018. On December 21 and 22, 2017, the company acquired additional interests of 6.0% and 1.2% respectively in Astellia at a purchase price of €10 per share for a total cash consideration of €1,878,610 (US$2,218,600), which brought the company's investment in Astellia to 40.3%. On January 26, 2018, upon the closing of the public tender offer, the company acquired additional interest of 48.1% in Astellia at a purchase price of €10 per share for a total cash consideration of €12,452,090 (US$15,476,900), which brought the company's investment in Astellia to 88.4% and provided the company with control over Astellia. The company re-opened the public tender offer to acquire the remaining shares of Astellia from February 9, 2018 to February 22, 2018. During that period, the company acquired an additional interest of 8.9% in Astellia at a purchase price of €10 per share for a total cash consideration of €2,318,530 (US$2,841,400), which brought the company's investment in Astellia to 97.3%. Finally, on February 28, 2018, the company entered into a squeeze-out process to acquire the remaining 2.7% interest in Astellia at a share price of €10, for a total cash consideration of €672,150 (US$820,600). The binding terms of the squeeze-out process gave the company control over Astellia's remaining shares as at February 28, 2018 and consequently, as of that date the company controlled 100% of Astellia's shares. The fair value of the total consideration paid for all shares of Astellia amounted to €25,888,880 (US$32,137,800) and consisted of €21,102,880 (US$26,241,000) in cash, net of Astellia's cash of €4,786,000 (US$5,896,800) at the date of acquisition of control. From September 8, 2017 to January 25, 2018, the investment in Astellia provided the company with significant influence over Astellia, and it was therefore accounted for under the equity method as Investments in Associates and Joint Ventures Upon the acquisition of an additional 48.1% interest in Astellia on January 26, 2018 (the "acquisition date"), the acquisition has been considered a business combination, and the acquisition was accounted for by applying the acquisition method as required Business Combinations Consolidated Financial Statements onsequently, the fair value of the total consideration was allocated to the assets acquired and liabilities assumed based on management's estimate of their fair value as at the acquisition date. The results of operations of the acquired business have been included in the consolidated financial statements of the company since January 26, 2018. The company recognized the non-controlling interest in Astellia at fair value. At the acquisition date, the carrying value of the 40.3% interest in Astellia held prior to the business combination was re-measured at fair value, that is, and was deemed to have been disposed of on that date In addition, upon the successive acquisitions of the non-controlling interest in February 2018, the company recorded a gain in the amount of $352,000 in shareholders' equity, representing the excess of the carrying value of the non-controlling interest and the purchase price paid. The following table summarizes Astellia's contributed sales and net loss attributable to the parent interest for the period from January 26, 2018 to August 31, 2018: Sales (1) $ 16,377 Net loss attributable to the parent interest (1, 2) $ 12,850 If the acquisition had occurred on September 1, 2017, consolidated pro forma sales and net loss attributable to the parent interest of the combined entities for the year ended August 31, 2018 would have been $292,134,000 and $18,768,000 respectively. (1) Includes acquisition-related deferred revenue fair value adjustment of $2,095,000. (2) Includes amortization of acquired intangible assets of $5,077,000. The fair value of the total consideration was allocated based on an estimate of fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 16,374 Income taxes and tax credits recoverable 11,259 Inventories 3,045 Prepaid expenses 1,229 Property, plant and equipment 1,944 Core technologies 12,869 Customer relationships 8,381 Brand name 846 Other intangible assets 498 Other assets 1,402 57,847 Liabilities assumed Accounts payable and accrued liabilities 11,068 Deferred revenue 4,748 Long-term debt (note 12) 8,888 Deferred income tax liabilities 2,692 Other liabilities 6,715 Net identifiable assets acquired 23,736 Goodwill 2,505 Fair value of the total consideration, net of cash acquired $ 26,241 The fair value of the total consideration, net of cash acquired, consisted of the following at the acquisition date: Cash paid net of cash acquired $ 9,580 Fair value of shares held 12,967 Non-controlling interest (purchased in February 2018) 3,694 $ 26,241 The estimated fair value of acquired accounts receivable amounted to $16,374,000 as at January 26, 2018. The gross contractual amount of accounts receivable amounted to $18,758,000 as at January 26, 2018. The estimate at the acquisition date of the gross contractual cash flows not expected to be collected amounted to $2,384,000. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives of four and eight years for core technologies, two to five years for customer relationships, and one year for brand name. Acquired goodwill mainly represents synergies with the company's products as well as Astellia's acquired workforce. Acquired goodwill is not deductible for tax purposes. Goodwill is allocated to the Astellia cash-generating unit. During the fourth quarter of fiscal 2018, the company completed the detailed valuation and finalized the allocation of the purchase price; this resulted in an increase of $497,000 in accounts receivable, an increase of $3,444,000 in intangible assets, an increase of $497,000 in accounts payable and accrued liabilities, an increase of $2,692,000 in deferred income tax liabilities and a corresponding decrease of $752,000 in goodwill. The functional currency of Astellia is the euro and as such it is considered a foreign operation. The financial operations of Astellia are translated into Canadian dollars as follows: assets and liabilities are translated at the exchange rate in effect on the date of the balance sheet; revenue and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive loss in shareholders' equity. Yenista Optics S.A.S. (renamed EXFO Optics Inc.) On October 2, 2017, the company acquired all issued and outstanding shares of Yenista Optics S.A.S. (EXFO Optics), a privately held company located in France and a supplier of advanced optical test equipment for the research and development and manufacturing markets. The acquisition-date fair value of the total consideration amounted to €9,400,000 (US$11,052,000) and consisted of €8,114,000 (US$9,540,000) in cash, net of EXFO Optics' cash of €1,286,000 (US$1,512,000) at the acquisition date. This acquisition was accounted for by applying the acquisition method as Business Combinations Consolidated Financial Statements consequently, the fair value of the total consideration was allocated to the assets acquired and liabilities assumed based on management's estimate of their fair value as at the acquisition date. The results of operations of the acquired business have been included in the consolidated financial statements of the company since October 2, 2017, being the acquisition date. The fair value of the total consideration was allocated based on the fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 1,889 Inventories 2,384 Property, plant and equipment 1,424 Core technologies 3,686 Customer relationships 811 In-process research and development 305 Other intangible assets 132 Prepaid expenses 171 10,802 Liabilities assumed Accounts payable and accrued liabilities 1,035 Long-term debt (note 12) 2,143 Deferred income taxes 1,510 Net identifiable assets acquired 6,114 Goodwill 3,426 Fair value of the total consideration, net of cash acquired $ 9,540 Acquired intangible assets are amortized on a straight-line basis over their estimated useful life of two to five years for core technologies and three months for customer relationships. In-process research and development is an indefinite-lived intangible asset until the underlying research and development project is completed. It will be amortized on a straight-line basis over its estimated useful life when the project will be completed. Acquired goodwill mainly represents synergies with the company's products as well as EXFO Optics' acquired workforce. Acquired goodwill is not deductible for tax purposes. Goodwill is allocated to the EXFO Optics cash-generating unit. The functional currency of EXFO Optics is the euro, and, as such, it is considered a foreign operation. The financial operations of EXFO Optics are translated into Canadian dollars as follows: assets and liabilities were translated at the exchange rate in effect on the date of the balance sheet; revenue and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive loss in shareholders' equity. Fiscal 2017 Absolute Analysis Inc. On October 31, 2016, the company acquired substantially all the assets of Absolute Analysis Inc. (Absolute), a privately held company located in the United States, supplying solutions for radio frequency testing of fiber-based radio access networks. The acquisition-date fair value of the total consideration transferred amounted to $8,490,000 and consisted of $5,000,000 in cash and the issuance of 793,070 subordinate voting shares valued at $3,490,000. This acquisition was accounted for by applying the acquisition method as Business Combinations Consolidated Financial Statements consequently, the fair value of the total consideration transferred was allocated to the assets acquired and liability assumed based on management's estimate of their fair value as at the acquisition date. The results of operations of the acquired business have been included in the consolidated financial statements of the company since October 31, 2016, being the date of acquisition. The fair value of the total consideration transferred was allocated based on a final estimate of fair value of acquired net assets at the date of acquisition as follows: Assets acquired Core technology $ 4,130 Other assets 236 4,366 Liability assumed Deferred income taxes 279 Net identifiable assets acquired 4,087 Goodwill 4,403 Fair value of the total consideration transferred $ 8,490 Intangible assets are amortized on a straight-line basis over their estimated useful lives of one to five years. Acquired goodwill mainly represents synergies with the company's products as well as the Absolute acquired workforce. Acquired goodwill is deductible for tax purposes. Goodwill is allocated to the EXFO cash generating unit. Ontology Partners Limited On March 2, 2017, the company acquired all of the issued and outstanding shares of Ontology Partners Limited (Ontology), a privately held company located in the United Kingdom, a supplier of real-time network topology discovery and service-chain mapping. The acquisition-date fair value of the total consideration transferred amounted to $9,180,000 and consisted of $7,780,000 in cash, net of Ontology's cash of $2,156,000 at the acquisition date, plus a cash contingent consideration based on certain sales volumes of Ontology products over the 12-month period following the acquisition, with an estimated fair value of $1,400,000 at the acquisition date. This acquisition was accounted for by applying the acquisition method as Business Combinations Consolidated Financial Statements consequently, the fair value of the total consideration transferred was allocated to the assets acquired and liabilities assumed based on management's estimate of their fair value as at the acquisition date. The results of operations of the acquired business have been included in the consolidated financial statements of the company since March 2, 2017, being the date of acquisition. The fair value of the total consideration transferred was allocated based on a final estimate of fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 1,701 Core technology 3,802 Customer relationships 1,607 Other assets 37 7,147 Liabilities assumed Accounts payable and accrued liabilities 3,343 Deferred revenue 211 Long-term debt 1,480 Net identifiable assets acquired 2,113 Goodwill 7,067 Fair value of the total consideration transferred, net of cash acquired $ 9,180 Acquired intangible assets are amortized on a straight-line basis over their estimated useful life of five years. Acquired goodwill mainly represents synergies with the company's products as well as Ontology acquired workforce. Acquired goodwill is not deductible for tax purposes. Goodwill is allocated to the Ontology cash generating unit. In connection with business combinations completed in fiscal 2017 and 2018, the company incurred acquisition-related costs of $1,054,000 and $2,484,000 respectively, which are presented as follows: Years ended August 31, 2018 2017 2016 Selling and administrative expenses $ 2,236 $ 1,054 $ ‒ Interest and other expenses 248 ‒ ‒ $ 2,484 $ 1,054 $ ‒ |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Aug. 31, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 4 Restructuring Charges Fiscal 2018 In August 2018, the company implemented a restructuring plan to accelerate the integration of its newly acquired monitoring and analytics technologies from Astellia and simplify its cost structure and optimize resources as the company converges toward fewer sites and reduces its workforce. This plan will result in expenses mainly comprising severance expenses, costs for remaining non-cancellable operating leases, write-off of research and development income tax credits and impairment of long-lived assets, net of related income taxes. During the fourth quarter of fiscal 2018, the company recorded severance expenses of $2,072,000, costs for remaining non-cancelable operating lease of $1,137,000, write-off of research and development income tax credits of $1,200,000 and impairment of long-lived assets of $150,000, net of related income taxes of $1,150,000, for total after-tax restructuring charges of $3,409,000. The remainder of the restructuring charges, which mainly comprise severance expenses, will be recorded in the first half of fiscal 2019. Fiscal 2017 In May 2017, the company implemented a restructuring plan to streamline its passive monitoring solutions portfolio. This plan resulted in severance expenses of $4,049,000 and inventory write-offs of $1,030,000, for total restructuring charges of $5,079,000 during the year. The following tables summarize changes in restructuring charges payable during the years ended August 31, 2017 and 2018. Fiscal 2018 plan Year ended August 31, 2018 Balance – Beginning of year $ ‒ Addition 3,209 Payments (42 ) Balance – End of year (note 11) $ 3,167 Fiscal 2017 plan Years ended August 31, 2018 2017 Balance – Beginning of year $ 2,477 $ ‒ Addition ‒ 4,049 Payments (2,010 ) (1,572 ) Reversal (467 ) ‒ Balance – End of year (note 11) $ ‒ $ 2,477 |
Capital Disclosures
Capital Disclosures | 12 Months Ended |
Aug. 31, 2018 | |
Capital Disclosures [Abstract] | |
Capital Disclosures | 5 Capital Disclosures The company is not subject to any external restrictions on its capital. The company's objectives when managing capital are: · To maintain a flexible capital structure that optimizes the cost of capital at acceptable risk; · To sustain future development of the company, including research and development activities, market development and potential acquisitions of complementary businesses or products; and · To provide the company's shareholders with an appropriate return on their investment. No changes were made to the objectives and policies during the years ended August 31, 2017 and 2018. The company defines its capital as shareholders' equity, excluding accumulated other comprehensive loss. The capital of the company amounted to $235,755,000 and $225,271,000 as at August 31, 2017 and 2018 respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Aug. 31, 2018 | |
Financial Instruments [Abstract] | |
Financial Instruments | 6 Financial Instruments The following tables summarize financial instruments by category: As at August 31, 2018 Loans and receivables Available for sale Other financial liabilities Derivatives used for hedging Total Financial assets Cash $ 12,758 $ ‒ $ ‒ $ ‒ $ 12,758 Short-term investments $ ‒ $ 2,282 $ ‒ $ ‒ $ 2,282 Accounts receivable $ 46,955 $ ‒ $ ‒ $ ‒ $ 46,955 Other assets $ 352 $ ‒ $ ‒ $ ‒ $ 352 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ 318 $ 318 Financial liabilities Bank loan $ ‒ $ ‒ $ 10,692 $ ‒ $ 10,692 Accounts payable and accrued liabilities $ ‒ $ ‒ $ 47,308 $ ‒ $ 47,308 Other liabilities $ ‒ $ ‒ $ 3,197 $ ‒ $ 3,197 Long-term debt $ ‒ $ ‒ $ 8,828 $ ‒ $ 8,828 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ 807 $ 807 As at August 31, 2017 Loans and receivables Available for sale Other financial liabilities Financial liabilities at fair value through profit or loss Derivatives used for hedging Total Financial assets Cash $ 38,435 $ ‒ $ ‒ $ ‒ $ ‒ $ 38,435 Short-term investments $ ‒ $ 775 $ ‒ $ ‒ $ ‒ $ 775 Accounts receivable $ 43,340 $ ‒ $ ‒ $ ‒ $ ‒ $ 43,340 Other assets $ 36 $ ‒ $ ‒ $ ‒ $ ‒ $ 36 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ ‒ $ 2,258 $ 2,258 Financial liabilities Accounts payable and accrued liabilities $ ‒ $ ‒ $ 36,776 $ ‒ $ ‒ $ 36,776 Contingent liability $ ‒ $ ‒ $ ‒ $ 1,092 $ ‒ $ 1,092 Fair value Cash, short-term investments, accounts receivable, other assets, bank loan, accounts payable and accrued liabilities and other liabilities are financial instruments whose carrying values approximate their fair values due to their short-term maturities. The fair value of the long-term debt amounted to $8,879,000 as at August 31, 2018. The fair value of derivative and non-derivative financial assets and liabilities measured at fair value by level of hierarchy is as follows: As at August 31, 2018 As at August 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Short-term investments $ 2,282 $ ‒ $ ‒ $ 775 $ ‒ $ ‒ Forward exchange contracts $ ‒ $ 318 $ ‒ $ ‒ $ 2,258 $ ‒ Financial liabilities Forward exchange contracts $ ‒ $ 807 $ ‒ $ ‒ $ ‒ $ ‒ Contingent liability $ ‒ $ ‒ $ ‒ $ ‒ $ ‒ $ 1,092 Valuation techniques used to value financial instruments are as follows: The fair value of the long-term debt is estimated by discounting expected cash flows at rates currently offered to the company for debts of the same remaining maturities and conditions. The fair value of forward exchange contracts is based on the amount at which they could be settled based on estimated current market rates. Market risk Currency risk The functional currency of the company is the Canadian dollar. The company is exposed to currency risk as a result of its export sales of products manufactured in Canada, China, France and Finland, the majority of which are denominated in US dollars and euros. This risk is partially hedged by forward exchange contracts and certain cost of sales and operating expenses (US dollars and euros). In addition, the company is exposed to currency risk as a result of its research and development activities in India (Indian rupees). This risk is partially hedged by forward exchange contracts. Forward exchange contracts, which are designated as cash flow hedging instruments, qualify for hedge accounting. As at August 31, 2017 and 2018, the company held contracts to sell US dollars for Canadian dollars and Indian rupees at various forward rates, which are summarized as follows: US dollars – Canadian dollars Expiry dates Contractual amounts Weighted average contractual forward rates As at August 31, 2017 September 2017 to August 2018 $ 18,300 1.3407 September 2018 to August 2019 10,900 1.3426 Total $ 29,200 1.3414 As at August 31, 2018 September 2018 to August 2019 $ 26,400 1.3029 September 2019 to August 2020 15,700 1.2756 September 2020 to May 2021 3,700 1.2703 Total $ 45,800 1.2909 US dollars – Indian rupees Expiry dates Contractual amounts Weighted average contractual forward rates As at August 31, 2017 September 2017 to August 2018 $ 3,400 69.49 September 2018 to February 2019 1,600 67.26 Total $ 5,000 68.78 As at August 31, 2018 September 2018 to May 2019 $ 4,600 67.68 The carrying amount of forward exchange contracts is equal to fair value, which is based on the amount at which they could be settled based on estimated current market rates. As at August 31, 2018, forward exchange contracts in the amount of $318,000 are presented as current assets in other accounts receivable, forward exchange contracts in the amount of $590,000 are presented as current liabilities in accounts payable and accrued liabilities, and forward exchange contracts in the amount of $217,000 are presented as long-term liabilities in other long-term liabilities in the consolidated balance sheet. Forward exchange contracts of $64,000, included in other accounts receivable, for which related hedged sales are recognized, are recorded in the consolidated statement of earnings. Otherwise, other forward exchange contracts are not yet recorded in the consolidated statement of earnings and are recorded in other comprehensive income. As at August 31, 2017, forward exchange contracts in the amount of $1,697,000 are presented as current assets in other accounts receivable and forward exchange contracts in the amount of $561,000 are presented as long-term assets in other long-term assets in the consolidated balance sheet. Forward exchange contracts of $261,000, included in other accounts receivable, for which related hedged sales are recognized, are recorded in the consolidated statement of earnings. Otherwise, other forward exchange contracts are not yet recorded in the consolidated statement of earnings and are recorded in other comprehensive income. Based on the portfolio of forward exchange contracts as at August 31, 2018, the company estimates that the portion of net unrealized losses on these contracts as of that date, which will be realized and reclassified from accumulated other comprehensive income to net earnings over the next 12 months, amounts to $336,000. For the years ended August 31, 2016, 2017 and 2018, the company recorded within its sales the following foreign exchange gains (losses) on forward exchange contracts: Years ended August 31, 2018 2017 2016 Gains (losses) on forward exchange contracts $ 876 $ (468 ) $ (2,651 ) The following table summarizes significant derivative and non-derivative financial assets and liabilities that are subject to currency risk as at August 31, 2017 and 2018 and for which such risk is charged to earnings: As at August 31, 2018 2017 Carrying/nominal amount (in thousands of US dollars) Carrying/nominal amount (in thousands of euros) Carrying/nominal amount (in thousands of US dollars) Carrying/nominal amount (in thousands of euros) Financial assets Cash $ 2,790 € 3,352 $ 20,120 € 6,235 Accounts receivable 30,306 3,787 28,420 6,164 33,096 7,139 48,540 12,399 Financial liabilities Accounts payable and accrued liabilities 20,214 5,107 12,447 2,725 Forward exchange contracts (nominal value) 5,000 ‒ 3,600 ‒ 25,214 5,107 16,047 2,725 Net exposure $ 7,882 € 2,032 $ 32,493 € 9,674 In addition to these assets and liabilities, the company has derivative financial liabilities for its outstanding forward exchange contracts in the amount (nominal value) of $29,200,000 and $45,800,000 as at August 31, 2017 and 2018 respectively for which the currency risk is charged to other comprehensive income. The value of the Canadian dollar compared to the US dollar was CA$1.2536 = US$1.00 and CA$1.3055 = US$1.00 as at August 31, 2017 and 2018 respectively. The value of the Canadian dollar compared to the euro was CA$1.4825 = €1.00 and CA$1.5210 = €1.00 as at August 31, 2017 and 2018 respectively. The following sensitivity analysis summarizes the effect that a change in the value of the Canadian dollar (compared to the US dollar and euro) on derivative and non-derivative financial assets and liabilities denominated in US dollars and euros would have on net earnings, net earnings per diluted share and comprehensive income, based on the foreign exchange rates as at August 31, 2017 and 2018: · An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would decrease (increase) net earnings by $2,726,000, or $0.05 per diluted share, and $844,000, or $0.02 per diluted share, as at August 31, 2017 and 2018 respectively. · An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the euro would decrease (increase) net earnings by $1,025,000, or $0.02 per diluted share, and $335,000 or $0.01 per diluted share, as at August 31, 2017 and 2018 respectively. · An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would increase (decrease) other comprehensive income by $2,744,000 and $2,956,000 as at August 31, 2017 and 2018 respectively. The impact of the change in the value of the Canadian dollar compared