Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Aug. 31, 2022 | Oct. 21, 2022 | Feb. 28, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Aug. 31, 2022 | ||
Current Fiscal Year End Date | --08-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | ACUITY BRANDS, INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-16583 | ||
Entity Tax Identification Number | 58-2632672 | ||
Entity Address, Address Line One | 1170 Peachtree Street, N.E. | ||
Entity Address, Address Line Two | Suite 2300 | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30309 | ||
City Area Code | 404 | ||
Local Phone Number | 853-1400 | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | ||
Trading Symbol | AYI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.4 | ||
Entity Common Stock, Shares Outstanding | 32,158,387 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Location in Form 10-K Incorporated Document Part II, Item 5; Part III, Items 10, 11, 12, 13, and 14 Proxy Statement for 2022 Annual Meeting of Stockholders | ||
Entity Central Index Key | 0001144215 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Aug. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Atlanta, Georgia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 223.2 | $ 491.3 |
Accounts receivable, less reserve for doubtful accounts of $1.2 and $1.2, respectively | 665.9 | 571.8 |
Inventories | 485.7 | 398.7 |
Prepayments and other current assets | 91.2 | 82.5 |
Total current assets | 1,466 | 1,544.3 |
Property, plant, and equipment, net | 276.5 | 269.1 |
Operating lease right-of-use assets | 74.9 | 58 |
Goodwill | 1,084.3 | 1,094.7 |
Intangible assets, net | 529.2 | 573.2 |
Deferred income taxes | 1.3 | 1.9 |
Other long-term assets | 48 | 33.9 |
Total assets | 3,480.2 | 3,575.1 |
Current liabilities: | ||
Accounts payable | 397.8 | 391.5 |
Current maturities of debt | 18 | 0 |
Current operating lease liabilities | 15.7 | 15.9 |
Accrued compensation | 88 | 95.3 |
Other accrued liabilities | 214.1 | 189.5 |
Total current liabilities | 733.6 | 692.2 |
Long-term debt | 495 | 494.3 |
Long-term operating lease liabilities | 67.4 | 46.7 |
Accrued pension liabilities | 41.4 | 60.2 |
Deferred income taxes | 102.1 | 101 |
Other long-term liabilities | 128.9 | 136.2 |
Total liabilities | 1,568.4 | 1,530.6 |
Commitments and contingencies (see Commitments and Contingencies footnote) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized; 54,241,069 and 54,018,978 issued, respectively | 0.5 | 0.5 |
Paid-in capital | 1,036.3 | 995.6 |
Retained earnings | 3,176.2 | 2,810.3 |
Accumulated other comprehensive loss | (125.8) | (98.2) |
Treasury stock, at cost — 21,753,820 and 18,826,611 shares, respectively | (2,175.4) | (1,663.7) |
Total stockholders’ equity | 1,911.8 | 2,044.5 |
Total liabilities and stockholders’ equity | $ 3,480.2 | $ 3,575.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Current assets: | ||
Reserve for doubtful accounts | $ 1.2 | $ 1.2 |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 54,241,069 | 54,018,978 |
Treasury stock, shares (in shares) | 21,753,820 | 18,826,611 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Income Statement [Abstract] | ||||
Net sales | $ 4,006.1 | $ 3,461 | $ 3,326.3 | |
Cost of products sold | 2,333.4 | 1,986 | 1,923.9 | |
Gross profit | 1,672.7 | 1,475 | 1,402.4 | |
Selling, distribution, and administrative expenses | 1,163 | 1,044.1 | 1,028.5 | |
Special charges | 0 | 3.3 | 20 | |
Operating profit | 509.7 | 427.6 | 353.9 | |
Other expense: | ||||
Interest expense, net | 24.9 | 23.2 | 23.3 | |
Miscellaneous (income) expense, net | (9.1) | 8.2 | 5.9 | |
Total other expense | 15.8 | 31.4 | 29.2 | |
Income before income taxes | 493.9 | 396.2 | 324.7 | |
Income tax expense | 109.9 | 89.9 | 76.4 | |
Net income | $ 384 | $ 306.3 | $ 248.3 | |
Earnings per share | ||||
Basic earnings per share (in dollars per share) | [1] | $ 11.23 | $ 8.44 | $ 6.29 |
Basic weighted average number of shares outstanding (in shares) | 34,182 | 36,284 | 39,453 | |
Diluted earnings per share (in dollars per share) | [1] | $ 11.08 | $ 8.38 | $ 6.27 |
Diluted weighted average number of shares outstanding (in shares) | 34,645 | 36,554 | 39,601 | |
Dividends declared per share (in dollars per share) | $ 0.52 | $ 0.52 | $ 0.52 | |
Comprehensive income: | ||||
Net income | $ 384 | $ 306.3 | $ 248.3 | |
Other comprehensive income (loss) items: | ||||
Foreign currency translation adjustments | (33.3) | 13.3 | 11.9 | |
Defined benefit plans, net of tax | 5.7 | 21.2 | 6.8 | |
Other comprehensive (loss) income items, net of tax | (27.6) | 34.5 | 18.7 | |
Comprehensive income | $ 356.4 | $ 340.8 | $ 267 | |
[1] (1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 384 | $ 306.3 | $ 248.3 |
Adjustments to reconcile net income to cash flows from operating activities | |||
Depreciation and amortization | 94.8 | 100.1 | 101.1 |
Share-based payment expense | 37.4 | 32.5 | 38.2 |
(Gain) loss on the sale or disposal of property, plant, and equipment | (2.3) | (0.1) | 0.3 |
Asset impairments | 1.7 | 6 | 8.8 |
Deferred income taxes | 0.6 | (2.7) | (6.7) |
Changes in operating assets and liabilities, net of acquisitions | |||
Accounts receivable | (99.7) | (68.7) | 74.5 |
Inventories | (83.3) | (35.5) | 38 |
Prepayments and other current assets | (17.6) | (18.2) | 12.9 |
Accounts payable | 2.6 | 65.5 | (19.6) |
Other | (1.9) | 23.5 | 9 |
Net cash provided by operating activities | 316.3 | 408.7 | 504.8 |
Cash flows from investing activities: | |||
Purchases of property, plant, and equipment | (56.5) | (43.8) | (54.9) |
Proceeds from sale of property, plant, and equipment | 8.9 | 4.7 | 0.2 |
Acquisitions of businesses, net of cash acquired | (12.9) | (75.3) | (303) |
Other investing activities | (1.7) | (3.5) | (2.1) |
Net cash used for investing activities | (62.2) | (117.9) | (359.8) |
Cash flows from financing activities: | |||
Borrowings on credit facility, net of repayments | 18 | 0 | 0 |
Issuances of long-term debt | 0 | 493.8 | 400 |
Repayments of long-term debt | 0 | (401.1) | (355.7) |
Repurchases of common stock | (514.8) | (434.9) | (69.3) |
Proceeds from stock option exercises and other | 12.5 | 3.2 | 0.9 |
Payments of taxes withheld on net settlement of equity awards | (8.6) | (4.5) | (5.4) |
Dividends paid | (18.1) | (19.1) | (20.8) |
Other financing activities | (1.4) | 0 | 0 |
Net cash used for financing activities | (512.4) | (362.6) | (50.3) |
Effect of exchange rate changes on cash and cash equivalents | (9.8) | 2.4 | 5 |
Net change in cash and cash equivalents | (268.1) | (69.4) | 99.7 |
Cash and cash equivalents at beginning of year | 491.3 | 560.7 | 461 |
Cash and cash equivalents at end of year | 223.2 | 491.3 | 560.7 |
Supplemental cash flow information: | |||
Income taxes paid | 109.4 | 86.4 | 64.6 |
Interest paid | $ 26.1 | $ 22.2 | $ 29.8 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative-effect adjustment | Common Stock Outstanding | Paid-in Capital | Retained Earnings | Retained Earnings Cumulative-effect adjustment | Accumulated Other Comprehensive Loss Items | Treasury Stock, at cost |
Beginning balance (in shares) at Aug. 31, 2019 | 39.5 | |||||||
Beginning balance at Aug. 31, 2019 | $ 1,918.9 | $ 0.5 | $ 930 | $ 2,295.8 | $ (151.4) | $ (1,156) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 248.3 | 248.3 | ||||||
Other comprehensive income (loss) | 18.7 | 18.7 | ||||||
Share-based payment amortization, issuances, and cancellations (in shares) | 0.1 | |||||||
Share-based payment amortization, issuances, and cancellations | 32.7 | 32.7 | ||||||
Employee stock purchase plan issuances | 0.8 | 0.8 | ||||||
Cash dividends paid on common stock | (20.8) | (20.8) | ||||||
Stock options exercised | 0.1 | |||||||
Repurchases of common stock (in shares) | (0.7) | |||||||
Repurchases of common stock | (71.2) | (71.2) | ||||||
Ending balance (in shares) at Aug. 31, 2020 | 38.9 | |||||||
Ending balance at Aug. 31, 2020 | $ 2,127.5 | $ (0.2) | $ 0.5 | 963.6 | 2,523.3 | $ (0.2) | (132.7) | (1,227.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||||
Net income | $ 306.3 | 306.3 | ||||||
Other comprehensive income (loss) | 34.5 | 34.5 | ||||||
Share-based payment amortization, issuances, and cancellations (in shares) | 0.1 | |||||||
Share-based payment amortization, issuances, and cancellations | 28.8 | 28.8 | ||||||
Employee stock purchase plan issuances | 1 | 1 | ||||||
Cash dividends paid on common stock | (19.1) | (19.1) | ||||||
Stock options exercised | 2.2 | 2.2 | ||||||
Repurchases of common stock (in shares) | (3.8) | |||||||
Repurchases of common stock | (436.5) | (436.5) | ||||||
Ending balance (in shares) at Aug. 31, 2021 | 35.2 | |||||||
Ending balance at Aug. 31, 2021 | 2,044.5 | $ 0.5 | 995.6 | 2,810.3 | (98.2) | (1,663.7) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 384 | 384 | ||||||
Other comprehensive income (loss) | (27.6) | (27.6) | ||||||
Share-based payment amortization, issuances, and cancellations (in shares) | 0.1 | |||||||
Share-based payment amortization, issuances, and cancellations | 28.2 | 28.2 | ||||||
Employee stock purchase plan issuances | 1.8 | 1.8 | ||||||
Cash dividends paid on common stock | (18.1) | (18.1) | ||||||
Stock options exercised (in shares) | 0.1 | |||||||
Stock options exercised | 10.7 | 10.7 | ||||||
Repurchases of common stock (in shares) | (2.9) | |||||||
Repurchases of common stock | (511.7) | (511.7) | ||||||
Ending balance (in shares) at Aug. 31, 2022 | 32.5 | |||||||
Ending balance at Aug. 31, 2022 | $ 1,911.8 | $ 0.5 | $ 1,036.3 | $ 3,176.2 | $ (125.8) | $ (2,175.4) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share paid (in dollars per share) | $ 0.52 | $ 0.52 | $ 0.52 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Aug. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Note 1 — Description of Business and Basis of Presentation Acuity Brands, Inc. (referred to herein as “we,” “our,” “us,” the “Company,” or similar references) is a market-leading industrial technology company. We use technology to solve problems in spaces and light. Through our two business segments, Acuity Brands Lighting and Lighting Controls (“ABL”) and the Intelligent Spaces Group (“ISG”), we design, manufacture, and bring to market products and services that make a valuable difference in people's lives. We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management systems, and location-aware applications. ABL Segment ABL's portfolio of lighting solutions includes commercial, architectural, and specialty lighting in addition to lighting controls and components that can be combined to create integrated lighting controls systems. We offer devices such as luminaires that predominantly utilize light emitting diode (“LED”) technology designed to optimize energy efficiency and comfort for various indoor and outdoor applications. ABL's portfolio of products includes but is not limited to the following brands: Lithonia Lighting ® , Holophane ® , Peerless ® , Gotham ® , Mark Architectural Lighting TM , Winona ® Lighting, Juno ® , Indy TM , Aculux TM , Healthcare Lighting ® , Hydrel ® , American Electric Lighting ® , Sunoptics ® , eldoLED ® , nLight ® , Sensor Switch ® , IOTA ® , A-Light TM , Cyclone TM , Eureka ® , Luminaire LED TM , Luminis ® , Dark to Light ® , RELOC ® Wiring Solutions, and OPTOTRONIC ® . Principal customers of ABL include electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturer (“OEM”) customers, digital retailers, lighting showrooms, and energy service companies located in North America and select international markets serving new construction, renovation and retrofit, and maintenance and repair applications. ABL's lighting and lighting controls solutions are sold primarily through a network of independent sales agencies that cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, directly to large corporate accounts, and directly to OEM customers. Products are delivered directly from our manufacturing facilities or through a network of distribution centers, regional warehouses, and commercial warehouses using both common carriers and a company-managed truck fleet. To serve international customers, our sales forces utilize a variety of distribution methods to meet specific individual customer or country requirements. ABL comprised approximately 95% of consolidated revenues during fiscal 2022, 2021 , and 2020. ISG Segment ISG delivers products and services that make spaces smarter, safer, and greener. ISG offers a building management platform and location-aware applications. Our building management platform includes products for controlling heating, ventilation, and air conditioning (“HVAC”), lighting, shades, and building access that deliver end-to-end optimization of those building systems. Our Atrius ® intelligent building software enhances the occupant experience, improves building system management, and automates labor intensive tasks while delivering operational energy efficiency and cost reductions. Through a connected and converged building system architecture, our Atrius ® software delivers different applications, allows clients to upgrade over time with natural refresh cycles, and deploys new capabilities through both software and hardware updates. Customers of ISG primarily include system integrators as well as retail stores, airports, and enterprise campuses throughout North America and select international locations. ISG products and solutions are marketed under multiple brand names, including but not limited to Distech Controls ® and Atrius ® . ISG comprised approximately 5% of consolidated revenues during fiscal 2022, 2021 , and 2020. Basis of Presentation We have prepared the Consolidated Financial Statements |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of Acuity Brands, Inc. and its wholly-owned subsidiaries after elimination of intercompany transactions and accounts. Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Revenue Recognition Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements for information related to our revenue recognition accounting policies. Cash and Cash Equivalents Cash in excess of daily requirements is invested in time deposits and marketable securities and is included in the accompanying balance sheets at fair value. We consider time deposits and marketable securities with an original maturity of three months or less when purchased to be cash equivalents. Accounts Receivable We record accounts receivable at net realizable value. This value includes a reserve for doubtful accounts to reflect our estimate of expected credit losses over the contractual term of our receivables. Our estimation of current expected credit losses reflects our considerations of historical write-offs, an analysis of past due accounts based on the contractual terms of the receivables, and the economic status of customers, if known. We additionally consider the impact of general economic conditions, including construction spending, unemployment rates, and macroeconomic growth, on our customers' future ability to meet their obligations. We believe that the reserve is sufficient to cover uncollectible amounts; however, there can be no assurance that unanticipated future business conditions of customers will not have a negative impact on our results of operations. Concentrations of Credit Risk Concentrations of credit risk with respect to receivables, which are typically unsecured, are generally limited due to the wide variety of customers and markets using our lighting, lighting controls, building management systems, and location-aware applications as well as their dispersion across many different geographic areas. One customer accounted for approximately 10% of receivables at August 31, 2022 and at August 31, 2020. No single customer accounted for 10% of receivables at August 31, 2021. No single customer accounted for more than 10% of net sales in fiscal 2022, 2021, or 2020. Reclassifications We may reclassify certain prior period amounts to conform to the current year presentation. No material reclassifications occurred during the current period. Inventories Inventories include materials, direct labor, inbound freight, customs, duties, tariffs, and related manufacturing overhead. Inventories are stated on a first-in, first-out basis at the lower of cost and net realizable value and consist of the following as of the dates presented (in millions): August 31, 2022 2021 Raw materials, supplies, and work in process (1) $ 252.6 $ 209.5 Finished goods 264.0 227.2 Inventories excluding reserves 516.6 436.7 Less: Reserves (30.9) (38.0) Total inventories $ 485.7 $ 398.7 _______________________________________ (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, we do not believe the segregation of raw materials and work in process is meaningful information. We review inventory quantities on hand and record a provision for excess or obsolete inventory primarily based on estimated future demand and current market conditions. A significant change in customer demand or market conditions could render certain inventory obsolete and could have a material adverse impact on our operating results in the period the change occurs. The following table summarizes the changes in our inventory reserves for the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Beginning balance $ 38.0 $ 49.3 $ 22.3 Additions to reserve 15.7 21.4 36.3 Disposals of reserved inventory (22.5) (32.7) (11.1) Foreign currency translation adjustments (0.3) — 1.8 Ending balance $ 30.9 $ 38.0 $ 49.3 Assets Held for Sale We classify assets as held for sale when a plan for disposal is developed and approved, the asset is available for immediate sale, an active program to locate a buyer at a price reasonable in relation to current fair value is initiated, and transfer of the asset is expected to be completed within one year. We cease the depreciation and amortization of the assets when all of these criteria have been met and generally reflect balances within Prepayments and other current assets on our Consolidated Balance Sheets . We did not have any assets classified as held for sale at August 31, 2022. During the year ended August 31, 2022, we sold one building classified as held for sale at August 31, 2021 with a total carrying value of $6.6 million for a gain of approximately $2.3 million. This gain is reflected in Selling, distribution, and administrative expenses within our Consolidated Statements of Comprehensive Income . Goodwill and Other Intangibles The changes in the carrying amount of goodwill during the periods presented by segment are summarized as follows (in millions): ABL ISG Total Balance as of August 31, 2020 $ 1,012.6 $ 67.4 $ 1,080.0 Additions from acquired businesses 6.9 3.1 10.0 Foreign currency translation adjustments 2.7 2.0 4.7 Balance as of August 31, 2021 1,022.2 72.5 1,094.7 Adjustments to provisional amounts from acquired businesses 2.3 — 2.3 Foreign currency translation adjustments (10.3) (2.4) (12.7) Balance as of August 31, 2022 $ 1,014.2 $ 70.1 $ 1,084.3 Summarized information for our acquired intangible assets is as follows as of the dates presented (in millions except amortization periods): August 31, 2022 2021 Gross Carrying Accumulated Gross Carrying Accumulated Definite-lived intangible assets: Patents and patented technology $ 160.8 $ (116.0) $ 164.6 $ (104.4) Trademarks and trade names 27.2 (18.3) 27.2 (17.1) Distribution network 61.8 (47.3) 61.8 (45.0) Customer relationships 427.7 (140.4) 429.2 (117.9) Total definite-lived intangible assets $ 677.5 $ (322.0) $ 682.8 $ (284.4) Indefinite-lived trade names $ 173.7 $ 174.8 Through multiple acquisitions, we acquired definite-lived intangible assets consisting primarily of customer relationships, patented technology, distribution networks, and trademarks and trade names associated with specific products, which are amortized over their estimated useful lives. Indefinite-lived intangible assets consist of trade names that are expected to generate cash flows indefinitely. Significant estimates and assumptions were used to determine the initial fair value of these acquired intangible assets, including estimated future short-term and long-term net sales and profitability, customer attrition rates, royalty rates, and discount rates. Certain of our intangible assets are attributable to foreign operations and are impacted by currency translation due to movements in foreign currency rates year over year. We recorded amortization expense of $41.0 million, $40.7 million, and $41.7 million related to acquired intangible assets during fiscal 2022, 2021 , and 2020, respectively. Amortization expense is generally recorded on a straight-line basis and is expected to be approximately $42.9 million in fiscal 2023, $38.5 million in fiscal 2024, $30.9 million in fiscal 2025, $28.3 million in fiscal 2026, and $26.4 million in fiscal 2027. We test goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first date of our fourth fiscal quarter (June 1) or more frequently as facts and circumstances change, as required by Accounting Standards Codification (“ASC”) Topic 350, Intangibles—Goodwill and Other (“ASC 350”). ASC 350 allows for an optional qualitative analysis for goodwill to determine the likelihood of impairment. If the qualitative review results in a more likely than not probability of impairment, a quantitative analysis is required. The qualitative step may be bypassed entirely in favor of a quantitative test. The quantitative analysis identifies impairments by comparing the fair value of a reporting unit to its carrying value, including goodwill. The fair values can be determined based on a combination of valuation techniques including the expected present value of future cash flows, a market multiple approach, and a comparable transaction approach. If the fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired. Conversely, if the carrying value of a reporting unit exceeds its fair value, an impairment charge for the difference would be recorded. In fiscal 2022, 2021, and 2020, we used a quantitative analysis to calculate the fair value of our reporting units using a combination of discounted future cash flows and relevant market multiples. The analysis for goodwill did not result in an impairment charge during fiscal 2022, 2021, or 2020. The impairment test for indefinite-lived trade names compares the fair value of a trade name with its carrying value. If the carrying amount exceeds the estimated fair value, an impairment loss would be recorded for the amount of the excess. We estimate the fair value of indefinite-lived trade names using a fair value model based on discounted future cash flows. Significant assumptions, including estimated future short-term and long-term net sales, royalty rates, and discount rates, are used in the determination of estimated fair value for indefinite-lived trade names. The impairment analyses of our indefinite-lived intangible assets indicated that their fair values exceeded their carrying values for fiscal 2022 and fiscal 2021, and thus no impairment charges were recorded during those years. Any reasonably likely change in the assumptions used in the analyses for our trade names would not be material to our financial condition or results of operations. Based on the results of the indefinite-lived intangible asset analyses for fiscal 2020, we recorded an impairment charge of $1.4 million for one trade name within Selling, distribution, and administrative expenses in the Consolidated Statements of Comprehensive Income related to our ABL segment. The impairment analyses for fiscal 2020 of the other 12 indefinite-lived intangible assets indicated that their fair values exceeded their carrying values. Other Long-Term Assets Other long-term assets consist of the following items whose economic benefits are expected to be realized greater than one year from the dates presented (in millions): August 31, 2022 2021 Deferred contract costs $ 13.3 $ 12.9 Investments in debt and equity securities 11.9 5.3 Pensions plans in which plan assets exceed benefit obligation 8.0 13.0 Other (1) (2) 14.8 2.7 Total other long-term assets $ 48.0 $ 33.9 _______________________________________ (1) Estimated recoveries of warranty and recall costs are included in this category and account for the majority of the year-over-year change. (2) Included within this category are company-owned life insurance investments. We maintain life insurance policies on 60 former employees primarily to satisfy obligations under certain deferred compensation plans. These company-owned life insurance policies are presented net of loans that are secured by these policies. This program is frozen, and no new policies were issued in the three-year period ended August 31, 2022. Other Current Liabilities Other current liabilities consist of the following as of the dates presented (in millions): August 31, 2022 2021 Customer incentive programs (1) $ 40.7 $ 33.9 Refunds to customers (1) 28.0 28.1 Current deferred revenues (1) 11.4 7.7 Sales commissions 41.9 28.9 Freight costs 22.8 17.6 Warranty and recall costs (2) 22.4 16.8 Tax-related items (3) 13.9 11.7 Interest on long-term debt (4) 2.3 2.4 Other 30.7 42.4 Total other current liabilities $ 214.1 $ 189.5 ____________________________________ (1) Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements for additional information. (2) Refer to the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements for additional information. (3) Includes accruals for income, property, sales and use, and value added taxes. (4) Refer to the Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for additional information. Other Long-Term Liabilities Other long-term liabilities consist of the following as of the dates presented (in millions): August 31, 2022 2021 Deferred compensation and postretirement benefits other than pensions (1) $ 44.4 $ 43.1 Deferred revenues (2) 53.1 56.7 Unrecognized tax position liabilities, including interest (3) 22.0 19.7 Self-insurance liabilities (4) 3.7 3.9 Product warranty and recall costs (4) 4.9 3.5 Other 0.8 9.3 Total other long-term liabilities $ 128.9 $ 136.2 ____________________________________ (1) We maintain several non-qualified retirement plans for the benefit of eligible employees, primarily deferred compensation plans. The deferred compensation plans provide for elective deferrals of an eligible employee’s compensation and, in some cases, matching contributions by the organization. We maintain life insurance policies on certain former officers and other key employees as a means of satisfying a portion of these obligations. (2) Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements for additional information. (3) Refer to the Income Taxes footnote of the Notes to Consolidated Financial Statements for additional information. (4) Refer to the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements for additional information. Shipping and Handling Fees and Costs