to the US dollar and the euro on these derivative and non-derivative financial assets and liabilities is recorded in the foreign exchange gain or loss line item in the consolidated statements of earnings, except for outstanding forward contracts, and except for those of foreign operations, whose impact is recorded in other comprehensive income. The change in the value of the Canadian dollar compared to the US dollar and the euro also affects the company's balances of income tax recoverable or payable, as well as deferred income tax assets and liabilities denominated in US dollars and euros; this may result in additional and significant foreign exchange gains or losses. However, these tax-related assets and liabilities are not considered financial instruments and are therefore excluded from the sensitivity analysis above. The foreign exchange rate fluctuations also flow through the consolidated statements of earnings line items, as a significant portion of the company's cost of sales and operating expenses are denominated in Canadian dollars, euros, British pounds and Indian rupees, and the company reports its results in US dollars; that effect is not reflected in the sensitivity analysis above. Interest rate risk The company has limited exposure to interest rate risk. The company is mainly exposed to interest rate risks through its cash, short-term investments, bank loan and long-term debt. The company analyses its interest risk exposure on an ongoing basis. A change in interest rate of 1% would have an insignificant impact on net earnings and comprehensive income. Short-term investments Short-term investments consist of the following: As at August 31, 2018 2017 Term deposits denominated in Indian rupees, bearing interest at annual rates of 5.0% to 6.8% in 2018 and 4.3% to 6.9% in 2017, maturing on different dates between October 2018 and August 2019 in 2018 and October 2017 and October 2018 in 2017 $ 1,909 $ 775 Other 373 ‒ $ 2,282 $ 775 Due to their short-term maturity, the company's short-term investments are not subject to a significant fair value interest rate risk. Accordingly, changes in fair value have been nominal to the degree that amortized cost approximates the fair value. Any change in the fair value of the company's short-term investments, all of which are classified as available for sale, is recorded in other comprehensive income. Other financial instruments Short-term other liabilities bear interest at EURIBOR prime rate, plus a margin. Accounts receivable, other assets, accounts payable and accrued liabilities and the contingent liability are non-interest-bearing financial assets and liabilities. Credit risk Financial instruments that potentially subject the company to credit risk consist of cash, short-term investments, accounts receivable, other assets and forward exchange contracts (with a positive fair value). As at August 31, 2018, the company's short-term investments consist of debt instruments issued by high-credit quality corporations. These debt instruments are not expected to be affected by a significant credit risk. The company's cash and forward exchange contracts are held with or issued by high-credit quality financial institutions; therefore, the company considers the risk of non-performance on these instruments to be limited. Generally, the company does not require collateral or other security from customers for trade accounts receivable; however, credit is extended to customers following an evaluation of creditworthiness. In addition, the company performs ongoing credit reviews of all its customers and establishes an allowance for doubtful accounts receivable when accounts are determined to be uncollectible. Allowance for doubtful accounts amounted to $2,960,000 and $772,000 as at August 31, 2017 and 2018 respectively. For the years ended August 31, 2016 and 2018, no customer represented more than 10% of sales. For the year ended August 31, 2017, the company's top customer represented 10.1% of sales. The following table summarizes the age of trade accounts receivable: As at August 31, 2018 2017 Current $ 34,344 $ 35,100 Past due, 0 to 30 days 6,011 3,049 Past due, 31 to 60 days 2,556 1,289 Past due, more than 60 days, net of allowance for doubtful accounts of $2,960 and $772 as at August 31, 2017 and 2018, respectively 4,362 1,692 $ 47,273 $ 41,130 Changes in the allowance for doubtful accounts are as follows: Years ended August 31, 2018 2017 Balance – Beginning of year $ 2,960 $ 3,752 Addition charged to earnings 834 654 Writeoff of uncollectible accounts (3,022 ) (1,446 ) Balance – End of year $ 772 $ 2,960 Liquidity risk Liquidity risk is defined as the potential that the company cannot meet its obligations as they become due. The following tables summarize the contractual maturity of the company's derivative and non-derivative financial liabilities: As at August 31, 2018 No later than one year Later than 1 year and no later than 5 years Later than 5 years Bank loan $ 10,692 $ ‒ $ ‒ Accounts payable and accrued liabilities 47,308 ‒ ‒ Forward exchange contracts Outflow 31,000 19,400 ‒ Inflow (30,738 ) (18,940 ) ‒ Long-term debt 2,921 5,745 162 Other liabilities 3,197 ‒ ‒ Total $ 64,380 $ 6,205 $ 162 As at August 31, 2017 No later than one year Later than 1 year and no later than 5 years Accounts payable and accrued liabilities $ 36,776 $ ‒ Contingent liability 1,092 ‒ Forward exchange contracts Outflow 21,700 12,500 Inflow (23,265 ) (13,357 ) Total $ 36,303 $ (857 ) As at August 31, 2018, the company had $15,040,000 in cash and short-term investments and $51,410,000 in accounts receivable. In addition to these financial assets, the company has unused available lines of credit totaling $52,695,000 for working capital and other general corporate purposes, including potential acquisitions as well as unused lines of credit totaling $25,053,000 for foreign currency exposure related to its forward exchange contracts (note 10). |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2018 | |
Inventories [Abstract] | |
Inventories | 7 Inventories As at August 31, 2018 2017 Raw materials $ 24,561 $ 18,899 Work in progress 869 886 Finished goods 13,159 14,047 $ 38,589 $ 33,832 The cost of sales comprised almost exclusively the amount of inventory recognized as an expense during the reporting years, and amounts to $89,058,000, $98,503,000 and $116,293,000 for the years ended August 31, 2016, 2017 and 2018 respectively, including related depreciation and amortization, which are shown separately in operating expenses (note 18). Inventory writedown amounted to $3,678,000, $3,259,000 and $2,541,000 for the years ended August 31, 2016, 2017 and 2018 respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8 Property, Plant and Equipment Land and land improvements Buildings Equipment Leasehold improvements Total Cost as at September 1, 2016 $ 4,322 $ 29,755 $ 30,717 $ 2,918 $ 67,712 Additions ‒ 794 5,562 319 6,675 Business combinations (note 3) ‒ ‒ 130 ‒ 130 Disposals ‒ ‒ (2,568 ) (339 ) (2,907 ) Foreign currency translation adjustment 200 1,402 1,733 150 3,485 Cost as at August 31, 2017 4,522 31,951 35,574 3,048 75,095 Additions 17 3,048 5,677 46 8,788 Business combinations (note 3) ‒ ‒ 3,105 263 3,368 Disposals ‒ (1,413 ) (3,651 ) (175 ) (5,239 ) Foreign currency translation adjustment (180 ) (1,240 ) (1,617 ) (134 ) (3,171 ) Cost as at August 31, 2018 $ 4,359 $ 32,346 $ 39,088 $ 3,048 $ 78,841 Accumulated depreciation as at September 1, 2016 $ 1,192 $ 6,602 $ 22,902 $ 1,038 $ 31,734 Depreciation for the year 45 403 3,162 292 3,902 Disposals ‒ ‒ (2,210 ) (339 ) (2,549 ) Foreign currency translation adjustment 58 328 1,353 137 1,876 Accumulated depreciation as at August 31, 2017 1,295 7,333 25,207 1,128 34,963 Depreciation for the year 48 604 4,420 372 5,444 Disposals ‒ (994 ) (3,440 ) (30 ) (4,464 ) Foreign currency translation adjustment (53 ) (282 ) (1,024 ) (53 ) (1,412 ) Accumulated depreciation as at August 31, 2018 $ 1,290 $ 6,661 $ 25,163 $ 1,417 $ 34,531 Net carrying value as at: August 31, 2017 $ 3,227 $ 24,618 $ 10,367 $ 1,920 $ 40,132 August 31, 2018 $ 3,069 $ 25,685 $ 13,925 $ 1,631 $ 44,310 As at August 31, 2017 and 2018, unpaid additions to property, plant and equipment amounted to $522,000 and $1,788,000 respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Aug. 31, 2018 | |
Intangible Assets and Goodwill [Abstract] | |
Intangible Assets and Goodwill | 9 Intangible Assets and Goodwill Intangible assets Core technology Customer relationships In-process research and development Brand name Software Total Cost as at September 1, 2016 $ 4,302 $ ‒ $ ‒ $ ‒ $ 10,843 $ 15,145 Additions ‒ ‒ ‒ ‒ 912 912 Business combinations (note 3) 7,932 1,607 ‒ ‒ ‒ 9,539 Disposals (76 ) ‒ ‒ ‒ (407 ) (483 ) Foreign currency translation adjustment 735 82 ‒ ‒ 553 1,370 Cost as at August 31, 2017 12,893 1,689 ‒ ‒ 11,901 26,483 Additions 89 ‒ ‒ ‒ 3,049 3,138 Business combinations (note 3) 16,555 9,192 305 846 630 27,528 Disposal (60 ) ‒ ‒ ‒ (2,474 ) (2,534 ) Foreign currency translation adjustment (1,419 ) (590 ) (13 ) (50 ) (446 ) (2,518 ) Cost as at August 31, 2018 $ 28,058 $ 10,291 $ 292 $ 796 $ 12,660 $ 52,097 Accumulated amortization as at September 1, 2016 $ 2,307 $ ‒ $ ‒ $ ‒ $ 9,447 $ 11,754 Amortization for the year 2,617 167 ‒ ‒ 505 3,289 Disposals (54 ) ‒ ‒ ‒ (398 ) (452 ) Foreign currency translation adjustment 260 2 ‒ ‒ 447 709 Accumulated amortization as at August 31, 2017 5,130 169 ‒ ‒ 10,001 15,300 Amortization for the year 4,878 3,949 ‒ 519 981 10,327 Disposal (45 ) ‒ ‒ ‒ (2,462 ) (2,507 ) Foreign currency translation adjustment (353 ) (185 ) ‒ (7 ) (344 ) (889 ) Accumulated amortization as at August 31, 2018 $ 9,610 $ 3,933 $ ‒ $ 512 $ 8,176 $ 22,231 Net carrying value as at: August 31, 2017 $ 7,763 $ 1,520 $ ‒ $ ‒ $ 1,900 $ 11,183 August 31, 2018 $ 18,448 $ 6,358 $ 292 $ 284 $ 4,484 $ 29,866 Remaining amortization period as at August 31, 2018 5 years 2 years ‒ ‒ 3 years Goodwill Years ended August 31, 2018 2017 Balance – Beginning of year $ 35,077 $ 21,928 Business combinations (note 3) 5,931 11,470 Foreign currency translation adjustment (1,116 ) 1,679 Balance – End of year $ 39,892 $ 35,077 In the fourth quarter of fiscal 2017 and 2018, the company performed its annual goodwill impairment test for all CGUs. Goodwill has been allocated to the lowest level within the company at which it is monitored by management to make business decisions, which are the following CGUs: As at August 31, 2018 2017 EXFO CGU $ 13,185 $ 13,772 Brix CGU 13,327 13,878 Ontology CGU (note 3) 7,471 7,427 Yenista CGU (note 3) 3,562 ‒ Astellia CGU (note 3) 2,347 ‒ Total $ 39,892 $ 35,077 In performing the goodwill impairment review of its CGUs, the company determined the recoverable amount of goodwill based on fair value less costs of disposal. In estimating the recoverable amount of its CGUs, the company used a market approach, which is based on sales multiples within the range of 1.7 to 3.4 times sales, for comparable businesses with similar operations within the same industry over the past year. The company applied judgment in making certain adjustments for factors such as size, risk profile or profitability of the comparable businesses, when compared to the company's CGU. In addition, for the Brix CGU, the company also used a liquidation approach based on the level of research and development expenses incurred over the last three years. As at August 31, 2018, the recoverable amount for all CGUs exceeded their carrying value. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Aug. 31, 2018 | |
Credit Facilities [Abstract] | |
Credit Facilities | 10 Credit Facilities On October 25, 2017, the company modified certain credit facilities whereby existing lines of credit that provided advances up to CA$4,800,000 (US$3,677,000) and up to US$6,000,000 for operating purposes were cancelled and replaced with a credit facility of CA$28,929,000 (US$22,159,000) mainly for the acquisition of the remaining shares of Astellia under the public tender offer (note 3). In addition, on December 21, 2017, the company cancelled and replaced this renewed credit facility (that provided advances up to CA$28,929,000 (US$22,159,000)), with new revolving credit facilities of up to CA$70,000,000 (US$53,620,000) and US$9,000,000. These modified credit facilities were used to finance a portion of the acquisition of Astellia's remaining shares and are used to finance working capital and for other general corporate purposes. The Canadian dollar revolving credit facility bears interest at the Canadian prime rate or LIBOR, plus a margin, and the US dollar revolving credit facility bears interest at the US prime rate or LIBOR plus a margin. These revolving credit facilities are secured by a movable mortgage over the universality of the company's Canadian movable assets, present and future, as well as over the universality of movable assets, present and future, of certain US and UK subsidiaries. The company is subject to covenants under this credit facility that were met as at August 31, 2018. As at August 31, 2018, an amount of $11,750,000 was drawn from these credit facilities for the bank loan of $10,692,000 and letters of guarantee of $1,058,000. The company also has credit facilities of up to €2,150,000 (US$2,505,000) for which an amount of €583,000 (US$680,000) was drawn from these lines of credit for letters of guarantee. These credit facilities are unsecured and bear interest at the EURIBOR prime rate, plus a margin. In addition, the company has lines of credit totaling $26,782,000 for the foreign currency risk exposure related to its US dollar – Canadian dollar forward exchange contracts (note 6). As at August 31, 2018, an amount of $3,150,000 was reserved from these lines of credit. Finally, the company has a line of credit of INR 127,660,000 (US$1,800,000) for the foreign currency risk exposure related to its US dollar – Indian rupee forward exchange contracts (note 6). As at August 31, 2018, an amount of INR 26,879,000 (US$379,000) was reserved from this line of credit. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities and Provisions | 12 Months Ended |
Aug. 31, 2018 | |
Accounts Payable and Accrued Liabilities and Provisions [Abstract] | |
Accounts Payable and Accrued Liabilities and Provisions | 11 Accounts Payable and Accrued Liabilities and Provisions Accounts payable and accrued liabilities As at August 31, 2018 2017 Trade $ 26,052 $ 19,002 Salaries and social benefits 18,101 15,176 Forward exchange contracts (note 6) 590 ‒ Other 3,155 2,598 $ 47,898 $ 36,776 Provisions As at August 31, 2018 2017 Warranty $ 417 $ 320 Contingent liability (note 3) ‒ 1,092 Restructuring charges (note 4) 3,167 2,477 Other 1,717 ‒ $ 5,301 $ 3,889 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Aug. 31, 2018 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 12 Long-Term Debt As part of the acquisitions of EXFO Optics and Astellia, the company assumed long-term debt (note 3). As at August 31, 2018 2017 Unsecured, non-interest-bearing loans, denominated in euros, repayable in quarterly instalments, maturing in March 2024 and March 2025 $ 883 $ ‒ Unsecured loans, denominated in euros, repayable in monthly, quarterly or bi-annual instalments, bearing interest at annual rates of nil to 5.0%, maturing at different dates between December 2018 and September 2023 4,853 ‒ Loans, secured by the universality of the assets of a subsidiary, denominated in euros, repayable in monthly instalments, bearing interest at annual rates of 0.7% to 2.0%, maturing at different dates between December 2018 and August 2022 828 ‒ Loans, secured by the universality of the assets of a subsidiary, denominated in euros, repayable in monthly or quarterly instalments, bearing interest at annual rates of 1.1% to 2.9%, maturing at different dates between March 2020 and July 2022 2,264 ‒ 8,828 ‒ Current portion of long-term debt 2,921 ‒ $ 5,907 $ ‒ The company is subject to certain covenants under its long-term debt that were met as at August 31, 2018. Principal repayments of long-term debt over the forthcoming years are as follows as at August 31, 2018: No later than one year $ 2,921 Later than one year and no later than five years 5,745 Later than five years 162 $ 8,828 |
Commitments
Commitments | 12 Months Ended |
Aug. 31, 2018 | |
Commitments [Abstract] | |
Commitments | 13 Commitments The company entered into operating leases for certain of its premises and equipment, which expire at various dates through 2024. Minimum rentals payable under operating leases are as follows: As at August 31, 2018 2017 No later than 1 year $ 3,365 $ 2,176 Later than 1 year and no later than 5 years 9,519 6,238 Later than 5 years 502 1,681 $ 13,386 $ 10,095 For the years ended August 31, 2016, 2017 and 2018, rental expenses under operating leases amounted to $2,728,000, $ ,000 and $3,884,000 respectively. The company also entered into license agreements for certain intellectual property which expire at various dates through 2022: As at August 31, 2018 2017 No later than 1 year $ 1,492 $ 1,264 Later than 1 year and no later than 5 years 1,982 1,450 $ 3,474 $ 2,714 |
Share Capital
Share Capital | 12 Months Ended |
Aug. 31, 2018 | |
Share Capital [Abstract] | |
Share Capital | 14 Share Capital Authorized – unlimited as to number, without par value Subordinate voting and participating, bearing a non-cumulative dividend to be determined by the Board of Directors, ranking pari passu Multiple voting and participating, entitling to 10 votes each, bearing a non-cumulative dividend to be determined by the Board of Directors, convertible at the holder's option into subordinate voting shares on a one-for-one basis, ranking pari passu The following table summarizes the share capital activity: Multiple Voting Shares Subordinate Voting Shares Number Amount Number Amount Total amount Balance as at September 1, 2015 31,643,000 $ 1 22,092,034 $ 86,044 $ 86,045 Redemption of restricted share units (note 16) – – 277,805 – – Redemption of deferred share units (note 16) – – 653 – – Redemption of share capital – – (452,550 ) (1,768 ) (1,768 ) Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,239 1,239 Balance as at August 31, 2016 31,643,000 1 21,917,942 85,515 85,516 Issuance of share capital (note 3) – – 793,070 3,490 3,490 Redemption of restricted share units (note 16) – – 327,859 – – Redemption of deferred share units (note 16) – – 29,906 – – Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,405 1,405 Balance as at August 31, 2017 31,643,000 1 23,068,777 90,410 90,411 Redemption of restricted share units (note 16) – – 345,883 – – Redemption of deferred share units (note 16) – – 58,335 – – Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,526 1,526 Balance as at August 31, 2018 31,643,000 $ 1 23,472,995 $ 91,936 $ 91,937 a) On March 29, 2016, the company announced that its Board of Directors had approved the renewal of its share repurchase program, by way of a normal course issuer bid on the open market of up to 6.6% of the issued and outstanding subordinate voting shares, representing 900,000 subordinate voting shares at the prevailing market price. The normal course issuer bid started on April 1, 2016 and ended on March 31, 2017. All share repurchased under that bid were cancelled. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Aug. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 15 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss are as follows: Foreign currency translation adjustment Cash-flow hedge Accumulated other comprehensive loss Balance as at September 1, 2015 $ (49,843 ) $ (2,162 ) $ (52,005 ) Foreign currency translation adjustment 707 ‒ 707 Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes ‒ 2,724 2,724 Balance as at August 31, 2016 (49,136 ) 562 (48,574 ) Foreign currency translation adjustment 8,262 ‒ 8,262 Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes ‒ 1,347 1,347 Balance as at August 31, 2017 (40,874 ) 1,909 (38,965 ) Foreign currency translation adjustment (6,491 ) ‒ (6,491 ) Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes ‒ (1,894 ) (1,894 ) Balance as at August 31, 2018 $ (47,365 ) $ 15 $ (47,350 ) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Aug. 31, 2018 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 16 Stock-Based Compensation Plans The following table summarizes the stock-based compensation costs recognized for employee services received during the years ended August 31, 2016, 2017 and 2018: Years ended August 31, 2018 2017 2016 Stock-based compensation costs arising from equity-settled awards $ 1,770 $ 1,439 $ 1,394 Stock-based compensation costs arising from cash-settled awards (22 ) 38 (16 ) $ 1,748 $ 1,477 $ 1,378 The maximum number of additional subordinate voting shares issuable under the Long-Term Incentive Plan and the Deferred Share Unit Plan cannot exceed 11,792,893 shares. The maximum number of subordinate voting shares that may be granted to any individual on an annual basis cannot exceed 5% of the number of outstanding subordinate voting shares. The company settles equity-settled awards through the issuance of common shares from treasury. Long-Term Incentive Plan The company established the Long-Term Incentive Plan for its directors, executive officers and employees and those of its subsidiaries, as determined by the Board of Directors. The plan, which includes stock options and restricted share units, was approved by the shareholders of the company. Stock Options The exercise price of stock options granted under the Long-Term Incentive Plan is the market price of the common shares on the date of grant. Stock options granted under the plan expire 10 years from the date of grant and generally vest over a four-year period, being the required period of service from employees, generally with 25% vesting on an annual basis commencing on the first anniversary of the date of grant. As at August 31, 2017 and 2018, the company had no outstanding or exercisable stock options. Restricted Share Units (RSUs) RSUs are stock awards that rise and fall in value based on the market price of the company's subordinate voting shares and are redeemable for actual subordinate voting shares. Vesting dates are also established by the Board of Directors on the date of grant. The vesting dates are subject to a minimum term of three years and a maximum term of 10 years from the award date, being the required period of service from employees. Fair value of RSUs equals the market price of the common shares on the date of grant. The following table summarizes RSU activity for the years ended August 31, 2016, 2017 and 2018: Years ended August 31, 2018 2017 2016 Outstanding – Beginning of year 1,611,330 1,551,555 1,299,958 Granted 420,621 527,143 572,008 Redeemed (345,883 ) (327,859 ) (277,805 ) Forfeited (70,916 ) (139,509 ) (42,606 ) Outstanding – End of year 1,615,152 1,611,330 1,551,555 None of the RSUs outstanding as at August 31, 2017 and 2018 were redeemable. The weighted average grant-date fair value of RSUs granted during the years ended August 31, 2016, 2017 and 2018 amounted to $3.23, $4.54 and $4.22 respectively. The weighted-average market price of the shares at the date of redemption of RSUs redeemed during the years ended August 31, 2016, 2017 and 2018, was $3.03, $4.55 and $4.19 respectively. Deferred Share Unit Plan The company established a Deferred Share Unit (DSU) Plan for the members of the Board of Directors as part of their annual retainer fees. Each DSU entitles the Board members to receive one subordinate voting share. DSUs are acquired on the date of grant and are redeemed in subordinate voting shares when the Board member ceases to be a Director of the company. This plan was approved by the shareholders of the company. The following table summarizes DSU activity for the years ended August 31, 2016, 2017 and 2018: Years ended August 31, 2018 2017 2016 Outstanding – Beginning of year 174,279 159,127 114,810 Granted 65,745 45,058 44,970 Redeemed (58,335 ) (29,906 ) (653 ) Outstanding – End of year 181,689 174,279 159,127 As at August 31, 2016, 2017 and 2018, none of the DSUs outstanding were redeemable. The weighted average grant-date fair value of DSUs granted during the years ended August 31, 2016, 2017 and 2018, amounted to $3.33, $4.53 and $4.10 respectively. The weighted-average market price of the shares at the date of redemption of DSUs redeemed during the years ended August 31, 2016, 2017 and 2018, was $3.04, $5.02 and $4.29 respectively. Stock Appreciation Rights Plan The company established the Stock Appreciation Rights Plan for certain employees. Under that plan, eligible employees are entitled to receive a cash amount equivalent to the difference between the market price of the common shares on the date of exercise and the exercise price determined on the date of grant. Stock appreciation rights granted under the plan expire 10 years from the date of grant and generally vest over a four-year period, being the required period of service from employees. This plan was approved by the shareholders of the company. The liability arising from stock appreciation rights as at August 31, 2017 and 2018 amounted to $115,000 and $93,000 respectively and is recorded in accounts payable and accrued liabilities in the consolidated balance sheets. Stock appreciation rights are immaterial to the company's consolidated financial statements. |