We include shipping and handling fees billed to customers in Net sales in the Consolidated Statements of Comprehensive Income . When a product is sold, the associated shipping and handling costs are recorded in the Consolidated Statements of Comprehensive Income based on their function. Costs associated with inbound freight and freight between manufacturing facilities and distribution centers are generally recorded in Cost of products sold, which may be capitalized into inventory . Other shipping and handling costs, which primarily include amounts incurred to transfer finished goods to a customer's desired location, are included in Selling, distribution, and administrative expenses and totaled $151.2 million, $132.0 million, and $121.9 million in fiscal 2022, 2021, and 2020, respectively. Share-based Payments We recognize compensation cost for share-based payment transactions in the financial statements based on the estimated grant date fair value of the equity instrument issued. We account for stock options, restricted stock, performance stock units, and stock units representing certain deferrals into the Nonemployee Director Deferred Compensation Plan (the “Director Plan”) or the Supplemental Deferred Savings Plan (“SDSP”) (both of which are discussed further in the Share-based Payments footnote) based on the grant-date fair value estimated under the current provisions of ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). Share-based payment expense includes expense related to restricted stock, performance stock units, options issued, and stock units deferred into the Director Plan. We recorded $37.4 million, $32.5 million, and $38.2 million of share-based payment expense for the years ended August 31, 2022, 2021, and 2020, respectively. We generally recognize compensation cost for share-based payment transactions on a straight-line basis over an award's requisite service period as defined by ASC 718. In certain circumstances, such as when a performance award is subject to graded vesting, we apply the accelerated attribution method to recognize compensation cost related to our share-based payment awards. We have recorded share-based payment expense, net of estimated forfeitures, in Selling, distribution, and administrative expenses in the Consolidated Statements of Comprehensive Income . The total income tax benefit recognized for share-based payment expense was $9.6 million, $6.5 million, and $6.6 million for the years ended August 31, 2022, 2021, and 2020, respectively. Excess tax benefits and/or expense related to share-based payment awards are reported within Income tax expense on the Consolidated Statements of Comprehensive Income . We recognized net excess tax benefit related to share-based payment cost of $4.8 million for the year ended August 31, 2022 and net excess tax expense related to share-based payment cost of $0.5 million and $1.4 million for the years ended August 31, 2021 and 2020, respectively. See the Share-based Payments footnote of the Notes to Consolidated Financial Statements for more information. Property, Plant, and Equipment Property, plant, and equipment is initially recorded at cost and depreciated principally on a straight-line basis using estimated useful lives of plant and equipment (3 to 40 years for buildings and related improvements and 2 to 15 years for machinery and equipment) for financial reporting purposes. Accelerated depreciation methods are used for income tax purposes. Leasehold improvements are amortized over the shorter of the life of the lease or the estimated useful life of the improvement. Depreciation expense amounted to $53.8 million, $59.4 million, and $59.4 million during fiscal 2022, 2021, and 2020, respectively. The balance of property, plant, and equipment consists of the following as of the dates presented (in millions): August 31, 2022 2021 Land $ 22.0 $ 22.4 Buildings and leasehold improvements 202.3 198.0 Machinery and equipment 667.6 624.9 Total property, plant, and equipment, at cost 891.9 845.3 Less: Accumulated depreciation and amortization (615.4) (576.2) Property, plant, and equipment, net $ 276.5 $ 269.1 Research and Development Research and development (“R&D”) expense consists of compensation, payroll taxes, employee benefits, materials, supplies, and other administrative costs, but it does not include all new or enhanced product development costs. R&D expense is expensed as incurred and is included in Selling, distribution, and administrative expenses in our Consolidated Statements of Comprehensive Income . R&D expense amounted to $95.1 million, $88.3 million, and $82.0 million during fiscal 2022, 2021 , and 2020, respectively. Advertising Advertising costs are expensed as incurred and are included within Selling, distribution, and administrative expenses in our Consolidated Statements of Comprehensive Income . These costs totaled $19.3 million, $15.9 million, and $15.1 million during fiscal 2022, 2021 , and 2020, respectively. Interest Expense, Net Interest expense, net , is comprised primarily of interest expense on long-term debt, line of credit borrowings, and loans that are secured by and presented net of company-owned life insurance policies on our Consolidated Balance Sheets . Interest expense is partially offset by interest income earned on cash and cash equivalents. The following table summarizes the components of Interest expense, net during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Interest expense $ 27.0 $ 24.2 $ 26.4 Interest income (2.1) (1.0) (3.1) Interest expense, net $ 24.9 $ 23.2 $ 23.3 Miscellaneous (Income) Expense, Net Miscellaneous (income) expense, net , is comprised primarily of non-service related components of net periodic pension cost, gains and losses associated with foreign currency-related transactions, and non-operating gains and losses. Amounts relating to foreign currency transactions consisted of net gains of $5.3 million in fiscal 2022, net losses of $1.3 million in fiscal 2021, and net losses of $5.9 million in fiscal 2020. Income Taxes We are taxed at statutory corporate rates after adjusting income reported for financial statement purposes for certain items that are treated differently for income tax purposes. Deferred income tax expenses or benefits result from changes during the year in cumulative temporary differences between the tax basis and book basis of assets and liabilities. Refer to the Income Taxes footnote of the Notes to Consolidated Financial Statements for additional information. Foreign Currency Translation The functional currency for foreign operations is generally the local currency where the foreign operations are domiciled. The translation of foreign currencies into U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet dates and for revenue and expense accounts using a weighted average exchange rate each month during the year. The gains or losses resulting from the balance sheet translation are included in Foreign currency translation adjustments in the Consolidated Statements of Comprehensive Income and are excluded from net income. Comprehensive Income Comprehensive income represents a measure of all changes in equity that result from recognized transactions and other economic events other than transactions with owners in their capacity as owners. Other comprehensive income (loss) items includes foreign currency translation and pension adjustments. The following table presents the changes in each component of accumulated other comprehensive loss net of tax during the periods presented (in millions): Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items Balance as of August 31, 2020 $ (53.5) $ (79.2) $ (132.7) Other comprehensive income before reclassifications 13.3 13.9 27.2 Amounts reclassified from accumulated other comprehensive loss (1) — 7.3 7.3 Net current period other comprehensive income 13.3 21.2 34.5 Balance as of August 31, 2021 (40.2) (58.0) (98.2) Other comprehensive (loss) income before reclassifications (33.3) 0.7 (32.6) Amounts reclassified from accumulated other comprehensive loss (1) — 5.0 5.0 Net current period other comprehensive (loss) income (33.3) 5.7 (27.6) Balance as of August 31, 2022 $ (73.5) $ (52.3) $ (125.8) _______________________________________ (1) The before tax amounts of the defined benefit pension plan items are included in net periodic pension cost. See the Pension and Defined Contribution Plans footnote for additional details. The following table presents the tax expense or benefit allocated to each component of other comprehensive income (loss) during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Foreign currency translation adjustments $ (33.3) $ — $ (33.3) $ 13.3 $ — $ 13.3 $ 11.9 $ — $ 11.9 Defined benefit pension plans: Tax adjustments — — — — (3.2) (3.2) — — — Actuarial gains (losses) 0.7 — 0.7 17.5 (3.6) 13.9 (0.7) 0.1 (0.6) Amortization of defined benefit pension items: Prior service cost 2.9 (0.7) 2.2 2.9 (0.6) 2.3 4.0 (0.9) 3.1 Actuarial losses 3.3 (0.8) 2.5 5.5 (1.2) 4.3 5.6 (1.3) 4.3 Settlement losses 0.4 (0.1) 0.3 3.9 — 3.9 — — — Total defined benefit plans, net 7.3 (1.6) 5.7 29.8 (8.6) 21.2 8.9 (2.1) 6.8 Other comprehensive (loss) income $ (26.0) $ (1.6) $ (27.6) $ 43.1 $ (8.6) $ 34.5 $ 20.8 $ (2.1) $ 18.7 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Adopted in Fiscal 2022 Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”) In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC Topic 740, Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, or our fiscal 2022. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We adopted ASU 2019-12 as of September 1, 2021 as required by the standard. This standard did not have a material effect on our financial condition, results of operations, or cash flows. Accounting Standards Yet to Be Adopted ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”) In October 2021, the FASB issued ASU 2021-08, which requires companies to recognize and measure contract assets and contract liabilities acquired in a business combination as if the acquiring company originated the related revenue contracts. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, or our fiscal 2024, with early adoption permitted. We are currently assessing the impacts of ASU 2021-08 to determine whether we will adopt early or in fiscal 2024. Amendments within the standard are required to be applied on a prospective basis from the date of adoption. We will apply the provisions of ASU 2021-08 after adoption to future acquisitions, if any. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. |
Acquisitions
Acquisitions | 12 Months Ended |
Aug. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The following discussion relates to fiscal 2021 and 2020 acquisitions. There were no acquisitions during fiscal 2022. The $12.9 million of cash outflows reflected in the fiscal 2022 Consolidated Statements of Cash Flows relate to fiscal 2021 acquisitions primarily for working capital settlements. Fiscal 2021 Acquisitions ams OSRAM's North American Digital Systems Business On July 1, 2021, using cash on hand, we acquired certain assets and liabilities of ams OSRAM’s North American Digital Systems business (“OSRAM DS”). This acquisition is intended to enhance our LED driver and controls technology portfolio and accelerate our innovation, expand our access to market through a more fulsome original equipment manufacturer (“OEM”) product offering, and give us more control over our supply chain. Rockpile Ventures On May 18, 2021, using cash on hand, we acquired all of the equity interests of Rockpile Ventures, an accelerator of edge artificial intelligence (“AI”) startups. Rockpile Ventures helps early-stage artificial intelligence companies drive co-engineering and co-selling partnerships with major cloud ecosystems, enabling faster adoption from proof-of-concept trials to market scale. Accounting for Fiscal 2021 Acquisitions We accounted for the acquisitions of Rockpile Ventures and OSRAM DS (collectively the “2021 Acquisitions”) in accordance with ASC Topic 805, Business Combinations (“ASC 805”). We finalized the acquisition accounting for the 2021 Acquisitions during fiscal 2022. There were no material changes to our financial statements as a result of the finalization of the acquisition accounting for these acquisitions. The aggregate purchase price of the 2021 Acquisitions reflects goodwill of $12.3 million and definite-lived customer-based intangible assets of $6.7 million, which have a useful life of approximately 11 years. Goodwill recognized from the 2021 Acquisitions is comprised primarily of expected synergies from obtaining more control over our supply chain and technology, combining the operations of the acquired business with our operations, and acquiring the associated trained workforce. As of August 31, 2022, goodwill from the 2021 Acquisitions totaling $9.2 million is tax deductible. Fiscal 2020 Acquisitions The Luminaires Group On September 17, 2019, using cash on hand and borrowings under available existing credit arrangements at that time, we acquired all of the equity interests of The Luminaires Group (“TLG”), a leading provider of specification-grade luminaires for commercial, institutional, hospitality, and municipal markets, all of which complement our dynamic lighting portfolio. TLG’s indoor and outdoor lighting fixtures are marketed to architects, landscape architects, interior designers, and engineers through five niche lighting brands: A-light™, Cyclone™, Eureka ® , Luminaire LED™, and Luminis ® . LocusLabs, Inc. On November 25, 2019, using cash on hand, we acquired all of the equity interests of LocusLabs, Inc (“LocusLabs”). The LocusLabs software platform supports navigation applications used on mobile devices, web browsers, and digital displays in airports, event centers, multi-floor office buildings, and campuses. Accounting for Fiscal 2020 Acquisitions The TLG and LocusLabs acquisitions are referred to herein collectively as the “2020 Acquisitions.” We finalized the acquisition accounting for the 2020 Acquisitions during the first quarter of fiscal 2021. There were no material changes to our financial statements as a result of the finalization of the acquisition accounting for the 2020 Acquisitions. The aggregate purchase price of the 2020 Acquisitions reflects total goodwill and identified intangible assets of approximately $107.6 million and $180.6 million, respectively. Identified intangible assets consist of indefinite-lived marketing-related intangibles as well as definite-lived customer-based and technology-based assets, which have a weighted average useful life of approximately 16 years. Goodwill recognized from these acquisitions is comprised primarily of expected benefits related to complementing and expanding our solutions portfolio, including dynamic lighting and software, as well as the trained workforce acquired with these businesses and expected synergies from combining the operations of the acquired businesses with our operations. Goodwill from these acquisitions totaling $77.7 million is tax deductible. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We determine fair value measurements based on the assumptions a market participant would use in pricing an asset or liability. ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a three-level hierarchy that distinguishes between market participant assumptions based on (i) unadjusted quoted prices for identical assets or liabilities in an active market (Level 1), (ii) quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (Level 2), and (iii) prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (Level 3). We utilize valuation methodologies to determine the fair values of our financial assets and liabilities in conformity with the concepts of “exit price” and the fair value hierarchy as prescribed in ASC 820. All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values. There were no material changes to the valuation methods or assumptions used to determine fair values during the current period. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. Financial Instruments Recorded at Fair Value We use quoted market prices to determine the fair value of Level 1 assets and liabilities. Our cash and cash equivalents (Level 1), which are required to be carried at fair value and measured on a recurring basis, were $223.2 million and $491.3 million as of August 31, 2022 and 2021, respectively. We hold a small number of strategic investments totaling $11.9 million and $5.3 million as of August 31, 2022 and 2021, respectively. These investments are primarily equity instruments in privately-held entities over which we do not exercise significant influence or control. We generally account for these investments at fair value on a recurring basis; however, these investments do not have readily determinable fair value. We have elected the practical expedient in ASC Topic 321, Investments—Equity Securities , to measure these investments at cost less any impairment adjusted for observable price changes, if any. As such, these investments are excluded from the fair value hierarchy. During the year ended August 31, 2021, we recorded impairment charges totaling $6.0 million for two of these investments, one due to the recapitalization of the underlying company diluting our value and one due to a deterioration in the financial condition and long-term prospects of the underlying company. These impairment charges are reflected in Miscellaneous (income) expense, net for the year ended August 31, 2021 within our Consolidated Statements of Comprehensive Income. Changes in the fair values of these financial instruments during the year ended August 31, 2022 and 2021 were not material to our financial condition, results of operations, or cash flows. Disclosures of Fair Value of Financial Instruments Disclosures of fair value information about financial instruments, for which it is practicable to estimate that value, are required each reporting period in addition to any financial instruments carried at fair value on a recurring basis as prescribed by ASC Topic 825, Financial Instruments (“ASC 825”). In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Fair value for our outstanding debt obligations is estimated based on discounted future cash flows using rates currently available for debt of similar terms and maturity (Level 2). Our senior unsecured public notes are carried at the outstanding balance, net of unamortized bond discount and deferred costs, as of the end of the reporting period. The estimated fair value of our senior unsecured public notes was $399.2 million and $496.5 million as of August 31, 2022 and 2021, respectively. The decrease in fair value is due to increases in market bond yields since the end of fiscal 2021. As of August 31, 2022, we also had $18.0 million of short-term borrowings outstanding under our revolving credit facility. These borrowings are variable-rate instruments that reset on a frequent short-term basis; therefore, we estimate that the carrying values, which is equal to the face amounts, of these instruments approximate their fair values as of August 31, 2022. See Debt and Lines of Credit footnote for further details on our outstanding borrowings. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to us. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating our management of liquidity and other risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. |
Leases
Leases | 12 Months Ended |
Aug. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease property and equipment under operating lease arrangements, most of which relate to distribution centers and manufacturing facilities in the U.S., Mexico, and Canada. We include both the contractual term as well as any renewal option that we are reasonably certain to exercise in the determination of our lease terms. For leases with a term of greater than 12 months, we value lease liabilities as the present value of the lease payments over the related term. Related assets are equal to the calculated lease liabilities adjusted for incentives and other items as prescribed by ASC Topic 842, Leases (“ASC 842”). Lease payments generally consist of fixed amounts, and variable amounts based on a market rate or an index are not material to our consolidated lease cost. We have elected to use the practical expedient present in ASC 842 to not separate lease and non-lease components for all significant underlying asset classes and instead account for them together as a single lease component in the measurement of our lease liabilities. We apply the short-term lease exception to leases with a term of 12 months or less and exclude such leases from our Consolidated Balance Sheets . Payments related to these short-term leases are expensed on a straight-line basis over the lease term and reflected as a component of lease cost within our Consolidated Statements of Comprehensive Income . Generally, the rates implicit in our leases are not readily determinable. Therefore, we discount future lease payments using our estimated incremental borrowing rate at lease commencement. We determine this rate based on a credit-adjusted risk-free rate, which approximates a secured rate over the lease term. The weighted average discount rate for operating leases was 2.5% and 2.0% as of August 31, 2022 and 2021, respectively. The following table presents the future undiscounted payments due on our operating lease liabilities as well as a reconciliation of those payments to our operating lease liabilities recorded as of the date presented (in millions): Fiscal year August 31, 2022 2023 $ 17.3 2024 17.0 2025 15.6 2026 11.5 2027 8.5 Thereafter 21.1 Total undiscounted lease payments 91.0 Less: Discount due to interest (7.9) Present value of lease liabilities $ 83.1 The weighted average remaining lease term for our operating leases was six years as of August 31, 2022. Lease cost is recorded within Cost of products sold, and may be capitalized into inventory as manufacturing overhead, or Selling, distribution, and administrative expenses in the Consolidated Statements of Comprehensive Income based on the primary use of the related right of use (“ROU”) asset. The components of total lease cost were as follows during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Operating lease cost $ 18.8 $ 18.3 $ 18.1 Variable lease cost 2.7 2.0 2.3 Short-term lease cost 4.3 2.2 2.8 Total lease cost $ 25.8 $ 22.5 $ 23.2 Cash paid for operating lease liabilities during the year ended August 31, 2022, 2021, and 2020 was $18.5 million, $26.2 million, and $18.7 million, respectively. ROU assets obtained in exchange for lease liabilities during the year ended August 31, 2022 and 2021 were $37.3 million and $12.9 million, respectively. We have entered into an agreement to lease a production facility in Mexico currently under construction that has not commenced as of August 31, 2022. This lease has an estimated term of ten years and estimated gross payments of approximately $18.0 million, which are subject to changes based on a consumer price index throughout the lease term. We expect the lease to commence during fiscal 2023. We have no other significant leases that have not yet commenced as of August 31, 2022 that create significant rights and obligations. We have subleased certain properties. Lease income from these subleases is recognized in the Consolidated Statements of Comprehensive Income as it is earned and is not material to our consolidated results of operations. We do not have any other significant transactions in which we are the lessor. During fiscal 2022 and fiscal 2020, we committed to plans to vacate certain leased properties, which indicated that it was more likely than not that the fair value of the related ROU assets were below their carrying values. We assessed the recoverability of these assets using an undiscounted cash flow model and concluded that the carrying values of the assets were not fully recoverable. We recorded impairment charges of $1.7 million and $7.4 million related to these assets using a discounted cash flow model to estimate their fair values in fiscal 2022 and 2020, respectively. The fiscal 2022 and 2020 impairments were recorded within Selling, distribution, and administrative expenses and Special charges, respectively in the Consolidated Statements of Comprehensive Income . The recoverability and impairment tests required significant assumptions including estimated future cash flows, the identification of assets within each asset group, and the determination of appropriate discount rates. No impairments were recorded for leases in fiscal 2021. |
Debt and Lines of Credit
Debt and Lines of Credit | 12 Months Ended |
Aug. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Lines of Credit | Debt and Lines of Credit Our debt is carried at the outstanding balance net of any related unamortized discounts and deferred costs and consists of the following as of the dates presented (in millions): August 31, 2022 2021 Senior unsecured public notes due December 2030, principal $ 500.0 $ 500.0 Senior unsecured public notes due December 2030, unamortized discount and deferred costs (5.0) (5.7) Short-term borrowings under credit facility 18.0 — Total debt $ 513.0 $ 494.3 Our next scheduled future principal payment of long-term debt is $500.0 million due upon the maturity of the senior unsecured notes in December 2030. Long-term Debt On November 10, 2020, Acuity Brands Lighting, Inc. issued $500.0 million aggregate principal amount of 2.150% senior unsecured notes due December 15, 2030 (the “Unsecured Notes”). The Unsecured Notes are fully and unconditionally guaranteed on a senior unsecured basis by Acuity Brands, Inc. and ABL IP Holding LLC, a wholly-owned subsidiary of Acuity Brands, Inc. The Unsecured Notes bear interest at a rate of 2.150% per annum and were issued at a price equal to 99.737% of their face value. Additionally, we recorded $4.8 million of deferred issuance costs related to the Unsecured Notes as a direct deduction from the face amount of the Unsecured Notes. These issuance costs are amortized over the 10-year term of the Unsecured Notes. Interest on the Unsecured Notes is paid semi-annually in arrears on June 15 and December 15 of each year. Lines of Credit On June 30, 2022, we entered into a credit agreement (the “Credit Agreement”) with a syndicate of banks that provides us with a $600.0 million five-year unsecured revolving credit facility (the “Revolving Credit Facility”) with the ability to request an additional $400.0 million of borrowing capacity. The Revolving Credit Facility replaced our previous credit agreement set to expire on June 30, 2022, the details of which can be found in the fiscal 2021 Debt and Lines of Credit footnote of the Notes to Consolidated Footnotes within our 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission on October 27, 2021. The Revolving Credit Facility uses the Secured Overnight Financing Rate (“SOFR”) as the applicable benchmark for U.S. Dollar borrowings and an applicable benchmark rate for non-U.S. Dollar borrowings as defined in the Credit Agreement. The applicable margin pricing grid mechanics are based on the better of our public credit ratings or our net leverage ratio and range from 0.80% to 1.20% for base rate borrowings and from 0.00% to 0.20% for floating rate advances. We are also required to pay certain fees in connection with the Credit Agreement, including administrative service fees and annual facility fees, which range from 0.075% to 0.175% of the aggregate $600.0 million remaining commitment of the lenders under the Credit Agreement. The Credit Agreement contains a leverage ratio covenant (“Maximum Leverage Ratio”) of total indebtedness to earnings before interest, tax, depreciation, and amortization (“EBITDA”), as such terms are defined in the Credit Agreement. These ratios are computed at the end of each fiscal quarter for the most recent 12-month period. The Credit Agreement generally allows for a Maximum Leverage Ratio of 3.75 (subject to temporary increase to 4.25 in the event of a significant acquisition) and allows netting of all unrestricted cash and cash equivalents against debt. We were in compliance with all financial covenants under the Credit Agreement as of August 31, 2022. As of August 31, 2022, we had outstanding letters of credit totaling $4.1 million, primarily for securing collateral requirements under our casualty insurance programs. At August 31, 2022, we had additional borrowing capacity under the Credit Agreement of $577.9 million under the most restrictive covenant in effect at the time, which represents the full amount of the Revolving Credit Facility less the outstanding borrowings of $18.0 million and letters of credit of $4.1 million issued under the Revolving Credit Facility. None of our existing debt instruments include provisions that would require an acceleration of repayments based solely on changes in our credit ratings. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Self-Insurance Our policy is to self-insure up to certain limits traditional risks, including workers’ compensation, comprehensive general liability, and auto liability. Our self-insured retention for each claim involving workers’ compensation, comprehensive general liability (including product liability claims), and auto liability is limited per occurrence of such claims. A provision for claims under this self-insured program, based on our estimate of the aggregate liability for claims incurred, is revised and recorded annually. The estimate is derived from both internal and external sources including, but not limited to, our independent actuary. We are also self-insured up to certain limits for certain other insurable risks, primarily physical loss to property and business interruptions resulting from such loss lasting two days or more in duration. Insurance coverage is maintained for catastrophic property and casualty exposures, as well as those risks required to be insured by law or contract. We are fully self-insured for certain other types of liabilities, including environmental, product recall, warranty, and patent infringement. The actuarial estimates are subject to uncertainty from various sources including, among others, changes in claim reporting patterns, claim settlement patterns, actual claims, judicial decisions, legislation, and economic conditions. Although we believe that the actuarial estimates are reasonable, significant differences related to the items noted above could materially affect our self-insurance obligations, future expense, and cash flow. We are also self-insured for the majority of our medical benefit plans up to certain limits. We estimate our aggregate liability for claims incurred by applying a lag factor to our historical claims and administrative cost experience. The appropriateness of our lag factor is evaluated annually and revised as necessary. Leases We lease certain of our buildings and equipment under noncancellable lease agreements. Please refer to the Leases footnote of the Notes to Consolidated Financial Statements for additional information. Collective Bargaining Agreements Approximately 66% of our total work force is covered by collective bargaining agreements. Collective bargaining agreements representing approximately 54% of our work force will expire within one year, primarily due to annual negotiations of union contracts in Mexico. Shareholder Derivative Complaint As previously disclosed, on October 1, 2021, certain alleged shareholders of the Company filed a putative derivative complaint in the United States District Court for the Northern District of Georgia asserting claims against three former executives for breach of fiduciary duty and certain other claims (the “Derivative Complaint”). The Company is named as a nominal defendant, and the plaintiffs seek on behalf of the Company unspecified damages from the individual defendants and other relief. Prior to filing the Derivative Complaint, the derivative plaintiffs sent letters to the Company’s Board of Directors (the “Board”) demanding that the Company investigate and pursue substantially the same claims against the individual defendants that are asserted in the Derivative Complaint. The Company’s Board formed a demand evaluation committee consisting of independent directors to investigate these matters and make a recommendation to the Board regarding the best interests of the Company in connection therewith. On December 14, 2021, the Company filed a motion to stay the derivative action pending the conclusion of the related securities class action or, in the alternative, to dismiss the derivative action without prejudice as premature, given the demand evaluation committee’s ongoing work. Also on December 14, 2021, the individual defendants filed a motion to dismiss the Derivative Complaint for failure to adequately plead any claim for relief against them. On August 3, 2022, the Court entered a stipulated consent order extending the deadline for the individual defendants and the Company to answer, move against, or otherwise respond to the Derivative Complaint until thirty days after the filing of an amended complaint or the designation of an operative complaint. Subsequently, the demand evaluation committee completed its investigation and recommended that the Board reject the demands and direct the Company to seek dismissal of the Derivative Complaint. The Board approved and adopted the recommendation from the committee and rejected the demands and directed the Company to seek dismissal of the Derivative Complaint. The parties advised the Court of the Board’s decision during the status conference held on October 6, 2022. The Court directed the parties to submit a written status report within forty-five days as to the litigation. Estimating an amount or range of possible losses or gains resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key evidential and legal issues have not been resolved. For these reasons, we are currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or gains or a range of possible losses or gains resulting from the Derivative Complaint. Litigation We are subject to various other legal claims arising in the normal course of business, including patent infringement, employment matters, and product liability claims. Based on information currently available, it is the opinion of management that the ultimate resolution of pending and threatened legal proceedings will not have a material adverse effect on our financial condition, results of operations, or cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of any such matters, if unfavorable, could have a material adverse effect on our financial condition, results of operations, or cash flows in future periods. We establish estimated liabilities for legal claims when associated costs become probable and can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher than the amounts accrued for such claims. However, we cannot make a meaningful estimate of actual costs to be incurred that could possibly be higher or lower than the accrued amounts. Environmental Matters Our operations are subject to numerous comprehensive laws and regulations relating to the generation, storage, handling, transportation, and disposal of hazardous substances, as well as solid and hazardous wastes, and to the remediation of contaminated sites. In addition, permits and environmental controls are required for certain operations to limit air and water pollution, and these permits are subject to modification, renewal, and revocation by issuing authorities. On an ongoing basis, we invest capital and incur operating costs relating to environmental compliance. Environmental laws and regulations have generally become stricter in recent years. We are not aware of any pending legislation or proposed regulation related to environmental issues that would have a material adverse effect. The cost of responding to future changes may be substantial. We establish accruals for known environmental claims when the associated costs become probable and can be reasonably estimated. The actual cost of environmental issues may be substantially higher than that accrued due to difficulty in estimating such costs. Guarantees and Indemnities We are a party to contracts entered into in the normal course of business in which it is common for us to agree to indemnify third parties for certain liabilities that may arise out of or relate to the subject matter of the contract. In most cases, we cannot estimate the potential amount of future payments under these indemnities until events arise that would result in a liability under the indemnities. Product Warranty and Recall Costs Our products generally have a standard warranty term of five years that assure our products comply with agreed upon specifications. We record an accrual for the estimated amount of future warranty costs when the related revenue is recognized in accordance with ASC Topic 450, Contingencies (“ASC 450”). Estimated future warranty and recall costs are primarily based on historical experience of identified warranty and recall claims. Estimated costs related to product warranty and recall costs outside of our historical experience, which could include significant product recalls or formal campaigns soliciting repair or return of a product, are accrued when they are deemed to be probable and can be reasonably estimated. Any estimated or actual loss recoveries that offset our costs and payments are reflected as assets and included within Other current assets or Other long-term assets based on the timing of receipt of recovery. There can be no assurance that future warranty or recall costs will not exceed historical amounts or that new technology products may not generate unexpected costs. If actual future warranty or recall costs exceed historical amounts, additional increases in the accrual may be required, which could have a material adverse impact on our results of operations and cash flows. Estimated liabilities for product warranty and recall costs are included in Other accrued liabilities or Other long-term liabilities on the Consolidated Balance Sheets based upon when we expect to settle the incurred warranty. The following table summarizes changes in the estimated liabilities for product warranty and recall costs during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Beginning balance $ 20.3 $ 16.1 $ 11.5 Warranty and recall costs (1) 52.4 32.3 32.0 Payments and other deductions (1) (45.4) (28.4) (27.5) Acquired warranty and recall liabilities — 0.3 0.1 Ending balance $ 27.3 $ 20.3 $ 16.1 ____________________________ (1) Amounts exclude any estimated or actual loss recoveries. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We present our financial results of operations for our two reportable segments, ABL and ISG, consistent with how our chief operating decision maker evaluates operating results, assesses performance, and allocates resources within the Company. The accounting policies of our reportable segments are the same as those described in the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements . Corporate expenses that are primarily administrative in function and benefit the Company on an entity-wide basis are not allocated to our segments. These include expenses related to governance, policy setting, compliance, and certain other shared services functions. Additionally, we do not allocate net interest expense, net miscellaneous expense, special charges, or assets to our segments. Accordingly, this information is not used by the chief operating decision maker to make operating decisions and assess performance and is therefore excluded from our disclosures. The following table presents financial information by operating segment for the periods presented (in millions): ABL ISG Corporate Eliminations (1) Total Year Ended August 31, 2022: Net sales $ 3,810.1 $ 216.1 $ — $ (20.1) $ 4,006.1 Operating profit (loss) 545.6 22.7 (58.6) — 509.7 Depreciation and amortization 79.3 14.4 1.1 — 94.8 Year Ended August 31, 2021: Net sales $ 3,287.3 $ 190.0 $ — $ (16.3) $ 3,461.0 Operating profit (loss) 476.2 9.9 (58.5) — 427.6 Depreciation and amortization 84.3 14.7 1.1 — 100.1 Year Ended August 31, 2020: Net sales $ 3,180.9 $ 157.0 $ — $ (11.6) $ 3,326.3 Operating profit (loss) 425.8 (3.9) (68.0) — 353.9 Depreciation and amortization 83.7 16.3 1.1 — 101.1 ____________________________ (1) This column represents intersegment sales. Profit on these sales eliminates within gross profit on a consolidated basis. The following table reconciles operating profit by segment to income before income taxes (in millions): Year Ended August 31, 2022 2021 2020 Operating profit - ABL $ 545.6 $ 476.2 $ 425.8 Operating profit (loss) - ISG 22.7 9.9 (3.9) Unallocated corporate amounts (58.6) (58.5) (68.0) Operating profit 509.7 427.6 353.9 Interest expense, net 24.9 23.2 23.3 Miscellaneous (income) expense, net (9.1) 8.2 5.9 Income before income taxes $ 493.9 $ 396.2 $ 324.7 Sales of lighting, lighting controls, and building technology solutions, excluding services, accounted for approximately 99% of total consolidated net sales in fiscal 2022, 2021, and 2020. Our geographic distribution of net sales, operating profit, income before provision for income taxes, and long-lived assets is summarized in the following table during and as of the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Net sales (1) : Domestic (2) $ 3,486.4 $ 2,982.4 $ 2,925.0 International 519.7 478.6 401.3 Total $ 4,006.1 $ 3,461.0 $ 3,326.3 Operating profit: Domestic (2) $ 428.3 $ 369.9 $ 300.6 International 81.4 57.7 53.3 Total $ 509.7 $ 427.6 $ 353.9 Income before income taxes: Domestic (2) $ 409.6 $ 343.7 $ 274.2 International 84.3 52.5 50.5 Total $ 493.9 $ 396.2 $ 324.7 Long-lived assets (3) : Domestic (2) $ 325.9 $ 284.4 $ 298.6 International 73.5 76.6 64.8 Total $ 399.4 $ 361.0 $ 363.4 _______________________________________ (1) Net sales are attributed to each country based on the selling location. (2) Domestic amounts include amounts for U.S. based operations. (3) Long-lived assets include net property, plant, and equipment, operating lease right-of-use assets, and other long-term assets as reflected in the Consolidated Balance Sheets . |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize revenue when we transfer control of goods and services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for goods and services and is recognized net of rebates, sales incentives, product returns, and discounts to customers. We allocate the expected consideration to be collected to each distinct performance obligation identified in a sale based on its standalone selling price. Sales and use taxes collected on behalf of governmental authorities are excluded from revenues. Payment is generally due and received within 60 days from the point of sale. In some instances, such as for software as a service agreements, payment is made prior to the transfer of control of goods and services. Payment terms generally do not extend beyond one year, and we apply the significant financing component practical expedient within ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Accruals for cash discounts to customers are estimated using the expected value method based on historical experience and are recorded as a reduction to sales. Our standard terms and conditions of sale generally allow for the return of certain products within four months of the date of shipment. We also provide for limited product return rights to certain distributors and other customers, primarily for slow moving or damaged items subject to certain defined criteria. The limited product return rights generally allow customers to return resalable products purchased within a specified time period and subject to certain limitations, including, at times, when accompanied by a replacement order of equal or greater value. At the time revenue is recognized, we record a refund liability for the expected value of future returns primarily based on historical experience, specific notification of pending returns, or contractual terms with the respective customers. Although historical product returns generally have been within expectations, there can be no assurance that future product returns will not exceed historical amounts. A significant increase in product returns could have a material adverse impact on our operating results in future periods. Refund liabilities recorded under ASC 606 related to rights of return, cash discounts, and other miscellaneous credits to customers were $28.0 million and $28.1 million as of August 31, 2022 and 2021, respectively, and are reflected within Other accrued liabilities on the Consolidated Balance Sheets . Additionally, we record right of return assets for products expected to be returned to our distribution centers, which are included within Prepayments and other current assets on the Consolidated Balance Sheets . Such assets totaled $3.7 million and $6.4 million as of August 31, 2022 and 2021, respectively. We also maintain one-time and ongoing promotions with our customers, which may include rebate, sales incentive, marketing, and trade-promotion programs with certain customers that require us to estimate and accrue the expected costs of such programs. These arrangements may include volume rebate incentives, cooperative marketing programs, merchandising of our products, introductory marketing funds for new products, and other trade-promotion activities conducted by the customer. Costs associated with these programs are generally estimated based on the most likely amount expected to be settled based on the context of the individual contract and are reflected within the Consolidated Statements of Comprehensive Income in accordance with ASC 606, which in most instances requires such costs to be recorded as reductions of revenue. Amounts due to our customers associated with these programs totaled $40.7 million and $33.9 million as of August 31, 2022 and 2021, respectively, and are reflected within Other accrued liabilities on the Consolidated Balance Sheets . Costs to obtain and fulfill contracts, such as sales commissions, are generally short-term in nature and are expensed as incurred. Nature of Goods and Services Products Substantially all of the revenues for the periods presented were generated from short-term contracts with our customers to deliver only tangible goods such as luminaires, lighting controls, and controls for various building systems. We record revenue from these contracts when the customer obtains control of those goods. For sales designated free on board shipping point, control is transferred and revenue is recognized at the time of shipment. For sales designated free on board destination, customers take control and revenue is recognized when a product is delivered to the customer’s delivery site. Professional Services We collect fees associated with training, installation, and technical support services, primarily related to the set up of our lighting and building technology solutions. We recognize revenue for these one-time services at the time the service is performed. We also sell certain service-type warranties that extend coverages for products beyond their base warranties. We account for service-type warranties as distinct performance obligations and recognize revenue for these contracts ratably over the life of the additional warranty period. We allocate transaction price to our service-type warranties largely based on expectations of cost plus margin based on our estimate of future claims. These estimates are subject to a higher level of estimation uncertainty than other estimates, as we have less experience in costs in the extended warranty period. Claims related to service-type warranties are expensed as incurred. Software Software sales include licenses for software, data usage fees, and software as a service arrangements, which generally extend for one year or less. We recognize revenue for software based on the contractual rights provided to a customer, which typically results in the recognition of revenue ratably over the contractual service period. Shipping and Handling Activities We account for all shipping and handling activities for customers as activities to fulfill the promise to transfer products to our customers. As such, we do not consider shipping and handling activities to be separate performance obligations, and we expense these costs as incurred. Contracts with Multiple Performance Obligations A small portion of our revenue was derived from the combination of any or all of our products, professional services, and software licenses. Significant judgment may be required to determine which performance obligations are distinct and should be accounted for separately. We allocate the expected consideration to be collected to each distinct performance obligation based on its standalone selling price. Standalone selling price is generally determined using a cost plus margin valuation when no observable input is available. The amount of consideration allocated to each performance obligation is recognized as revenue in accordance with the timing for products, professional services, and software as described above. Contract Balances Our rights related to collections from customers are unconditional and are reflected within Accounts receivable on the Consolidated Balance Sheets . We do not have any other significant contract assets. Contract liabilities arise when we receive cash or an unconditional right to collect cash prior to the transfer of control of goods or services. The amount of transaction price from contracts with customers allocated to our contract liabilities consist of the following as of the dates presented (in millions): August 31, 2022 2021 Current deferred revenues $ 11.4 $ 7.7 Non-current deferred revenues 53.1 56.7 Current deferred revenues primarily consist of software licenses as well as professional service and service-type warranty fees collected prior to performing the related service and are included within Other current liabilities on the Consolidated Balance Sheets . These services are expected to be performed within one year. Revenue earned from beginning contract balances during the year ended August 31, 2022 approximated the current deferred revenue balance at August 31, 2021. Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five years and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets. Unsatisfied performance obligations that do not represent contract liabilities are expected to be satisfied within one year from August 31, 2022 and consist primarily of orders for physical goods that have not yet been shipped. Disaggregated Revenues Our ABL segment's lighting and lighting controls are sold primarily through independent sales agents who cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, directly to large corporate accounts, and through other distribution methods, including directly to original equipment manufacturer customers. ISG sells predominantly to system integrators. The following table shows revenue from contracts with customers by sales channel and reconciles to our segment information for the periods presented (in millions): Year Ended August 31, 2022 2021 2020 ABL: Independent sales network $ 2,714.1 $ 2,400.5 $ 2,284.3 Direct sales network 384.2 358.1 329.0 Retail sales 178.3 181.5 218.3 Corporate accounts 222.7 168.7 191.8 Other 310.8 178.5 157.5 Total ABL 3,810.1 3,287.3 3,180.9 ISG 216.1 190.0 157.0 Eliminations (20.1) (16.3) (11.6) Total $ 4,006.1 $ 3,461.0 $ 3,326.3 |
Share-based Payments
Share-based Payments | 12 Months Ended |