Related-Party Disclosures
Related-Party Disclosures | 12 Months Ended |
Aug. 31, 2018 | |
Related-Party Disclosures [Abstract] | |
Related-Party Disclosures | 17 Related-Party Disclosures Ultimate controlling shareholder Mr. Germain Lamonde, the company's Executive Chairman, is the company's ultimate controlling shareholder. Compensation of key management personnel Years ended August 31, 2018 2017 2016 Salaries and short-term employee benefits $ 3,985 $ 3,715 $ 3,701 Stock-based compensation costs 1,047 775 826 $ 5,032 $ 4,490 $ 4,527 Key management personnel includes senior management and directors. |
Statements of Earnings
Statements of Earnings | 12 Months Ended |
Aug. 31, 2018 | |
Statements of Earnings [Abstract] | |
Statements of Earnings | 18 Statements of Earnings Net research and development Net research and development expenses comprise the following: Years ended August 31, 2018 2017 2016 Gross research and development expenses $ 65,243 $ 53,124 $ 47,875 Research and development tax credits and grants (8,089 ) (5,956 ) (5,188 ) Net research and development expenses for the year $ 57,154 $ 47,168 $ 42,687 Depreciation and amortization Depreciation and amortization expenses by functional area are as follows: Years ended August 31, 2018 2017 2016 Cost of sales Depreciation of property, plant and equipment $ 2,077 $ 1,522 $ 1,290 Amortization of intangible assets 9,212 2,652 702 11,289 4,174 1,992 Selling and administrative expenses Depreciation of property, plant and equipment 902 530 501 Amortization of intangible assets 592 251 75 1,494 781 576 Net research and development expenses Depreciation of property, plant and equipment 2,465 1,850 2,023 Amortization of intangible assets 523 386 395 2,988 2,236 2,418 $ 15,771 $ 7,191 $ 4,986 Depreciation of property, plant and equipment $ 5,444 $ 3,902 $ 3,814 Amortization of intangible assets 10,327 3,289 1,172 Total depreciation and amortization expenses for the year $ 15,771 $ 7,191 $ 4,986 Employee compensation Employee compensation comprises the following: Years ended August 31, 2018 2017 2016 Salaries and benefits $ 134,453 $ 115,832 $ 112,569 Restructuring charges 2,072 3,509 ‒ Stock-based compensation costs 1,748 1,414 1,378 Total employee compensation for the year $ 138,273 $ 120,755 $ 113,947 Restructuring charges by functional area are as follows: Years ended August 31, 2018 2017 2016 Cost of sales $ 517 $ 1,697 $ ‒ Selling and administrative expenses 673 1,150 ‒ Net research and development costs 3,219 2,232 ‒ Interest and other expense 150 ‒ ‒ Income taxes (1,150 ) ‒ ‒ Total restructuring charges for the year $ 3,409 $ 5,079 $ ‒ Stock-based compensation costs by functional area are as follows: Years ended August 31, 2018 2017 2016 Cost of sales $ 143 $ 121 $ 107 Selling and administrative expenses 1,217 1,052 972 Net research and development expenses 388 304 299 Total stock-based compensation costs for the year $ 1,748 $ 1,477 $ 1,378 |
Other Disclosures
Other Disclosures | 12 Months Ended |
Aug. 31, 2018 | |
Other Disclosures [Abstract] | |
Other Disclosures | 19 Other Disclosures Defined contribution pension plans The company maintains separate defined contribution pension plans for certain eligible employees. These plans, which are accounted for on an accrual basis, are summarized as follows: · Canadian defined contribution pension plan The company maintains a plan for certain eligible employees residing in Canada, under which the company may elect to match the employees' contributions up to a maximum of 4% of an employee's gross salary. Cash contributions to this plan and expenses for the years ended August 31, 2016, 2017 and 2018, amounted to $1,374,000, $1,571,000 and $1,610,000 respectively. · US defined contribution pension plan (401K plan) The company maintains a 401K plan for eligible employees residing in the U.S. Under this plan, the company must contribute an amount equal to 3% of an employee's current compensation. In addition, eligible employees may contribute up to the lesser of 1% of eligible compensation or the statutorily prescribed annual limit to the 401K plan. The 401K plan permits but does not require the company to make additional matching contributions to the 401K plan on behalf of the eligible participants, subject to a maximum of 50% of the first 6% of the participant's current compensation subject to certain legislated maximum contribution limits. During the years ended August 31, 2016, 2017 and 2018, the company recorded cash contributions and expenses totaling $622,000, $630,000 and $591,000 respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 20 Income Taxes The reconciliation of the income tax provision (recovery) calculated using the combined Canadian federal and provincial statutory income tax rate with the income tax provision in the financial statements is as follows: Years ended August 31, 2018 2017 2016 Income tax provision (recovery) at combined Canadian federal and provincial statutory tax rate ( 27 $ (1,775 ) $ 2,014 $ 4,499 Increase (decrease) due to: Foreign income/loss taxed at different rates 452 (900 ) (1,025 ) Non-deductible loss (non-taxable income) (69 ) (245 ) 5 Non-deductible expenses 1,285 981 411 Change in tax rates 167 (10 ) ‒ Effect of the US tax reform 1,528 ‒ ‒ Foreign exchange effect of translation of foreign subsidiaries in the functional currency (16 ) 176 566 Recognition of previously unrecognized deferred income tax assets (560 ) ‒ ‒ Utilization of previously unrecognized deferred income tax assets (627 ) (46 ) ‒ Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses 6,100 4,659 3,702 Other (807 ) (21 ) (394 ) Income tax provision for the year $ 5,678 $ 6,608 $ 7,764 Years ended August 31, 2018 2017 2016 The income tax provision consists of the following: Current Current income taxes $ 4,310 $ 5,554 $ 6,186 Deferred Deferred income taxes relating to the origination and reversal of temporary differences (3,545 ) (3,559 ) (2,124 ) Benefit arising from previously unrecognized tax losses and deductible temporary differences (560 ) ‒ ‒ Utilization of previously unrecognized deferred income tax assets (627 ) (46 ) ‒ (4,732 ) (3,605 ) (2,124 ) Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses 6,100 4,659 3,702 1,368 1,054 1,578 Income tax provision for the year $ 5,678 $ 6,608 $ 7,764 On December 22, 2017, the US tax reform ("Tax Cuts and Jobs Act") was substantively enacted and reduces the maximum corporate income tax rate from 35% to 21%, effective January 1, 2018. Based on management's estimate of deferred tax assets expected to be used in fiscal 2018 and beyond against taxable income in the United States, the company recorded a deferred income tax expense of $1,528,000 in the consolidated statement of earnings for the twelve months ended August 31, 2018 to account for the effect of this new substantively enacted tax rate. The changes in deferred income tax assets and liabilities for the year ended August 31, 2017 are as follows: Balance as at September 1, 2016 Credited (charged) to the statement of earnings Credited (charged) to shareholders' equity Business combinations Foreign currency translation adjustment Balance as at August 31, 2017 Deferred income tax assets Long-lived assets $ 2,255 $ (240 ) $ ‒ $ (279 ) $ 66 $ 1,802 Provisions and accruals 4,246 (89 ) (479 ) ‒ 94 3,772 Deferred revenue 2,330 486 ‒ ‒ 74 2,890 Research and development expenses 2,361 248 ‒ ‒ 122 2,731 Losses carried forward 4,598 (1,470 ) ‒ 1,059 54 4,241 Deferred income tax liabilities Long-lived assets ‒ 111 ‒ (1,059 ) (54 ) (1,002 ) Research and development tax credits (10,407 ) (100 ) ‒ ‒ (488 ) (10,995 ) Total $ 5,383 $ (1,054 ) $ (479 ) $ (279 ) $ (132 ) $ 3,439 Classified as follows: Deferred income tax assets $ 8,240 $ 6,555 Deferred income tax liabilities (2,857 ) (3,116 ) $ 5,383 $ 3,439 The changes in deferred income tax assets and liabilities for the year ended August 31, 2018 are as follows: Balance as at September 1, 2017 Credited (charged) to the statement of earnings Credited (charged) to shareholders' equity Business combinations Foreign currency translation adjustment Balance as at August 31, 2018 Deferred income tax assets Long-lived assets $ 1,802 $ 200 $ ‒ $ ‒ $ (77 ) $ 1,925 Provisions and accruals 3,772 (250 ) 554 ‒ (113 ) 3,963 Deferred revenue 2,890 (101 ) ‒ ‒ (73 ) 2,716 Research and development expenses 2,731 (101 ) ‒ ‒ (106 ) 2,524 Losses carried forward 4,241 (2,633 ) ‒ 3,687 (222 ) 5,073 Deferred income tax liabilities Long-lived assets (1,002 ) 1,903 ‒ (7,889 ) 527 (6,461 ) Research and development tax credits (10,995 ) (386 ) ‒ ‒ 445 (10,936 ) Total $ 3,439 $ (1,368 ) $ 554 $ (4,202 ) $ 381 $ (1,196 ) Classified as follows: Deferred income tax assets $ 6,555 $ 4,714 Deferred income tax liabilities (3,116 ) (5,910 ) $ 3,439 $ (1,196 ) Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses are as follows: As at August 31, 2018 2017 Temporary deductible differences $ 1,435 $ 2,271 Losses carried forward 42,361 43,670 $ 43,796 $ 45,941 As at August 31, 2018, the year of expiry of operating losses for which no deferred income tax assets were recognized in the consolidated balance sheet are as follows, presented by tax jurisdiction: Year of expiry Finland France Spain United States United Kingdom 2019 $ ‒ $ ‒ $ ‒ $ 3,470 $ ‒ 2020 5,115 ‒ ‒ 7,991 ‒ 2021 6,699 ‒ ‒ 2,211 ‒ 2022 11,614 ‒ ‒ 7,435 ‒ 2023 7,524 ‒ ‒ 1,972 ‒ 2024 5,808 ‒ ‒ 1,351 ‒ 2025 7,241 ‒ ‒ 1,351 ‒ 2026 248 ‒ ‒ 1,351 ‒ 2027 1,504 ‒ ‒ 1,351 ‒ 2028 ‒ ‒ ‒ 2,447 ‒ 2030 ‒ ‒ ‒ 2,713 ‒ 2031 ‒ ‒ ‒ 109 ‒ 2033 ‒ ‒ ‒ 4,681 ‒ 2034 ‒ ‒ ‒ 4,851 ‒ 2035 ‒ ‒ ‒ 2,616 ‒ 2036 ‒ ‒ ‒ 8,501 ‒ 2037 ‒ ‒ ‒ 9,660 ‒ 2038 ‒ ‒ ‒ 7,022 ‒ Indefinite ‒ 17,678 6,042 ‒ 7,167 $ 45,753 $ 17,678 $ 6,042 $ 71,083 $ 7,167 Furthermore, as at August 31, 2018, the company had available capital losses in Canada amounting to $48,852,000 (CA$66,788,000) at the federal level and $54,320,000 (CA$70,915,000) at the provincial level for which no deferred income tax assets were recognized. These losses can be carried forward indefinitely against capital gains. As at August 31, 2018, non-refundable research and development tax credits recognized in the consolidated balance sheet amounted to $ ,000. In order to recover these non-refundable research and development tax credits, the company needs to generate approximately $ ,000,000 (CA$ ,000,000) in pre-tax earnings at the Canadian federal level. In order to generate $ ,000,000 in pre-tax earnings at the Canadian Federal level over the estimated recovery period of years, the company must generate a 2 As at August 31, 2018, no income taxes were recognized on taxable temporary differences of $21,063, 000; such (1) Undistributed profits of its foreign subsidiaries will not be distributed in the foreseeable future; and (2) Undistributed profits of its domestic subsidiaries will not be taxable when distributed. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Aug. 31, 2018 | |
Earnings per Share [Abstract] | |
Earnings per Share | 21 Earnings per Share The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding: Years ended August 31, 2018 2017 2016 Basic weighted average number of shares outstanding (000's) 54,998 54,423 53,863 Plus dilutive effect of (000's): Restricted share units ‒ 979 675 Deferred share units ‒ 153 131 Diluted weighted average number of shares outstanding (000's) 54,998 55,555 54,669 Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares, or their inclusion would be antidilutive (000's) 1,799 ‒ 75 For the year ended August 31, 2018, the diluted amount per share was the same amount as the basic amount per share since the dilutive effect of restricted share units and deferred share units was not included in the calculation; otherwise, the effect would have been antidilutive. Accordingly, the diluted amount per share for this period was calculated using the basic weighted average number of shares outstanding. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2018 | |
Segment Information [Abstract] | |
Segment Information | 22 Segment Information Sales for products and services are detailed as follows: Years ended August 31, 2018 2017 2016 Products $ 227,316 $ 213,653 $ 205,371 Services 42,230 29,648 27,212 $ 269,546 $ 243,301 $ 232,583 Sales to external customers by geographic region are detailed as follows: Years ended August 31, 2018 2017 2016 United States $ 100,225 $ 97,186 $ 95,388 Canada 18,425 22,586 18,027 Other 16,743 14,951 14,129 Americas 135,393 134,723 127,544 United Kingdom 17,508 11,799 11,032 Other 67,169 50,302 46,140 Europe, Middle-East and Africa 84,677 62,101 57,172 China 20,724 22,312 25,281 Other 28,752 24,165 22,586 Asia-Pacific 49,476 46,477 47,867 $ 269,546 $ 243,301 $ 232,583 Sales were allocated to geographic regions based on the country of residence of the related customers. Long-lived assets by geographic region are detailed as follows: As at August 31, 2018 As at August 31, 2017 Property, plant and equipment Intangible assets Goodwill Property, plant and equipment Intangible assets Goodwill Canada $ 32,107 $ 5,668 $ 4,481 $ 29,417 $ 4,643 $ 3,890 United States 1,677 435 13,327 2,031 1,072 14,696 Finland 473 380 8,704 441 316 9,064 France 2,401 19,330 5,909 12 – – United Kingdom 755 4,005 7,471 915 5,093 7,427 India 4,021 28 – 4,000 27 – China 2,822 20 – 3,227 32 – Other 54 – – 89 – – $ 44,310 $ 29,866 $ 39,892 $ 40,132 $ 11,183 $ 35,077 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Aug. 31, 2018 | |
Subsequent Event [Abstract] | |
Subsequent Event | 23 Subsequent Event On September 9, 2018, as part of its fiscal 2018 restructuring plan and the shutdown of its facilities in Toronto, Canada, the company entered into a binding agreement to sell one of its buildings for net proceeds of $3,329,000. The transfer of ownership is expected to occur in the second quarter of fiscal 2019 , |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Aug. 31, 2018 | |
Basis of Presentation [Abstract] | |
Basis of measurement | Basis of measurement These consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of derivative financial instruments, available-for-sale investments and the contingent liability. |
Consolidation | Consolidation These consolidated financial statements include the accounts of the company and its domestic and foreign subsidiaries. Intercompany accounts and transactions have been eliminated. |
Revenue recognition | Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sales of goods and services in the ordinary course of business. Sales of goods Revenue from sales of goods, which represent the majority of the sales of the company, is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually upon delivery of the goods. Revenue is recorded based on the price specified in the sales arrangements. Maintenance contracts Maintenance contracts are usually offered to customers for periods of 12 to 36 months. They generally include the right to unspecified software upgrades and enhancements on a when-and-if-available basis as well as customer service. Revenue from these contracts is recognized ratably over the terms of the maintenance contracts on a straight-line basis. Extended warranties Extended warranties are usually offered to customers for periods of 6 to 48 months. Revenue from these extended warranties is recognized ratably over the warranty period on a straight-line basis. Multiple-component arrangements When a sales arrangement includes multiple separately identifiable components such as goods, professional services, extended warranties, maintenance contracts, installation and training, the revenue recognition criteria are applied to each separately identifiable component. A component is considered separately identifiable if the delivered item has value to the customer on a stand-alone basis and the fair value associated with the component can be measured reliably. The company allocates the selling price of a multiple-component arrangement to each component based on the fair value of each component in relation to the fair value of the arrangement as a whole. Sales arrangements may include acceptance clauses. When a sales arrangement does include an acceptance provision, acceptance occurs upon the earliest of receipt of a written customer acceptance or expiration of the acceptance period. For these sales arrangements, the sale is recognized when acceptance occurs. |
Presentation currency | Presentation currency The functional currency of the company is the Canadian dollar. The company has adopted the US dollar as its presentation currency as it is the most commonly used reporting currency in its industry. The consolidated financial statements are translated into the presentation currency as follows: assets and liabilities are translated at the exchange rate in effect on the date of the balance sheet; revenues and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive income in shareholders' equity. |
Foreign currency translation | Foreign currency translation (a) Foreign currency transactions Transactions denominated in currencies other than the functional currency are translated into the relevant functional currency as follows: Monetary assets and liabilities are translated at the exchange rate in effect on the date of the balance sheet, and revenues and expenses are translated at the exchange rate in effect on the date of the transaction. Non-monetary assets and liabilities measured at historical cost and denominated in a foreign currency are translated using the exchange rate at the date of the transaction, whereas non-monetary items that are measured at fair value and denominated in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Foreign exchange gains and losses arising from such translation are included in the consolidated statements of earnings. (b) Foreign operations Each foreign operation determines its own functional currency and items included in the financial statements of each foreign operation are measured using that functional currency. The financial statements of each foreign operation that has a functional currency different from the company are translated into Canadian dollars as follows: assets and liabilities are translated at the exchange rate in effect on the date of the balance sheet; revenues and expenses are translated at the monthly average exchange rate. The foreign currency translation adjustment arising from such translation is included in accumulated other comprehensive income in shareholders' equity. |
Financial instruments | Financial instruments The classification of financial instruments depends on the intended purpose when the financial instruments were acquired or issued, as well as on their characteristics and designation by the company. Classification Financial assets Cash Loans and receivables Short-term investments Available for sale Accounts receivable Loans and receivables Other assets Loans and receivables Forward exchange contracts Derivatives used for hedging Financial liabilities Bank loan Other financial liabilities Accounts payable and accrued liabilities Other financial liabilities Other liabilities Other financial liabilities Long-term debt Other financial liabilities Contingent liability Financial liabilities at fair value through profit or loss Forward exchange contracts Derivatives used for hedging Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or are not classified in any of the other categories. They are initially recognized at fair value plus transaction costs and are subsequently measured at fair value. After their initial recognition, any changes in their fair value are reflected in other comprehensive income. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After their initial measurement at fair value Other financial liabilities Other financial liabilities are non-derivative financial liabilities initially measured at fair value Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss are non-derivative financial liabilities initially measured at fair value and are subsequently measured at fair value. After their initial recognition, any changes in their fair value are reflected in the consolidated statements of earnings. |
Derivative financial instruments and hedging activities | Derivative financial instruments and hedging activities Forward exchange contracts are utilized by the company to manage its foreign currency exposure. Forward exchange contracts are entered into by the company to hedge anticipated US-dollar-denominated sales and the related accounts receivable as well as Indian-rupee-denominated operating expenses and the related accounts payable. The company's policy is not to utilize those derivative financial instruments for trading or speculative purposes. The company's forward exchange contracts, which are designated as cash flow hedging instruments, qualify for hedge accounting. They are initially recorded at fair value and subsequently measured at fair value. The fair value of forward exchange contracts is determined using quoted prices and forward exchange rates at the balance sheet date, with the resulting value discounted back to present value. After initial recognition, the effective portion of changes in their fair value is reflected in other comprehensive income. Any ineffective portion is recognized immediately in the consolidated statements of earnings. Upon recognition of related hedged sales and operating expenses, accumulated changes in fair value of forward exchange contracts are respectively reclassified in sales and net research and development expenses in the consolidated statements of earnings. At the inception of a hedge relationship, the company formally designates and documents the hedge relationship to which the company wishes to apply hedge accounting, the risk management objectives, the hedging instrument, the hedged item and the method used to test effectiveness. The company assesses effectiveness of the hedge relationship at inception and on an ongoing basis using the dollar-offset method. |
Fair value hierarchy | Fair value hierarchy The company classifies its derivative and non-derivative financial assets and liabilities measured at fair value using the fair value hierarchy as follows: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset and liability, either directly or indirectly; Level 3: Unobservable inputs for the asset or liability. The company's short-term investments, forward exchange contracts and contingent liability are measured at fair value at each balance sheet date. The company's short-term investments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The company's forward exchange contracts are classified within Level 2 of the fair value hierarchy because they are valued using quoted prices and forward foreign exchange rates at the balance sheet dates. The company's contingent liability is classified within level 3 of the fair value hierarchy because it is valued using unobservable inputs such as expected future sales of Ontology. |
Short-term investments | Short-term investments All investments with original terms to maturity of three months or less and that are not required for the purposes of meeting short-term cash requirements are classified as short-term investments. |
Inventories | Inventories Inventories are valued on an average cost basis, at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. The cost of work in progress and finished goods includes material, labor and an allocation of manufacturing overhead. |
Property, plant and equipment and depreciation | Property, plant and equipment and depreciation Property, plant and equipment are recorded at cost, net of accumulated depreciation and accumulated impairment losses. Such cost is reduced by related research and development tax credits. Depreciation is provided on a straight-line basis over the estimated useful lives of the asset as follows: Term Land improvements 15 years Buildings 20 to 60 years Equipment 3 to 15 years Leasehold improvements The lesser of useful life and remaining lease term The assets' residual values and useful lives are reviewed at each financial year-end, and adjusted prospectively, if appropriate. |