Aug. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payments | Share-based Payments Omnibus Stock Compensation Incentive and Directors’ Equity Plans In January 2022, our stockholders approved the Amended and Restated Acuity Brands, Inc. 2012 Omnibus Stock Compensation Incentive Plan (the “Stock Incentive Plan”), which, among other things, increased the total number of shares authorized for issuance pursuant to the Stock Incentive Plan from 2.7 million to 3.6 million, with a corresponding increase to shares available for grant. The Compensation and Management Development Committee of the Board of Directors (the “Compensation Committee") is authorized to issue awards consisting of incentive and non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock awards, performance stock units, stock bonus awards, and cash-based awards to eligible employees, non-employee directors, and outside consultants. Shares available for grant under the Stock Incentive Plan were approximately 1.1 million, 0.3 million, and 0.7 million at August 31, 2022, 2021, and 2020, respectively. Any shares subject to an award under the Stock Incentive Plan that are forfeited, canceled, expired, or settled for cash will be available for future grant under the Stock Incentive Plan. Restricted stock awards, performance stock awards, and director stock units representing certain deferrals into the Director Plan are valued based on the fair value of our common stock on the grant date. We review the values of our performance awards on a frequent and recurring basis and adjust those values based on the probability that the related performance metric will be satisfied. We utilize the Black-Scholes model in deriving the fair value estimates of our stock option awards that only have a service requirement, and we utilize the Monte Carlo simulation model to determine grant date fair value estimates of stock options also subject to a market condition. Restricted stock and performance stock awards granted from October 2019 to September 2020 provided for the continued vesting of stock awards following retirement for all eligible participants who have attained age 60 and have at least ten years of service with the Company. We deem the requisite service period for these awards for a participant to be the shorter of either the award's stated vesting period or the time from grant until the participant satisfies the age and service criteria. This provision was removed from any restricted stock and performance stock awards granted during or after October 2020. Effective for performance stock unit grants awarded in fiscal 2021 and after, the Compensation Committee amended the retirement provision to provide that a portion of any performance stock unit granted becomes non-forfeitable on the anniversary of the date of grant if the recipient has five years of service. We generally recognize compensation cost for share-based payment transactions on a straight-line basis over an award's requisite service period as defined by ASC 718. In certain circumstances, such as when a performance award is subject to graded vesting, we apply the accelerated attribution method to recognize compensation cost related to our share-based payment awards. Compensation expense recognized related to the awards under the current and prior equity incentive plans during the periods presented is summarized as follows (in millions): Year Ended August 31, 2022 2021 2020 Restricted stock awards and units $ 17.2 $ 15.1 $ 24.6 Stock options 8.8 9.2 4.9 Performance stock units 9.9 6.8 7.3 Director stock units 1.5 1.4 1.4 Total share-based payment expense $ 37.4 $ 32.5 $ 38.2 Restricted Stock As of August 31, 2022, we had approximately 0.3 million shares outstanding of restricted stock to officers, directors, and other key employees under the Stock Incentive Plan. Grants awarded prior to fiscal 2022 vest primarily over a four-year period, and grants awarded beginning in fiscal 2022 vest primarily over a three-year period. Our restricted stock grants are valued at the closing stock price on the date of the grant. Activity related to restricted stock awards during the periods presented was as follows (in millions, except per share data): Number of Weighted Average Outstanding at August 31, 2019 0.4 $ 156.32 Granted 0.2 $ 122.10 Vested (0.1) $ 171.92 Forfeited (0.1) $ 135.43 Outstanding at August 31, 2020 0.4 $ 134.68 Granted 0.2 $ 108.79 Vested (0.1) $ 150.44 Forfeited (0.1) $ 116.33 Outstanding at August 31, 2021 0.4 $ 116.77 Granted 0.1 $ 204.36 Vested (0.1) $ 122.27 Forfeited (0.1) $ 131.08 Outstanding at August 31, 2022 0.3 $ 144.51 As of August 31, 2022, there was $30.0 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of stock vested during the years ended August 31, 2022, 2021, and 2020 was approximately $16.4 million, $19.5 million, and $22.8 million, respectively. Stock Options As of August 31, 2022, we had approximately 1.1 million options outstanding to officers and other key employees under the Stock Incentive Plan, all of which were granted in previous fiscal years. Of these options, 0.7 million were granted in fiscal 2020 or prior and vest and become exercisable over a three-year period (the "Service Options"). The remaining 0.4 million were granted in fiscal 2021 and 2020, become exercisable over a four-year period, and are also subject to a market condition (the "Market Options"). Options issued under the Stock Incentive Plan are generally granted with an exercise price equal to the fair market value of our stock on the date of grant, but never less than the fair market value on the grant date, and expire 10 years from the date of grant. The fair value of each Service Option was estimated on the date of grant using the Black-Scholes model, and the fair value of each Market Option was estimated on the date of grant using the Monte Carlo simulation model. The dividend yield was calculated based on annual dividends paid and the trailing 12-month average closing stock price at the time of grant. Expected volatility was based on historical volatility of our stock, calculated using the most recent time period equal to the expected life of the options. The risk-free interest rate was based on the U.S. Treasury yield for a term equal to the expected life of the options at the time of grant for the Service Options and equal to the contractual term for the Market Options. We used historical exercise behavior data of similar employee groups to determine the expected life of the Service Options. The expected life of the Market Options is based on projected exercise dates resulting from the Monte Carlo simulation for each award tranche. All inputs noted above are estimates made at the time of grant. All inputs into the Black-Scholes model and the Monte Carlo simulation are estimates made at the time of grant. Actual realized value of each option grant could materially differ from these estimates, without impact to future reported net income. The following weighted average assumptions were used to estimate the fair value of the stock options granted in the fiscal years presented: Market Options Service Options 2021 2020 2020 Dividend yield 0.5% 0.4% 0.4% Expected volatility 36.5% 33.7% 33.7% Risk-free interest rate 0.7% 1.5% 1.3% Expected life of options 8 years 7 years 5 years Weighted-average fair value of options $40.45 $44.74 $34.22 Stock option activity during the periods presented was as follows: Outstanding Exercisable Number of Weighted Average Number of Weighted Average Outstanding at August 31, 2019 0.4 $ 146.70 0.3 $ 147.51 Granted 0.5 $ 121.87 Exercised — * $ 116.36 Outstanding at August 31, 2020 0.9 $ 133.19 0.4 $ 151.07 Granted 0.3 $ 108.96 Exercised — * $ 108.58 Outstanding at August 31, 2021 1.2 $ 127.98 0.5 $ 142.36 Exercised (0.1) $ 88.94 Outstanding at August 31, 2022 1.1 $ 132.50 0.6 $ 143.15 Range of option exercise prices: $100.00 - $160.00 (average life - 7.1 years) 0.9 $ 119.32 0.5 $ 122.70 $160.01 - $210.00 (average life - 3.2 years) 0.1 $ 207.80 0.1 $ 207.80 $210.01 - $239.76 (average life - 4.1 years) 0.1 $ 239.76 0.1 $ 239.76 ___________________________ * Represents amounts of less than 0.1 million. The total intrinsic value of options exercised was $14.0 million during the year ended August 31, 2022 and $1.2 million during the year ended August 31, 2021. There were no options exercised during fiscal 2020. As of August 31, 2022, the total intrinsic value of options outstanding was $40.6 million, the total intrinsic value of options expected to vest was $18.8 million, and the total intrinsic value of options exercisable was $21.4 million. As of August 31, 2022, there was $8.9 million of total unrecognized compensation cost related to unvested options. This cost is expected to be recognized over a weighted-average period of approximately 1.7 years. Performance Stock Units Beginning in fiscal 2020, the Board approved grants of performance stock units to certain executives and key employees. These grants vest primarily over a three-year period and are valued at the closing stock price at the date of grant. The actual number of performance stock units earned for these awards will be determined at the end of the related performance period based on the level of achievement of established performance thresholds. We recognize compensation expense for these grants proportionately over the requisite service period for each employee when it becomes probable that the performance metric will be satisfied. For performance stock units subject to graded vesting, we apply the accelerated attribution method for expense recognition. As of August 31, 2022, we had approximately 0.2 million performance stock units outstanding. As of August 31, 2022 there was $9.0 million of total unrecognized compensation cost related to unvested performance stock units. This cost is expected to be recognized over a weighted-average period of approximately 1.5 years. Employee Deferred Stock Units We previously allowed employees to defer a portion of restricted stock awards granted in fiscal 2003 and fiscal 2004 into the SDSP as stock units. The stock units are payable in shares of stock at the time of distribution from the SDSP. As of August 31, 2022, approximately 7,000 fully vested stock units remain deferred, but undistributed, under the Stock Incentive Plan. There was no compensation expense related to these stock units during fiscal years 2022, 2021, and 2020. Director Deferred Stock Units In January 2022, the total remaining shares available for issuance under the Director Plan were transferred into the Stock Incentive Plan. As of August 31, 2022, approximately 0.1 million stock units were deferred but undistributed under the Director Plan. Employee Stock Purchase Plan Employees are able to purchase, through payroll deduction, common stock at a 5% discount on a monthly basis. There were 1.5 million shares of our common stock reserved for purchase under the plan, of which approximately 1.0 million shares remain available as of August 31, 2022. Employees may participate at their discretion. |
Pension and Defined Contributio
Pension and Defined Contribution Plans | 12 Months Ended |
Aug. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Defined Contribution Plans | Pension and Defined Contribution Plans Company-sponsored Pension Plans We have several pension plans, both qualified and non-qualified, covering certain hourly and salaried employees. Benefits paid under these plans are based generally on employees’ years of service and/or compensation during the final years of employment. We historically have made at least the minimum annual contributions to the plans to the extent indicated by actuarial valuations and statutory requirements. Plan assets are invested primarily in equity and fixed income securities. Current period net actuarial gains in our projected benefit obligation primarily reflect an increase in the discount rate from our prior year valuation. The following tables reflect the status of our domestic (U.S.-based) and international pension plans as of the dates presented (in millions): Domestic Plans International Plans August 31, August 31, 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 224.7 $ 249.6 $ 52.6 $ 49.2 Service cost 4.4 4.6 0.4 0.3 Interest cost 5.3 5.3 0.9 0.9 Actuarial (gains) losses (43.1) (5.2) (17.1) 1.7 Benefits paid (15.3) (29.6) (2.1) (1.3) Other — — (3.2) 1.8 Benefit obligation at end of year 176.0 224.7 31.5 52.6 Change in plan assets: Fair value of plan assets at beginning of year 182.6 167.1 42.2 35.1 Actual return on plan assets (33.6) 21.7 (11.6) 5.3 Employer contributions 7.8 23.4 3.0 2.1 Benefits paid (15.3) (29.6) (2.1) (1.3) Other — — (3.0) 1.0 Fair value of plan assets at end of year 141.5 182.6 28.5 42.2 Funded status at the end of year $ (34.5) $ (42.1) $ (3.0) $ (10.4) Amounts recognized in the consolidated balance sheets consist of: Non-current assets $ 7.6 $ 13.0 $ 0.4 $ — Current liabilities (3.9) (5.2) (0.2) (0.1) Non-current liabilities (38.2) (49.9) (3.2) (10.3) Net amount recognized in consolidated balance sheets $ (34.5) $ (42.1) $ (3.0) $ (10.4) Accumulated benefit obligation $ 175.3 $ 223.8 $ 31.3 $ 51.7 Pre-tax amounts in accumulated other comprehensive loss: Prior service cost $ (2.7) $ (5.6) $ (0.1) $ (0.1) Net actuarial loss (54.2) (55.2) (6.5) (11.3) Amounts in accumulated other comprehensive loss $ (56.9) $ (60.8) $ (6.6) $ (11.4) Pensions plans in which benefit obligation exceeds plan assets: Projected benefit obligation $ 42.1 $ 81.7 $ 3.4 $ 52.6 Accumulated benefit obligation 41.4 80.8 2.3 51.7 Plan assets — 26.6 — 42.2 Pensions plans in which plan assets exceed benefit obligation: Projected benefit obligation $ 133.9 $ 143.0 $ 28.1 $ — Accumulated benefit obligation 133.9 143.0 29.0 — Plan assets 141.5 156.0 28.5 — Service cost of net periodic pension cost is allocated between Cost of products sold, and may be capitalized into inventory as labor costs, and Selling, distribution, and administrative expenses in the Consolidated Statements of Comprehensive Income based on the function of the employee's services. All other components of net periodic pension cost are included within Miscellaneous (income) expense, net in the Consolidated Statements of Comprehensive Income . We utilize a corridor approach to amortize cumulative unrecognized actuarial gains or losses over either the average expected future service of active participants or average life expectancy of plan participants based on each plan’s composition. The corridor is determined as the greater of the excess of 10% of plan assets or the projected benefit obligation at each valuation date. Amounts related to prior service cost are amortized over the average remaining expected future service period for active participants in each plan. Net periodic pension cost during the periods presented included the following components before tax (in millions): Domestic Plans International Plans 2022 2021 2020 2022 2021 2020 Service cost $ 4.4 $ 4.6 $ 4.3 $ 0.4 $ 0.3 $ 0.3 Interest cost 5.3 5.3 6.4 0.9 0.9 0.9 Expected return on plan assets (11.2) (11.0) (10.4) (2.6) (2.3) (2.0) Amortization of prior service cost 2.9 2.9 4.0 — — — Settlement 0.4 3.9 — — — — Recognized actuarial loss 2.4 4.1 4.2 0.9 1.4 1.4 Net periodic pension cost $ 4.2 $ 9.8 $ 8.5 $ (0.4) $ 0.3 $ 0.6 Weighted average assumptions used in computing the benefit obligation are as follows: Domestic Plans International Plans 2022 2021 2022 2021 Discount rate 4.4 % 2.4 % 4.9 % 1.9 % Rate of compensation increase 5.0 % 5.0 % 3.5 % 3.4 % Weighted average assumptions used in computing net periodic pension cost are as follows: Domestic Plans International Plans 2022 2021 2020 2022 2021 2020 Discount rate 2.4 % 2.2 % 2.8 % 1.9 % 1.9 % 2.0 % Expected return on plan assets 6.3 % 6.8 % 7.0 % 6.4 % 6.5 % 6.5 % Rate of compensation increase 5.0 % 5.0 % 5.0 % 3.4 % 3.4 % 3.0 % It is our policy to adjust, on an annual basis, the discount rate used to determine the projected benefit obligation to approximate rates on high-quality, long-term obligations based on our estimated benefit payments available as of the measurement date. We use published yield curves to assist in the development of our discount rates. We estimate that a 100 basis point increase in the discount rate would reduce net periodic pension cost approximately $0.6 million for the domestic plans and $0.5 million for the international plans. The expected return on plan assets is derived primarily from a periodic study of long-term historical rates of return on the various asset classes included in our targeted pension plan asset allocation as well as future expectations. We estimate that each 100 basis point reduction in the expected return on plan assets would result in additional net periodic pension cost of $1.6 million and $0.3 million for domestic plans and international plans, respectively. We also evaluate the rate of compensation increase annually and adjust if necessary. Our investment objective for domestic plan assets is to earn a rate of return sufficient to exceed the long-term growth of the plans’ liabilities without subjecting plan assets to undue risk. The plan assets are invested primarily in high quality debt and equity securities. We conduct a periodic strategic asset allocation study to form a basis for the allocation of pension assets between various asset categories. Specific allocation percentages are assigned to each asset category with minimum and maximum ranges established for each. The assets are then managed within these ranges. At August 31, 2022, the U.S. targeted asset allocation was 30% equity securities, 65% fixed income securities, and 5% real estate securities. Our investment objective for the international plan assets is also to add value by exceeding the long-term growth of the plans’ liabilities. At August 31, 2022, the international asset target allocation approximated 15% equity securities, 25% fixed income securities, and 60% multi-strategy investments. Our pension plan asset allocation by asset category as of the dates presented is as follows: % of Plan Assets Domestic Plans International Plans 2022 2021 2022 2021 Equity securities 31.6 % 41.2 % 16.8 % 16.1 % Fixed income securities 61.2 % 54.3 % 22.8 % 20.1 % Multi-strategy investments — % — % 60.4 % 63.8 % Real estate 7.2 % 4.5 % — % — % Total 100.0 % 100.0 % 100.0 % 100.0 % Our pension plan assets are stated at fair value based on quoted market prices in an active market, quoted redemption values, or estimates based on reasonable assumptions as of the most recent measurement period. See the Fair Value Measurements footnote for a description of the fair value guidance. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. Certain pension assets valued at net asset value (“NAV”) per share as a practical expedient are excluded from the fair value hierarchy. Investments in pension plan assets are described in further detail below. Short-term Fixed Income Investments Short-term investments consist of money market funds, which are valued at the daily closing price as reported by the relevant fund (Level 1). Mutual Funds Mutual funds held by the domestic plans are open-end mutual funds that are registered with the Securities and Exchange Commission (“SEC”) and seek to either replicate or outperform a related index. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the domestic plans are deemed to be actively traded (Level 1). Collective Trust The collective trust seeks to outperform the overall small-cap stock market and is comprised primarily of small-cap equity securities with quoted prices in active markets for identical investments. The value of this fund is calculated on each business day based on its daily net asset value; however, the collective trust is not deemed to be actively traded (Level 2). Fixed Income Investments The fixed income fund seeks to maximize total return by investing primarily in a diversified portfolio of intermediate and long-term debt securities and is valued using the NAV of units of a management investment company’s trust. The NAV, as provided by the fund's trustee, is used as a practical expedient to estimate fair value. As such, these funds are excluded from the fair value hierarchy. The NAV is based on the fair value of the underlying investments held by the fund less the fund's liabilities. Real Estate Fund The real estate fund invests primarily in commercial real estate and includes mortgage loans that are backed by the associated property's investment objective. The fund seeks real estate returns, risk, and liquidity appropriate to a core fund. The fund also seeks to provide current income with the potential for long-term capital appreciation. This investment is valued based on the NAV per share, without further adjustment. The NAV, as provided by the fund's trustee, is used as a practical expedient to estimate fair value and is therefore excluded from the fair value hierarchy. NAV is based on the fair value of the underlying investments. Investors may request to redeem all or any portion of their shares on a quarterly basis. Each investor must provide a written redemption request at least sixty days prior to the end of the quarter for which the request is to be effective. If insufficient funds are available to honor all redemption requests at any point in time, available funds will be allocated pro-rata based on the total number of shares held by each investor. All decisions regarding whether to honor redemption requests are made by the fund’s board of directors. The following tables present the fair value of the domestic pension plan assets by major category as of the dates presented (in millions): Fair Value Measurements Fair Value Quoted Market Significant Significant August 31, 2022 (Level 1) (Level 2) (Level 3) Assets included in the fair value hierarchy: Mutual funds: Domestic large cap equity fund $ 23.7 $ 23.7 $ — $ — Foreign equity fund 12.6 12.6 — — Collective trust: Domestic small cap equities 8.4 — 8.4 — Short-term fixed income investments 2.1 2.1 — — Total assets in the fair value hierarchy 46.8 Assets calculated at net asset value: Fixed-income investments 84.5 Real estate fund 10.2 Total assets at net asset value 94.7 Total assets at fair value $ 141.5 Fair Value Measurements Fair Value Quoted Market Significant Significant August 31, 2021 (Level 1) (Level 2) (Level 3) Assets included in the fair value hierarchy: Mutual funds: Domestic large cap equity fund $ 38.9 $ 38.9 $ — $ — Foreign equity fund 23.1 23.1 — — Collective trust: Domestic small cap equities 13.3 — 13.3 — Short-term fixed income investments 6.9 6.9 — — Total assets in the fair value hierarchy 82.2 Assets calculated at net asset value: Fixed-income investments 92.3 Real estate fund 8.1 Total assets at net asset value 100.4 Total assets at fair value $ 182.6 International Plan Investments The international plans' assets consist primarily of funds invested in equity securities, multi-strategy investments, and fixed income investments. These securities are calculated using the values of the underlying holdings (i.e. significant observable inputs) but do not have quoted prices in active markets (Level 2). The short-term fixed income investments represents cash and cash equivalents held by the funds at fiscal year end (Level 1). The following tables present the fair value of the international pension plan assets by major category as of the dates presented (in millions): Fair Value Measurements Fair Value Quoted Market Significant Significant August 31, 2022 (Level 1) (Level 2) (Level 3) Assets included in the fair value hierarchy: Equity securities $ 4.8 $ — $ 4.8 $ — Short-term fixed income investments 0.3 0.3 — — Multi-strategy investments 17.2 — 17.2 — Fixed-income investments 6.2 — 6.2 — Total assets at fair value $ 28.5 Fair Value Measurements Fair Value Quoted Market Significant Significant August 31, 2021 (Level 1) (Level 2) (Level 3) Assets included in the fair value hierarchy: Equity securities $ 6.8 $ — $ 6.8 $ — Short-term fixed income investments 1.0 1.0 — — Multi-strategy investments 26.9 — 26.9 — Fixed-income investments 7.5 — 7.5 — Total assets at fair value $ 42.2 We do not expect to contribute to the domestic qualified plans in fiscal 2023 based on the funded status of the plans as well as current legal minimum funding requirements. We expect to contribute approximately $1.3 million during fiscal 2023 to our international defined benefit plans. These amounts are based on the total contributions required during fiscal 2023 to satisfy current legal minimum funding requirements for qualified plans and estimated benefit payments for non-qualified plans. Benefit payments are made primarily from funded benefit plan trusts. Benefit payments are expected to be paid as follows during the years ending August 31 (in millions): Domestic Plans International Plans 2023 $ 12.0 $ 1.3 2024 12.0 1.3 2025 13.0 1.5 2026 14.6 1.5 2027 13.6 1.6 2028-2032 63.9 10.7 Multi-employer Pension Plans We have contributed to two multi-employer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects: • Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be shared by the remaining participating employers. • If a participating employer chooses to stop participating in some of its multi-employer plans, the employer may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Our contributions to these plans were $0.5 million for the year ended August 31, 2022, and $0.6 million for the years ended August 31, 2021 and 2020. Defined Contribution Plans We have defined contribution plans to which both employees and we make contributions. Employer matching amounts are allocated in accordance with the participants’ investment elections for elective deferrals and totaled $10.5 million, $8.4 million, and $8.2 million for the years ended August 31, 2022, 2021, and |
Common Stock and Related Matter
Common Stock and Related Matters | 12 Months Ended |
Aug. 31, 2022 | |
Equity [Abstract] | |
Common Stock and Related Matters | Common Stock and Related Matters Common Stock Changes in common stock during the periods presented were as follows (amounts and shares in millions): Common Stock Shares Amount (At par) Balance at August 31, 2019 53.8 $ 0.5 Issuance of restricted stock grants, net of cancellations 0.1 — Balance at August 31, 2020 53.9 0.5 Issuance of restricted stock grants, net of cancellations 0.1 — Stock options exercised — * — Balance at August 31, 2021 54.0 0.5 Issuance of restricted stock grants, net of cancellations 0.1 — Stock options exercised 0.1 — Balance at August 31, 2022 54.2 $ 0.5 ___________________________ * Represents shares of less than 0.1 million. As of August 31, 2022 and 2021, we had 21.8 million and 18.8 million of repurchased shares recorded as treasury stock at an original repurchase cost of $2.18 billion and $1.66 billion, respectively. During fiscal 2022, we repurchased approximately 2.9 million shares of our outstanding common stock. As of August 31, 2022, the maximum number of shares that may yet be repurchased under the share repurchase program authorized by the Board equaled 2.8 million shares. We may repurchase shares of our common stock from time to time at prevailing market prices, depending on market conditions, through open market or privately negotiated transactions. Preferred Stock We have 50 million shares of preferred stock authorized. No shares of preferred stock were issued in fiscal 2022 or 2021, and no shares of preferred stock are outstanding. Earnings per Share Basic earnings per share for the periods presented is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding for these periods. Diluted earnings per share is computed similarly but reflects the potential dilution that would occur if dilutive options were exercised, unvested share-based payment awards were vested, and other distributions related to deferred stock agreements were incurred. The dilutive effects of share-based payment awards subject to market and/or performance conditions that were not met during the period are excluded from the computation of diluted earnings per share. The following table calculates basic earnings per common share and diluted earnings per common share during the periods presented (in millions, except per share data): Year Ended August 31, 2022 2021 2020 Net income $ 384.0 $ 306.3 $ 248.3 Basic weighted average shares outstanding 34.182 36.284 39.453 Common stock equivalents 0.463 0.270 0.148 Diluted weighted average shares outstanding 34.645 36.554 39.601 Basic earnings per share (1) $ 11.23 $ 8.44 $ 6.29 Diluted earnings per share (1) $ 11.08 $ 8.38 $ 6.27 ____________________ (1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding. The following table presents stock options, restricted stock awards, and performance stock units that were excluded from the diluted earnings per share calculation for the periods presented as the effect of inclusion would have been antidilutive (in millions): Year Ended August 31, 2022 2021 2020 Stock options 0.1 0.8 0.6 Restricted stock awards 0.1 — * 0.2 Performance stock units — — — * _______________________ * Represents shares of less than 0.1 million. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We account for income taxes using the asset and liability approach as prescribed by ASC Topic 740, Income Taxes (“ASC 740”). This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Using the enacted tax rates in effect for the year in which the differences are expected to reverse, deferred tax liabilities and assets are determined based on the differences between the financial reporting and the tax basis of an asset or liability. On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law in the United States. Among other provisions, the IRA includes a 15% corporate alternative minimum tax rate applicable for our fiscal 2024 taxable year and a 1% federal excise tax on corporate stock repurchases made after December 31, 2022. We do not expect the IRA to have a material impact on our financial condition, results of operations, or cash flows. The provision for income taxes consists of the following components during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Provision for current federal taxes $ 67.6 $ 65.4 $ 54.6 Provision for current state taxes 16.3 12.8 12.5 Provision for current foreign taxes 25.4 14.4 16.0 Provision for (benefit from) deferred taxes 0.6 (2.7) (6.7) Total provision for income taxes $ 109.9 $ 89.9 $ 76.4 The following table reconciles the provision at the federal statutory rate to the total provision for income taxes during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Federal income tax computed at statutory rate $ 103.7 $ 83.2 $ 68.2 State income tax, net of federal income tax benefit 13.5 10.7 9.7 Federal permanent differences (4.3) 0.6 0.9 Foreign permanent differences and rate differential 4.3 2.4 2.4 Research and development tax credits (7.6) (7.6) (7.1) Unrecognized tax benefits 2.1 0.7 1.8 Other, net (1.8) (0.1) 0.5 Total provision for income taxes $ 109.9 $ 89.9 $ 76.4 Components of the net deferred income tax liabilities as of the dates presented include (in millions): August 31, 2022 2021 Deferred income tax liabilities: Depreciation $ (18.6) $ (19.0) Goodwill and intangibles (154.2) (155.2) Operating lease right of use asset (18.3) (14.3) Other liabilities (7.4) (8.2) Total deferred income tax liabilities (198.5) (196.7) Deferred income tax assets: Self-insurance 1.6 1.8 Pension 7.1 9.9 Deferred compensation 22.2 21.3 Net operating losses 5.8 5.4 Other accruals not yet deductible 42.9 41.3 Operating lease liabilities 20.3 15.4 Other assets 9.3 12.0 Total deferred income tax assets 109.2 107.1 Valuation allowance (11.5) (9.5) Net deferred income tax liabilities $ (100.8) $ (99.1) As of August 31, 2022, the estimated undistributed earnings from foreign subsidiaries was $204.0 million. We have recorded a deferred income tax liability of $3.2 million for certain foreign withholding taxes and U.S. state taxes related to foreign earnings for which we do not assert indefinite reinvestment. With respect to unremitted earnings and original investments in foreign subsidiaries where we are continuing to assert indefinite reinvestment, any future remittances could be subject to additional foreign withholding taxes, U.S. state taxes, and certain tax impacts relating to foreign currency exchange effects. It is not practicable to estimate the amount of any unrecognized tax effects on these reinvested earnings and original investments in foreign subsidiaries. We account for the tax on Global Intangible Low-Taxed Income (“GILTI”) as a period cost and, therefore, do not record deferred taxes related to GILTI on our foreign subsidiaries. At August 31, 2022, we had federal tax credit carryforwards of approximately $4.9 million that begin to expire in 2029, and state tax credit carryforwards of less than $0.1 million, that begin to expire in 2028. The $4.9 million in federal tax credit carryforwards are subject to a full valuation allowance as we do not expect to realize any future tax benefit. At August 31, 2022, we had federal net operating loss carryforwards of $13.6 million that begin to expire in 2029, state net operating loss carryforwards of $33.9 million that begin to expire in 2023, and foreign net operating loss carryforwards of $7.1 million that begin to expire in 2028. The gross amount of unrecognized tax benefits as of August 31, 2022 and 2021 totaled $19.5 million and $17.7 million, respectively, which includes $18.8 million and $17.1 million, respectively, of net unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. We recognize potential interest and penalties related to unrecognized tax benefits as a component of income tax expense; such accrued interest and penalties are not material. With few exceptions, we are no longer subject to United States federal, state, and local income tax examinations for years ended before 2016 or for foreign income tax examinations before 2017. We do not anticipate unrecognized tax benefits will significantly increase or decrease within the next 12 months. The following table reconciles the change in the unrecognized income tax benefit (reported in Other long-term liabilities on the Consolidated Balance Sheets ) during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Unrecognized tax benefits balance at beginning of year $ 17.7 $ 17.2 $ 16.6 Additions based on tax positions related to the current year 3.5 5.2 2.3 Additions for tax positions of prior years 0.1 0.1 — Reductions for tax positions of prior years (0.2) (0.1) (0.4) Reductions due to settlements — (4.6) (1.2) Reductions due to lapse of statute of limitations (1.6) (0.1) (0.1) Unrecognized tax benefits balance at end of year $ 19.5 $ 17.7 $ 17.2 Total accrued interest was $2.1 million, $2.0 million, and $1.7 million as of August 31, 2022, 2021, and 2020, respectively. There were no accruals related to income tax penalties during fiscal 2022. Interest, net of tax benefits, and penalties are included in Income tax expense within the Consolidated Statements of Comprehensive Income . The classification of interest and penalties did not change during the current fiscal year. We are routinely under audit from various tax jurisdictions. We do not currently anticipate material audit assessments. |
Supplemental Disaggregated Info
Supplemental Disaggregated Information | 12 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Supplemental Disaggregated Information | Segment Information We present our financial results of operations for our two reportable segments, ABL and ISG, consistent with how our chief operating decision maker evaluates operating results, assesses performance, and allocates resources within the Company. The accounting policies of our reportable segments are the same as those described in the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements . Corporate expenses that are primarily administrative in function and benefit the Company on an entity-wide basis are not allocated to our segments. These include expenses related to governance, policy setting, compliance, and certain other shared services functions. Additionally, we do not allocate net interest expense, net miscellaneous expense, special charges, or assets to our segments. Accordingly, this information is not used by the chief operating decision maker to make operating decisions and assess performance and is therefore excluded from our disclosures. The following table presents financial information by operating segment for the periods presented (in millions): ABL ISG Corporate Eliminations (1) Total Year Ended August 31, 2022: Net sales $ 3,810.1 $ 216.1 $ — $ (20.1) $ 4,006.1 Operating profit (loss) 545.6 22.7 (58.6) — 509.7 Depreciation and amortization 79.3 14.4 1.1 — 94.8 Year Ended August 31, 2021: Net sales $ 3,287.3 $ 190.0 $ — $ (16.3) $ 3,461.0 Operating profit (loss) 476.2 9.9 (58.5) — 427.6 Depreciation and amortization 84.3 14.7 1.1 — 100.1 Year Ended August 31, 2020: Net sales $ 3,180.9 $ 157.0 $ — $ (11.6) $ 3,326.3 Operating profit (loss) 425.8 (3.9) (68.0) — 353.9 Depreciation and amortization 83.7 16.3 1.1 — 101.1 ____________________________ (1) This column represents intersegment sales. Profit on these sales eliminates within gross profit on a consolidated basis. The following table reconciles operating profit by segment to income before income taxes (in millions): Year Ended August 31, 2022 2021 2020 Operating profit - ABL $ 545.6 $ 476.2 $ 425.8 Operating profit (loss) - ISG 22.7 9.9 (3.9) Unallocated corporate amounts (58.6) (58.5) (68.0) Operating profit 509.7 427.6 353.9 Interest expense, net 24.9 23.2 23.3 Miscellaneous (income) expense, net (9.1) 8.2 5.9 Income before income taxes $ 493.9 $ 396.2 $ 324.7 Sales of lighting, lighting controls, and building technology solutions, excluding services, accounted for approximately 99% of total consolidated net sales in fiscal 2022, 2021, and 2020. Our geographic distribution of net sales, operating profit, income before provision for income taxes, and long-lived assets is summarized in the following table during and as of the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Net sales (1) : Domestic (2) $ 3,486.4 $ 2,982.4 $ 2,925.0 International 519.7 478.6 401.3 Total $ 4,006.1 $ 3,461.0 $ 3,326.3 Operating profit: Domestic (2) $ 428.3 $ 369.9 $ 300.6 International 81.4 57.7 53.3 Total $ 509.7 $ 427.6 $ 353.9 Income before income taxes: Domestic (2) $ 409.6 $ 343.7 $ 274.2 International 84.3 52.5 50.5 Total $ 493.9 $ 396.2 $ 324.7 Long-lived assets (3) : Domestic (2) $ 325.9 $ 284.4 $ 298.6 International 73.5 76.6 64.8 Total $ 399.4 $ 361.0 $ 363.4 _______________________________________ (1) Net sales are attributed to each country based on the selling location. (2) Domestic amounts include amounts for U.S. based operations. (3) Long-lived assets include net property, plant, and equipment, operating lease right-of-use assets, and other long-term assets as reflected in the Consolidated Balance Sheets . |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | We have prepared the Consolidated Financial Statements |
Principles of Consolidation | The Consolidated Financial Statements include the accounts of Acuity Brands, Inc. and its wholly-owned subsidiaries after elimination of intercompany transactions and accounts. |
Use of Estimates | The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition and Shipping and Handling Fees and Costs | Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements for information related to our revenue recognition accounting policies. We include shipping and handling fees billed to customers in Net sales in the Consolidated Statements of Comprehensive Income . When a product is sold, the associated shipping and handling costs are recorded in the Consolidated Statements of Comprehensive Income based on their function. Costs associated with inbound freight and freight between manufacturing facilities and distribution centers are generally recorded in Cost of products sold, which may be capitalized into inventory . Current deferred revenues primarily consist of software licenses as well as professional service and service-type warranty fees collected prior to performing the related service and are included within Other current liabilities on the Consolidated Balance Sheets . These services are expected to be performed within one year. Revenue earned from beginning contract balances during the year ended August 31, 2022 approximated the current deferred revenue balance at August 31, 2021. Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five years and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets. |
Cash and Cash Equivalents | Cash in excess of daily requirements is invested in time deposits and marketable securities and is included in the accompanying balance sheets at fair value. We consider time deposits and marketable securities with an original maturity of three months or less when purchased to be cash equivalents. |
Accounts Receivable | We record accounts receivable at net realizable value. This value includes a reserve for doubtful accounts to reflect our estimate of expected credit losses over the contractual term of our receivables. Our estimation of current expected credit losses reflects our considerations of historical write-offs, an analysis of past due accounts based on the contractual terms of the receivables, and the economic status of customers, if known. We additionally consider the impact of general economic conditions, including construction spending, unemployment rates, and macroeconomic growth, on our customers' future ability to meet their obligations. We believe that the reserve is sufficient to cover uncollectible amounts; however, there can be no assurance that unanticipated future business conditions of customers will not have a negative impact on our results of operations. |
Concentrations of Credit Risk | Concentrations of credit risk with respect to receivables, which are typically unsecured, are generally limited due to the wide variety of customers and markets using our lighting, lighting controls, building management systems, and location-aware applications as well as their dispersion across many different geographic areas. |
Reclassifications | We may reclassify certain prior period amounts to conform to the current year presentation. No material reclassifications occurred during the current period. |
Inventories | Inventories include materials, direct labor, inbound freight, customs, duties, tariffs, and related manufacturing overhead. Inventories are stated on a first-in, first-out basis at the lower of cost and net realizable valueWe review inventory quantities on hand and record a provision for excess or obsolete inventory primarily based on estimated future demand and current market conditions. A significant change in customer demand or market conditions could render certain inventory obsolete and could have a material adverse impact on our operating results in the period the change occurs. |
Assets Held for Sale | We classify assets as held for sale when a plan for disposal is developed and approved, the asset is available for immediate sale, an active program to locate a buyer at a price reasonable in relation to current fair value is initiated, and transfer of the asset is expected to be completed within one year. We cease the depreciation and amortization of the assets when all of these criteria have been met and generally reflect balances within Prepayments and other current assets on our Consolidated Balance Sheets |
Goodwill and Other Intangibles | Significant estimates and assumptions were used to determine the initial fair value of these acquired intangible assets, including estimated future short-term and long-term net sales and profitability, customer attrition rates, royalty rates, and discount rates. Certain of our intangible assets are attributable to foreign operations and are impacted by currency translation due to movements in foreign currency rates year over year. We test goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first date of our fourth fiscal quarter (June 1) or more frequently as facts and circumstances change, as required by Accounting Standards Codification (“ASC”) Topic 350, Intangibles—Goodwill and Other (“ASC 350”). ASC 350 allows for an optional qualitative analysis for goodwill to determine the likelihood of impairment. If the qualitative review results in a more likely than not probability of impairment, a quantitative analysis is required. The qualitative step may be bypassed entirely in favor of a quantitative test. The quantitative analysis identifies impairments by comparing the fair value of a reporting unit to its carrying value, including goodwill. The fair values can be determined based on a combination of valuation techniques including the expected present value of future cash flows, a market multiple approach, and a comparable transaction approach. If |
Share-based Payments | We recognize compensation cost for share-based payment transactions in the financial statements based on the estimated grant date fair value of the equity instrument issued. We account for stock options, restricted stock, performance stock units, and stock units representing certain deferrals into the Nonemployee Director Deferred Compensation Plan (the “Director Plan”) or the Supplemental Deferred Savings Plan (“SDSP”) (both of which are discussed further in the Share-based Payments footnote) based on the grant-date fair value estimated under the current provisions of ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). |
Property, Plant and Equipment | Property, plant, and equipment is initially recorded at cost and depreciated principally on a straight-line basis using estimated useful lives of plant and equipment (3 to 40 years for buildings and related improvements and 2 to 15 years for machinery and equipment) for financial reporting purposes. Accelerated depreciation methods are used for income tax purposes. Leasehold improvements are amortized over the shorter of the life of the lease or the estimated useful life of the improvement. |
Depreciation, Depletion, and Amortization | Property, plant, and equipment is initially recorded at cost and depreciated principally on a straight-line basis using estimated useful lives of plant and equipment (3 to 40 years for buildings and related improvements and 2 to 15 years for machinery and equipment) for financial reporting purposes. Accelerated depreciation methods are used for income tax purposes. Leasehold improvements are amortized over the shorter of the life of the lease or the estimated useful life of the improvement |
Research and Development | Research and development (“R&D”) expense consists of compensation, payroll taxes, employee benefits, materials, supplies, and other administrative costs, but it does not include all new or enhanced product development costs. R&D expense is expensed as incurred and is included in Selling, distribution, and administrative expenses in our Consolidated Statements of Comprehensive Income |
Advertising | Advertising costs are expensed as incurred and are included within Selling, distribution, and administrative expenses in our Consolidated Statements of Comprehensive Income |
Interest Expense, Net | Interest expense, net , is comprised primarily of interest expense on long-term debt, line of credit borrowings, and loans that are secured by and presented net of company-owned life insurance policies on our Consolidated Balance Sheets . Interest expense is partially offset by interest income earned on cash and cash equivalents. |
Miscellaneous (Income) Expense, Net | Miscellaneous (income) expense, net, is comprised primarily of non-service related components of net periodic pension cost, gains and losses associated with foreign currency-related transactions, and non-operating gains and losses. |
Income Taxes | We are taxed at statutory corporate rates after adjusting income reported for financial statement purposes for certain items that are treated differently for income tax purposes. Deferred income tax expenses or benefits result from changes during the year in cumulative temporary differences between the tax basis and book basis of assets and liabilities. Refer to the Income Taxes footnote of the Notes to Consolidated Financial Statements for additional information. |
Foreign Currency Translation | The functional currency for foreign operations is generally the local currency where the foreign operations are domiciled. The translation of foreign currencies into U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet dates and for revenue and expense accounts using a weighted average exchange rate each month during the year. The gains or losses resulting from the balance sheet translation are included in Foreign currency translation adjustments in the Consolidated Statements of Comprehensive Income and are excluded from net income. |
Comprehensive Income | Comprehensive income represents a measure of all changes in equity that result from recognized transactions and other economic events other than transactions with owners in their capacity as owners. Other comprehensive income (loss) items includes foreign currency translation and pension adjustments. |
New Accounting Pronouncements, Policy | Accounting Standards Adopted in Fiscal 2022 Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”) In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC Topic 740, Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, or our fiscal 2022. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We adopted ASU 2019-12 as of September 1, 2021 as required by the standard. This standard did not have a material effect on our financial condition, results of operations, or cash flows. Accounting Standards Yet to Be Adopted ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”) In October 2021, the FASB issued ASU 2021-08, which requires companies to recognize and measure contract assets and contract liabilities acquired in a business combination as if the acquiring company originated the related revenue contracts. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, or our fiscal 2024, with early adoption permitted. We are currently assessing the impacts of ASU 2021-08 to determine whether we will adopt early or in fiscal 2024. Amendments within the standard are required to be applied on a prospective basis from the date of adoption. We will apply the provisions of ASU 2021-08 after adoption to future acquisitions, if any. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. |
Fair Value Measurements of Pension Plan Assets | Our pension plan assets are stated at fair value based on quoted market prices in an active market, quoted redemption values, or estimates based on reasonable assumptions as of the most recent measurement period. See the Fair Value Measurements footnote for a description of the fair value guidance. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. Certain pension assets valued at net asset value (“NAV”) per share as a practical expedient are excluded from the fair value hierarchy. Investments in pension plan assets are described in further detail below. Short-term Fixed Income Investments Short-term investments consist of money market funds, which are valued at the daily closing price as reported by the relevant fund (Level 1). Mutual Funds Mutual funds held by the domestic plans are open-end mutual funds that are registered with the Securities and Exchange Commission (“SEC”) and seek to either replicate or outperform a related index. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the domestic plans are deemed to be actively traded (Level 1). Collective Trust The collective trust seeks to outperform the overall small-cap stock market and is comprised primarily of small-cap equity securities with quoted prices in active markets for identical investments. The value of this fund is calculated on each business day based on its daily net asset value; however, the collective trust is not deemed to be actively traded (Level 2). Fixed Income Investments The fixed income fund seeks to maximize total return by investing primarily in a diversified portfolio of intermediate and long-term debt securities and is valued using the NAV of units of a management investment company’s trust. The NAV, as provided by the fund's trustee, is used as a practical expedient to estimate fair value. As such, these funds are excluded from the fair value hierarchy. The NAV is based on the fair value of the underlying investments held by the fund less the fund's liabilities. Real Estate Fund The real estate fund invests primarily in commercial real estate and includes mortgage loans that are backed by the associated property's investment objective. The fund seeks real estate returns, risk, and liquidity appropriate to a core fund. The fund also seeks to provide current income with the potential for long-term capital appreciation. This investment is valued based on the NAV per share, without further adjustment. The NAV, as provided by the fund's trustee, is used as a practical expedient to estimate fair value and is therefore excluded from the fair value hierarchy. NAV is based on the fair value of the underlying investments. Investors may request to redeem all or any portion of their shares on a quarterly basis. Each investor must provide a written redemption request at least sixty days prior to the end of the quarter for which the request is to be effective. If insufficient funds are available to honor all redemption requests at any point in time, available funds will be allocated pro-rata based on the total number of |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Inventory | Inventories include materials, direct labor, inbound freight, customs, duties, tariffs, and related manufacturing overhead. Inventories are stated on a first-in, first-out basis at the lower of cost and net realizable value and consist of the following as of the dates presented (in millions): August 31, 2022 2021 Raw materials, supplies, and work in process (1) $ 252.6 $ 209.5 Finished goods 264.0 227.2 Inventories excluding reserves 516.6 436.7 Less: Reserves (30.9) (38.0) Total inventories $ 485.7 $ 398.7 _______________________________________ (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, we do not believe the segregation of raw materials and work in process is meaningful information. |
Schedule Of Inventory Reserve | The following table summarizes the changes in our inventory reserves for the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Beginning balance $ 38.0 $ 49.3 $ 22.3 Additions to reserve 15.7 21.4 36.3 Disposals of reserved inventory (22.5) (32.7) (11.1) Foreign currency translation adjustments (0.3) — 1.8 Ending balance $ 30.9 $ 38.0 $ 49.3 |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the periods presented by segment are summarized as follows (in millions): ABL ISG Total Balance as of August 31, 2020 $ 1,012.6 $ 67.4 $ 1,080.0 Additions from acquired businesses 6.9 3.1 10.0 Foreign currency translation adjustments 2.7 2.0 4.7 Balance as of August 31, 2021 1,022.2 72.5 1,094.7 Adjustments to provisional amounts from acquired businesses 2.3 — 2.3 Foreign currency translation adjustments (10.3) (2.4) (12.7) Balance as of August 31, 2022 $ 1,014.2 $ 70.1 $ 1,084.3 |
Schedule of Acquired Finite-Lived Intangible Assets | Summarized information for our acquired intangible assets is as follows as of the dates presented (in millions except amortization periods): August 31, 2022 2021 Gross Carrying Accumulated Gross Carrying Accumulated Definite-lived intangible assets: Patents and patented technology $ 160.8 $ (116.0) $ 164.6 $ (104.4) Trademarks and trade names 27.2 (18.3) 27.2 (17.1) Distribution network 61.8 (47.3) 61.8 (45.0) Customer relationships 427.7 (140.4) 429.2 (117.9) Total definite-lived intangible assets $ 677.5 $ (322.0) $ 682.8 $ (284.4) Indefinite-lived trade names $ 173.7 $ 174.8 |