Intangible assets, goodwill and amortization | Intangible assets, goodwill and amortization Intangible assets Intangible assets with finite useful lives primarily include the cost of core technology, customer relationships and software. The cost of intangible assets acquired in a business combination is the fair value of the assets at the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is provided on a straight-line basis over the estimated useful lives of two to eight years for core technologies, three months to five years for customer relationships, one year for brand name, and two and eight years for software. None of the company's intangible assets were developed internally. The amortization method and the useful lives of intangible assets are reviewed at each financial year-end, and adjusted prospectively, if appropriate. Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value of net identifiable assets acquired, and is allocated to each cash-generating unit (CGU) or group of CGUs that are expected to benefit from the related business combination. A group of CGUs represents the lowest level within the company at which the goodwill is monitored for internal management purposes, which is not higher than an operating segment. Goodwill is not amortized but must be tested for impairment on an annual basis or more frequently if events or circumstances indicate that it might be impaired. Research and development All costs related to research are expensed as incurred, net of related tax credits and grants. Development costs are expensed as incurred, net of related tax credits and grants, unless they meet the recognition criteria of IAS 38, " Intangible Assets The company elected to account for non-refundable research and development tax credits under IAS 20, " Accounting for Governmental Grants and Disclosures of Governmental Assistance |
Impairment of non-financial assets | Impairment of non-financial assets The company assesses at each reporting date whether there is an indication that the carrying value of property, plant and equipment and finite-life intangible assets may not be recoverable. Non-financial assets that are not amortized (such as goodwill) are subject to an annual impairment test. If any indication exists, or when annual impairment testing is required, the company estimates the asset or asset group's recoverable amount. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). The recoverable amount is the higher of an asset or CGU's fair value less costs of disposal and its value in use. Where the carrying value of an asset or CGU exceeds its recoverable amount, the asset or the CGU is considered impaired and is written down to its recoverable amount. The company performs its annual goodwill impairment test in the fourth quarter of each fiscal year. For property, plant and equipment and finite-life intangible assets, the reversal of impairment is limited so that the carrying value of the asset does not exceed its recoverable amount, nor exceed the carrying value that would have been determined, net of depreciation or amortization, had no impairment loss been recognized for the asset in prior periods. Impairment losses on goodwill are not reversed. |
Leases | Leases Operating leases are leases for which the company does not assume substantially all the risks and rewards of ownership of the asset. Operating lease rentals are charged to the consolidated statements of earnings on a straight-line basis over the lease term. As at August 31, 2017 and 2018, all significant leases of the company were classified as operating leases. |
Government grants | Government grants Grants related to operating expenses are included in earnings when the related expenses are incurred. Grants related to capital expenditures are deducted from the related assets. Grants are included in the consolidated statements of earnings or deducted from the related assets, provided there is reasonable assurance that the company has complied and will comply with all the conditions related to the grants and that the grants will be received. |
Warranty | Warranty The company offers its customers basic warranties of one to three years, depending on the specific products and terms of the purchase agreement. The company's typical warranties require it to repair or replace defective products during the warranty period at no cost to the customer. Costs related to basic warranties are accrued at the time of shipment, based upon estimates of expected rework and warranty costs to be incurred. Costs associated with separately priced extended warranties are expensed as incurred. |
Income taxes | Income taxes Income taxes comprise current and deferred income taxes. Current income taxes Current income tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered or paid to the taxation authorities. Income tax rates used to calculate the amount are those that are enacted or substantively enacted at the balance sheet dates in the tax jurisdictions where the company generates taxable income/loss. Deferred income taxes The company provides for deferred income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on deductible or taxable temporary differences between financial statement values and tax values of assets and liabilities as well as the carry-forward of unused tax losses and deductions, using enacted or substantively enacted income tax rates at the balance sheet dates, that are expected to be in effect for the years in which the assets are expected to be recovered or the liabilities to be settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable income will be available against which the deductible temporary differences as well as unused tax losses and deductions can be utilized. Deferred tax liabilities are recognized for all taxable temporary differences and for taxable temporary differences arising on investments in subsidiaries, except where the reversal of these temporary differences can be controlled, and it is probable that the differences will not reverse in the foreseeable future. Deferred income tax assets and liabilities are presented as non-current in the consolidated balance sheets. Uncertain tax positions The company is subject to income tax laws and regulations in several jurisdictions. There are many transactions and calculations during the course of business for which the ultimate tax determination is uncertain. The company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk. These provisions are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The company reviews the adequacy of these provisions at the end of the reporting periods and any changes in the provisions are recognized in the consolidated statements of earnings when they occur. However, it is possible that at some future dates, liabilities in excess of the company's provisions could result from audits by, or litigation with, the relevant taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will be recognized in the consolidated statement of earnings in the period in which such determination is made. |
Earnings per share | Earnings per share Basic earnings per share are calculated by dividing net earnings attributable to common equity holders of the company by the weighted average number of common shares outstanding during the year. Diluted earnings per share are calculated by dividing net earnings attributable to common equity holders of the company by the weighted average number of common shares outstanding during the year, plus the effect of dilutive potential common shares outstanding during the year. This method requires that diluted earnings per share be calculated (using the treasury stock method) as if all dilutive potential common shares had been exercised at the latest at the beginning of the year or on the date of issuance, as the case may be, and that the funds obtained thereby (plus an amount equivalent to the unamortized portion of related stock-based compensation costs) be used to purchase common shares of the company at the average market price of the common shares during the year. |
Stock-based compensation | Stock-based compensation Equity-settled awards The company's stock options, restricted share units and deferred share units are equity-settled awards. The company accounts for stock-based compensation costs on equity-settled awards using the Black-Scholes option valuation model. The fair value of equity-settled awards is measured at the date of grant. Stock-based compensation costs are amortized to expense over the vesting periods together with a corresponding change in contributed surplus in shareholders' equity. For equity-settled awards with graded vesting, each tranche is considered a separate grant with a different vesting date and fair value, and each tranche is accounted for separately. Cash-settled awards The company's stock appreciation rights are cash-settled awards. The company accounts for stock-based compensation costs on cash-settled awards using the Black-Scholes option valuation model. The fair value of the cash-settled awards is remeasured at the end of each reporting period, with any changes in the fair value recognized in the consolidated statements of earnings. |
Operating segments | Operating segments Operating segments are defined as components of an entity engaged in business activities from which it may earn revenues and incur expenses, and whose operating results are regularly reviewed by the chief operating decision maker (CODM) to make decisions about resources to be allocated to segments and assess their performance and for which discrete information is available. The function of the CODM is performed by the Chief Executive Officer who reviews consolidated results for the purposes of allocating resources and evaluating performance. Accordingly, the company determines that it has one operating segment as of, and for the years ended August 31, 2016, 2017 and 2018. Entity-wide disclosures are presented in note 22. |
Critical accounting judgments in applying accounting policies and estimates | Critical accounting judgments in applying accounting policies and estimates The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses as well as the disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those judgments, estimates and assumptions. Critical judgments, estimates and assumptions are the following: |
Critical judgments in applying accounting policies | Critical judgments in applying accounting policies (a) Determination of functional currency The company operates in multiple countries and generates revenue and incurs expenses in several currencies, namely the Canadian dollar, the US dollar, the euro, the British pound, the Indian rupee and the CNY (Chinese currency). The determination of the functional currency of the company and its subsidiaries may require significant judgment. In determining the functional currency of the company and its subsidiaries, management takes into account primary, secondary and tertiary indicators. When indicators are mixed, and the functional currency is not obvious, management uses its judgment to determine the functional currency. (b) Determination of cash generating units and allocation of goodwill For the purpose of impairment testing, goodwill must be allocated to each CGU or group of CGUs that are expected to benefit from the synergies of the business combination. Initial allocation and possible reallocation of goodwill to a CGU or a group of CGUs requires judgment. |
Critical estimates and assumptions | Critical estimates and assumptions (a) Inventories The company states its inventories at the lower of cost, determined on an average cost basis, and net realizable value, and provides reserves for excess and obsolete inventories. The company determines its reserves for excess and obsolete inventories based on the quantities on hand at the reporting dates compared to foreseeable needs, taking into account changes in demand, technology or market. (b) Income taxes The company is subject to income tax laws and regulations in several jurisdictions. Under these laws and regulations, uncertainties exist with respect to the interpretation of complex tax laws and regulations and the amount and timing of future taxable income. The company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk based on its interpretation of laws and regulations. In addition, management has made reasonable estimates and assumptions to determine the amount of deferred tax assets that can be recognized in the consolidated financial statements, based upon the likely timing and level of anticipated future taxable income together with tax planning strategies. The ultimate realization of the company's deferred income tax assets is dependent upon the generation of sufficient future taxable income during the periods in which those assets are expected to be realized. (c) Tax credits recoverable Tax credits are recorded provided that there is reasonable assurance that the company has complied and will comply with all the conditions related to the tax credits and that the tax credits will be received. The ultimate recovery of the company's non-refundable tax credits is dependent upon the generation of sufficient future taxable income during the tax credits carry-forward periods. Management has made reasonable estimates and assumptions to determine the amount of non-refundable tax credits that can be recognized in the consolidated financial statements, based upon the likely timing and level of anticipated future taxable income together with tax planning strategies (note 20). (d) Impairment of non-financial assets Impairment exists when the carrying value of an asset or group of assets (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation for the company's CGUs is based on a market approach that relies on unobservable inputs based on valuation multiples and recent transactions for comparable assets or businesses, within the same industry. The company applies judgment in making adjustments to the unobservable inputs for factors such as size, risk profile or profitability. The company also considers the company's value derived from its market capitalization, adjusting for a control premium considered appropriate based on other comparable companies with significant controlling interests. Depending on the market evidence available, the company, from time to time, may further supplement this market approach with an income approach that considers discounted cash flows to determine fair value less costs of disposal, as well as the nature and magnitude of research and development activities carried out by the CGU. The discounted cash flow model involves significant judgment with respect to estimating cash flows (based on market participant assumptions) and the appropriate discount rate. (e) Purchase price allocation in business combinations The fair value of the total consideration transferred in business combinations (purchase price) must be allocated based on estimated fair value of acquired net assets at the date of acquisition. Allocating the purchase price requires management to make estimates and judgments to determine assets acquired and liabilities assumed, useful lives of certain long-lived assets and the respective fair value of assets acquired, and liabilities assumed; this may require the use of unobservable inputs, including management's expectations of future revenue growth, operating costs and profit margins as well as discount rates. |
New IFRS pronouncements not yet adopted | New IFRS pronouncements not yet adopted Financial instruments The final version of IFRS 9, " Financial Instruments Financial Instruments: Recognition and Measurement Revenue from contracts with customers IFRS 15, " Revenue from Contracts with Customers The company has performed an assessment to identify significant areas of impact between the company's current accounting treatment under IAS 18, " Revenue The company performed a quantitative analysis of the main areas of impact as of September 1, 2018, and it does not expect the new standard to materially impact its consolidated financial statements. Leases IFRS 16, Leases IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e., the customer (lessee) and the supplier (lessor). IFRS 16 will supersede IAS 17, " Leases ", and related interpretations. This new standard is effective for annual periods beginning on or after January 1, 2019, with earlier adoption permitted if IFRS 15, " Revenue from Contracts with Customers ", is also applied. Foreign Currency Transactions and Advance Consideration IFRIC 22, " Foreign Currency Transactions and Advance Consideration Uncertainty over Income Tax Treatments IFRIC 23, " Uncertainty over Income Tax Treatments |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Basis of Presentation [Abstract] | |
Estimated useful life | Depreciation is provided on a straight-line basis over the estimated useful lives of the asset as follows: Term Land improvements 15 years Buildings 20 to 60 years Equipment 3 to 15 years Leasehold improvements The lesser of useful life and remaining lease term |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Disclosure of detailed information about business combination [line items] | |
Acquisition related costs | In connection with business combinations completed in fiscal 2017 and 2018, the company incurred acquisition-related costs of $1,054,000 and $2,484,000 respectively, which are presented as follows: Years ended August 31, 2018 2017 2016 Selling and administrative expenses $ 2,236 $ 1,054 $ ‒ Interest and other expenses 248 ‒ ‒ $ 2,484 $ 1,054 $ ‒ |
Astellia SA [Member] | |
Disclosure of detailed information about business combination [line items] | |
Sales and net loss attributable to parent interest | The following table summarizes Astellia's contributed sales and net loss attributable to the parent interest for the period from January 26, 2018 to August 31, 2018: Sales (1) $ 16,377 Net loss attributable to the parent interest (1, 2) $ 12,850 If the acquisition had occurred on September 1, 2017, consolidated pro forma sales and net loss attributable to the parent interest of the combined entities for the year ended August 31, 2018 would have been $292,134,000 and $18,768,000 respectively. (1) Includes acquisition-related deferred revenue fair value adjustment of $2,095,000. (2) Includes amortization of acquired intangible assets of $5,077,000. |
Estimate of fair value of acquired net assets at the date of acquisition | The fair value of the total consideration was allocated based on an estimate of fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 16,374 Income taxes and tax credits recoverable 11,259 Inventories 3,045 Prepaid expenses 1,229 Property, plant and equipment 1,944 Core technologies 12,869 Customer relationships 8,381 Brand name 846 Other intangible assets 498 Other assets 1,402 57,847 Liabilities assumed Accounts payable and accrued liabilities 11,068 Deferred revenue 4,748 Long-term debt (note 12) 8,888 Deferred income tax liabilities 2,692 Other liabilities 6,715 Net identifiable assets acquired 23,736 Goodwill 2,505 Fair value of the total consideration, net of cash acquired $ 26,241 The fair value of the total consideration, net of cash acquired, consisted of the following at the acquisition date: Cash paid net of cash acquired $ 9,580 Fair value of shares held 12,967 Non-controlling interest (purchased in February 2018) 3,694 $ 26,241 |
Yenista Optics S.A.S [Member] | |
Disclosure of detailed information about business combination [line items] | |
Estimate of fair value of acquired net assets at the date of acquisition | The fair value of the total consideration was allocated based on the fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 1,889 Inventories 2,384 Property, plant and equipment 1,424 Core technologies 3,686 Customer relationships 811 In-process research and development 305 Other intangible assets 132 Prepaid expenses 171 10,802 Liabilities assumed Accounts payable and accrued liabilities 1,035 Long-term debt (note 12) 2,143 Deferred income taxes 1,510 Net identifiable assets acquired 6,114 Goodwill 3,426 Fair value of the total consideration, net of cash acquired $ 9,540 |
Absolute Analysis Inc [Member] | |
Disclosure of detailed information about business combination [line items] | |
Estimate of fair value of acquired net assets at the date of acquisition | The fair value of the total consideration transferred was allocated based on a final estimate of fair value of acquired net assets at the date of acquisition as follows: Assets acquired Core technology $ 4,130 Other assets 236 4,366 Liability assumed Deferred income taxes 279 Net identifiable assets acquired 4,087 Goodwill 4,403 Fair value of the total consideration transferred $ 8,490 |
Ontology Partners Limited [Member] | |
Disclosure of detailed information about business combination [line items] | |
Estimate of fair value of acquired net assets at the date of acquisition | The fair value of the total consideration transferred was allocated based on a final estimate of fair value of acquired net assets at the date of acquisition as follows: Assets acquired Accounts receivable $ 1,701 Core technology 3,802 Customer relationships 1,607 Other assets 37 7,147 Liabilities assumed Accounts payable and accrued liabilities 3,343 Deferred revenue 211 Long-term debt 1,480 Net identifiable assets acquired 2,113 Goodwill 7,067 Fair value of the total consideration transferred, net of cash acquired $ 9,180 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring charges | The following tables summarize changes in restructuring charges payable during the years ended August 31, 2017 and 2018. Fiscal 2018 plan Year ended August 31, 2018 Balance – Beginning of year $ ‒ Addition 3,209 Payments (42 ) Balance – End of year (note 11) $ 3,167 Fiscal 2017 plan Years ended August 31, 2018 2017 Balance – Beginning of year $ 2,477 $ ‒ Addition ‒ 4,049 Payments (2,010 ) (1,572 ) Reversal (467 ) ‒ Balance – End of year (note 11) $ ‒ $ 2,477 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Financial Instruments [Abstract] | |
Financial Instruments by category | The following tables summarize financial instruments by category: As at August 31, 2018 Loans and receivables Available for sale Other financial liabilities Derivatives used for hedging Total Financial assets Cash $ 12,758 $ ‒ $ ‒ $ ‒ $ 12,758 Short-term investments $ ‒ $ 2,282 $ ‒ $ ‒ $ 2,282 Accounts receivable $ 46,955 $ ‒ $ ‒ $ ‒ $ 46,955 Other assets $ 352 $ ‒ $ ‒ $ ‒ $ 352 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ 318 $ 318 Financial liabilities Bank loan $ ‒ $ ‒ $ 10,692 $ ‒ $ 10,692 Accounts payable and accrued liabilities $ ‒ $ ‒ $ 47,308 $ ‒ $ 47,308 Other liabilities $ ‒ $ ‒ $ 3,197 $ ‒ $ 3,197 Long-term debt $ ‒ $ ‒ $ 8,828 $ ‒ $ 8,828 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ 807 $ 807 As at August 31, 2017 Loans and receivables Available for sale Other financial liabilities Financial liabilities at fair value through profit or loss Derivatives used for hedging Total Financial assets Cash $ 38,435 $ ‒ $ ‒ $ ‒ $ ‒ $ 38,435 Short-term investments $ ‒ $ 775 $ ‒ $ ‒ $ ‒ $ 775 Accounts receivable $ 43,340 $ ‒ $ ‒ $ ‒ $ ‒ $ 43,340 Other assets $ 36 $ ‒ $ ‒ $ ‒ $ ‒ $ 36 Forward exchange contracts $ ‒ $ ‒ $ ‒ $ ‒ $ 2,258 $ 2,258 Financial liabilities Accounts payable and accrued liabilities $ ‒ $ ‒ $ 36,776 $ ‒ $ ‒ $ 36,776 Contingent liability $ ‒ $ ‒ $ ‒ $ 1,092 $ ‒ $ 1,092 |
Fair value of derivative and non-derivative financial assets and liabilities measured at fair value by level of hierarchy | The fair value of derivative and non-derivative financial assets and liabilities measured at fair value by level of hierarchy is as follows: As at August 31, 2018 As at August 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Short-term investments $ 2,282 $ ‒ $ ‒ $ 775 $ ‒ $ ‒ Forward exchange contracts $ ‒ $ 318 $ ‒ $ ‒ $ 2,258 $ ‒ Financial liabilities Forward exchange contracts $ ‒ $ 807 $ ‒ $ ‒ $ ‒ $ ‒ Contingent liability $ ‒ $ ‒ $ ‒ $ ‒ $ ‒ $ 1,092 |
Summary of currency risk contracts held at various forward rates | As at August 31, 2017 and 2018, the company held contracts to sell US dollars for Canadian dollars and Indian rupees at various forward rates, which are summarized as follows: US dollars – Canadian dollars Expiry dates Contractual amounts Weighted average contractual forward rates As at August 31, 2017 September 2017 to August 2018 $ 18,300 1.3407 September 2018 to August 2019 10,900 1.3426 Total $ 29,200 1.3414 As at August 31, 2018 September 2018 to August 2019 $ 26,400 1.3029 September 2019 to August 2020 15,700 1.2756 September 2020 to May 2021 3,700 1.2703 Total $ 45,800 1.2909 US dollars – Indian rupees Expiry dates Contractual amounts Weighted average contractual forward rates As at August 31, 2017 September 2017 to August 2018 $ 3,400 69.49 September 2018 to February 2019 1,600 67.26 Total $ 5,000 68.78 As at August 31, 2018 September 2018 to May 2019 $ 4,600 67.68 |
Recorded sales foreign exchange gains (losses) on forward exchange contracts | For the years ended August 31, 2016, 2017 and 2018, the company recorded within its sales the following foreign exchange gains (losses) on forward exchange contracts: Years ended August 31, 2018 2017 2016 Gains (losses) on forward exchange contracts $ 876 $ (468 ) $ (2,651 ) |