Schedule of Acquired Indefinite-Lived Intangible Assets | Summarized information for our acquired intangible assets is as follows as of the dates presented (in millions except amortization periods): August 31, 2022 2021 Gross Carrying Accumulated Gross Carrying Accumulated Definite-lived intangible assets: Patents and patented technology $ 160.8 $ (116.0) $ 164.6 $ (104.4) Trademarks and trade names 27.2 (18.3) 27.2 (17.1) Distribution network 61.8 (47.3) 61.8 (45.0) Customer relationships 427.7 (140.4) 429.2 (117.9) Total definite-lived intangible assets $ 677.5 $ (322.0) $ 682.8 $ (284.4) Indefinite-lived trade names $ 173.7 $ 174.8 |
Schedule of Other Long-Term Assets | Other long-term assets consist of the following items whose economic benefits are expected to be realized greater than one year from the dates presented (in millions): August 31, 2022 2021 Deferred contract costs $ 13.3 $ 12.9 Investments in debt and equity securities 11.9 5.3 Pensions plans in which plan assets exceed benefit obligation 8.0 13.0 Other (1) (2) 14.8 2.7 Total other long-term assets $ 48.0 $ 33.9 _______________________________________ (1) Estimated recoveries of warranty and recall costs are included in this category and account for the majority of the year-over-year change. (2) Included within this category are company-owned life insurance investments. We maintain life insurance policies on 60 former employees primarily to satisfy obligations under certain deferred compensation plans. These company-owned life insurance policies are presented net of loans that are secured by these policies. This program is frozen, and no new policies were issued in the three-year period ended August 31, 2022. |
Schedule of Other Current Liabilities | Other current liabilities consist of the following as of the dates presented (in millions): August 31, 2022 2021 Customer incentive programs (1) $ 40.7 $ 33.9 Refunds to customers (1) 28.0 28.1 Current deferred revenues (1) 11.4 7.7 Sales commissions 41.9 28.9 Freight costs 22.8 17.6 Warranty and recall costs (2) 22.4 16.8 Tax-related items (3) 13.9 11.7 Interest on long-term debt (4) 2.3 2.4 Other 30.7 42.4 Total other current liabilities $ 214.1 $ 189.5 ____________________________________ (1) Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements for additional information. (2) Refer to the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements for additional information. (3) Includes accruals for income, property, sales and use, and value added taxes. (4) Refer to the Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for additional information. |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consist of the following as of the dates presented (in millions): August 31, 2022 2021 Deferred compensation and postretirement benefits other than pensions (1) $ 44.4 $ 43.1 Deferred revenues (2) 53.1 56.7 Unrecognized tax position liabilities, including interest (3) 22.0 19.7 Self-insurance liabilities (4) 3.7 3.9 Product warranty and recall costs (4) 4.9 3.5 Other 0.8 9.3 Total other long-term liabilities $ 128.9 $ 136.2 ____________________________________ (1) We maintain several non-qualified retirement plans for the benefit of eligible employees, primarily deferred compensation plans. The deferred compensation plans provide for elective deferrals of an eligible employee’s compensation and, in some cases, matching contributions by the organization. We maintain life insurance policies on certain former officers and other key employees as a means of satisfying a portion of these obligations. (2) Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements for additional information. (3) Refer to the Income Taxes footnote of the Notes to Consolidated Financial Statements for additional information. (4) Refer to the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements for additional information. |
Schedule of Property, Plant and Equipment | The balance of property, plant, and equipment consists of the following as of the dates presented (in millions): August 31, 2022 2021 Land $ 22.0 $ 22.4 Buildings and leasehold improvements 202.3 198.0 Machinery and equipment 667.6 624.9 Total property, plant, and equipment, at cost 891.9 845.3 Less: Accumulated depreciation and amortization (615.4) (576.2) Property, plant, and equipment, net $ 276.5 $ 269.1 |
Schedule of Interest Expense, Net | The following table summarizes the components of Interest expense, net during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Interest expense $ 27.0 $ 24.2 $ 26.4 Interest income (2.1) (1.0) (3.1) Interest expense, net $ 24.9 $ 23.2 $ 23.3 |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in each component of accumulated other comprehensive loss net of tax during the periods presented (in millions): Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items Balance as of August 31, 2020 $ (53.5) $ (79.2) $ (132.7) Other comprehensive income before reclassifications 13.3 13.9 27.2 Amounts reclassified from accumulated other comprehensive loss (1) — 7.3 7.3 Net current period other comprehensive income 13.3 21.2 34.5 Balance as of August 31, 2021 (40.2) (58.0) (98.2) Other comprehensive (loss) income before reclassifications (33.3) 0.7 (32.6) Amounts reclassified from accumulated other comprehensive loss (1) — 5.0 5.0 Net current period other comprehensive (loss) income (33.3) 5.7 (27.6) Balance as of August 31, 2022 $ (73.5) $ (52.3) $ (125.8) _______________________________________ (1) The before tax amounts of the defined benefit pension plan items are included in net periodic pension cost. See the Pension and Defined Contribution Plans footnote for additional details. |
Schedule of Comprehensive Income (Loss) | The following table presents the tax expense or benefit allocated to each component of other comprehensive income (loss) during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Foreign currency translation adjustments $ (33.3) $ — $ (33.3) $ 13.3 $ — $ 13.3 $ 11.9 $ — $ 11.9 Defined benefit pension plans: Tax adjustments — — — — (3.2) (3.2) — — — Actuarial gains (losses) 0.7 — 0.7 17.5 (3.6) 13.9 (0.7) 0.1 (0.6) Amortization of defined benefit pension items: Prior service cost 2.9 (0.7) 2.2 2.9 (0.6) 2.3 4.0 (0.9) 3.1 Actuarial losses 3.3 (0.8) 2.5 5.5 (1.2) 4.3 5.6 (1.3) 4.3 Settlement losses 0.4 (0.1) 0.3 3.9 — 3.9 — — — Total defined benefit plans, net 7.3 (1.6) 5.7 29.8 (8.6) 21.2 8.9 (2.1) 6.8 Other comprehensive (loss) income $ (26.0) $ (1.6) $ (27.6) $ 43.1 $ (8.6) $ 34.5 $ 20.8 $ (2.1) $ 18.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Leases [Abstract] | |
Schedule of Future Undiscounted Payments | The following table presents the future undiscounted payments due on our operating lease liabilities as well as a reconciliation of those payments to our operating lease liabilities recorded as of the date presented (in millions): Fiscal year August 31, 2022 2023 $ 17.3 2024 17.0 2025 15.6 2026 11.5 2027 8.5 Thereafter 21.1 Total undiscounted lease payments 91.0 Less: Discount due to interest (7.9) Present value of lease liabilities $ 83.1 |
Schedule of Components of Total Lease Costs | The components of total lease cost were as follows during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Operating lease cost $ 18.8 $ 18.3 $ 18.1 Variable lease cost 2.7 2.0 2.3 Short-term lease cost 4.3 2.2 2.8 Total lease cost $ 25.8 $ 22.5 $ 23.2 |
Debt and Lines of Credit (Table
Debt and Lines of Credit (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Our debt is carried at the outstanding balance net of any related unamortized discounts and deferred costs and consists of the following as of the dates presented (in millions): August 31, 2022 2021 Senior unsecured public notes due December 2030, principal $ 500.0 $ 500.0 Senior unsecured public notes due December 2030, unamortized discount and deferred costs (5.0) (5.7) Short-term borrowings under credit facility 18.0 — Total debt $ 513.0 $ 494.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Product Warranty and Recall Costs | Estimated liabilities for product warranty and recall costs are included in Other accrued liabilities or Other long-term liabilities on the Consolidated Balance Sheets based upon when we expect to settle the incurred warranty. The following table summarizes changes in the estimated liabilities for product warranty and recall costs during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Beginning balance $ 20.3 $ 16.1 $ 11.5 Warranty and recall costs (1) 52.4 32.3 32.0 Payments and other deductions (1) (45.4) (28.4) (27.5) Acquired warranty and recall liabilities — 0.3 0.1 Ending balance $ 27.3 $ 20.3 $ 16.1 ____________________________ (1) Amounts exclude any estimated or actual loss recoveries. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents financial information by operating segment for the periods presented (in millions): ABL ISG Corporate Eliminations (1) Total Year Ended August 31, 2022: Net sales $ 3,810.1 $ 216.1 $ — $ (20.1) $ 4,006.1 Operating profit (loss) 545.6 22.7 (58.6) — 509.7 Depreciation and amortization 79.3 14.4 1.1 — 94.8 Year Ended August 31, 2021: Net sales $ 3,287.3 $ 190.0 $ — $ (16.3) $ 3,461.0 Operating profit (loss) 476.2 9.9 (58.5) — 427.6 Depreciation and amortization 84.3 14.7 1.1 — 100.1 Year Ended August 31, 2020: Net sales $ 3,180.9 $ 157.0 $ — $ (11.6) $ 3,326.3 Operating profit (loss) 425.8 (3.9) (68.0) — 353.9 Depreciation and amortization 83.7 16.3 1.1 — 101.1 ____________________________ (1) This column represents intersegment sales. Profit on these sales eliminates within gross profit on a consolidated basis. |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles operating profit by segment to income before income taxes (in millions): Year Ended August 31, 2022 2021 2020 Operating profit - ABL $ 545.6 $ 476.2 $ 425.8 Operating profit (loss) - ISG 22.7 9.9 (3.9) Unallocated corporate amounts (58.6) (58.5) (68.0) Operating profit 509.7 427.6 353.9 Interest expense, net 24.9 23.2 23.3 Miscellaneous (income) expense, net (9.1) 8.2 5.9 Income before income taxes $ 493.9 $ 396.2 $ 324.7 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Transaction Price from Contracts with Customers Allocated to Company's Contract Liabilities | The amount of transaction price from contracts with customers allocated to our contract liabilities consist of the following as of the dates presented (in millions): August 31, 2022 2021 Current deferred revenues $ 11.4 $ 7.7 Non-current deferred revenues 53.1 56.7 |
Schedule of Revenue from Contract with Customers by Sales Channel | Year Ended August 31, 2022 2021 2020 ABL: Independent sales network $ 2,714.1 $ 2,400.5 $ 2,284.3 Direct sales network 384.2 358.1 329.0 Retail sales 178.3 181.5 218.3 Corporate accounts 222.7 168.7 191.8 Other 310.8 178.5 157.5 Total ABL 3,810.1 3,287.3 3,180.9 ISG 216.1 190.0 157.0 Eliminations (20.1) (16.3) (11.6) Total $ 4,006.1 $ 3,461.0 $ 3,326.3 |
Share-based Payments (Tables)
Share-based Payments (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Recognized | Compensation expense recognized related to the awards under the current and prior equity incentive plans during the periods presented is summarized as follows (in millions): Year Ended August 31, 2022 2021 2020 Restricted stock awards and units $ 17.2 $ 15.1 $ 24.6 Stock options 8.8 9.2 4.9 Performance stock units 9.9 6.8 7.3 Director stock units 1.5 1.4 1.4 Total share-based payment expense $ 37.4 $ 32.5 $ 38.2 |
Schedule of Restricted Stock Award Activity | Activity related to restricted stock awards during the periods presented was as follows (in millions, except per share data): Number of Weighted Average Outstanding at August 31, 2019 0.4 $ 156.32 Granted 0.2 $ 122.10 Vested (0.1) $ 171.92 Forfeited (0.1) $ 135.43 Outstanding at August 31, 2020 0.4 $ 134.68 Granted 0.2 $ 108.79 Vested (0.1) $ 150.44 Forfeited (0.1) $ 116.33 Outstanding at August 31, 2021 0.4 $ 116.77 Granted 0.1 $ 204.36 Vested (0.1) $ 122.27 Forfeited (0.1) $ 131.08 Outstanding at August 31, 2022 0.3 $ 144.51 |
Schedule of Stock Options, Weighted Average Assumptions | The following weighted average assumptions were used to estimate the fair value of the stock options granted in the fiscal years presented: Market Options Service Options 2021 2020 2020 Dividend yield 0.5% 0.4% 0.4% Expected volatility 36.5% 33.7% 33.7% Risk-free interest rate 0.7% 1.5% 1.3% Expected life of options 8 years 7 years 5 years Weighted-average fair value of options $40.45 $44.74 $34.22 |
Schedule of Stock Option Transactions | Stock option activity during the periods presented was as follows: Outstanding Exercisable Number of Weighted Average Number of Weighted Average Outstanding at August 31, 2019 0.4 $ 146.70 0.3 $ 147.51 Granted 0.5 $ 121.87 Exercised — * $ 116.36 Outstanding at August 31, 2020 0.9 $ 133.19 0.4 $ 151.07 Granted 0.3 $ 108.96 Exercised — * $ 108.58 Outstanding at August 31, 2021 1.2 $ 127.98 0.5 $ 142.36 Exercised (0.1) $ 88.94 Outstanding at August 31, 2022 1.1 $ 132.50 0.6 $ 143.15 Range of option exercise prices: $100.00 - $160.00 (average life - 7.1 years) 0.9 $ 119.32 0.5 $ 122.70 $160.01 - $210.00 (average life - 3.2 years) 0.1 $ 207.80 0.1 $ 207.80 $210.01 - $239.76 (average life - 4.1 years) 0.1 $ 239.76 0.1 $ 239.76 ___________________________ * Represents amounts of less than 0.1 million. |
Pension and Defined Contribut_2
Pension and Defined Contribution Plans (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Domestic and International Pension Plans | The following tables reflect the status of our domestic (U.S.-based) and international pension plans as of the dates presented (in millions): Domestic Plans International Plans August 31, August 31, 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 224.7 $ 249.6 $ 52.6 $ 49.2 Service cost 4.4 4.6 0.4 0.3 Interest cost 5.3 5.3 0.9 0.9 Actuarial (gains) losses (43.1) (5.2) (17.1) 1.7 Benefits paid (15.3) (29.6) (2.1) (1.3) Other — — (3.2) 1.8 Benefit obligation at end of year 176.0 224.7 31.5 52.6 Change in plan assets: Fair value of plan assets at beginning of year 182.6 167.1 42.2 35.1 Actual return on plan assets (33.6) 21.7 (11.6) 5.3 Employer contributions 7.8 23.4 3.0 2.1 Benefits paid (15.3) (29.6) (2.1) (1.3) Other — — (3.0) 1.0 Fair value of plan assets at end of year 141.5 182.6 28.5 42.2 Funded status at the end of year $ (34.5) $ (42.1) $ (3.0) $ (10.4) Amounts recognized in the consolidated balance sheets consist of: Non-current assets $ 7.6 $ 13.0 $ 0.4 $ — Current liabilities (3.9) (5.2) (0.2) (0.1) Non-current liabilities (38.2) (49.9) (3.2) (10.3) Net amount recognized in consolidated balance sheets $ (34.5) $ (42.1) $ (3.0) $ (10.4) Accumulated benefit obligation $ 175.3 $ 223.8 $ 31.3 $ 51.7 Pre-tax amounts in accumulated other comprehensive loss: Prior service cost $ (2.7) $ (5.6) $ (0.1) $ (0.1) Net actuarial loss (54.2) (55.2) (6.5) (11.3) Amounts in accumulated other comprehensive loss $ (56.9) $ (60.8) $ (6.6) $ (11.4) Pensions plans in which benefit obligation exceeds plan assets: Projected benefit obligation $ 42.1 $ 81.7 $ 3.4 $ 52.6 Accumulated benefit obligation 41.4 80.8 2.3 51.7 Plan assets — 26.6 — 42.2 Pensions plans in which plan assets exceed benefit obligation: Projected benefit obligation $ 133.9 $ 143.0 $ 28.1 $ — Accumulated benefit obligation 133.9 143.0 29.0 — Plan assets 141.5 156.0 28.5 — |
Schedule of Net Periodic Pension Cost | Net periodic pension cost during the periods presented included the following components before tax (in millions): Domestic Plans International Plans 2022 2021 2020 2022 2021 2020 Service cost $ 4.4 $ 4.6 $ 4.3 $ 0.4 $ 0.3 $ 0.3 Interest cost 5.3 5.3 6.4 0.9 0.9 0.9 Expected return on plan assets (11.2) (11.0) (10.4) (2.6) (2.3) (2.0) Amortization of prior service cost 2.9 2.9 4.0 — — — Settlement 0.4 3.9 — — — — Recognized actuarial loss 2.4 4.1 4.2 0.9 1.4 1.4 Net periodic pension cost $ 4.2 $ 9.8 $ 8.5 $ (0.4) $ 0.3 $ 0.6 |
Schedule of Weighted Average Assumptions Used | Weighted average assumptions used in computing the benefit obligation are as follows: Domestic Plans International Plans 2022 2021 2022 2021 Discount rate 4.4 % 2.4 % 4.9 % 1.9 % Rate of compensation increase 5.0 % 5.0 % 3.5 % 3.4 % Weighted average assumptions used in computing net periodic pension cost are as follows: Domestic Plans International Plans 2022 2021 2020 2022 2021 2020 Discount rate 2.4 % 2.2 % 2.8 % 1.9 % 1.9 % 2.0 % Expected return on plan assets 6.3 % 6.8 % 7.0 % 6.4 % 6.5 % 6.5 % Rate of compensation increase 5.0 % 5.0 % 5.0 % 3.4 % 3.4 % 3.0 % |
Schedule of Pension Plan Asset Allocation | Our pension plan asset allocation by asset category as of the dates presented is as follows: % of Plan Assets Domestic Plans International Plans 2022 2021 2022 2021 Equity securities 31.6 % 41.2 % 16.8 % 16.1 % Fixed income securities 61.2 % 54.3 % 22.8 % 20.1 % Multi-strategy investments — % — % 60.4 % 63.8 % Real estate 7.2 % 4.5 % — % — % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables present the fair value of the domestic pension plan assets by major category as of the dates presented (in millions): Fair Value Measurements Fair Value Quoted Market Significant Significant August 31, 2022 (Level 1) (Level 2) (Level 3) Assets included in the fair value hierarchy: Mutual funds: Domestic large cap equity fund $ 23.7 $ 23.7 $ — $ — Foreign equity fund 12.6 12.6 — — Collective trust: Domestic small cap equities 8.4 — 8.4 — Short-term fixed income investments 2.1 2.1 — — Total assets in the fair value hierarchy 46.8 Assets calculated at net asset value: Fixed-income investments 84.5 Real estate fund 10.2 Total assets at net asset value 94.7 Total assets at fair value $ 141.5 Fair Value Measurements Fair Value Quoted Market Significant Significant August 31, 2021 (Level 1) (Level 2) (Level 3) Assets included in the fair value hierarchy: Mutual funds: Domestic large cap equity fund $ 38.9 $ 38.9 $ — $ — Foreign equity fund 23.1 23.1 — — Collective trust: Domestic small cap equities 13.3 — 13.3 — Short-term fixed income investments 6.9 6.9 — — Total assets in the fair value hierarchy 82.2 Assets calculated at net asset value: Fixed-income investments 92.3 Real estate fund 8.1 Total assets at net asset value 100.4 Total assets at fair value $ 182.6 Fair Value Measurements Fair Value Quoted Market Significant Significant August 31, 2022 (Level 1) (Level 2) (Level 3) Assets included in the fair value hierarchy: Equity securities $ 4.8 $ — $ 4.8 $ — Short-term fixed income investments 0.3 0.3 — — Multi-strategy investments 17.2 — 17.2 — Fixed-income investments 6.2 — 6.2 — Total assets at fair value $ 28.5 Fair Value Measurements Fair Value Quoted Market Significant Significant August 31, 2021 (Level 1) (Level 2) (Level 3) Assets included in the fair value hierarchy: Equity securities $ 6.8 $ — $ 6.8 $ — Short-term fixed income investments 1.0 1.0 — — Multi-strategy investments 26.9 — 26.9 — Fixed-income investments 7.5 — 7.5 — Total assets at fair value $ 42.2 |
Schedule of Expected Benefit Payments | Benefit payments are expected to be paid as follows during the years ending August 31 (in millions): Domestic Plans International Plans 2023 $ 12.0 $ 1.3 2024 12.0 1.3 2025 13.0 1.5 2026 14.6 1.5 2027 13.6 1.6 2028-2032 63.9 10.7 |
Common Stock and Related Matt_2
Common Stock and Related Matters (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Common Stock | Changes in common stock during the periods presented were as follows (amounts and shares in millions): Common Stock Shares Amount (At par) Balance at August 31, 2019 53.8 $ 0.5 Issuance of restricted stock grants, net of cancellations 0.1 — Balance at August 31, 2020 53.9 0.5 Issuance of restricted stock grants, net of cancellations 0.1 — Stock options exercised — * — Balance at August 31, 2021 54.0 0.5 Issuance of restricted stock grants, net of cancellations 0.1 — Stock options exercised 0.1 — Balance at August 31, 2022 54.2 $ 0.5 ___________________________ * Represents shares of less than 0.1 million. |
Schedule of Earnings Per Share, Basic and Diluted | The following table calculates basic earnings per common share and diluted earnings per common share during the periods presented (in millions, except per share data): Year Ended August 31, 2022 2021 2020 Net income $ 384.0 $ 306.3 $ 248.3 Basic weighted average shares outstanding 34.182 36.284 39.453 Common stock equivalents 0.463 0.270 0.148 Diluted weighted average shares outstanding 34.645 36.554 39.601 Basic earnings per share (1) $ 11.23 $ 8.44 $ 6.29 Diluted earnings per share (1) $ 11.08 $ 8.38 $ 6.27 ____________________ (1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding. |
Schedule of Securities Excluded from Computation of Earnings Per Share | The following table presents stock options, restricted stock awards, and performance stock units that were excluded from the diluted earnings per share calculation for the periods presented as the effect of inclusion would have been antidilutive (in millions): Year Ended August 31, 2022 2021 2020 Stock options 0.1 0.8 0.6 Restricted stock awards 0.1 — * 0.2 Performance stock units — — — * _______________________ * Represents shares of less than 0.1 million. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following components during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Provision for current federal taxes $ 67.6 $ 65.4 $ 54.6 Provision for current state taxes 16.3 12.8 12.5 Provision for current foreign taxes 25.4 14.4 16.0 Provision for (benefit from) deferred taxes 0.6 (2.7) (6.7) Total provision for income taxes $ 109.9 $ 89.9 $ 76.4 |
Schedule of Reconciliation of Federal Statutory Rate to Total Provision for Income Taxes | The following table reconciles the provision at the federal statutory rate to the total provision for income taxes during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Federal income tax computed at statutory rate $ 103.7 $ 83.2 $ 68.2 State income tax, net of federal income tax benefit 13.5 10.7 9.7 Federal permanent differences (4.3) 0.6 0.9 Foreign permanent differences and rate differential 4.3 2.4 2.4 Research and development tax credits (7.6) (7.6) (7.1) Unrecognized tax benefits 2.1 0.7 1.8 Other, net (1.8) (0.1) 0.5 Total provision for income taxes $ 109.9 $ 89.9 $ 76.4 |
Schedule of Components of Net Deferred Income Taxes | Components of the net deferred income tax liabilities as of the dates presented include (in millions): August 31, 2022 2021 Deferred income tax liabilities: Depreciation $ (18.6) $ (19.0) Goodwill and intangibles (154.2) (155.2) Operating lease right of use asset (18.3) (14.3) Other liabilities (7.4) (8.2) Total deferred income tax liabilities (198.5) (196.7) Deferred income tax assets: Self-insurance 1.6 1.8 Pension 7.1 9.9 Deferred compensation 22.2 21.3 Net operating losses 5.8 5.4 Other accruals not yet deductible 42.9 41.3 Operating lease liabilities 20.3 15.4 Other assets 9.3 12.0 Total deferred income tax assets 109.2 107.1 Valuation allowance (11.5) (9.5) Net deferred income tax liabilities $ (100.8) $ (99.1) |
Schedule of Change in Unrecognized Income Tax Benefit | The following table reconciles the change in the unrecognized income tax benefit (reported in Other long-term liabilities on the Consolidated Balance Sheets ) during the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Unrecognized tax benefits balance at beginning of year $ 17.7 $ 17.2 $ 16.6 Additions based on tax positions related to the current year 3.5 5.2 2.3 Additions for tax positions of prior years 0.1 0.1 — Reductions for tax positions of prior years (0.2) (0.1) (0.4) Reductions due to settlements — (4.6) (1.2) Reductions due to lapse of statute of limitations (1.6) (0.1) (0.1) Unrecognized tax benefits balance at end of year $ 19.5 $ 17.7 $ 17.2 |
Supplemental Disaggregated In_2
Supplemental Disaggregated Information (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Our geographic distribution of net sales, operating profit, income before provision for income taxes, and long-lived assets is summarized in the following table during and as of the periods presented (in millions): Year Ended August 31, 2022 2021 2020 Net sales (1) : Domestic (2) $ 3,486.4 $ 2,982.4 $ 2,925.0 International 519.7 478.6 401.3 Total $ 4,006.1 $ 3,461.0 $ 3,326.3 Operating profit: Domestic (2) $ 428.3 $ 369.9 $ 300.6 International 81.4 57.7 53.3 Total $ 509.7 $ 427.6 $ 353.9 Income before income taxes: Domestic (2) $ 409.6 $ 343.7 $ 274.2 International 84.3 52.5 50.5 Total $ 493.9 $ 396.2 $ 324.7 Long-lived assets (3) : Domestic (2) $ 325.9 $ 284.4 $ 298.6 International 73.5 76.6 64.8 Total $ 399.4 $ 361.0 $ 363.4 _______________________________________ (1) Net sales are attributed to each country based on the selling location. (2) Domestic amounts include amounts for U.S. based operations. (3) Long-lived assets include net property, plant, and equipment, operating lease right-of-use assets, and other long-term assets as reflected in the Consolidated Balance Sheets . |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) - segment | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Concentration Risk [Line Items] | |||
Number of reportable segments | 2 | ||
Net Sales | Customer Concentration Risk | ABL | |||
Concentration Risk [Line Items] | |||
Concentration (percent) | 95% | 95% | 95% |
Net Sales | Customer Concentration Risk | ISG | |||
Concentration Risk [Line Items] | |||
Concentration (percent) | 5% | 5% | 5% |
Significant Accounting Polici_4
Significant Accounting Policies - Concentration of Credit Risk (Details) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2020 | |
Customer Concentration Risk | Receivables | One Customer | ||
Concentration Risk [Line Items] | ||
Concentrations as a percentage of total (percent) | 10% | 10% |
Significant Accounting Polici_5
Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Inventory, Net [Abstract] | |||
Raw materials, supplies, and work in process | $ 252.6 | $ 209.5 | |
Finished goods | 264 | 227.2 | |
Inventories excluding reserves | 516.6 | 436.7 | |
Less: Reserves | (30.9) | (38) | |
Total inventories | 485.7 | 398.7 | |
Inventory reserves: | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 38 | 49.3 | $ 22.3 |
Additions to reserve | 15.7 | 21.4 | 36.3 |
Disposals of reserved inventory | (22.5) | (32.7) | (11.1) |
Foreign currency translation adjustments | (0.3) | 0 | 1.8 |
Balance at End of Year | $ 30.9 | $ 38 | $ 49.3 |
Significant Accounting Polici_6
Significant Accounting Policies - Assets Held For Sale (Details) - Held-for-sale - Building $ in Millions | 12 Months Ended | |
Aug. 31, 2022 USD ($) building | Aug. 31, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of buildings classified as held for sale | building | 1 | |
Assets held for sale, total | $ 6.6 | |
Gain on sale of building | $ 2.3 |
Significant Accounting Polici_7
Significant Accounting Policies - Goodwill and Other Intangibles (Details) | 12 Months Ended | ||
Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) intangible_asset | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 1,094,700,000 | $ 1,080,000,000 | |
Additions from acquired businesses | 10,000,000 | ||
Adjustments to provisional amounts from acquired businesses | 2,300,000 | ||
Foreign currency translation adjustments | (12,700,000) | 4,700,000 | |
Ending balance | 1,084,300,000 | 1,094,700,000 | $ 1,080,000,000 |
Gross Carrying Amount | 677,500,000 | 682,800,000 | |
Accumulated Amortization | (322,000,000) | (284,400,000) | |
Amortization expense of finite-lived intangible assets | 41,000,000 | 40,700,000 | 41,700,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization expense in fiscal 2023 | 42,900,000 | ||
Amortization expense in fiscal 2024 | 38,500,000 | ||
Amortization expense in fiscal 2025 | 30,900,000 | ||
Amortization expense in fiscal 2026 | 28,300,000 | ||
Amortization expense in fiscal 2027 | 26,400,000 | ||
Goodwill impairment charge | 0 | 0 | $ 0 |
Number of unimpaired intangible assets | intangible_asset | 12 | ||
Trade Names | |||
Goodwill [Roll Forward] | |||
Indefinite-lived trade names | 173,700,000 | 174,800,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Intangible asset impairment charge | 0 | 0 | $ 1,400,000 |
Number of impaired intangible assets | intangible_asset | 1 | ||
Patents and patented technology | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount | 160,800,000 | 164,600,000 | |
Accumulated Amortization | (116,000,000) | (104,400,000) | |
Trademarks and trade names | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount | 27,200,000 | 27,200,000 | |
Accumulated Amortization | (18,300,000) | (17,100,000) | |
Distribution network | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount | 61,800,000 | 61,800,000 | |
Accumulated Amortization | (47,300,000) | (45,000,000) | |
Customer relationships | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount | 427,700,000 | 429,200,000 | |
Accumulated Amortization | (140,400,000) | (117,900,000) | |
ABL | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,022,200,000 | 1,012,600,000 | |
Additions from acquired businesses | 6,900,000 | ||
Adjustments to provisional amounts from acquired businesses | 2,300,000 | ||
Foreign currency translation adjustments | (10,300,000) | 2,700,000 | |
Ending balance | 1,014,200,000 | 1,022,200,000 | $ 1,012,600,000 |
ISG | |||
Goodwill [Roll Forward] | |||
Beginning balance | 72,500,000 | 67,400,000 | |
Additions from acquired businesses | 3,100,000 | ||
Adjustments to provisional amounts from acquired businesses | 0 | ||
Foreign currency translation adjustments | (2,400,000) | 2,000,000 | |
Ending balance | $ 70,100,000 | $ 72,500,000 | $ 67,400,000 |
Significant Accounting Polici_8
Significant Accounting Policies - Other Long-Term Assets and Liabilities (Details) $ in Millions | Aug. 31, 2022 USD ($) employee | Aug. 31, 2021 USD ($) |
Other Long-Term Assets [Abstract] | ||
Deferred contract costs | $ 13.3 | $ 12.9 |
Investments in debt and equity securities | 11.9 | 5.3 |
Pensions plans in which plan assets exceed benefit obligation | 8 | 13 |
Other | 14.8 | 2.7 |
Total other long-term assets | $ 48 | 33.9 |
Number of former employees covered under life insurance policy | employee | 60 | |
Other Long-Term Liabilities [Abstract] | ||
Deferred compensation and postretirement benefits other than pensions | $ 44.4 | 43.1 |
Deferred revenues | 53.1 | 56.7 |
Unrecognized tax position liabilities, including interest | 22 | 19.7 |
Self-insurance liabilities | 3.7 | 3.9 |
Product warranty and recall costs | 4.9 | 3.5 |
Other | 0.8 | 9.3 |
Total other long-term liabilities | 128.9 | 136.2 |
Customers with Rebate, Marketing, and Trade Promotion Programs | ||
Other Long-Term Liabilities [Abstract] | ||
Deferred revenues | $ 53.1 | $ 56.7 |
Significant Accounting Polici_9
Significant Accounting Policies - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Other Current Liabilities [Line Items] | ||
Customer incentive programs | $ 40.7 | $ 33.9 |
Refunds to customers | 28 | 28.1 |
Current deferred revenues | 11.4 | 7.7 |
Sales commissions | 41.9 | 28.9 |
Freight costs | 22.8 | 17.6 |
Warranty and recall costs | 22.4 | 16.8 |
Tax-related items | 13.9 | 11.7 |
Interest on long-term debt | 2.3 | 2.4 |
Other | 30.7 | 42.4 |
Total other current liabilities | 214.1 | 189.5 |
Customers with Rights of Return, Cash Discounts and Other Credits | ||
Other Current Liabilities [Line Items] | ||
Refunds to customers | $ 28 | $ 28.1 |
Significant Accounting Polic_10
Significant Accounting Policies - Selling, Distribution and Administrative Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Accounting Policies [Abstract] | |||
Other shipping and handling costs | $ 151.2 | $ 132 | $ 121.9 |
Share-based payment expense | 37.4 | 32.5 | 38.2 |
Income tax benefit for share-based compensation | 9.6 | 6.5 | 6.6 |
Net excess tax (benefit) expense related to share-based payment cost | 4.8 | 0.5 | 1.4 |
Research and development expense | 95.1 | 88.3 | 82 |
Advertising costs | $ 19.3 | $ 15.9 | $ 15.1 |
Significant Accounting Polic_11
Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 53.8 | $ 59.4 | $ 59.4 |
Total property, plant, and equipment, at cost | 891.9 | 845.3 | |
Less: Accumulated depreciation and amortization | (615.4) | (576.2) | |
Property, plant, and equipment, net | 276.5 | 269.1 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment, at cost | 22 | 22.4 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment, at cost | 202.3 | 198 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment, at cost | $ 667.6 | $ 624.9 | |
Minimum | Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of plant and equipment, minimum | 3 years | ||
Minimum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of plant and equipment, minimum | 2 years | ||
Maximum | Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of plant and equipment, minimum | 40 years | ||
Maximum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of plant and equipment, minimum | 15 years |
Significant Accounting Polic_12
Significant Accounting Policies - Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Accounting Policies [Abstract] | |||
Interest expense | $ 27 | $ 24.2 | $ 26.4 |
Interest income | (2.1) | (1) | (3.1) |
Interest expense, net | $ 24.9 | $ 23.2 | $ 23.3 |
Significant Accounting Polic_13
Significant Accounting Policies - Miscellaneous Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Miscellaneous Expense (Income), Net | |||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||
Net gain (expense) relating to foreign currency items | $ 5.3 | $ (1.3) | $ (5.9) |
Significant Accounting Polic_14
Significant Accounting Policies - Changes of Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,044.5 | $ 2,127.5 | $ 1,918.9 |
Other comprehensive income (loss) before reclassifications | (32.6) | 27.2 | |
Amounts reclassified from accumulated other comprehensive loss | 5 | 7.3 | |
Other comprehensive (loss) income items, net of tax | (27.6) | 34.5 | 18.7 |
Ending balance | 1,911.8 | 2,044.5 | 2,127.5 |
Foreign Currency Items | |||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (40.2) | (53.5) | |
Other comprehensive income (loss) before reclassifications | (33.3) | 13.3 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Other comprehensive (loss) income items, net of tax | (33.3) | 13.3 | |
Ending balance | (73.5) | (40.2) | (53.5) |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (58) | (79.2) | |
Other comprehensive income (loss) before reclassifications | 0.7 | 13.9 | |
Amounts reclassified from accumulated other comprehensive loss | 5 | 7.3 | |
Other comprehensive (loss) income items, net of tax | 5.7 | 21.2 | |
Ending balance | (52.3) | (58) | (79.2) |
Accumulated Other Comprehensive Loss Items | |||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (98.2) | (132.7) | (151.4) |
Other comprehensive (loss) income items, net of tax | (27.6) | 34.5 | 18.7 |
Ending balance | $ (125.8) | $ (98.2) | $ (132.7) |
Significant Accounting Polic_15
Significant Accounting Policies - Components of Other Comprehensive Income Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Foreign currency translation adjustments - Net of Tax Amount | |||
Foreign currency translation adjustments | $ (33.3) | $ 13.3 | $ 11.9 |
Defined benefit pension plans - Net of Tax Amount | |||
Tax adjustments, after tax | (32.6) | 27.2 | |
Total defined benefit plans, net - net of tax | 5.7 | 21.2 | 6.8 |
Other comprehensive (loss) income before tax | (26) | 43.1 | 20.8 |
Other comprehensive (loss) income, tax | (1.6) | (8.6) | (2.1) |
Other comprehensive (loss) income items, net of tax | (27.6) | 34.5 | 18.7 |
Foreign Currency Items | |||
Foreign currency translation adjustments - Before Tax Amount | |||
Foreign currency translation adjustments | (33.3) | 13.3 | 11.9 |
Foreign currency translation adjustments - Tax (Expense) or Benefit | |||
Foreign currency translation adjustments | 0 | 0 | 0 |
Foreign currency translation adjustments - Net of Tax Amount | |||
Foreign currency translation adjustments | (33.3) | 13.3 | 11.9 |
Defined benefit pension plans - Net of Tax Amount | |||
Tax adjustments, after tax | (33.3) | 13.3 | |
Other comprehensive (loss) income items, net of tax | (33.3) | 13.3 | |
Tax adjustments | |||
Defined benefit pension plans - Before Tax Amounts | |||
Tax adjustments, before tax | 0 | 0 | 0 |
Defined benefit pension plans - Tax (Expense) or Benefit | |||
Tax adjustments | 0 | (3.2) | 0 |
Defined benefit pension plans - Net of Tax Amount | |||
Tax adjustments, after tax | 0 | (3.2) | 0 |
Actuarial gains (losses) | |||
Defined benefit pension plans - Before Tax Amounts | |||
Actuarial gains (losses) | 0.7 | 17.5 | (0.7) |
Defined benefit pension plans - Tax (Expense) or Benefit | |||
Actuarial gains (losses) | 0 | (3.6) | 0.1 |
Defined benefit pension plans - Net of Tax Amount | |||
Actuarial gains (losses) | 0.7 | 13.9 | (0.6) |
Prior service cost | |||
Defined benefit pension plans - Before Tax Amounts | |||
Amortization of Defined benefit pension items - Prior service cost | 2.9 | 2.9 | 4 |
Defined benefit pension plans - Tax (Expense) or Benefit | |||
Amortization of Defined benefit pension items - Prior service cost | (0.7) | (0.6) | (0.9) |
Defined benefit pension plans - Net of Tax Amount | |||
Amortization of Defined benefit pension items - Prior service cost | 2.2 | 2.3 | 3.1 |
Actuarial losses | |||
Defined benefit pension plans - Before Tax Amounts | |||
Amortization of Defined benefit pension items - Actuarial losses | 3.3 | 5.5 | 5.6 |
Defined benefit pension plans - Tax (Expense) or Benefit | |||
Amortization of Defined benefit pension items - Actuarial losses | (0.8) | (1.2) | (1.3) |
Defined benefit pension plans - Net of Tax Amount | |||
Amortization of Defined benefit pension items - Actuarial losses | 2.5 | 4.3 | 4.3 |
Settlement losses | |||
Defined benefit pension plans - Before Tax Amounts | |||
Amortization of Defined benefit pension items - Settlement losses | 0.4 | 3.9 | 0 |
Defined benefit pension plans - Tax (Expense) or Benefit | |||
Amortization of Defined benefit pension items - Settlement losses | (0.1) | 0 | 0 |
Defined benefit pension plans - Net of Tax Amount | |||
Amortization of Defined benefit pension items - Settlement losses | 0.3 | 3.9 | 0 |
Defined Benefit Pension Plans | |||
Defined benefit pension plans - Before Tax Amounts | |||
Total defined benefit plans, net - before tax | 7.3 | 29.8 | 8.9 |
Defined benefit pension plans - Tax (Expense) or Benefit | |||
Total defined benefit plans, net - tax | (1.6) | (8.6) | (2.1) |
Defined benefit pension plans - Net of Tax Amount | |||
Tax adjustments, after tax | 0.7 | 13.9 | |
Total defined benefit plans, net - net of tax | 5.7 | 21.2 | $ 6.8 |
Other comprehensive (loss) income items, net of tax | $ 5.7 | $ 21.2 |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | 12 Months Ended | |||
Aug. 31, 2022 USD ($) acquisition | Aug. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | Sep. 17, 2019 brand | |
Business Acquisition [Line Items] | ||||
Number of acquisitions | acquisition | 0 | |||
Cash outflows for working capital settlements | $ (12.9) | |||
Goodwill | 1,084.3 | $ 1,094.7 | $ 1,080 | |
Fiscal 2021 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 12.3 | |||
Identifiable intangible assets | $ 6.7 | |||
Weighted average amortization period in years | 11 years | |||
Goodwill expected to be tax deductible | $ 9.2 | |||
The Luminaires Group (TLG) | ||||
Business Acquisition [Line Items] | ||||
Number of niche lighting brands of acquired entity | brand | 5 | |||
Fiscal 2020 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 107.6 | |||
Identifiable intangible assets | $ 180.6 | |||
Weighted average amortization period in years | 16 years | |||
Goodwill expected to be tax deductible | $ 77.7 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) investment | Aug. 31, 2020 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 223.2 | $ 491.3 | |
Investments in debt and equity securities | 11.9 | 5.3 | |
Asset impairments | 1.7 | $ 6 | $ 8.8 |
Number of investments impaired during the period | investment | 2 | ||
Estimate of Fair Value Measurement | Revolving credit facility borrowings | Credit Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term debt, fair value | 18 | ||
Estimate of Fair Value Measurement | Senior Unsecured Notes Payable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying and estimated fair value of financial instruments | 399.2 | $ 496.5 | |
Fair value measured on recurring basis | Estimate of Fair Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in debt and equity securities | 11.9 | 5.3 | |
Fair value measured on recurring basis | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 223.2 | $ 491.3 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average discount rate (percent) | 2.50% | 2% | |
Weighted average remaining lease term | 6 years | ||
Cash paid for operating lease liabilities | $ 18.5 | $ 26.2 | $ 18.7 |
ROU assets obtained in exchange for lease liabilities | 37.3 | 12.9 | |
ROU lease asset impairment charges | $ 1.7 | $ 0 | $ 7.4 |
MEXICO | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, lease not yet commenced, renewal term | 10 years | ||
Lessee, operating lease lease, not yet commenced, liability | $ 18 |
Leases - Schedule of Future Und
Leases - Schedule of Future Undiscounted Payments (Details) $ in Millions | Aug. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 17.3 |
2024 | 17 |
2025 | 15.6 |
2026 | 11.5 |
2027 | 8.5 |
Thereafter | 21.1 |
Total undiscounted lease payments | 91 |
Less: Discount due to interest | (7.9) |
Present value of lease liabilities | $ 83.1 |
Leases - Components of Total Le
Leases - Components of Total Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 18.8 | $ 18.3 | $ 18.1 |
Variable lease cost | 2.7 | 2 | 2.3 |
Short-term lease cost | 4.3 | 2.2 | 2.8 |
Total lease cost | $ 25.8 | $ 22.5 | $ 23.2 |
Debt and Lines of Credit - Debt
Debt and Lines of Credit - Debt (Details) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 | Nov. 10, 2020 |
Debt Instrument [Line Items] | |||
Short-term borrowings under credit facility | $ 18 | $ 0 | |
Total debt | 513 | 494.3 | |
Credit Facility | Revolving credit facility borrowings | |||
Debt Instrument [Line Items] | |||
Short-term borrowings under credit facility | 18 | 0 | |
Senior Unsecured Notes | Unsecured public notes due December 2030 | |||
Debt Instrument [Line Items] | |||
Senior unsecured public notes due December 2030, principal | 500 | 500 | |
Senior unsecured public notes due December 2030, unamortized discount and deferred costs | $ (5) | $ (5.7) | |
Unsecured Term Loan | 2.150% Senior Unsecured Notes Due December 2030 | ABL | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500 |
Debt and Lines of Credit - Long
Debt and Lines of Credit - Long-term Debt (Details) - Unsecured Term Loan - 2.150% Senior Unsecured Notes Due December 2030 - ABL - USD ($) $ in Millions | 12 Months Ended | |
Nov. 10, 2020 | Aug. 31, 2022 | |
Debt Instrument [Line Items] | ||
Scheduled future principal payment | $ 500 | |
Debt instrument, face amount | $ 500 | |
Interest rate (percent) | 2.15% | |
Debt instrument issuance price percent of total | 99.737% | |
Debt issuance costs, gross | $ 4.8 | |
Term of facility | 10 years |
Debt and Lines of Credit - Line
Debt and Lines of Credit - Lines of Credit (Details) $ in Millions | Jun. 30, 2022 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) |
Line of Credit Facility [Line Items] | |||
Short-term borrowings under credit facility | $ 18 | $ 0 | |
Credit Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Short-term borrowings under credit facility | 18 | $ 0 | |
Lines of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Leverage ratio | 3.75 | ||
Maximum leverage ratio | 4.25 | ||
Outstanding letters of credit | 4.1 | ||
Lines of Credit | Credit Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 600 | ||
Term of facility | 5 years | ||
Additional borrowing capacity under revolving credit facility | $ 400 | ||
Outstanding letters of credit | 4.1 | ||
Additional borrowing capacity under revolving credit facility | $ 577.9 | ||
Lines of Credit | Credit Facility | Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Commitment fees rate | 0.075% | ||
Lines of Credit | Credit Facility | Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Commitment fees rate | 0.175% | ||
Lines of Credit | Credit Facility | Revolving Credit Facility | Base Rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Applicable margins as determined by leverage ratio | 0.80% | ||
Lines of Credit | Credit Facility | Revolving Credit Facility | Base Rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Applicable margins as determined by leverage ratio | 1.20% | ||
Lines of Credit | Credit Facility | Revolving Credit Facility | Floating Rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Applicable margins as determined by leverage ratio | 0% | ||
Lines of Credit | Credit Facility | Revolving Credit Facility | Floating Rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Applicable margins as determined by leverage ratio | 0.20% |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - individual | 12 Months Ended | |
Oct. 01, 2021 | Aug. 31, 2022 | |
Concentration Risk [Line Items] | ||
Standard product warranty period | 5 years | |
Shareholder Derivative Complaint | ||
Concentration Risk [Line Items] | ||
Number of individuals named as defendants | 3 | |
Total Work Force Covered by Collective Bargaining Agreements | Work force | ||
Concentration Risk [Line Items] | ||
Concentrations as a percentage of total (percent) | 66% | |
Workforce Subject to Collective Bargaining Arrangements Expiring Within One Year | Work force | ||
Concentration Risk [Line Items] | ||
Concentrations as a percentage of total (percent) | 54% |
Commitments and Contingencies -
Commitments and Contingencies - Product Warranty and Recall Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Movement in warranty accruals | |||
Beginning balance | $ 20.3 | $ 16.1 | $ 11.5 |
Warranty and recall costs | 52.4 | 32.3 | 32 |
Payments and other deductions | (45.4) | (28.4) | (27.5) |
Acquired warranty and recall liabilities | 0 | 0.3 | 0.1 |
Ending balance | $ 27.3 | $ 20.3 | $ 16.1 |
Segment Information - Operating
Segment Information - Operating Segment (Details) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 USD ($) segment | Aug. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Net sales | $ 4,006.1 | $ 3,461 | $ 3,326.3 |
Operating profit (loss) | 509.7 | 427.6 | 353.9 |
Depreciation and amortization | 94.8 | 100.1 | 101.1 |
Operating Segments | ABL | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,810.1 | 3,287.3 | 3,180.9 |
Operating profit (loss) | 545.6 | 476.2 | 425.8 |
Depreciation and amortization | 79.3 | 84.3 | 83.7 |
Operating Segments | ISG | |||
Segment Reporting Information [Line Items] | |||
Net sales | 216.1 | 190 | 157 |
Operating profit (loss) | 22.7 | 9.9 | (3.9) |
Depreciation and amortization | 14.4 | 14.7 | 16.3 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating profit (loss) | (58.6) | (58.5) | (68) |
Depreciation and amortization | 1.1 | 1.1 | 1.1 |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | (20.1) | (16.3) | (11.6) |
Operating profit (loss) | 0 | 0 | 0 |
Depreciation and amortization | $ 0 | $ 0 | $ 0 |
Segment Reporting - Income Befo
Segment Reporting - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Geographic Distribution | |||
Operating profit (loss) | $ 509.7 | $ 427.6 | $ 353.9 |
Interest expense, net | 24.9 | 23.2 | 23.3 |
Miscellaneous (income) expense, net | (9.1) | 8.2 | 5.9 |
Income before income taxes | 493.9 | 396.2 | 324.7 |
Operating Segments | ABL | |||
Geographic Distribution | |||
Operating profit (loss) | 545.6 | 476.2 | 425.8 |
Operating Segments | ISG | |||
Geographic Distribution | |||
Operating profit (loss) | 22.7 | 9.9 | (3.9) |
Corporate | |||
Geographic Distribution | |||
Operating profit (loss) | $ (58.6) | $ (58.5) | $ (68) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Refunds to customers | $ 28 | $ 28.1 |
Right of return assets | 3.7 | 6.4 |
Customer incentive programs | $ 40.7 | $ 33.9 |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Non-current deferred revenues, recognition period | 5 years | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Non-current deferred revenues, recognition period | 10 years |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Current deferred revenues | $ 11.4 | $ 7.7 |
Non-current deferred revenues | $ 53.1 | $ 56.7 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 4,006.1 | $ 3,461 | $ 3,326.3 |
Operating Segments | ABL | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,810.1 | 3,287.3 | 3,180.9 |
Operating Segments | ISG | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 216.1 | 190 | 157 |
Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | (20.1) | (16.3) | (11.6) |
Independent sales network | Operating Segments | ABL | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,714.1 | 2,400.5 | 2,284.3 |
Direct sales network | Operating Segments | ABL | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 384.2 | 358.1 | 329 |
Retail sales | Operating Segments | ABL | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 178.3 | 181.5 | 218.3 |
Corporate accounts | Operating Segments | ABL | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 222.7 | 168.7 | 191.8 |
Other | Operating Segments | ABL | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 310.8 | $ 178.5 | $ 157.5 |
Share-based Payments - Narrativ
Share-based Payments - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Jan. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment expense | $ 37,400,000 | $ 32,500,000 | $ 38,200,000 | |||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for issuance (in shares) | 3,600,000 | 2,700,000 | ||||
Number of shares available for grant (in shares) | 1,100,000 | 300,000 | 700,000 | |||
Share-based payment expense | $ 37,400,000 | $ 32,500,000 | $ 38,200,000 | |||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Granted from October 2019 to September 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Age to be attained allowing for continued vesting | 60 years | |||||
Minimum years of service for continued vesting of stock award | 10 years | |||||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Fiscal 2021 grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recipient years of service qualifying for non-forfeiture of awards | 5 years | |||||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Restricted stock awards and units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares outstanding of restricted stock (in shares) | 300,000 | 400,000 | 400,000 | 400,000 | ||
Unrecognized compensation cost | $ 30,000,000 | |||||
Unrecognized compensation cost period of recognition (years) | 1 year 6 months | |||||
Fair value of shares vested | $ 16,400,000 | $ 19,500,000 | $ 22,800,000 | |||
Share-based payment expense | $ 17,200,000 | $ 15,100,000 | $ 24,600,000 | |||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Restricted stock awards and units | Grants awarded prior to 2022 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period (years) | 4 years | |||||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Restricted stock awards and units | Grants awarded beginning 2022 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period (years) | 3 years | |||||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 8,900,000 | |||||
Unrecognized compensation cost period of recognition (years) | 1 year 8 months 12 days | |||||
Stock options outstanding (in shares) | 1,100,000 | 1,200,000 | 900,000 | 400,000 | ||
Award expiration term | 10 years | |||||
Intrinsic value of options exercised | $ 14,000,000 | $ 1,200,000 | $ 0 | |||
Total intrinsic value of stock options outstanding | 40,600,000 | |||||
Total intrinsic value of stock options expected to vest | 18,800,000 | |||||
Total intrinsic value of stock options exercisable | 21,400,000 | |||||
Share-based payment expense | $ 8,800,000 | 9,200,000 | 4,900,000 | |||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Stock options | Service Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period (years) | 3 years | |||||
Stock options outstanding (in shares) | 700,000 | |||||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Stock options | Market Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period (years) | 4 years | |||||
Stock options outstanding (in shares) | 400,000 | |||||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Performance stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period (years) | 3 years | |||||
Unrecognized compensation cost | $ 9,000,000 | |||||
Unrecognized compensation cost period of recognition (years) | 1 year 6 months | |||||
Performance stock units outstanding | 200,000 | |||||
Share-based payment expense | $ 9,900,000 | 6,800,000 | 7,300,000 | |||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Employee Deferred Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares vested (in shares) | 7,000 | |||||
Share-based payment expense | $ 0 | $ 0 | $ 0 | |||
Omnibus Stock Compensation Incentive and Directors’ Equity Plans | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares vested (in shares) | 100,000 | |||||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for issuance (in shares) | 1,500,000 | |||||
Number of shares available for grant (in shares) | 1,000,000 | |||||
Employee discount on purchases of common stock | 5% |
Share-based Payments - Share-ba
Share-based Payments - Share-based Compensation Expense Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | $ 37.4 | $ 32.5 | $ 38.2 |
Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | 37.4 | 32.5 | 38.2 |