Significant derivative and non-derivative financial assets and liabilities subject to currency risk | The following table summarizes significant derivative and non-derivative financial assets and liabilities that are subject to currency risk as at August 31, 2017 and 2018 and for which such risk is charged to earnings: As at August 31, 2018 2017 Carrying/nominal amount (in thousands of US dollars) Carrying/nominal amount (in thousands of euros) Carrying/nominal amount (in thousands of US dollars) Carrying/nominal amount (in thousands of euros) Financial assets Cash $ 2,790 € 3,352 $ 20,120 € 6,235 Accounts receivable 30,306 3,787 28,420 6,164 33,096 7,139 48,540 12,399 Financial liabilities Accounts payable and accrued liabilities 20,214 5,107 12,447 2,725 Forward exchange contracts (nominal value) 5,000 ‒ 3,600 ‒ 25,214 5,107 16,047 2,725 Net exposure $ 7,882 € 2,032 $ 32,493 € 9,674 |
Schedule of short-term investments | Short-term investments consist of the following: As at August 31, 2018 2017 Term deposits denominated in Indian rupees, bearing interest at annual rates of 5.0% to 6.8% in 2018 and 4.3% to 6.9% in 2017, maturing on different dates between October 2018 and August 2019 in 2018 and October 2017 and October 2018 in 2017 $ 1,909 $ 775 Other 373 ‒ $ 2,282 $ 775 |
Age of trade accounts receivable | The following table summarizes the age of trade accounts receivable: As at August 31, 2018 2017 Current $ 34,344 $ 35,100 Past due, 0 to 30 days 6,011 3,049 Past due, 31 to 60 days 2,556 1,289 Past due, more than 60 days, net of allowance for doubtful accounts of $2,960 and $772 as at August 31, 2017 and 2018, respectively 4,362 1,692 $ 47,273 $ 41,130 |
Changes in allowance for doubtful accounts | Changes in the allowance for doubtful accounts are as follows: Years ended August 31, 2018 2017 Balance – Beginning of year $ 2,960 $ 3,752 Addition charged to earnings 834 654 Writeoff of uncollectible accounts (3,022 ) (1,446 ) Balance – End of year $ 772 $ 2,960 |
Summary of contractual maturity of the company's derivative and non-derivative financial liabilities | The following tables summarize the contractual maturity of the company's derivative and non-derivative financial liabilities: As at August 31, 2018 No later than one year Later than 1 year and no later than 5 years Later than 5 years Bank loan $ 10,692 $ ‒ $ ‒ Accounts payable and accrued liabilities 47,308 ‒ ‒ Forward exchange contracts Outflow 31,000 19,400 ‒ Inflow (30,738 ) (18,940 ) ‒ Long-term debt 2,921 5,745 162 Other liabilities 3,197 ‒ ‒ Total $ 64,380 $ 6,205 $ 162 As at August 31, 2017 No later than one year Later than 1 year and no later than 5 years Accounts payable and accrued liabilities $ 36,776 $ ‒ Contingent liability 1,092 ‒ Forward exchange contracts Outflow 21,700 12,500 Inflow (23,265 ) (13,357 ) Total $ 36,303 $ (857 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Inventories [Abstract] | |
Summary of inventories | As at August 31, 2018 2017 Raw materials $ 24,561 $ 18,899 Work in progress 869 886 Finished goods 13,159 14,047 $ 38,589 $ 33,832 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Land and land improvements Buildings Equipment Leasehold improvements Total Cost as at September 1, 2016 $ 4,322 $ 29,755 $ 30,717 $ 2,918 $ 67,712 Additions ‒ 794 5,562 319 6,675 Business combinations (note 3) ‒ ‒ 130 ‒ 130 Disposals ‒ ‒ (2,568 ) (339 ) (2,907 ) Foreign currency translation adjustment 200 1,402 1,733 150 3,485 Cost as at August 31, 2017 4,522 31,951 35,574 3,048 75,095 Additions 17 3,048 5,677 46 8,788 Business combinations (note 3) ‒ ‒ 3,105 263 3,368 Disposals ‒ (1,413 ) (3,651 ) (175 ) (5,239 ) Foreign currency translation adjustment (180 ) (1,240 ) (1,617 ) (134 ) (3,171 ) Cost as at August 31, 2018 $ 4,359 $ 32,346 $ 39,088 $ 3,048 $ 78,841 Accumulated depreciation as at September 1, 2016 $ 1,192 $ 6,602 $ 22,902 $ 1,038 $ 31,734 Depreciation for the year 45 403 3,162 292 3,902 Disposals ‒ ‒ (2,210 ) (339 ) (2,549 ) Foreign currency translation adjustment 58 328 1,353 137 1,876 Accumulated depreciation as at August 31, 2017 1,295 7,333 25,207 1,128 34,963 Depreciation for the year 48 604 4,420 372 5,444 Disposals ‒ (994 ) (3,440 ) (30 ) (4,464 ) Foreign currency translation adjustment (53 ) (282 ) (1,024 ) (53 ) (1,412 ) Accumulated depreciation as at August 31, 2018 $ 1,290 $ 6,661 $ 25,163 $ 1,417 $ 34,531 Net carrying value as at: August 31, 2017 $ 3,227 $ 24,618 $ 10,367 $ 1,920 $ 40,132 August 31, 2018 $ 3,069 $ 25,685 $ 13,925 $ 1,631 $ 44,310 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Intangible Assets and Goodwill [Abstract] | |
Summary of intangible assets | Intangible assets Core technology Customer relationships In-process research and development Brand name Software Total Cost as at September 1, 2016 $ 4,302 $ ‒ $ ‒ $ ‒ $ 10,843 $ 15,145 Additions ‒ ‒ ‒ ‒ 912 912 Business combinations (note 3) 7,932 1,607 ‒ ‒ ‒ 9,539 Disposals (76 ) ‒ ‒ ‒ (407 ) (483 ) Foreign currency translation adjustment 735 82 ‒ ‒ 553 1,370 Cost as at August 31, 2017 12,893 1,689 ‒ ‒ 11,901 26,483 Additions 89 ‒ ‒ ‒ 3,049 3,138 Business combinations (note 3) 16,555 9,192 305 846 630 27,528 Disposal (60 ) ‒ ‒ ‒ (2,474 ) (2,534 ) Foreign currency translation adjustment (1,419 ) (590 ) (13 ) (50 ) (446 ) (2,518 ) Cost as at August 31, 2018 $ 28,058 $ 10,291 $ 292 $ 796 $ 12,660 $ 52,097 Accumulated amortization as at September 1, 2016 $ 2,307 $ ‒ $ ‒ $ ‒ $ 9,447 $ 11,754 Amortization for the year 2,617 167 ‒ ‒ 505 3,289 Disposals (54 ) ‒ ‒ ‒ (398 ) (452 ) Foreign currency translation adjustment 260 2 ‒ ‒ 447 709 Accumulated amortization as at August 31, 2017 5,130 169 ‒ ‒ 10,001 15,300 Amortization for the year 4,878 3,949 ‒ 519 981 10,327 Disposal (45 ) ‒ ‒ ‒ (2,462 ) (2,507 ) Foreign currency translation adjustment (353 ) (185 ) ‒ (7 ) (344 ) (889 ) Accumulated amortization as at August 31, 2018 $ 9,610 $ 3,933 $ ‒ $ 512 $ 8,176 $ 22,231 Net carrying value as at: August 31, 2017 $ 7,763 $ 1,520 $ ‒ $ ‒ $ 1,900 $ 11,183 August 31, 2018 $ 18,448 $ 6,358 $ 292 $ 284 $ 4,484 $ 29,866 Remaining amortization period as at August 31, 2018 5 years 2 years ‒ ‒ 3 years |
Reconciliation of changes in goodwill | Goodwill Years ended August 31, 2018 2017 Balance – Beginning of year $ 35,077 $ 21,928 Business combinations (note 3) 5,931 11,470 Foreign currency translation adjustment (1,116 ) 1,679 Balance – End of year $ 39,892 $ 35,077 |
Information for cash generating units | Goodwill has been allocated to the lowest level within the company at which it is monitored by management to make business decisions, which are the following CGUs: As at August 31, 2018 2017 EXFO CGU $ 13,185 $ 13,772 Brix CGU 13,327 13,878 Ontology CGU (note 3) 7,471 7,427 Yenista CGU (note 3) 3,562 ‒ Astellia CGU (note 3) 2,347 ‒ Total $ 39,892 $ 35,077 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities and Provisions (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Accounts Payable and Accrued Liabilities and Provisions [Abstract] | |
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities As at August 31, 2018 2017 Trade $ 26,052 $ 19,002 Salaries and social benefits 18,101 15,176 Forward exchange contracts (note 6) 590 ‒ Other 3,155 2,598 $ 47,898 $ 36,776 |
Provisions | Provisions As at August 31, 2018 2017 Warranty $ 417 $ 320 Contingent liability (note 3) ‒ 1,092 Restructuring charges (note 4) 3,167 2,477 Other 1,717 ‒ $ 5,301 $ 3,889 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Long-Term Debt [Abstract] | |
Long-term debt | As part of the acquisitions of EXFO Optics and Astellia, the company assumed long-term debt (note 3). As at August 31, 2018 2017 Unsecured, non-interest-bearing loans, denominated in euros, repayable in quarterly instalments, maturing in March 2024 and March 2025 $ 883 $ ‒ Unsecured loans, denominated in euros, repayable in monthly, quarterly or bi-annual instalments, bearing interest at annual rates of nil to 5.0%, maturing at different dates between December 2018 and September 2023 4,853 ‒ Loans, secured by the universality of the assets of a subsidiary, denominated in euros, repayable in monthly instalments, bearing interest at annual rates of 0.7% to 2.0%, maturing at different dates between December 2018 and August 2022 828 ‒ Loans, secured by the universality of the assets of a subsidiary, denominated in euros, repayable in monthly or quarterly instalments, bearing interest at annual rates of 1.1% to 2.9%, maturing at different dates between March 2020 and July 2022 2,264 ‒ 8,828 ‒ Current portion of long-term debt 2,921 ‒ $ 5,907 $ ‒ |
Principal repayments of long-term debt | Principal repayments of long-term debt over the forthcoming years are as follows as at August 31, 2018: No later than one year $ 2,921 Later than one year and no later than five years 5,745 Later than five years 162 $ 8,828 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Commitments [Abstract] | |
Minimum rental payable under operating leases | The company entered into operating leases for certain of its premises and equipment, which expire at various dates through 2024. Minimum rentals payable under operating leases are as follows: As at August 31, 2018 2017 No later than 1 year $ 3,365 $ 2,176 Later than 1 year and no later than 5 years 9,519 6,238 Later than 5 years 502 1,681 $ 13,386 $ 10,095 |
Leases agreements for intellectual property | The company also entered into license agreements for certain intellectual property which expire at various dates through 2022: As at August 31, 2018 2017 No later than 1 year $ 1,492 $ 1,264 Later than 1 year and no later than 5 years 1,982 1,450 $ 3,474 $ 2,714 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Share Capital [Abstract] | |
Summary of share capital activity | The following table summarizes the share capital activity: Multiple Voting Shares Subordinate Voting Shares Number Amount Number Amount Total amount Balance as at September 1, 2015 31,643,000 $ 1 22,092,034 $ 86,044 $ 86,045 Redemption of restricted share units (note 16) – – 277,805 – – Redemption of deferred share units (note 16) – – 653 – – Redemption of share capital – – (452,550 ) (1,768 ) (1,768 ) Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,239 1,239 Balance as at August 31, 2016 31,643,000 1 21,917,942 85,515 85,516 Issuance of share capital (note 3) – – 793,070 3,490 3,490 Redemption of restricted share units (note 16) – – 327,859 – – Redemption of deferred share units (note 16) – – 29,906 – – Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,405 1,405 Balance as at August 31, 2017 31,643,000 1 23,068,777 90,410 90,411 Redemption of restricted share units (note 16) – – 345,883 – – Redemption of deferred share units (note 16) – – 58,335 – – Reclassification of stock-based compensation costs to share capital upon exercise of stock awards – – – 1,526 1,526 Balance as at August 31, 2018 31,643,000 $ 1 23,472,995 $ 91,936 $ 91,937 a) On March 29, 2016, the company announced that its Board of Directors had approved the renewal of its share repurchase program, by way of a normal course issuer bid on the open market of up to 6.6% of the issued and outstanding subordinate voting shares, representing 900,000 subordinate voting shares at the prevailing market price. The normal course issuer bid started on April 1, 2016 and ended on March 31, 2017. All share repurchased under that bid were cancelled. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss are as follows: Foreign currency translation adjustment Cash-flow hedge Accumulated other comprehensive loss Balance as at September 1, 2015 $ (49,843 ) $ (2,162 ) $ (52,005 ) Foreign currency translation adjustment 707 ‒ 707 Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes ‒ 2,724 2,724 Balance as at August 31, 2016 (49,136 ) 562 (48,574 ) Foreign currency translation adjustment 8,262 ‒ 8,262 Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes ‒ 1,347 1,347 Balance as at August 31, 2017 (40,874 ) 1,909 (38,965 ) Foreign currency translation adjustment (6,491 ) ‒ (6,491 ) Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes ‒ (1,894 ) (1,894 ) Balance as at August 31, 2018 $ (47,365 ) $ 15 $ (47,350 ) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-based compensation costs recognized for employee services | The following table summarizes the stock-based compensation costs recognized for employee services received during the years ended August 31, 2016, 2017 and 2018: Years ended August 31, 2018 2017 2016 Stock-based compensation costs arising from equity-settled awards $ 1,770 $ 1,439 $ 1,394 Stock-based compensation costs arising from cash-settled awards (22 ) 38 (16 ) $ 1,748 $ 1,477 $ 1,378 |
Restricted Stock Units [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of stock option activity | The following table summarizes RSU activity for the years ended August 31, 2016, 2017 and 2018: Years ended August 31, 2018 2017 2016 Outstanding – Beginning of year 1,611,330 1,551,555 1,299,958 Granted 420,621 527,143 572,008 Redeemed (345,883 ) (327,859 ) (277,805 ) Forfeited (70,916 ) (139,509 ) (42,606 ) Outstanding – End of year 1,615,152 1,611,330 1,551,555 |
Deferred Share Unit Plan [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of stock option activity | The following table summarizes DSU activity for the years ended August 31, 2016, 2017 and 2018: Years ended August 31, 2018 2017 2016 Outstanding – Beginning of year 174,279 159,127 114,810 Granted 65,745 45,058 44,970 Redeemed (58,335 ) (29,906 ) (653 ) Outstanding – End of year 181,689 174,279 159,127 |
Related-Party Disclosures (Tabl
Related-Party Disclosures (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Related-Party Disclosures [Abstract] | |
Compensation of key management personnel | Compensation of key management personnel Years ended August 31, 2018 2017 2016 Salaries and short-term employee benefits $ 3,985 $ 3,715 $ 3,701 Stock-based compensation costs 1,047 775 826 $ 5,032 $ 4,490 $ 4,527 |
Statements of Earnings (Tables)
Statements of Earnings (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Statements of Earnings [Abstract] | |
Net research and development expenses | Net research and development expenses comprise the following: Years ended August 31, 2018 2017 2016 Gross research and development expenses $ 65,243 $ 53,124 $ 47,875 Research and development tax credits and grants (8,089 ) (5,956 ) (5,188 ) Net research and development expenses for the year $ 57,154 $ 47,168 $ 42,687 |
Depreciation and amortization expenses by functional area | Depreciation and amortization expenses by functional area are as follows: Years ended August 31, 2018 2017 2016 Cost of sales Depreciation of property, plant and equipment $ 2,077 $ 1,522 $ 1,290 Amortization of intangible assets 9,212 2,652 702 11,289 4,174 1,992 Selling and administrative expenses Depreciation of property, plant and equipment 902 530 501 Amortization of intangible assets 592 251 75 1,494 781 576 Net research and development expenses Depreciation of property, plant and equipment 2,465 1,850 2,023 Amortization of intangible assets 523 386 395 2,988 2,236 2,418 $ 15,771 $ 7,191 $ 4,986 Depreciation of property, plant and equipment $ 5,444 $ 3,902 $ 3,814 Amortization of intangible assets 10,327 3,289 1,172 Total depreciation and amortization expenses for the year $ 15,771 $ 7,191 $ 4,986 |
Employee compensation | Employee compensation comprises the following: Years ended August 31, 2018 2017 2016 Salaries and benefits $ 134,453 $ 115,832 $ 112,569 Restructuring charges 2,072 3,509 ‒ Stock-based compensation costs 1,748 1,414 1,378 Total employee compensation for the year $ 138,273 $ 120,755 $ 113,947 Restructuring charges by functional area are as follows: Years ended August 31, 2018 2017 2016 Cost of sales $ 517 $ 1,697 $ ‒ Selling and administrative expenses 673 1,150 ‒ Net research and development costs 3,219 2,232 ‒ Interest and other expense 150 ‒ ‒ Income taxes (1,150 ) ‒ ‒ Total restructuring charges for the year $ 3,409 $ 5,079 $ ‒ Stock-based compensation costs by functional area are as follows: Years ended August 31, 2018 2017 2016 Cost of sales $ 143 $ 121 $ 107 Selling and administrative expenses 1,217 1,052 972 Net research and development expenses 388 304 299 Total stock-based compensation costs for the year $ 1,748 $ 1,477 $ 1,378 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Income Taxes [Abstract] | |
Reconciliation of income tax provision (recovery) | The reconciliation of the income tax provision (recovery) calculated using the combined Canadian federal and provincial statutory income tax rate with the income tax provision in the financial statements is as follows: Years ended August 31, 2018 2017 2016 Income tax provision (recovery) at combined Canadian federal and provincial statutory tax rate ( 27 $ (1,775 ) $ 2,014 $ 4,499 Increase (decrease) due to: Foreign income/loss taxed at different rates 452 (900 ) (1,025 ) Non-deductible loss (non-taxable income) (69 ) (245 ) 5 Non-deductible expenses 1,285 981 411 Change in tax rates 167 (10 ) ‒ Effect of the US tax reform 1,528 ‒ ‒ Foreign exchange effect of translation of foreign subsidiaries in the functional currency (16 ) 176 566 Recognition of previously unrecognized deferred income tax assets (560 ) ‒ ‒ Utilization of previously unrecognized deferred income tax assets (627 ) (46 ) ‒ Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses 6,100 4,659 3,702 Other (807 ) (21 ) (394 ) Income tax provision for the year $ 5,678 $ 6,608 $ 7,764 |
Income tax provision (recovery) | Years ended August 31, 2018 2017 2016 The income tax provision consists of the following: Current Current income taxes $ 4,310 $ 5,554 $ 6,186 Deferred Deferred income taxes relating to the origination and reversal of temporary differences (3,545 ) (3,559 ) (2,124 ) Benefit arising from previously unrecognized tax losses and deductible temporary differences (560 ) ‒ ‒ Utilization of previously unrecognized deferred income tax assets (627 ) (46 ) ‒ (4,732 ) (3,605 ) (2,124 ) Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses 6,100 4,659 3,702 1,368 1,054 1,578 Income tax provision for the year $ 5,678 $ 6,608 $ 7,764 |
Changes in deferred income tax assets and liabilities | The changes in deferred income tax assets and liabilities for the year ended August 31, 2017 are as follows: Balance as at September 1, 2016 Credited (charged) to the statement of earnings Credited (charged) to shareholders' equity Business combinations Foreign currency translation adjustment Balance as at August 31, 2017 Deferred income tax assets Long-lived assets $ 2,255 $ (240 ) $ ‒ $ (279 ) $ 66 $ 1,802 Provisions and accruals 4,246 (89 ) (479 ) ‒ 94 3,772 Deferred revenue 2,330 486 ‒ ‒ 74 2,890 Research and development expenses 2,361 248 ‒ ‒ 122 2,731 Losses carried forward 4,598 (1,470 ) ‒ 1,059 54 4,241 Deferred income tax liabilities Long-lived assets ‒ 111 ‒ (1,059 ) (54 ) (1,002 ) Research and development tax credits (10,407 ) (100 ) ‒ ‒ (488 ) (10,995 ) Total $ 5,383 $ (1,054 ) $ (479 ) $ (279 ) $ (132 ) $ 3,439 Classified as follows: Deferred income tax assets $ 8,240 $ 6,555 Deferred income tax liabilities (2,857 ) (3,116 ) $ 5,383 $ 3,439 The changes in deferred income tax assets and liabilities for the year ended August 31, 2018 are as follows: Balance as at September 1, 2017 Credited (charged) to the statement of earnings Credited (charged) to shareholders' equity Business combinations Foreign currency translation adjustment Balance as at August 31, 2018 Deferred income tax assets Long-lived assets $ 1,802 $ 200 $ ‒ $ ‒ $ (77 ) $ 1,925 Provisions and accruals 3,772 (250 ) 554 ‒ (113 ) 3,963 Deferred revenue 2,890 (101 ) ‒ ‒ (73 ) 2,716 Research and development expenses 2,731 (101 ) ‒ ‒ (106 ) 2,524 Losses carried forward 4,241 (2,633 ) ‒ 3,687 (222 ) 5,073 Deferred income tax liabilities Long-lived assets (1,002 ) 1,903 ‒ (7,889 ) 527 (6,461 ) Research and development tax credits (10,995 ) (386 ) ‒ ‒ 445 (10,936 ) Total $ 3,439 $ (1,368 ) $ 554 $ (4,202 ) $ 381 $ (1,196 ) Classified as follows: Deferred income tax assets $ 6,555 $ 4,714 Deferred income tax liabilities (3,116 ) (5,910 ) $ 3,439 $ (1,196 ) |
Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses | Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses are as follows: As at August 31, 2018 2017 Temporary deductible differences $ 1,435 $ 2,271 Losses carried forward 42,361 43,670 $ 43,796 $ 45,941 |
Operating losses for which no deferred income tax assets recognized | As at August 31, 2018, the year of expiry of operating losses for which no deferred income tax assets were recognized in the consolidated balance sheet are as follows, presented by tax jurisdiction: Year of expiry Finland France Spain United States United Kingdom 2019 $ ‒ $ ‒ $ ‒ $ 3,470 $ ‒ 2020 5,115 ‒ ‒ 7,991 ‒ 2021 6,699 ‒ ‒ 2,211 ‒ 2022 11,614 ‒ ‒ 7,435 ‒ 2023 7,524 ‒ ‒ 1,972 ‒ 2024 5,808 ‒ ‒ 1,351 ‒ 2025 7,241 ‒ ‒ 1,351 ‒ 2026 248 ‒ ‒ 1,351 ‒ 2027 1,504 ‒ ‒ 1,351 ‒ 2028 ‒ ‒ ‒ 2,447 ‒ 2030 ‒ ‒ ‒ 2,713 ‒ 2031 ‒ ‒ ‒ 109 ‒ 2033 ‒ ‒ ‒ 4,681 ‒ 2034 ‒ ‒ ‒ 4,851 ‒ 2035 ‒ ‒ ‒ 2,616 ‒ 2036 ‒ ‒ ‒ 8,501 ‒ 2037 ‒ ‒ ‒ 9,660 ‒ 2038 ‒ ‒ ‒ 7,022 ‒ Indefinite ‒ 17,678 6,042 ‒ 7,167 $ 45,753 $ 17,678 $ 6,042 $ 71,083 $ 7,167 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Earnings per Share [Abstract] | |
Earnings per Share | The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding: Years ended August 31, 2018 2017 2016 Basic weighted average number of shares outstanding (000's) 54,998 54,423 53,863 Plus dilutive effect of (000's): Restricted share units ‒ 979 675 Deferred share units ‒ 153 131 Diluted weighted average number of shares outstanding (000's) 54,998 55,555 54,669 Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares, or their inclusion would be antidilutive (000's) 1,799 ‒ 75 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Segment Information [Abstract] | |
Sales for products and services | Sales for products and services are detailed as follows: Years ended August 31, 2018 2017 2016 Products $ 227,316 $ 213,653 $ 205,371 Services 42,230 29,648 27,212 $ 269,546 $ 243,301 $ 232,583 |
Information by geographic region | Sales to external customers by geographic region are detailed as follows: Years ended August 31, 2018 2017 2016 United States $ 100,225 $ 97,186 $ 95,388 Canada 18,425 22,586 18,027 Other 16,743 14,951 14,129 Americas 135,393 134,723 127,544 United Kingdom 17,508 11,799 11,032 Other 67,169 50,302 46,140 Europe, Middle-East and Africa 84,677 62,101 57,172 China 20,724 22,312 25,281 Other 28,752 24,165 22,586 Asia-Pacific 49,476 46,477 47,867 $ 269,546 $ 243,301 $ 232,583 Sales were allocated to geographic regions based on the country of residence of the related customers. Long-lived assets by geographic region are detailed as follows: As at August 31, 2018 As at August 31, 2017 Property, plant and equipment Intangible assets Goodwill Property, plant and equipment Intangible assets Goodwill Canada $ 32,107 $ 5,668 $ 4,481 $ 29,417 $ 4,643 $ 3,890 United States 1,677 435 13,327 2,031 1,072 14,696 Finland 473 380 8,704 441 316 9,064 France 2,401 19,330 5,909 12 – – United Kingdom 755 4,005 7,471 915 5,093 7,427 India 4,021 28 – 4,000 27 – China 2,822 20 – 3,227 32 – Other 54 – – 89 – – $ 44,310 $ 29,866 $ 39,892 $ 40,132 $ 11,183 $ 35,077 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended | ||
Aug. 31, 2018moyrSegment | Aug. 31, 2017Segment | Aug. 31, 2016Segment | |
Operating segments [Abstract] | |||
Number of operating segments | Segment | 1 | 1 | 1 |
Bottom of Range [Member] | |||
Maintenance contracts [Abstract] | |||
Maintenance contract period | 12 | ||
Extended warranties [Abstract] | |||
Extended warranty period | 6 | ||
Warranty [Abstract] | |||
Basic warranty period | yr | 1 | ||
Top of Range [Member] | |||
Maintenance contracts [Abstract] | |||
Maintenance contract period | 36 | ||
Extended warranties [Abstract] | |||
Extended warranty period | 48 | ||
Warranty [Abstract] | |||
Basic warranty period | yr | 3 | ||
Land improvements [Member] | |||
Property, plant and equipment and depreciation [Abstract] | |||
Estimated useful lives | P15Y | ||
Buildings [Member] | Bottom of Range [Member] | |||
Property, plant and equipment and depreciation [Abstract] | |||
Estimated useful lives | P20Y | ||
Buildings [Member] | Top of Range [Member] | |||
Property, plant and equipment and depreciation [Abstract] | |||
Estimated useful lives | P60Y | ||
Equipment [Member] | Bottom of Range [Member] | |||
Property, plant and equipment and depreciation [Abstract] | |||
Estimated useful lives | P3Y | ||
Equipment [Member] | Top of Range [Member] | |||
Property, plant and equipment and depreciation [Abstract] | |||
Estimated useful lives | P15Y | ||
Leasehold Improvements [Member] | |||
Property, plant and equipment and depreciation [Abstract] | |||
Estimated useful lives | The lesser of useful life and remaining lease term | ||
Core Technology [Member] | Bottom of Range [Member] | |||
Intangible assets [Abstract] | |||
Estimated useful lives | P2Y | ||
Core Technology [Member] | Top of Range [Member] | |||
Intangible assets [Abstract] | |||
Estimated useful lives | P8Y | ||
Customer Relationships [Member] | Bottom of Range [Member] | |||
Intangible assets [Abstract] | |||
Estimated useful lives | P3M | ||
Customer Relationships [Member] | Top of Range [Member] | |||
Intangible assets [Abstract] | |||
Estimated useful lives | P5Y | ||
Brand Names [member] | |||
Intangible assets [Abstract] | |||
Estimated useful lives | P1Y | ||
Software [Member] | Bottom of Range [Member] | |||
Intangible assets [Abstract] | |||
Estimated useful lives | P2Y | ||
Software [Member] | Top of Range [Member] | |||
Intangible assets [Abstract] | |||
Estimated useful lives | P8Y |
Business Combinations, Acquisit
Business Combinations, Acquisition of Astellia S.A (Details) | Feb. 28, 2018USD ($)€ / shares | Jan. 26, 2018USD ($)€ / shares | Dec. 22, 2017USD ($)€ / shares | Dec. 21, 2017€ / shares | Oct. 10, 2017USD ($)€ / shares | Sep. 08, 2017USD ($)€ / shares | Feb. 22, 2018USD ($)€ / shares | Aug. 31, 2018USD ($) | Aug. 31, 2018USD ($)yr | Aug. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Feb. 28, 2018EUR (€) | Feb. 22, 2018EUR (€) | Jan. 26, 2018EUR (€) | Dec. 22, 2017EUR (€) | Oct. 10, 2017EUR (€) | Sep. 08, 2017EUR (€) | |
Business Combinations [Abstract] | ||||||||||||||||||
Equity loss pick-up | $ (2,080,000) | $ 0 | $ 0 | |||||||||||||||
Gain on deemed disposal of investment | 2,080,000 | 0 | 0 | |||||||||||||||
Liability assumed [Abstract] | ||||||||||||||||||
Goodwill | $ 39,892,000 | 39,892,000 | $ 35,077,000 | $ 21,928,000 | ||||||||||||||
Astellia SA [Member] | ||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||
Ownership interest | 100.00% | 88.40% | 40.30% | 33.10% | 97.30% | 100.00% | 97.30% | 88.40% | 40.30% | 33.10% | ||||||||
Additional ownership interest | 2.70% | 48.10% | 1.20% | 6.00% | 8.90% | 2.70% | 8.90% | 48.10% | 1.20% | |||||||||
Total consideration | $ 820,600 | $ 15,476,900 | $ 2,218,600 | $ 21,357,500 | $ 10,311,100 | $ 2,841,400 | € 672,150 | € 2,318,530 | € 12,452,090 | € 1,878,610 | € 17,321,380 | € 8,567,500 | ||||||
Share price (in euros per share) | € / shares | $ 10 | $ 10 | $ 10 | € 10 | $ 10 | $ 10 | $ 10 | |||||||||||
Total consideration paid for shares | $ 32,137,800 | 25,888,880 | ||||||||||||||||
Cash recognised as of acquisition date | $ 5,896,800 | 4,786,000 | ||||||||||||||||
Equity loss pick-up | (2,079,800) | |||||||||||||||||
Gain on deemed disposal of investment | 2,079,800 | |||||||||||||||||
Gain recognized in excess of fair value of non-controlling interest and purchase price paid | 352,000 | |||||||||||||||||
Sales and net loss attributable to parent interest [Abstract] | ||||||||||||||||||
Sales | [1] | 16,377,000 | ||||||||||||||||
Net loss attributable to the parent interest | [1],[2] | 12,850,000 | ||||||||||||||||
Pro forma sales | 292,134,000 | |||||||||||||||||
Pro forma net loss attributable to the parent interest | 18,768,000 | |||||||||||||||||
Acquisition related deferred revenue fair value adjustment | 2,095,000 | |||||||||||||||||
Amortization of acquired intangible assets | $ 5,077,000 | |||||||||||||||||
Assets acquired [Abstract] | ||||||||||||||||||
Accounts receivable | $ 16,374,000 | |||||||||||||||||
Income taxes and tax credits recoverable | 11,259,000 | |||||||||||||||||
Inventories | 3,045,000 | |||||||||||||||||
Prepaid expenses | 1,229,000 | |||||||||||||||||
Property, plant and equipment | 1,944,000 | |||||||||||||||||
Core technologies | 12,869,000 | |||||||||||||||||
Customer relationships | 8,381,000 | |||||||||||||||||
Brand name | 846,000 | |||||||||||||||||
Other intangible assets | 498,000 | |||||||||||||||||
Other assets | 1,402,000 | |||||||||||||||||
Total assets acquired | 57,847,000 | |||||||||||||||||
Liability assumed [Abstract] | ||||||||||||||||||
Accounts payable and accrued liabilities | 11,068,000 | |||||||||||||||||
Deferred revenue | 4,748,000 | |||||||||||||||||
Long-term debt (note 12) | 8,888,000 | |||||||||||||||||
Deferred income tax liabilities | 2,692,000 | |||||||||||||||||
Other liabilities | 6,715,000 | |||||||||||||||||
Net identifiable assets acquired | 23,736,000 | |||||||||||||||||
Goodwill | 2,505,000 | |||||||||||||||||
Fair value of the total consideration transferred, net of cash acquired | 26,241,000 | € 21,102,880 | ||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Cash paid net of cash acquired | 9,580,000 | |||||||||||||||||
Fair value of shares held | 12,967,000 | |||||||||||||||||
Non-controlling interest (purchased in February 2018) | 3,694,000 | |||||||||||||||||
Estimated fair value of accounts receivable | 16,374,000 | |||||||||||||||||
Gross contractual amounts receivable for acquired receivables | 18,758,000 | |||||||||||||||||
Gross contractual cash flows not expected to be collected | $ 2,384,000 | |||||||||||||||||
Increase in accounts receivable | 497,000 | |||||||||||||||||
Increase in intangible assets | 3,444,000 | |||||||||||||||||
Increase in accounts payable and accrued liabilities | 497,000 | |||||||||||||||||
Increase in deferred income tax liabilities | 2,692,000 | |||||||||||||||||
Decrease in goodwill | $ 752,000 | |||||||||||||||||
Astellia SA [Member] | Brand Name [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 1 | |||||||||||||||||
Astellia SA [Member] | Bottom of Range [Member] | Core Technologies [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 4 | |||||||||||||||||
Astellia SA [Member] | Bottom of Range [Member] | Customer Relationships [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 2 | |||||||||||||||||
Astellia SA [Member] | Top of Range [Member] | Core Technologies [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 8 | |||||||||||||||||
Astellia SA [Member] | Top of Range [Member] | Customer Relationships [Member] | ||||||||||||||||||
Fair value of total consideration, net of cash acquired [Abstract] | ||||||||||||||||||
Estimated useful life of intangible assets | yr | 5 | |||||||||||||||||
[1] | Includes acquisition-related deferred revenue fair value adjustment of $ 2,095,000. | |||||||||||||||||
[2] | Includes amortization of acquired intangible assets of $ 5,077,000. |
Business Combinations, Yenista
Business Combinations, Yenista Optics S.A.S (Details) | 12 Months Ended | ||||
Aug. 31, 2018USD ($)moyr | Oct. 02, 2017USD ($) | Oct. 02, 2017EUR (€) | Aug. 31, 2017USD ($) | Aug. 31, 2016USD ($) | |
Liability assumed [Abstract] | |||||
Goodwill | $ 39,892,000 | $ 35,077,000 | $ 21,928,000 | ||
Yenista Optics S.A.S [Member] | |||||
Business Combinations [Abstract] | |||||
Total consideration | $ 11,052,000 | € 9,400,000 | |||
Fair value of the total consideration transferred, net of cash acquired | 9,540,000 | 8,114,000 | |||
Cash recognised as of acquisition date | 1,512,000 | 1,286,000 | |||
Assets acquired [Abstract] | |||||
Accounts receivable | 1,889,000 | ||||
Inventories | 2,384,000 | ||||
Property, plant and equipment | 1,424,000 | ||||
Core technologies | 3,686,000 | ||||
Customer relationships | 811,000 | ||||
In-process research and development | 305,000 | ||||
Other intangible assets | 132,000 | ||||
Prepaid expenses | 171,000 | ||||
Total assets acquired | 10,802,000 | ||||
Liability assumed [Abstract] | |||||
Accounts payable and accrued liabilities | 1,035,000 | ||||
Long-term debt (note 12) | 2,143,000 | ||||
Deferred income tax liabilities | 1,510,000 | ||||
Net identifiable assets acquired | 6,114,000 | ||||
Goodwill | 3,426,000 | ||||
Fair value of the total consideration transferred, net of cash acquired | $ 9,540,000 | € 8,114,000 | |||
Yenista Optics S.A.S [Member] | Core Technologies [Member] | Bottom of Range [Member] | |||||
Business Combinations [Abstract] | |||||
Estimated useful life of intangible assets | yr | 2 | ||||
Yenista Optics S.A.S [Member] | Core Technologies [Member] | Top of Range [Member] | |||||
Business Combinations [Abstract] | |||||
Estimated useful life of intangible assets | yr | 5 | ||||
Yenista Optics S.A.S [Member] | Customer Relationships [Member] | |||||
Business Combinations [Abstract] | |||||
Estimated useful life of intangible assets | mo | 3 |
Business Combinations, Absolute
Business Combinations, Absolute Analysis Inc. (Details) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2018USD ($)yr | Aug. 31, 2017USD ($) | Oct. 31, 2016USD ($)shares | Aug. 31, 2016USD ($) | |
Liability assumed [Abstract] | ||||
Goodwill | $ 39,892 | $ 35,077 | $ 21,928 | |
Absolute Analysis Inc [Member] | ||||
Business Combinations [Abstract] | ||||
Consideration paid in cash | $ 5,000 | |||
Consideration paid in subordinate voting shares | 3,490 | |||
Assets acquired [Abstract] | ||||
Core technology | 4,130 | |||
Other assets | 236 | |||
Total assets acquired | 4,366 | |||
Liability assumed [Abstract] | ||||
Deferred income tax liabilities | 279 | |||
Net identifiable assets acquired | 4,087 | |||
Goodwill | 4,403 | |||
Fair value of the total consideration transferred, net of cash acquired | $ 8,490 | |||
Absolute Analysis Inc [Member] | Bottom of Range [Member] | ||||
Liability assumed [Abstract] | ||||
Estimated useful life of acquired intangible | yr | 1 | |||
Absolute Analysis Inc [Member] | Top of Range [Member] | ||||
Liability assumed [Abstract] | ||||
Estimated useful life of acquired intangible | yr | 5 | |||
Absolute Analysis Inc [Member] | Subordinate Voting Shares [Member] | ||||
Business Combinations [Abstract] | ||||
Number of shares issued for acquisition (in shares) | shares | 793,070 |
Business Combinations, Ontology
Business Combinations, Ontology Partners Limited (Details) $ in Thousands | Mar. 02, 2017USD ($)yr | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2016USD ($) |
Business Combinations [Abstract] | ||||
Fair value of cash contingent consideration | $ 0 | $ 1,092 | ||
Liability assumed [Abstract] | ||||
Goodwill | $ 39,892 | $ 35,077 | $ 21,928 | |
Ontology Partners Limited [Member] | ||||
Business Combinations [Abstract] | ||||
Consideration paid in cash | $ 7,780 | |||
Estimated useful life of acquired intangible | yr | 5 | |||
Cash recognised as of acquisition date | $ 2,156 | |||
Fair value of cash contingent consideration | 1,400 | |||
Assets acquired [Abstract] | ||||
Accounts receivable | 1,701 | |||
Core technology | 3,802 | |||
Customer relationships | 1,607 | |||
Other assets | 37 | |||
Total assets acquired | 7,147 | |||
Liability assumed [Abstract] | ||||
Accounts payable and accrued liabilities | 3,343 | |||
Deferred revenue | 211 | |||
Long-term debt | 1,480 | |||
Net identifiable assets acquired | 2,113 | |||
Goodwill | 7,067 | |||
Fair value of the total consideration transferred, net of cash acquired | $ 9,180 |
Business Combinations, Acquis_2
Business Combinations, Acquisition Related Costs (Details) - Aggregated Business Combinations [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Acquisition related costs [Abstract] | |||
Selling and administrative expenses | $ 2,236 | $ 1,054 | $ 0 |
Interest and other expenses | 248 | 0 | 0 |
Acquisition related cost | $ 2,484 | $ 1,054 | $ 0 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Restructuring provision [Abstract] | ||||
Restructuring charges, net of tax | $ 3,409 | $ 5,079 | $ 0 | |
Restructuring charges payable [Abstract] | ||||
Balance - Beginning of year | 2,477 | |||
Balance - End of year | $ 3,167 | 3,167 | 2,477 | |
Fiscal 2018 Plan [Member] | ||||
Restructuring provision [Abstract] | ||||
Severance expenses | 2,072 | |||
Remaining non-cancelable operating lease | 1,137 | |||
Income tax credits writeoffs of research and development | 1,200 | |||
Impairment of long-lived assets | 150 | |||
Related income taxes | 1,150 | |||
Restructuring charges, net of tax | 3,409 | |||
Restructuring charges payable [Abstract] | ||||
Balance - Beginning of year | 0 | |||
Addition | 3,209 | |||
Payments | (42) | |||
Balance - End of year | 3,167 | 3,167 | 0 | |
Fiscal 2017 Plan [Member] | ||||
Restructuring provision [Abstract] | ||||
Severance expenses | 4,049 | |||
Inventory write-offs | 1,030 | |||
Restructuring charges, net of tax | 5,079 | |||
Restructuring charges payable [Abstract] | ||||
Balance - Beginning of year | 2,477 | 0 | ||
Addition | 0 | 4,049 | ||
Payments | (2,010) | (1,572) | ||
Reversal | (467) | 0 | ||
Balance - End of year | $ 0 | $ 0 | $ 2,477 | $ 0 |
Capital Disclosures (Details)
Capital Disclosures (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Capital Disclosures [Abstract] | ||
Capital amount | $ 225,271 | $ 235,755 |
Financial Instruments, Financia
Financial Instruments, Financial Instruments by Category (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Bank Loan [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | $ 10,692 | |
Accounts Payable and Accrued Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 47,308 | $ 36,776 |
Contingent Liability [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 1,092 | |
Other Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 3,197 | |
Long-term Debt [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 8,828 | |
Forward Exchange Contracts [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 807 | |
Cash [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 12,758 | 38,435 |
Short-term Investments [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 2,282 | 775 |
Accounts Receivables [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 46,955 | 43,340 |
Other Assets [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 352 | 36 |
Forward Exchange Contracts [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 318 | 2,258 |
Other Financial Liabilities [Member] | Bank Loan [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 10,692 | |
Other Financial Liabilities [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 47,308 | 36,776 |
Other Financial Liabilities [Member] | Contingent Liability [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Other Financial Liabilities [Member] | Other Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 3,197 | |
Other Financial Liabilities [Member] | Long-term Debt [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 8,828 | |
Other Financial Liabilities [Member] | Forward Exchange Contracts [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Financial Liabilities at Fair Value Through Profit or Loss [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Financial Liabilities at Fair Value Through Profit or Loss [Member] | Contingent Liability [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 1,092 | |
Derivatives Used for Hedging [Member] | Bank Loan [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | 0 |
Derivatives Used for Hedging [Member] | Contingent Liability [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Other Liabilities [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Long-term Debt [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | |
Derivatives Used for Hedging [Member] | Forward Exchange Contracts [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 807 | |
Loans and Receivables [Member] | Cash [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 12,758 | 38,435 |
Loans and Receivables [Member] | Short-term Investments [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Loans and Receivables [Member] | Accounts Receivables [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 46,955 | 43,340 |
Loans and Receivables [Member] | Other Assets [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 352 | 36 |
Loans and Receivables [Member] | Forward Exchange Contracts [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Available for Sale [Member] | Cash [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Available for Sale [Member] | Short-term Investments [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 2,282 | 775 |
Available for Sale [Member] | Accounts Receivables [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Available for Sale [Member] | Other Assets [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Available for Sale [Member] | Forward Exchange Contracts [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Derivatives Used for Hedging [Member] | Cash [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Derivatives Used for Hedging [Member] | Short-term Investments [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Derivatives Used for Hedging [Member] | Accounts Receivables [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Derivatives Used for Hedging [Member] | Other Assets [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Derivatives Used for Hedging [Member] | Forward Exchange Contracts [Member] | ||
Financial assets [Abstract] | ||
Financial assets | $ 318 | $ 2,258 |
Financial Instruments, Fair Val
Financial Instruments, Fair Value (Details) - Fair Value [Member] - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Forward Exchange Contracts [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | $ 0 | $ 0 |
Forward Exchange Contracts [Member] | Level 2 [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 807 | 0 |
Forward Exchange Contracts [Member] | Level 3 [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | 0 |
Contingent Liability [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | 0 |
Contingent Liability [Member] | Level 2 [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | 0 |
Contingent Liability [Member] | Level 3 [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 0 | 1,092 |
Long-term Debt [Member] | ||
Financial liabilities [Abstract] | ||
Financial liabilities | 8,879 | |
Short-term Investments [Member] | Level 1 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 2,282 | 775 |
Short-term Investments [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Short-term Investments [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Forward Exchange Contracts [Member] | Level 1 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 0 | 0 |
Forward Exchange Contracts [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | 318 | 2,258 |
Forward Exchange Contracts [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Financial assets | $ 0 | $ 0 |
Financial Instruments, Market R
Financial Instruments, Market Risk (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2018USD ($)$ / sharesCAD ($) | Aug. 31, 2017USD ($)$ / sharesCAD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2018EUR (€)CAD ($) | Aug. 31, 2017EUR (€)CAD ($) | |
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Reclassified from accumulated other comprehensive income to net earnings over the next 12 months | $ 336 | ||||
Foreign Exchange Gains (Losses) on Foreign Exchange Contracts [Abstract] | |||||
Gain (losses) on forward exchange contracts | 876 | $ (468) | $ (2,651) | ||
Financial liabilities [Abstract] | |||||
Nominal value of outstanding financial liabilities | $ 45,800 | 29,200 | |||
Interest rate risk [Abstract] | |||||
Percentage of change in interest rate would not have insignificant impact | 1.00% | ||||
Short-term investments [Abstract] | |||||
Short-term investments | $ 2,282 | 775 | |||
Current Assets [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, assets | 318 | 1,697 | |||
Long-term Assets [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, assets | 561 | ||||
Other Accounts Receivable [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts recognized in earnings | 64 | 261 | |||
Current Liabilities [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, liabilities | 590 | ||||
Long-term Liabilities [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Forward exchange contracts, liabilities | 217 | ||||
Accounts Payable and Accrued Liabilities [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 47,308 | 36,776 | |||
Forward Exchange Contracts [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 807 | ||||
Cash [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 12,758 | 38,435 | |||
Accounts Receivables [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 46,955 | 43,340 | |||
Currency Risk [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 33,096 | 48,540 | € 7,139 | € 12,399 | |
Financial liabilities [Abstract] | |||||
Financial liabilities | 25,214 | 16,047 | 5,107 | 2,725 | |
Net exposure | 7,882 | 32,493 | 2,032 | 9,674 | |
Currency Risk [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 20,214 | 12,447 | 5,107 | 2,725 | |
Currency Risk [Member] | Forward Exchange Contracts [Member] | |||||
Financial liabilities [Abstract] | |||||
Financial liabilities | 5,000 | 3,600 | 0 | 0 | |
Currency Risk [Member] | Cash [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 2,790 | 20,120 | 3,352 | 6,235 | |
Currency Risk [Member] | Accounts Receivables [Member] | |||||
Financial assets [Abstract] | |||||
Financial assets | 30,306 | 28,420 | € 3,787 | € 6,164 | |
Indian Rupees [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 5,000 | ||||
Weighted average contractual forward rates | $ / shares | 68.78 | ||||
Indian Rupees [Member] | September 2017 to August 2018 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 3,400 | ||||
Weighted average contractual forward rates | $ / shares | 69.49 | ||||
Indian Rupees [Member] | September 2018 to February 2019 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 1,600 | ||||
Weighted average contractual forward rates | $ / shares | 67.26 | ||||
Indian Rupees [Member] | September 2018 to May 2019 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 4,600 | ||||
Weighted average contractual forward rates | $ / shares | 67.68 | ||||
Canadian Dollars [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 45,800 | $ 29,200 | |||
Weighted average contractual forward rates | $ / shares | 1.2909 | 1.3414 | |||
Financial liabilities [Abstract] | |||||
Percentage of increase (decrease) period-end value Canadian dollars comparison on net earnings | 10.00% | 10.00% | |||
Increase (decrease) period-end value Canadian dollars comparison on net earnings | $ 844 | $ 2,726 | |||
Increase (decrease) period-end value Canadian dollars comparison on net earnings per diluted share (in dollars per share) | $ / shares | $ 0.02 | $ 0.05 | |||
Percentage of increase (decrease) period-end value Canadian dollars comparison on other comprehensive income | 10.00% | 10.00% | |||
Increase (decrease) period-end value Canadian dollars comparison on other comprehensive income | $ 2,956 | $ 2,744 | |||
Canadian Dollars [Member] | September 2017 to August 2018 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 18,300 | ||||
Weighted average contractual forward rates | $ / shares | 1.3407 | ||||
Canadian Dollars [Member] | September 2018 to August 2019 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 26,400 | $ 10,900 | |||
Weighted average contractual forward rates | $ / shares | 1.3029 | 1.3426 | |||
Canadian Dollars [Member] | September 2019 to August 2020 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 15,700 | ||||
Weighted average contractual forward rates | $ / shares | 1.2756 | ||||
Canadian Dollars [Member] | September 2020 to May 2021 [Member] | |||||
Contracts to Sell at Various Forward Rates [Abstract] | |||||
Contractual amounts | $ 3,700 | ||||
Weighted average contractual forward rates | $ / shares | 1.2703 | ||||
Euro [Member] | |||||
Financial liabilities [Abstract] | |||||
Foreign currency comparison rate | 1.5210 | 1.4825 | 1.5210 | 1.4825 | |
Percentage of increase (decrease) period-end value Canadian dollars comparison on net earnings | 10.00% | 10.00% | |||
Increase (decrease) period-end value Canadian dollars comparison on net earnings | $ 335 | $ 1,025 | |||
Increase (decrease) period-end value Canadian dollars comparison on net earnings per diluted share (in dollars per share) | $ / shares | $ 0.01 | $ 0.02 | |||
US Dollars [Member] | |||||
Financial liabilities [Abstract] | |||||
Foreign currency comparison rate | 1.3055 | 1.2536 | 1.3055 | 1.2536 | |
Term Deposits [Member] | Indian Rupees [Member] | |||||
Short-term investments [Abstract] | |||||
Short-term investments | $ 1,909 | $ 775 | |||
Term Deposits [Member] | Indian Rupees [Member] | Bottom of Range [Member] | |||||
Short-term investments [Abstract] | |||||
Annual interest rate | 5.00% | 4.30% | |||
Maturity date | October 31, 2018 | October 31, 2017 | |||
Term Deposits [Member] | Indian Rupees [Member] | Top of Range [Member] | |||||
Short-term investments [Abstract] | |||||
Annual interest rate | 6.80% | 6.90% | |||
Maturity date | August 31, 2019 | October 31, 2018 | |||
Other [Member] | |||||
Short-term investments [Abstract] | |||||
Short-term investments | $ 373 | $ 0 |
Financial Instruments, Credit R