Restricted stock awards and units | Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | 17.2 | 15.1 | 24.6 |
Stock options | Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | 8.8 | 9.2 | 4.9 |
Performance stock units | Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | 9.9 | 6.8 | 7.3 |
Director stock units | Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | $ 1.5 | $ 1.4 | $ 1.4 |
Share-based Payments - Restrict
Share-based Payments - Restricted Stock (Details) - Restricted stock awards and units - $ / shares shares in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Forfeited (in shares) | (0.1) | (0.1) | (0.1) |
Weighted Average Grant Date Fair Value Per Share [Roll Forward] | |||
Forfeited, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 131.08 | $ 116.33 | $ 135.43 |
Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning of period, Outstanding (in shares) | 0.4 | 0.4 | 0.4 |
Granted (in shares) | 0.1 | 0.2 | 0.2 |
Vested (in shares) | (0.1) | (0.1) | (0.1) |
End of period, Outstanding (in shares) | 0.3 | 0.4 | 0.4 |
Weighted Average Grant Date Fair Value Per Share [Roll Forward] | |||
Beginning of period, Outstanding, Weighted Average Grant date Fair Value Per Share (in dollars per share) | $ 116.77 | $ 134.68 | $ 156.32 |
Granted, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | 204.36 | 108.79 | 122.10 |
Vested, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | 122.27 | 150.44 | 171.92 |
End of period, Outstanding, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 144.51 | $ 116.77 | $ 134.68 |
Share-based Payments - Estimate
Share-based Payments - Estimate Fair Value of Stock Options (Details) - Stock options - Stock Incentive Plan - $ / shares | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Market Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.50% | 0.40% |
Expected volatility | 36.50% | 33.70% |
Risk-free interest rate | 0.70% | 1.50% |
Expected life of options | 8 years | 7 years |
Weighted-average fair value of options (in dollars per share) | $ 40.45 | $ 44.74 |
Service Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.40% | |
Expected volatility | 33.70% | |
Risk-free interest rate | 1.30% | |
Expected life of options | 5 years | |
Weighted-average fair value of options (in dollars per share) | $ 34.22 |
Share-based Payments - Stock Op
Share-based Payments - Stock Options (Details) - Stock Incentive Plan - Stock options - $ / shares shares in Millions | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Beginning of period, Outstanding (in shares) | 1.2 | 0.9 | 0.4 | |
Granted (in shares) | 0.3 | 0.5 | ||
Exercised (less than) (in shares) | (0.1) | (0.1) | (0.1) | |
End of period, Outstanding (in shares) | 1.1 | 1.2 | 0.9 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Beginning of period, Outstanding (in dollars per share) | $ 127.98 | $ 133.19 | $ 146.70 | |
Granted (in dollars per share) | 108.96 | 121.87 | ||
Exercised (in dollars per share) | 88.94 | 108.58 | 116.36 | |
End of period, Outstanding (in dollars per share) | $ 132.50 | $ 127.98 | $ 133.19 | |
Outstanding, Number of Shares (in shares) | 0.6 | 0.5 | 0.4 | 0.3 |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 143.15 | $ 142.36 | $ 151.07 | $ 147.51 |
$100.00 - $160.00 (average life - 7.1 years) | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | ||||
Range of option exercise prices, lower range limit (in dollars per share) | 100 | |||
Range of option exercise prices, upper range limit (in dollars per share) | $ 160 | |||
Range of option exercise prices, average life | 7 years 1 month 6 days | |||
Range of option exercise prices, Outstanding, Number of Shares (in shares) | 0.9 | |||
Range of option exercise prices, Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 119.32 | |||
Range of option exercise prices, Exercisable, Number of Shares (in shares) | 0.5 | |||
Range of option exercise prices, Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 122.70 | |||
$160.01 - $210.00 (average life - 3.2 years) | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | ||||
Range of option exercise prices, lower range limit (in dollars per share) | 160.01 | |||
Range of option exercise prices, upper range limit (in dollars per share) | $ 210 | |||
Range of option exercise prices, average life | 3 years 2 months 12 days | |||
Range of option exercise prices, Outstanding, Number of Shares (in shares) | 0.1 | |||
Range of option exercise prices, Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 207.80 | |||
Range of option exercise prices, Exercisable, Number of Shares (in shares) | 0.1 | |||
Range of option exercise prices, Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 207.80 | |||
$210.01 - $239.76 (average life - 4.1 years) | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | ||||
Range of option exercise prices, lower range limit (in dollars per share) | 210.01 | |||
Range of option exercise prices, upper range limit (in dollars per share) | $ 239.76 | |||
Range of option exercise prices, average life | 4 years 1 month 6 days | |||
Range of option exercise prices, Outstanding, Number of Shares (in shares) | 0.1 | |||
Range of option exercise prices, Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 239.76 | |||
Range of option exercise prices, Exercisable, Number of Shares (in shares) | 0.1 | |||
Range of option exercise prices, Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 239.76 |
Pension and Defined Contribut_3
Pension and Defined Contribution Plans - Domestic and International Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Amounts recognized in the consolidated balance sheets consist of: | |||||
Non-current assets | $ 8 | $ 13 | $ 8 | $ 13 | |
Non-current liabilities | $ (41.4) | $ (60.2) | $ (41.4) | $ (60.2) | |
Pensions plans in which plan assets exceed benefit obligation: | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold, Selling, General and Administrative Expense | Cost of Goods and Services Sold, Selling, General and Administrative Expense | Cost of Goods and Services Sold, Selling, General and Administrative Expense | Cost of Goods and Services Sold, Selling, General and Administrative Expense | |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Pension Plan | Domestic Plans | |||||
Change in benefit obligation: | |||||
Benefit obligation at beginning of year | $ 224.7 | $ 249.6 | |||
Service cost | 4.4 | 4.6 | $ 4.3 | ||
Interest cost | 5.3 | 5.3 | 6.4 | ||
Actuarial (gains) losses | (43.1) | (5.2) | |||
Benefits paid | (15.3) | (29.6) | |||
Other | 0 | 0 | |||
Benefit obligation at end of year | $ 176 | $ 224.7 | 176 | 224.7 | 249.6 |
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 182.6 | 167.1 | |||
Actual return on plan assets | (33.6) | 21.7 | |||
Employer contributions | 7.8 | 23.4 | |||
Benefits paid | (15.3) | (29.6) | |||
Other | 0 | 0 | |||
Fair value of plan assets at end of year | 141.5 | 182.6 | 141.5 | 182.6 | 167.1 |
Funded status at end of year: | |||||
Funded status at the end of year | (34.5) | (42.1) | (34.5) | (42.1) | |
Amounts recognized in the consolidated balance sheets consist of: | |||||
Non-current assets | 7.6 | 13 | 7.6 | 13 | |
Current liabilities | (3.9) | (5.2) | (3.9) | (5.2) | |
Non-current liabilities | (38.2) | (49.9) | (38.2) | (49.9) | |
Net amount recognized in consolidated balance sheets | (34.5) | (42.1) | (34.5) | (42.1) | |
Accumulated benefit obligation | 175.3 | 223.8 | 175.3 | 223.8 | |
Pre-tax amounts in accumulated other comprehensive loss: | |||||
Prior service cost | (2.7) | (5.6) | (2.7) | (5.6) | |
Net actuarial loss | (54.2) | (55.2) | (54.2) | (55.2) | |
Amounts in accumulated other comprehensive loss | (56.9) | (60.8) | (56.9) | (60.8) | |
Pension Plan | Domestic Plans | Pensions plans in which benefit obligation exceeds plan assets: | |||||
Pensions plans in which benefit obligation exceeds plan assets: | |||||
Projected benefit obligation | 42.1 | 81.7 | 42.1 | 81.7 | |
Accumulated benefit obligation | 41.4 | 80.8 | 41.4 | 80.8 | |
Plan assets | 0 | 26.6 | 0 | 26.6 | |
Pension Plan | Domestic Plans | Pensions plans in which plan assets exceed benefit obligation: | |||||
Pensions plans in which plan assets exceed benefit obligation: | |||||
Projected benefit obligation | 133.9 | 143 | 133.9 | 143 | |
Accumulated benefit obligation | 133.9 | 143 | 133.9 | 143 | |
Plan assets | 141.5 | 156 | 141.5 | 156 | |
Pension Plan | International Plans | |||||
Change in benefit obligation: | |||||
Benefit obligation at beginning of year | 52.6 | 49.2 | |||
Service cost | 0.4 | 0.3 | 0.3 | ||
Interest cost | 0.9 | 0.9 | 0.9 | ||
Actuarial (gains) losses | (17.1) | 1.7 | |||
Benefits paid | (2.1) | (1.3) | |||
Other | (3.2) | 1.8 | |||
Benefit obligation at end of year | 31.5 | 52.6 | 31.5 | 52.6 | 49.2 |
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 42.2 | 35.1 | |||
Actual return on plan assets | (11.6) | 5.3 | |||
Employer contributions | 3 | 2.1 | |||
Benefits paid | (2.1) | (1.3) | |||
Other | (3) | 1 | |||
Fair value of plan assets at end of year | 28.5 | 42.2 | 28.5 | 42.2 | $ 35.1 |
Funded status at end of year: | |||||
Funded status at the end of year | (3) | (10.4) | (3) | (10.4) | |
Amounts recognized in the consolidated balance sheets consist of: | |||||
Non-current assets | 0.4 | 0 | 0.4 | 0 | |
Current liabilities | (0.2) | (0.1) | (0.2) | (0.1) | |
Non-current liabilities | (3.2) | (10.3) | (3.2) | (10.3) | |
Net amount recognized in consolidated balance sheets | (3) | (10.4) | (3) | (10.4) | |
Accumulated benefit obligation | 31.3 | 51.7 | 31.3 | 51.7 | |
Pre-tax amounts in accumulated other comprehensive loss: | |||||
Prior service cost | (0.1) | (0.1) | (0.1) | (0.1) | |
Net actuarial loss | (6.5) | (11.3) | (6.5) | (11.3) | |
Amounts in accumulated other comprehensive loss | (6.6) | (11.4) | (6.6) | (11.4) | |
Pension Plan | International Plans | Pensions plans in which benefit obligation exceeds plan assets: | |||||
Pensions plans in which benefit obligation exceeds plan assets: | |||||
Projected benefit obligation | 3.4 | 52.6 | 3.4 | 52.6 | |
Accumulated benefit obligation | 2.3 | 51.7 | 2.3 | 51.7 | |
Plan assets | 0 | 42.2 | 0 | 42.2 | |
Pension Plan | International Plans | Pensions plans in which plan assets exceed benefit obligation: | |||||
Pensions plans in which plan assets exceed benefit obligation: | |||||
Projected benefit obligation | 28.1 | 0 | 28.1 | 0 | |
Accumulated benefit obligation | 29 | 0 | 29 | 0 | |
Plan assets | $ 28.5 | $ 0 | $ 28.5 | $ 0 |
Pension and Defined Contribut_4
Pension and Defined Contribution Plans - Narrative (Details) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 USD ($) multiemployer_plan | Aug. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of plan assets (percent) | 10% | ||
Number of multi-employer plans | multiemployer_plan | 2 | ||
Contributions to multi-employer plans | $ 0.5 | $ 0.6 | $ 0.6 |
Defined Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost recognized | 10.5 | $ 8.4 | $ 8.2 |
Common stock included in defined contribution plan, market value | $ 7.3 | ||
Common stock included in defined contribution plan as percentage of total fair value of assets in plan | 1.70% | ||
Domestic Plans | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Reduction in net periodic pension cost per 100 basis point increase in benefit obligation discount rate | $ 0.6 | ||
Additional net periodic pension cost per 100 basis point decrease in expected return on plan assets rate | $ 1.6 | ||
Domestic Plans | Pension Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted asset allocation, percentage | 30% | ||
Domestic Plans | Pension Plan | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted asset allocation, percentage | 65% | ||
Domestic Plans | Pension Plan | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted asset allocation, percentage | 5% | ||
International Plans | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Reduction in net periodic pension cost per 100 basis point increase in benefit obligation discount rate | $ 0.5 | ||
Additional net periodic pension cost per 100 basis point decrease in expected return on plan assets rate | 0.3 | ||
International Plans | Pension Plan | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer expected contribution to defined benefit plans in next fiscal year | $ 1.3 | ||
International Plans | Pension Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted asset allocation, percentage | 15% | ||
International Plans | Pension Plan | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted asset allocation, percentage | 25% | ||
International Plans | Pension Plan | Multi-strategy investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted asset allocation, percentage | 60% |
Pension and Defined Contribut_5
Pension and Defined Contribution Plans - Net Periodic Pension Cost and Pension Plan Asset Allocation (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Domestic Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 4.4 | $ 4.6 | $ 4.3 |
Interest cost | 5.3 | 5.3 | 6.4 |
Expected return on plan assets | (11.2) | (11) | (10.4) |
Amortization of prior service cost | 2.9 | 2.9 | 4 |
Settlement | 0.4 | 3.9 | 0 |
Recognized actuarial loss | 2.4 | 4.1 | 4.2 |
Net periodic pension cost | $ 4.2 | $ 9.8 | $ 8.5 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.40% | 2.40% | |
Rate of compensation increase | 5% | 5% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.40% | 2.20% | 2.80% |
Expected return on plan assets | 6.30% | 6.80% | 7% |
Rate of compensation increase | 5% | 5% | 5% |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 100% | 100% | |
Domestic Plans | Equity securities | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 31.60% | 41.20% | |
Domestic Plans | Fixed income securities | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 61.20% | 54.30% | |
Domestic Plans | Multi-strategy investments | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 0% | 0% | |
Domestic Plans | Real estate | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 7.20% | 4.50% | |
International Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0.4 | $ 0.3 | $ 0.3 |
Interest cost | 0.9 | 0.9 | 0.9 |
Expected return on plan assets | (2.6) | (2.3) | (2) |
Amortization of prior service cost | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 |
Recognized actuarial loss | 0.9 | 1.4 | 1.4 |
Net periodic pension cost | $ (0.4) | $ 0.3 | $ 0.6 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.90% | 1.90% | |
Rate of compensation increase | 3.50% | 3.40% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 1.90% | 1.90% | 2% |
Expected return on plan assets | 6.40% | 6.50% | 6.50% |
Rate of compensation increase | 3.40% | 3.40% | 3% |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 100% | 100% | |
International Plans | Equity securities | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 16.80% | 16.10% | |
International Plans | Fixed income securities | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 22.80% | 20.10% | |
International Plans | Multi-strategy investments | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 60.40% | 63.80% | |
International Plans | Real estate | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Pension plan asset allocation, percentage | 0% | 0% |
Pension and Defined Contribut_6
Pension and Defined Contribution Plans - Fair Value Measurements and Benefit Payments (Details) - Pension Plan - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
Domestic Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | $ 141.5 | $ 182.6 | $ 167.1 |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2023 | 12 | ||
2024 | 12 | ||
2025 | 13 | ||
2026 | 14.6 | ||
2027 | 13.6 | ||
2028-2032 | 63.9 | ||
Domestic Plans | Level 1 | Mutual Funds, Domestic large cap equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 23.7 | 38.9 | |
Domestic Plans | Level 1 | Mutual Funds, Foreign equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 12.6 | 23.1 | |
Domestic Plans | Level 1 | Collective trust: Domestic small cap equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Domestic Plans | Level 1 | Short-term fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 2.1 | 6.9 | |
Domestic Plans | Level 2 | Mutual Funds, Domestic large cap equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Domestic Plans | Level 2 | Mutual Funds, Foreign equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Domestic Plans | Level 2 | Collective trust: Domestic small cap equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 8.4 | 13.3 | |
Domestic Plans | Level 2 | Short-term fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Domestic Plans | Level 3 | Mutual Funds, Domestic large cap equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Domestic Plans | Level 3 | Mutual Funds, Foreign equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Domestic Plans | Level 3 | Collective trust: Domestic small cap equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Domestic Plans | Level 3 | Short-term fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Domestic Plans | Level 1,2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 46.8 | 82.2 | |
Domestic Plans | Level 1,2 and 3 | Mutual Funds, Domestic large cap equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 23.7 | 38.9 | |
Domestic Plans | Level 1,2 and 3 | Mutual Funds, Foreign equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 12.6 | 23.1 | |
Domestic Plans | Level 1,2 and 3 | Collective trust: Domestic small cap equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 8.4 | 13.3 | |
Domestic Plans | Level 1,2 and 3 | Short-term fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 2.1 | 6.9 | |
Domestic Plans | NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 94.7 | 100.4 | |
Domestic Plans | NAV | Fixed-income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 84.5 | 92.3 | |
Domestic Plans | NAV | Real estate fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 10.2 | 8.1 | |
International Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 28.5 | 42.2 | $ 35.1 |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2023 | 1.3 | ||
2024 | 1.3 | ||
2025 | 1.5 | ||
2026 | 1.5 | ||
2027 | 1.6 | ||
2028-2032 | 10.7 | ||
International Plans | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 4.8 | 6.8 | |
International Plans | Short-term fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0.3 | 1 | |
International Plans | Multi-strategy investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 17.2 | 26.9 | |
International Plans | Fixed-income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 6.2 | 7.5 | |
International Plans | Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
International Plans | Level 1 | Short-term fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0.3 | 1 | |
International Plans | Level 1 | Multi-strategy investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
International Plans | Level 1 | Fixed-income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
International Plans | Level 2 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 4.8 | 6.8 | |
International Plans | Level 2 | Short-term fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
International Plans | Level 2 | Multi-strategy investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 17.2 | 26.9 | |
International Plans | Level 2 | Fixed-income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 6.2 | 7.5 | |
International Plans | Level 3 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
International Plans | Level 3 | Short-term fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
International Plans | Level 3 | Multi-strategy investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
International Plans | Level 3 | Fixed-income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | $ 0 | $ 0 |
Common Stock and Related Matt_3
Common Stock and Related Matters - Schedule of Changes in Common Stock (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Common Stock [Roll Forward] | |||
Balance beginning of period (in shares) | 54,018,978 | ||
Balance, beginning of period | $ 0.5 | ||
Stock options exercised | $ 10.7 | $ 2.2 | $ 0.1 |
Balance end of period (in shares) | 54,241,069 | 54,018,978 | |
Balance end of period | $ 0.5 | $ 0.5 | |
Common Stock | |||
Common Stock [Roll Forward] | |||
Balance beginning of period (in shares) | 54,000,000 | 53,900,000 | 53,800,000 |
Balance, beginning of period | $ 0.5 | $ 0.5 | $ 0.5 |
Issuance of restricted stock grants, net of cancellations (in shares) | 100,000 | 100,000 | 100,000 |
Issuance of restricted stock grants, net of cancellations | $ 0 | $ 0 | $ 0 |
Stock options exercised (in shares) | 100,000 | 100,000 | |
Stock options exercised | $ 0 | $ 0 | |
Balance end of period (in shares) | 54,200,000 | 54,000,000 | 53,900,000 |
Balance end of period | $ 0.5 | $ 0.5 | $ 0.5 |
Common Stock and Related Matt_4
Common Stock and Related Matters - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | ||
Treasury stock, shares (in shares) | 21,753,820 | 18,826,611 |
Treasury stock at original repurchase cost | $ 2,175.4 | $ 1,663.7 |
Reacquired shares of outstanding common stock (shares) | 2,900,000 | |
Maximum number of shares that may yet be purchased under the program (shares) | 2,800,000 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common Stock and Related Matt_5
Common Stock and Related Matters - Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Earnings per share | ||||
Net income | $ 384 | $ 306.3 | $ 248.3 | |
Basic weighted average shares outstanding (in shares) | 34,182 | 36,284 | 39,453 | |
Common stock equivalents (in shares) | 463 | 270 | 148 | |
Diluted weighted average number of shares outstanding (in shares) | 34,645 | 36,554 | 39,601 | |
Basic earnings per share (in dollars per share) | [1] | $ 11.23 | $ 8.44 | $ 6.29 |
Diluted earnings per share (in dollars per share) | [1] | $ 11.08 | $ 8.38 | $ 6.27 |
Stock options | ||||
Earnings per share | ||||
Stock options (less than) excluded from diluted earnings per share (in shares) | 100 | 800 | 600 | |
Restricted stock awards and units | ||||
Earnings per share | ||||
Stock options (less than) excluded from diluted earnings per share (in shares) | 100 | 100 | 200 | |
Performance stock units | ||||
Earnings per share | ||||
Stock options (less than) excluded from diluted earnings per share (in shares) | 0 | 0 | 100 | |
[1] (1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding. |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision for current federal taxes | $ 67.6 | $ 65.4 | $ 54.6 |
Provision for current state taxes | 16.3 | 12.8 | 12.5 |
Provision for current foreign taxes | 25.4 | 14.4 | 16 |
Provision for (benefit from) deferred taxes | 0.6 | (2.7) | (6.7) |
Total provision for income taxes | $ 109.9 | $ 89.9 | $ 76.4 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Federal Statutory Rate to Total Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax computed at statutory rate | $ 103.7 | $ 83.2 | $ 68.2 |
State income tax, net of federal income tax benefit | 13.5 | 10.7 | 9.7 |
Federal permanent differences | (4.3) | 0.6 | 0.9 |
Foreign permanent differences and rate differential | 4.3 | 2.4 | 2.4 |
Research and development tax credits | (7.6) | (7.6) | (7.1) |
Unrecognized tax benefits | 2.1 | 0.7 | 1.8 |
Other, net | (1.8) | (0.1) | 0.5 |
Total provision for income taxes | $ 109.9 | $ 89.9 | $ 76.4 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Income Taxes (Details) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Deferred income tax liabilities: | ||
Depreciation | $ (18.6) | $ (19) |
Goodwill and intangibles | (154.2) | (155.2) |
Operating lease right of use asset | (18.3) | (14.3) |
Other liabilities | (7.4) | (8.2) |
Total deferred income tax liabilities | (198.5) | (196.7) |
Deferred income tax assets: | ||
Self-insurance | 1.6 | 1.8 |
Pension | 7.1 | 9.9 |
Deferred compensation | 22.2 | 21.3 |
Net operating losses | 5.8 | 5.4 |
Other accruals not yet deductible | 42.9 | 41.3 |
Operating lease liabilities | 20.3 | 15.4 |
Other assets | 9.3 | 12 |
Total deferred income tax assets | 109.2 | 107.1 |
Valuation allowance | (11.5) | (9.5) |
Net deferred income tax liabilities | $ (100.8) | $ (99.1) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Income Tax Contingency [Line Items] | ||||
Undistributed earnings and original investments in foreign subsidiaries | $ 204,000,000 | |||
Deferred income tax liability for certain foreign withholding taxes and U.S. state taxes | 3,200,000 | |||
Unrecognized tax benefits | 19,500,000 | $ 17,700,000 | $ 17,200,000 | $ 16,600,000 |
Unrecognized tax benefits that if recognized would affect annual effective tax rate | 18,800,000 | 17,100,000 | ||
Total accrued interest | 2,100,000 | $ 2,000,000 | $ 1,700,000 | |
Accruals related to income tax penalties | 0 | |||
Internal Revenue Service (IRS) | ||||
Income Tax Contingency [Line Items] | ||||
Federal tax credit carryforwards, subject to expiration | 4,900,000 | |||
Operating loss carryforwards | 13,600,000 | |||
State and Local Jurisdiction | ||||
Income Tax Contingency [Line Items] | ||||
Federal tax credit carryforwards, subject to expiration | 100,000 | |||
Operating loss carryforwards | 33,900,000 | |||
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | $ 7,100,000 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Change in Unrecognized Income Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits balance at beginning of year | $ 17.7 | $ 17.2 | $ 16.6 |
Additions based on tax positions related to the current year | 3.5 | 5.2 | 2.3 |
Additions for tax positions of prior years | 0.1 | 0.1 | 0 |
Reductions for tax positions of prior years | (0.2) | (0.1) | (0.4) |
Reductions due to settlements | 0 | (4.6) | (1.2) |
Reductions due to lapse of statute of limitations | (1.6) | (0.1) | (0.1) |
Unrecognized tax benefits balance at end of year | $ 19.5 | $ 17.7 | $ 17.2 |
Supplemental Disaggregated In_3
Supplemental Disaggregated Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Geographic Distribution | |||
Net sales | $ 4,006.1 | $ 3,461 | $ 3,326.3 |
Operating profit: | 509.7 | 427.6 | 353.9 |
Income before income taxes: | 493.9 | 396.2 | 324.7 |
Long-lived assets | 399.4 | 361 | 363.4 |
Domestic | |||
Geographic Distribution | |||
Net sales | 3,486.4 | 2,982.4 | 2,925 |
Operating profit: | 428.3 | 369.9 | 300.6 |
Income before income taxes: | 409.6 | 343.7 | 274.2 |
Long-lived assets | 325.9 | 284.4 | 298.6 |
International | |||
Geographic Distribution | |||
Net sales | 519.7 | 478.6 | 401.3 |
Operating profit: | 81.4 | 57.7 | 53.3 |
Income before income taxes: | 84.3 | 52.5 | 50.5 |
Long-lived assets | $ 73.5 | $ 76.6 | $ 64.8 |
Net Sales | Product Concentration Risk | Lighting and Building Management Solutions | |||
Geographic Distribution | |||
Concentrations as a percentage of total (percent) | 99% | 99% | 99% |