Financial Instruments, Credit Risk (Details) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018USD ($)Customer | Aug. 31, 2017USD ($)Customer | Aug. 31, 2016USD ($)Customer | |
Financial Instruments [Abstract] | |||
Percentage of total sales represent for top customer | 10.10% | ||
Number of customers representing more than 10% of total sales | Customer | 0 | 1 | 0 |
Trade account receivable [Abstract] | |||
Trade accounts receivable | $ 47,273 | $ 41,130 | |
Changes in allowance for doubtful accounts [Abstract] | |||
Balance - Beginning of year | 2,960 | 3,752 | |
Addition charged to earnings | 834 | 654 | |
Writeoff of uncollectible accounts | (3,022) | (1,446) | |
Balance - End of year | 772 | 2,960 | $ 3,752 |
Current [Member] | |||
Trade account receivable [Abstract] | |||
Trade accounts receivable | 34,344 | 35,100 | |
Past Due, 0 to 30 days [Member] | |||
Trade account receivable [Abstract] | |||
Trade accounts receivable | 6,011 | 3,049 | |
Past Due, 31 to 60 days [Member] | |||
Trade account receivable [Abstract] | |||
Trade accounts receivable | 2,556 | 1,289 | |
Past Due, More than 60 days [Member] | |||
Trade account receivable [Abstract] | |||
Trade accounts receivable | $ 4,362 | $ 1,692 |
Financial Instruments, Liquidit
Financial Instruments, Liquidity Risk (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Derivative and non-derivative financial liabilities [Abstract] | ||
Bank loan | $ 10,692 | $ 0 |
Accounts payable and accrued liabilities | 47,898 | 36,776 |
Forward exchange contracts [Abstract] | ||
Long-term debt | 5,907 | 0 |
Other liabilities | 421 | 196 |
Cash and short-term investments | 15,040 | |
Accounts receivable | 51,410 | |
Unused available lines of credit for working capital and other general corporate purposes | 52,695 | |
Unused lines of credit for foreign currency exposure | 25,053 | |
Liquidity Risk [Member] | No Later than One Year [Member] | ||
Derivative and non-derivative financial liabilities [Abstract] | ||
Bank loan | 10,692 | |
Accounts payable and accrued liabilities | 47,308 | 36,776 |
Contingent liability | 1,092 | |
Forward exchange contracts [Abstract] | ||
Outflow | 31,000 | 21,700 |
Inflow | (30,738) | (23,265) |
Long-term debt | 2,921 | |
Other liabilities | 3,197 | |
Financial liabilities | 64,380 | 36,303 |
Liquidity Risk [Member] | Later than 1 Year and no Later than 5 Years [Member] | ||
Derivative and non-derivative financial liabilities [Abstract] | ||
Bank loan | 0 | |
Accounts payable and accrued liabilities | 0 | 0 |
Contingent liability | 0 | |
Forward exchange contracts [Abstract] | ||
Outflow | 19,400 | 12,500 |
Inflow | (18,940) | (13,357) |
Long-term debt | 5,745 | |
Other liabilities | 0 | |
Financial liabilities | 6,205 | $ (857) |
Liquidity Risk [Member] | Later than 5 Years [member] | ||
Derivative and non-derivative financial liabilities [Abstract] | ||
Bank loan | 0 | |
Accounts payable and accrued liabilities | 0 | |
Forward exchange contracts [Abstract] | ||
Outflow | 0 | |
Inflow | 0 | |
Long-term debt | 162 | |
Other liabilities | 0 | |
Financial liabilities | $ 162 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Inventories [Abstract] | |||
Raw materials | $ 24,561 | $ 18,899 | |
Work in progress | 869 | 886 | |
Finished goods | 13,159 | 14,047 | |
Inventories | 38,589 | 33,832 | |
Inventory recognized as an expense | 116,293 | 98,503 | $ 89,058 |
Inventory writedown | $ 2,541 | $ 3,259 | $ 3,678 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Beginning balance | $ 40,132 | |
Ending balance | 44,310 | $ 40,132 |
Unpaid additions to property, plant and equipment | 1,788 | 522 |
Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 75,095 | 67,712 |
Additions | 8,788 | 6,675 |
Business combinations | 3,368 | 130 |
Disposals | (5,239) | (2,907) |
Foreign currency translation adjustment | (3,171) | 3,485 |
Ending balance | 78,841 | 75,095 |
Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 34,963 | 31,734 |
Depreciation | 5,444 | 3,902 |
Disposals | (4,464) | (2,549) |
Foreign currency translation adjustment | (1,412) | 1,876 |
Ending balance | 34,531 | 34,963 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 3,227 | |
Ending balance | 3,069 | 3,227 |
Land and Land Improvements [Member] | Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 4,522 | 4,322 |
Additions | 17 | 0 |
Business combinations | 0 | 0 |
Disposals | 0 | 0 |
Foreign currency translation adjustment | (180) | 200 |
Ending balance | 4,359 | 4,522 |
Land and Land Improvements [Member] | Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 1,295 | 1,192 |
Depreciation | 48 | 45 |
Disposals | 0 | 0 |
Foreign currency translation adjustment | (53) | 58 |
Ending balance | 1,290 | 1,295 |
Buildings [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 24,618 | |
Ending balance | 25,685 | 24,618 |
Buildings [Member] | Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 31,951 | 29,755 |
Additions | 3,048 | 794 |
Business combinations | 0 | 0 |
Disposals | (1,413) | 0 |
Foreign currency translation adjustment | (1,240) | 1,402 |
Ending balance | 32,346 | 31,951 |
Buildings [Member] | Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 7,333 | 6,602 |
Depreciation | 604 | 403 |
Disposals | (994) | 0 |
Foreign currency translation adjustment | (282) | 328 |
Ending balance | 6,661 | 7,333 |
Equipment [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 10,367 | |
Ending balance | 13,925 | 10,367 |
Equipment [Member] | Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 35,574 | 30,717 |
Additions | 5,677 | 5,562 |
Business combinations | 3,105 | 130 |
Disposals | (3,651) | (2,568) |
Foreign currency translation adjustment | (1,617) | 1,733 |
Ending balance | 39,088 | 35,574 |
Equipment [Member] | Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 25,207 | 22,902 |
Depreciation | 4,420 | 3,162 |
Disposals | (3,440) | (2,210) |
Foreign currency translation adjustment | (1,024) | 1,353 |
Ending balance | 25,163 | 25,207 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 1,920 | |
Ending balance | 1,631 | 1,920 |
Leasehold Improvements [Member] | Cost [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 3,048 | 2,918 |
Additions | 46 | 319 |
Business combinations | 263 | 0 |
Disposals | (175) | (339) |
Foreign currency translation adjustment | (134) | 150 |
Ending balance | 3,048 | 3,048 |
Leasehold Improvements [Member] | Accumulated Depreciation [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Beginning balance | 1,128 | 1,038 |
Depreciation | 372 | 292 |
Disposals | (30) | (339) |
Foreign currency translation adjustment | (53) | 137 |
Ending balance | $ 1,417 | $ 1,128 |
Intangible Assets and Goodwill,
Intangible Assets and Goodwill, Intangible Assets (Details) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018USD ($)yr | Aug. 31, 2017USD ($) | Aug. 31, 2016USD ($) | |
Intangible Assets [Abstract] | |||
Beginning balance | $ 11,183 | ||
Additions | 3,138 | $ 912 | |
Business combinations (note 3) | 27,528 | 9,539 | |
Disposals | (2,534) | (483) | |
Foreign currency translation adjustment | (2,518) | 1,370 | |
Ending balance | 29,866 | 11,183 | |
Amortization | 10,327 | 3,289 | |
Cost [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | 26,483 | 15,145 | |
Ending balance | 52,097 | 26,483 | $ 15,145 |
Accumulated Amortization [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 22,231 | 15,300 | 11,754 |
Disposals [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | (2,507) | (452) | |
Foreign Currency Translation Adjustment [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | (889) | 709 | |
Core Technology [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | 7,763 | ||
Additions | 89 | 0 | |
Business combinations (note 3) | 16,555 | 7,932 | |
Disposals | (60) | (76) | |
Foreign currency translation adjustment | (1,419) | 735 | |
Ending balance | 18,448 | 7,763 | |
Amortization | $ 4,878 | 2,617 | |
Remaining amortization period, end of period | yr | 5 | ||
Core Technology [Member] | Cost [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | $ 12,893 | 4,302 | |
Ending balance | 28,058 | 12,893 | 4,302 |
Core Technology [Member] | Accumulated Amortization [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 9,610 | 5,130 | 2,307 |
Core Technology [Member] | Disposals [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | (45) | (54) | |
Core Technology [Member] | Foreign Currency Translation Adjustment [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | (353) | 260 | |
Customer Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | 1,520 | ||
Additions | 0 | 0 | |
Business combinations (note 3) | 9,192 | 1,607 | |
Disposals | 0 | 0 | |
Foreign currency translation adjustment | (590) | 82 | |
Ending balance | 6,358 | 1,520 | |
Amortization | $ 3,949 | 167 | |
Remaining amortization period, end of period | yr | 2 | ||
Customer Relationships [Member] | Cost [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | $ 1,689 | 0 | |
Ending balance | 10,291 | 1,689 | 0 |
Customer Relationships [Member] | Accumulated Amortization [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 3,933 | 169 | 0 |
Customer Relationships [Member] | Disposals [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 0 | 0 | |
Customer Relationships [Member] | Foreign Currency Translation Adjustment [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | (185) | 2 | |
In-process Research and Development [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | 0 | ||
Additions | 0 | 0 | |
Business combinations (note 3) | 305 | 0 | |
Disposals | 0 | 0 | |
Foreign currency translation adjustment | (13) | 0 | |
Ending balance | 292 | 0 | |
Amortization | $ 0 | 0 | |
Remaining amortization period, end of period | yr | 0 | ||
In-process Research and Development [Member] | Cost [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | $ 0 | 0 | |
Ending balance | 292 | 0 | 0 |
In-process Research and Development [Member] | Accumulated Amortization [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 0 | 0 | 0 |
In-process Research and Development [Member] | Disposals [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 0 | 0 | |
In-process Research and Development [Member] | Foreign Currency Translation Adjustment [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 0 | 0 | |
Brand Name [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | 0 | ||
Additions | 0 | 0 | |
Business combinations (note 3) | 846 | 0 | |
Disposals | 0 | 0 | |
Foreign currency translation adjustment | (50) | 0 | |
Ending balance | 284 | 0 | |
Amortization | $ 519 | 0 | |
Remaining amortization period, end of period | yr | 0 | ||
Brand Name [Member] | Cost [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | $ 0 | 0 | |
Ending balance | 796 | 0 | 0 |
Brand Name [Member] | Accumulated Amortization [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 512 | 0 | 0 |
Brand Name [Member] | Disposals [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 0 | 0 | |
Brand Name [Member] | Foreign Currency Translation Adjustment [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | (7) | 0 | |
Software [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | 1,900 | ||
Additions | 3,049 | 912 | |
Business combinations (note 3) | 630 | 0 | |
Disposals | (2,474) | (407) | |
Foreign currency translation adjustment | (446) | 553 | |
Ending balance | 4,484 | 1,900 | |
Amortization | $ 981 | 505 | |
Remaining amortization period, end of period | yr | 3 | ||
Software [Member] | Cost [Member] | |||
Intangible Assets [Abstract] | |||
Beginning balance | $ 11,901 | 10,843 | |
Ending balance | 12,660 | 11,901 | 10,843 |
Software [Member] | Accumulated Amortization [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | 8,176 | 10,001 | $ 9,447 |
Software [Member] | Disposals [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | (2,462) | (398) | |
Software [Member] | Foreign Currency Translation Adjustment [Member] | |||
Intangible Assets [Abstract] | |||
Amortization | $ (344) | $ 447 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Goodwill [Abstract] | ||
Balance - Beginning of year | $ 35,077 | $ 21,928 |
Business combinations (note 3) | 5,931 | 11,470 |
Foreign currency translation adjustment | (1,116) | 1,679 |
Balance - End of year | $ 39,892 | $ 35,077 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill, Goodwill Allocated to CGUs (Details) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2016USD ($) | |
Goodwill CGUs [Abstract] | |||
Goodwill | $ 39,892 | $ 35,077 | $ 21,928 |
Market Approach [Member] | Bottom of Range [Member] | |||
Goodwill CGUs [Abstract] | |||
Estimating recoverable amounts, sales multiple | 1.7 | ||
Market Approach [Member] | Top of Range [Member] | |||
Goodwill CGUs [Abstract] | |||
Estimating recoverable amounts, sales multiple | 3.4 | ||
EXFO CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | $ 13,185 | 13,772 | |
Brix CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | $ 13,327 | 13,878 | |
Brix CGU [Member] | Liquidation approach [Member] | |||
Goodwill CGUs [Abstract] | |||
Period of liquidation approach | P3Y | ||
Ontology CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | $ 7,471 | 7,427 | |
Yenista CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | 3,562 | 0 | |
Astellia CGU [Member] | |||
Goodwill CGUs [Abstract] | |||
Goodwill | $ 2,347 | $ 0 |
Credit Facilities (Details)
Credit Facilities (Details) € in Thousands, ₨ in Thousands, $ in Thousands, $ in Thousands | Aug. 31, 2018USD ($) | Aug. 31, 2018EUR (€) | Aug. 31, 2018INR (₨) | Dec. 21, 2017USD ($) | Dec. 21, 2017CAD ($) | Oct. 25, 2017USD ($) | Oct. 25, 2017CAD ($) |
Canadian Line of Credit One [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of credit maximum borrowing capacity | $ 3,677 | $ 4,800 | |||||
Canadian Line of Credit Two [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of credit maximum borrowing capacity | 6,000 | ||||||
Canadian Line of Credit Three [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of credit maximum borrowing capacity | $ 22,159 | $ 28,929 | |||||
Canadian Revolving Line of Credit [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of credit maximum borrowing capacity | $ 53,620 | $ 70,000 | |||||
US Dollar Revolving Line of Credit [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of credit maximum borrowing capacity | $ 9,000 | ||||||
Revolving Line of Credit [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Amount drawn from lines of credit | $ 11,750 | ||||||
Revolving Line of Credit [Member] | Bank Loan [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Amount drawn from lines of credit | 10,692 | ||||||
Revolving Line of Credit [Member] | Letters of Guarantee [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Amount drawn from lines of credit | 1,058 | ||||||
Line of Credit, Foreign Currency Risk [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of credit maximum borrowing capacity | 26,782 | ||||||
Amount reserved from line of credit | 3,150 | ||||||
INR Line of Credit, Foreign Currency Risk [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of credit maximum borrowing capacity | 1,800 | ₨ 127,660 | |||||
Amount reserved from line of credit | 379 | ₨ 26,879 | |||||
Euro Dollar Revolving Line of Credit [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of credit maximum borrowing capacity | 2,505 | € 2,150 | |||||
Euro Dollar Revolving Line of Credit [Member] | Letters of Guarantee [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Amount drawn from lines of credit | $ 680 | € 583 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities and Provisions (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Accounts payable and accrued liabilities [Abstract] | ||
Trade | $ 26,052 | $ 19,002 |
Salaries and social benefits | 18,101 | 15,176 |
Forward exchange contracts (note 6) | 590 | 0 |
Other | 3,155 | 2,598 |
Accounts payable and accrued liabilities | 47,898 | 36,776 |
Provisions [Abstract] | ||
Warranty | 417 | 320 |
Contingent liability (note 3) | 0 | 1,092 |
Restructuring charges (note 4) | 3,167 | 2,477 |
Other | 1,717 | 0 |
Provisions | $ 5,301 | $ 3,889 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Long-term Debt [Abstract] | ||
Total long-term debt | $ 8,828 | $ 0 |
Current portion of long-term debt | 2,921 | 0 |
Long-term Debt | 5,907 | 0 |
Unsecured Non-interest-bearing Loans Maturing in March 2024 and March 2025 [Member] | Euro [Member] | ||
Long-term Debt [Abstract] | ||
Total long-term debt | $ 883 | 0 |
Unsecured Non-interest-bearing Loans Maturing in March 2024 and March 2025 [Member] | Euro [Member] | Bottom of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, maturity | March 2,024 | |
Unsecured Non-interest-bearing Loans Maturing in March 2024 and March 2025 [Member] | Euro [Member] | Top of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, maturity | March 2,025 | |
Unsecured Loans Maturing Between December 2018 and September 2023 [Member] | Euro [Member] | ||
Long-term Debt [Abstract] | ||
Total long-term debt | $ 4,853 | 0 |
Unsecured Loans Maturing Between December 2018 and September 2023 [Member] | Euro [Member] | Bottom of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 0.00% | |
Long-term debt, maturity | December 2,018 | |
Unsecured Loans Maturing Between December 2018 and September 2023 [Member] | Euro [Member] | Top of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 5.00% | |
Long-term debt, maturity | September 2,023 | |
Secured Loans Maturing Between December 2018 and August 2022 [Member] | Euro [Member] | ||
Long-term Debt [Abstract] | ||
Total long-term debt | $ 828 | 0 |
Secured Loans Maturing Between December 2018 and August 2022 [Member] | Euro [Member] | Bottom of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 0.70% | |
Long-term debt, maturity | December 2,018 | |
Secured Loans Maturing Between December 2018 and August 2022 [Member] | Euro [Member] | Top of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 2.00% | |
Long-term debt, maturity | August 2,022 | |
Secured Loans Maturing Between March 2020 and July 2022 [Member] | Euro [Member] | ||
Long-term Debt [Abstract] | ||
Total long-term debt | $ 2,264 | $ 0 |
Secured Loans Maturing Between March 2020 and July 2022 [Member] | Euro [Member] | Bottom of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 1.10% | |
Long-term debt, maturity | March 2,020 | |
Secured Loans Maturing Between March 2020 and July 2022 [Member] | Euro [Member] | Top of Range [Member] | ||
Long-term Debt [Abstract] | ||
Long-term debt, interest rate | 2.90% | |
Long-term debt, maturity | July 2,022 |
Long-Term Debt, Principal Repay
Long-Term Debt, Principal Repayments of Long-term Debt (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Principal repayments of long-term debt [Abstract] | ||
Long-term debt | $ 8,828 | $ 0 |
No Later than One Year [Member] | ||
Principal repayments of long-term debt [Abstract] | ||
Long-term debt | 2,921 | |
Later than One Year and No Later than Five Years [Member] | ||
Principal repayments of long-term debt [Abstract] | ||
Long-term debt | 5,745 | |
Later than Five Years [Member] | ||
Principal repayments of long-term debt [Abstract] | ||
Long-term debt | $ 162 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Minimum rentals payable under operating leases [Abstract] | |||
Rental expenses under operating leases | $ 3,884 | $ 2,945 | $ 2,728 |
Premises and Equipment [Member] | |||
Minimum rentals payable under operating leases [Abstract] | |||
Minimum rentals payments payable under operating leases | 13,386 | 10,095 | |
Intellectual Property [Member] | |||
License Agreements for Intellectual Property [Abstract] | |||
Minimum payments under license agreements | 3,474 | 2,714 | |
No Later than 1 Year [Member] | Premises and Equipment [Member] | |||
Minimum rentals payable under operating leases [Abstract] | |||
Minimum rentals payments payable under operating leases | 3,365 | 2,176 | |
No Later than 1 Year [Member] | Intellectual Property [Member] | |||
License Agreements for Intellectual Property [Abstract] | |||
Minimum payments under license agreements | 1,492 | 1,264 | |
Later than 1 Year and not Later than 5 Years [Member] | Premises and Equipment [Member] | |||
Minimum rentals payable under operating leases [Abstract] | |||
Minimum rentals payments payable under operating leases | 9,519 | 6,238 | |
Later than 1 Year and not Later than 5 Years [Member] | Intellectual Property [Member] | |||
License Agreements for Intellectual Property [Abstract] | |||
Minimum payments under license agreements | 1,982 | 1,450 | |
Later than 5 Years [Member] | Premises and Equipment [Member] | |||
Minimum rentals payable under operating leases [Abstract] | |||
Minimum rentals payments payable under operating leases | $ 502 | $ 1,681 |
Share Capital (Details)
Share Capital (Details) $ in Thousands | Mar. 29, 2016shares | Aug. 31, 2018USD ($)Voteshares | Aug. 31, 2017USD ($)shares | Aug. 31, 2016USD ($)shares |
Share Capital [Abstract] | ||||
Balance, beginning of period | $ 196,790 | $ 181,401 | $ 169,227 | |
Issuance of share capital (note 3) | 91,937 | 90,411 | ||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | 0 | 0 | 0 | |
Balance, end of period | 177,921 | 196,790 | 181,401 | |
Share Capital [Member] | ||||
Share Capital [Abstract] | ||||
Balance, beginning of period | 90,411 | 85,516 | 86,045 | |
Issuance of share capital (note 3) | 3,490 | |||
Redemption of restricted share units (note 16) | 0 | 0 | 0 | |
Redemption of deferred share units (note 16) | 0 | 0 | 0 | |
Redemption of share capital | (1,768) | |||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | 1,526 | 1,405 | 1,239 | |
Balance, end of period | $ 91,937 | $ 90,411 | $ 85,516 | |
Top of Range [Member] | Share Capital [Member] | ||||
Share Capital [Abstract] | ||||
Percentage on the open market for issued and outstanding subordinate voting shares | 6.60% | |||
Multiple Voting Shares [Member] | Share Capital [Member] | ||||
Share Capital [Abstract] | ||||
Number of votes per share | Vote | 10 | |||
Conversion ratio | 1 | |||
Balance, beginning of period (in shares) | shares | 31,643,000 | 31,643,000 | 31,643,000 | |
Balance, beginning of period | $ 1 | $ 1 | $ 1 | |
Issuance of share capital (note 3) (in shares) | shares | 0 | |||
Issuance of share capital (note 3) | $ 0 | |||
Redemption of restricted share units (note 16) (in shares) | shares | 0 | 0 | 0 | |
Redemption of restricted share units (note 16) | $ 0 | $ 0 | $ 0 | |
Redemption of deferred share units (note 16) (in shares) | shares | 0 | 0 | 0 | |
Redemption of deferred share units (note 16) | $ 0 | $ 0 | $ 0 | |
Redemption of share capital (in shares) | shares | 0 | |||
Redemption of share capital | $ 0 | |||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | $ 0 | $ 0 | $ 0 | |
Balance, end of period (in shares) | shares | 31,643,000 | 31,643,000 | 31,643,000 | |
Balance, end of period | $ 1 | $ 1 | $ 1 | |
Subordinate Voting Shares [Member] | Share Capital [Member] | ||||
Share Capital [Abstract] | ||||
Balance, beginning of period (in shares) | shares | 23,068,777 | 21,917,942 | 22,092,034 | |
Balance, beginning of period | $ 90,410 | $ 85,515 | $ 86,044 | |
Issuance of share capital (note 3) (in shares) | shares | 793,070 | |||
Issuance of share capital (note 3) | $ 3,490 | |||
Redemption of restricted share units (note 16) (in shares) | shares | 345,883 | 327,859 | 277,805 | |
Redemption of restricted share units (note 16) | $ 0 | $ 0 | $ 0 | |
Redemption of deferred share units (note 16) (in shares) | shares | 58,335 | 29,906 | 653 | |
Redemption of deferred share units (note 16) | $ 0 | $ 0 | $ 0 | |
Redemption of share capital (in shares) | shares | (452,550) | |||
Redemption of share capital | $ (1,768) | |||
Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | $ 1,526 | $ 1,405 | $ 1,239 | |
Balance, end of period (in shares) | shares | 23,472,995 | 23,068,777 | 21,917,942 | |
Balance, end of period | $ 91,936 | $ 90,410 | $ 85,515 | |
Subordinate voting shares under share repurchase program (in shares) | shares | 900,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Changes in accumulated other comprehensive loss [Abstract] | |||
Balance, beginning of period | $ (38,965) | ||
Foreign currency translation adjustment | (6,491) | $ 8,262 | $ 707 |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | (1,894) | 1,347 | 2,724 |
Balance, end of period | (47,350) | (38,965) | |
Foreign Currency Translation Adjustment [Member] | |||
Changes in accumulated other comprehensive loss [Abstract] | |||
Balance, beginning of period | (40,874) | (49,136) | (49,843) |
Foreign currency translation adjustment | (6,491) | 8,262 | 707 |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | 0 | 0 | 0 |
Balance, end of period | (47,365) | (40,874) | (49,136) |
Cash-flow Hedge [Member] | |||
Changes in accumulated other comprehensive loss [Abstract] | |||
Balance, beginning of period | 1,909 | 562 | (2,162) |
Foreign currency translation adjustment | 0 | 0 | 0 |
Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes | (1,894) | 1,347 | 2,724 |
Balance, end of period | 15 | 1,909 | 562 |
Accumulated Other Comprehensive Loss [Member] | |||
Changes in accumulated other comprehensive loss [Abstract] | |||
Balance, beginning of period | (38,965) | (48,574) | (52,005) |
Balance, end of period | $ (47,350) | $ (38,965) | $ (48,574) |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Stock-based compensation costs recognized for employee services [Abstract] | |||
Stock-based compensation costs arising from equity-settled awards | $ 1,770 | $ 1,439 | $ 1,394 |
Stock-based compensation costs arising from cash-settled awards | (22) | 38 | (16) |
Share-based compensation costs | $ 1,748 | $ 1,477 | $ 1,378 |
Top of Range [Member] | |||
Stock-Based Compensation Plans [Abstract] | |||
Number of additional subordinate voting shares issuable under the Long-Term Incentive Plan and the Deferred Share Unit Plan (in shares) | 11,792,893 | ||
Number of subordinate voting shares that may be granted to any individual on an annual basis, percentage | 5.00% |
Stock-Based Compensation Plans,
Stock-Based Compensation Plans, Long-Term Incentive Plan (Details) | 12 Months Ended | ||
Aug. 31, 2018shares$ / shares | Aug. 31, 2017shares$ / shares | Aug. 31, 2016shares$ / shares | |
Stock Options [Member] | |||
Stock Options [Abstract] | |||
Expiry period | P10Y | ||
Vesting period | P4Y | ||
Annual vesting percentage | 25.00% | ||
Number of Share Options [Abstract] | |||
Outstanding (in shares) | 0 | 0 | |
Exercisable (in shares) | 0 | 0 | |
Restricted Stock Units [Member] | |||
RSU Activity [Abstract] | |||
Outstanding - Beginning of year (in shares) | 1,611,330 | 1,551,555 | 1,299,958 |
Granted (in shares) | 420,621 | 527,143 | 572,008 |
Redeemed (in shares) | (345,883) | (327,859) | (277,805) |
Forfeited (in shares) | (70,916) | (139,509) | (42,606) |
Outstanding - End of year (in shares) | 1,615,152 | 1,611,330 | 1,551,555 |
Outstanding units redeemable (in shares) | 0 | 0 | |
Weighted average grant-date fair value (in dollars per share) | $ / shares | $ 4.22 | $ 4.54 | $ 3.23 |
Weighted-average market price of redeemed shares (in dollars per share) | $ / shares | $ 4.19 | $ 4.55 | $ 3.03 |
Restricted Stock Units [Member] | Bottom of Range [Member] | |||
Stock Options [Abstract] | |||
Vesting period | P3Y | ||
Restricted Stock Units [Member] | Top of Range [Member] | |||
Stock Options [Abstract] | |||
Vesting period | P10Y |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans, Deferred Share Unit Plan (Details) - Deferred Share Unit Plan [Member] | 12 Months Ended | ||
Aug. 31, 2018shares$ / shares | Aug. 31, 2017shares$ / shares | Aug. 31, 2016shares$ / shares | |
Deferred Share Unit Plan [Abstract] | |||
Number of subordinate voting share to receive by directors against each DSU (in shares) | 1 | ||
DSU Activity [Abstract] | |||
Outstanding - Beginning of year (in shares) | 174,279 | 159,127 | 114,810 |
Granted (in shares) | 65,745 | 45,058 | 44,970 |
Redeemed (in shares) | (58,335) | (29,906) | (653) |
Outstanding - End of year (in shares) | 181,689 | 174,279 | 159,127 |
Outstanding units redeemable (in shares) | 0 | 0 | 0 |
Weighted average grant-date fair value (in dollars per share) | $ / shares | $ 4.10 | $ 4.53 | $ 3.33 |
Weighted-average market price of redeemed shares (in dollars per share) | $ / shares | $ 4.29 | $ 5.02 | $ 3.04 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans, Stock Appreciation Rights Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Stock Appreciation Rights Plan [Abstract] | ||
Accounts payable and accrued liabilities | $ 47,898 | $ 36,776 |
Stock Appreciation Rights Plan [Member] | ||
Stock Appreciation Rights Plan [Abstract] | ||
Expiry period | P10Y | |
Vesting period | P4Y | |
Accounts payable and accrued liabilities | $ 93 | $ 115 |
Related-Party Disclosures (Deta
Related-Party Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Related-Party Disclosures [Abstract] | |||
Salaries and short-term employee benefits | $ 3,985 | $ 3,715 | $ 3,701 |
Stock-based compensation costs | 1,047 | 775 | 826 |
Total | $ 5,032 | $ 4,490 | $ 4,527 |
Statements of Earnings (Details
Statements of Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Net research and development expenses [Abstract] | |||
Gross research and development expenses | $ 65,243 | $ 53,124 | $ 47,875 |
Research and development tax credits and grants | (8,089) | (5,956) | (5,188) |
Net research and development expenses for the year | 57,154 | 47,168 | 42,687 |
Cost of sales [Abstract] | |||
Depreciation of property, plant and equipment | 2,077 | 1,522 | 1,290 |
Amortization of intangible assets | 9,212 | 2,652 | 702 |
Total depreciation and amortization expense | 11,289 | 4,174 | 1,992 |
Selling and administrative expenses [Abstract] | |||
Depreciation of property, plant and equipment | 902 | 530 | 501 |
Amortization of intangible assets | 592 | 251 | 75 |
Total depreciation and amortization expenses for the year | 1,494 | 781 | 576 |
Net research and development expenses [Abstract] | |||
Depreciation of property, plant and equipment | 2,465 | 1,850 | 2,023 |
Amortization of intangible assets | 523 | 386 | 395 |
Total depreciation and amortization expenses for the year | 2,988 | 2,236 | 2,418 |
Depreciation of property, plant and equipment | 5,444 | 3,902 | 3,814 |
Amortization of intangible assets | 10,327 | 3,289 | 1,172 |
Total depreciation and amortization expenses for the year | 15,771 | 7,191 | 4,986 |
Employee compensation [Abstract] | |||
Salaries and benefits | 134,453 | 115,832 | 112,569 |
Restructuring charges | 2,072 | 3,509 | 0 |
Stock-based compensation costs | 1,748 | 1,414 | 1,378 |
Total employee compensation for the year | 138,273 | 120,755 | 113,947 |
Restructuring charges [Abstract] | |||
Cost of sales | 517 | 1,697 | 0 |
Selling and administrative expenses | 673 | 1,150 | 0 |
Net research and development costs | 3,219 | 2,232 | 0 |
Interest and other expense | 150 | 0 | 0 |
Income taxes | (1,150) | 0 | 0 |
Total restructuring charges for the year | 3,409 | 5,079 | 0 |
Stock-based compensation costs [Abstract] | |||
Cost of sales | 143 | 121 | 107 |
Selling and administrative expenses | 1,217 | 1,052 | 972 |
Net research and development expenses | 388 | 304 | 299 |
Total stock-based compensation costs for the year | $ 1,748 | $ 1,477 | $ 1,378 |
Other Disclosures (Details)
Other Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Canadian Defined Contribution Pension Plan [Member] | |||
Defined contribution pension plans [Abstract] | |||
Cash contributions | $ 1,610 | $ 1,571 | $ 1,374 |
Canadian Defined Contribution Pension Plan [Member] | Top of Range [Member] | |||
Defined contribution pension plans [Abstract] | |||
Maximum matching percentage of employee's gross pay | 4.00% | ||
US Defined Contribution Pension Plan (401K plan) [Member] | |||
Defined contribution pension plans [Abstract] | |||
Cash contributions | $ 591 | $ 630 | $ 622 |
Percentage of employer contribution to employee | 3.00% | ||
Percentage of participants current compensation | 6.00% | ||
US Defined Contribution Pension Plan (401K plan) [Member] | Top of Range [Member] | |||
Defined contribution pension plans [Abstract] | |||
Percentage of employees additional statutorily prescribed annual limit | 1.00% | ||
Percentage of first 6% of participant's current compensation | 50.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2017 | Aug. 31, 2016 | |
Reconciliation of Income Tax Provision (Recovery) [Abstract] | |||||
Income tax provision (recovery) at combined Canadian federal and provincial statutory tax rate (27%) | $ (1,775) | $ 2,014 | $ 4,499 | ||
Increase (decrease) due to [Abstract] | |||||
Foreign income/loss taxed at different rates | 452 | (900) | (1,025) | ||
Non-deductible loss (non-taxable income) | (69) | (245) | 5 | ||
Non-deductible expenses | 1,285 | 981 | 411 | ||
Change in tax rates | 167 | (10) | 0 | ||
Effect of the US tax reform | 1,528 | 0 | 0 | ||
Foreign exchange effect of translation of foreign subsidiaries in the functional currency | (16) | 176 | 566 | ||
Recognition of previously unrecognized deferred income tax assets | (560) | 0 | 0 | ||
Utilization of previously unrecognized deferred income tax assets | (627) | (46) | 0 | ||
Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses | 6,100 | 4,659 | 3,702 | ||
Other | (807) | (21) | (394) | ||
Income tax provision for the year | $ 5,678 | $ 6,608 | $ 7,764 | ||
Canada [Member] | |||||
Applicable Tax Rate [Abstract] | |||||
Statutory tax rate | 27.00% | 27.00% | 27.00% | ||
US [Member] | |||||
Applicable Tax Rate [Abstract] | |||||
Statutory tax rate | 35.00% | ||||
Change In Tax Rates Enacted [Member] | US [Member] | |||||
Applicable Tax Rate [Abstract] | |||||
Statutory tax rate | 21.00% |
Income Taxes, Income Tax Provis
Income Taxes, Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Current [Abstract] | |||
Current income taxes | $ 4,310 | $ 5,554 | $ 6,186 |
Deferred [Abstract] | |||
Deferred income taxes relating to the origination and reversal of temporary differences | (3,545) | (3,559) | (2,124) |
Benefit arising from previously unrecognized tax losses and deductible temporary differences | (560) | 0 | 0 |
Utilization of previously unrecognized deferred income tax assets | (627) | (46) | 0 |
Total | (4,732) | (3,605) | (2,124) |
Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses | 6,100 | 4,659 | 3,702 |
Deferred income taxes | 1,368 | 1,054 | 1,578 |
Income tax provision for the year | $ 5,678 | $ 6,608 | $ 7,764 |
Income Taxes, Changes in Deferr
Income Taxes, Changes in Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | $ 3,439 | $ 5,383 |
Credited (charged) to the statement of earnings | (1,368) | (1,054) |
Credited (charged) to shareholders' equity | 554 | (479) |
Business combinations | (4,202) | (279) |
Foreign currency translation adjustment | 381 | (132) |
Deferred tax assets (liability), end of year | (1,196) | 3,439 |
Deferred Income Tax Assets [Member] | Long-Lived Assets [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 1,802 | 2,255 |
Credited (charged) to the statement of earnings | 200 | (240) |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 0 | (279) |
Foreign currency translation adjustment | (77) | 66 |
Deferred tax assets (liability), end of year | 1,925 | 1,802 |
Deferred Income Tax Assets [Member] | Provisions and Accruals [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 3,772 | 4,246 |
Credited (charged) to the statement of earnings | (250) | (89) |
Credited (charged) to shareholders' equity | 554 | (479) |
Business combinations | 0 | 0 |
Foreign currency translation adjustment | (113) | 94 |
Deferred tax assets (liability), end of year | 3,963 | 3,772 |
Deferred Income Tax Assets [Member] | Deferred Revenue [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 2,890 | 2,330 |
Credited (charged) to the statement of earnings | (101) | 486 |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 0 | 0 |
Foreign currency translation adjustment | (73) | 74 |
Deferred tax assets (liability), end of year | 2,716 | 2,890 |
Deferred Income Tax Assets [Member] | Research and Development Expenses [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 2,731 | 2,361 |
Credited (charged) to the statement of earnings | (101) | 248 |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 0 | 0 |
Foreign currency translation adjustment | (106) | 122 |
Deferred tax assets (liability), end of year | 2,524 | 2,731 |
Deferred Income Tax Assets [Member] | Losses Carried Forward [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | 4,241 | 4,598 |
Credited (charged) to the statement of earnings | (2,633) | (1,470) |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 3,687 | 1,059 |
Foreign currency translation adjustment | (222) | 54 |
Deferred tax assets (liability), end of year | 5,073 | 4,241 |
Deferred Income Tax Liabilities [Member] | Long-Lived Assets [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | (1,002) | 0 |
Credited (charged) to the statement of earnings | 1,903 | 111 |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | (7,889) | (1,059) |
Foreign currency translation adjustment | 527 | (54) |
Deferred tax assets (liability), end of year | (6,461) | (1,002) |
Deferred Income Tax Liabilities [Member] | Research and Development Tax Credits [Member] | ||
Changes in deferred tax (liability) asset [Abstract] | ||
Deferred tax assets (liability), beginning of year | (10,995) | (10,407) |
Credited (charged) to the statement of earnings | (386) | (100) |
Credited (charged) to shareholders' equity | 0 | 0 |
Business combinations | 0 | 0 |
Foreign currency translation adjustment | 445 | (488) |
Deferred tax assets (liability), end of year | $ (10,936) | $ (10,995) |
Income Taxes, Changes in Defe_2
Income Taxes, Changes in Deferred Income Tax Assets and Liabilities Classified as Follows (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 |
Classified as follows [Abstract] | |||
Deferred income tax assets | $ 4,714 | $ 6,555 | $ 8,240 |
Deferred income tax liabilities | (5,910) | (3,116) | (2,857) |
Deferred income tax assets net | $ (1,196) | $ 3,439 | $ 5,383 |
Income Taxes, Unrecognized Defe
Income Taxes, Unrecognized Deferred Income Tax Assets on Temporary Deductible Differences and Unused Tax Losses (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Unrecognized deferred income tax assets [Abstract] | ||
Unrecognized deferred income tax assets | $ 43,796 | $ 45,941 |
Temporary Deductible Differences [Member] | ||
Unrecognized deferred income tax assets [Abstract] | ||
Unrecognized deferred income tax assets | 1,435 | 2,271 |
Losses Carried Forward [Member] | ||
Unrecognized deferred income tax assets [Abstract] | ||
Unrecognized deferred income tax assets | $ 42,361 | $ 43,670 |
Income Taxes, Operating Losses
Income Taxes, Operating Losses for Which no Deferred Income Tax Assets Recognized (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018USD ($) | Aug. 31, 2018CAD ($) | Aug. 31, 2018CAD ($) | |
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Taxable temporary differences | $ 21,063 | ||
Research and Development Tax Credits [Abstract] | |||
Non-refundable research and development tax credits | 40,004 | ||
Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 45,753 | ||
France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 17,678 | ||
Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 6,042 | ||
United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 71,083 | ||
United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,167 | ||
Canada Federal Level [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Capital losses for which no deferred tax asset recognized | 48,852 | $ 66,788 | |
Research and Development Tax Credits [Abstract] | |||
Pre-tax earnings required for recovery | $ 267,000 | $ 348,000 | |
Estimated recovery period for pre-tax earnings | P15Y | P15Y | |
Pre-tax earnings compound annual growth rate | 2.00% | 2.00% | |
Carried forward period | P20Y | P20Y | |
Canada Provincial Level [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Capital losses for which no deferred tax asset recognized | $ 54,320 | $ 70,915 | |
2019 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2019 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2019 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2019 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 3,470 | ||
2019 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2020 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 5,115 | ||
2020 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2020 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2020 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,991 | ||
2020 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2021 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 6,699 | ||
2021 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2021 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2021 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 2,211 | ||
2021 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2022 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 11,614 | ||
2022 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2022 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2022 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,435 | ||
2022 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2023 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,524 | ||
2023 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2023 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2023 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,972 | ||
2023 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2024 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 5,808 | ||
2024 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2024 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2024 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,351 | ||
2024 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2025 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,241 | ||
2025 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2025 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2025 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,351 | ||
2025 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2026 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 248 | ||
2026 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2026 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2026 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,351 | ||
2026 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2027 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,504 | ||
2027 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2027 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2027 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 1,351 | ||
2027 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2028 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2028 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2028 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2028 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 2,447 | ||
2028 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2030 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2030 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2030 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2030 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 2,713 | ||
2030 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2031 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2031 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2031 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2031 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 109 | ||
2031 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2033 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2033 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2033 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2033 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 4,681 | ||
2033 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2034 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2034 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2034 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2034 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 4,851 | ||
2034 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2035 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2035 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2035 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2035 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 2,616 | ||
2035 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2036 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2036 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2036 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2036 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 8,501 | ||
2036 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2037 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2037 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2037 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2037 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 9,660 | ||
2037 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2038 [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2038 [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2038 [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
2038 [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 7,022 | ||
2038 [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
Indefinite [Member] | Finland [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
Indefinite [Member] | France [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 17,678 | ||
Indefinite [Member] | Spain [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 6,042 | ||
Indefinite [Member] | United States [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | 0 | ||
Indefinite [Member] | United Kingdom [Member] | |||
Operating Losses for Which no Deferred Income Tax Assets Recognized [Abstract] | |||
Operating losses for which no deferred tax asset recognized | $ 7,167 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Earnings per Share [Abstract] | |||
Basic weighted average number of shares outstanding (in shares) | 54,998 | 54,423 | 53,863 |
Plus dilutive effect of [Abstract] | |||
Restricted shares units (in shares) | 0 | 979 | 675 |
Deferred share units (in shares) | 0 | 153 | 131 |
Diluted weighted average number of shares outstanding (in shares) | 54,998 | 55,555 | 54,669 |
Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares (in shares) | 1,799 | 0 | 75 |
Segment Information, Sales for
Segment Information, Sales for Products and Services (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Sales for products and services [Abstract] | |||
Sales | $ 269,546 | $ 243,301 | $ 232,583 |
Products [Member] | |||
Sales for products and services [Abstract] | |||
Sales | 227,316 | 213,653 | 205,371 |
Services [Member] | |||
Sales for products and services [Abstract] | |||
Sales | $ 42,230 | $ 29,648 | $ 27,212 |
Segment Information, Informatio
Segment Information, Information by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Sales to external customers by geographic region [Abstract] | |||
Sales | $ 269,546 | $ 243,301 | $ 232,583 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 44,310 | 40,132 | |
Intangible assets | 29,866 | 11,183 | |
Goodwill | 39,892 | 35,077 | 21,928 |
United States [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 100,225 | 97,186 | 95,388 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 1,677 | 2,031 | |
Intangible assets | 435 | 1,072 | |
Goodwill | 13,327 | 14,696 | |
Canada [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 18,425 | 22,586 | 18,027 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 32,107 | 29,417 | |
Intangible assets | 5,668 | 4,643 | |
Goodwill | 4,481 | 3,890 | |
Other [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 16,743 | 14,951 | 14,129 |
Americas [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 135,393 | 134,723 | 127,544 |
Europe, Middle-East and Africa [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 84,677 | 62,101 | 57,172 |
Finland [Member] | |||
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 473 | 441 | |
Intangible assets | 380 | 316 | |
Goodwill | 8,704 | 9,064 | |
France [Member] | |||
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 2,401 | 12 | |
Intangible assets | 19,330 | 0 | |
Goodwill | 5,909 | 0 | |
United Kingdom [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 17,508 | 11,799 | 11,032 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 755 | 915 | |
Intangible assets | 4,005 | 5,093 | |
Goodwill | 7,471 | 7,427 | |
Other [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 67,169 | 50,302 | 46,140 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 54 | 89 | |
Intangible assets | 0 | 0 | |
Goodwill | 0 | 0 | |
India [Member] | |||
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 4,021 | 4,000 | |
Intangible assets | 28 | 27 | |
Goodwill | 0 | 0 | |
China [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 20,724 | 22,312 | 25,281 |
Long-lived assets by geographical region [Abstract] | |||
Property, plant and equipment | 2,822 | 3,227 | |
Intangible assets | 20 | 32 | |
Goodwill | 0 | 0 | |
Other [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | 28,752 | 24,165 | 22,586 |
Asia Pacific [Member] | |||
Sales to external customers by geographic region [Abstract] | |||
Sales | $ 49,476 | $ 46,477 | $ 47,867 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] $ in Thousands | Sep. 09, 2018USD ($) |
Subsequent events [Abstract] | |
Net proceeds amount | $ 3,329 |
Pre tax gain amount | $ 1,857 |