UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(MarkOne)☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

ForthefiscalyearendedAugust31,2018

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Forthetransitionperiodfromto.

CommissionFileNumber:000-06936

WD-40 COMPANY(Exactnameofregistrantasspecifiedinitscharter)

Delaware 95-1797918(Stateorotherjurisdiction

ofincorporationororganization)(I.R.S.EmployerIdentificationNo.)

9715 Businesspark Avenue, San Diego, California 92131(Addressofprincipalexecutiveoffices) (Zipcode)

Registrant’stelephonenumber,includingareacode:(619) 275-1400

SecuritiesregisteredpursuanttoSection12(b)oftheAct:Titleofeachclass Nameofeachexchangeonwhichregistered

CommonStock,$0.001parvalue TheNASDAQStockMarket,LLC

SecuritiesregisteredpursuanttoSection12(g)oftheAct:

Titleofeachclass

None

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.

Yes☑No☐

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.

Yes☐No☑

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.

Yes☑No☐

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).Yes☑No☐

IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-Kisnotcontainedherein,andwillnotbecontained,tothebestofregistrant’sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.☑

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler”,“acceleratedfiler”,“smallerreportingcompany”,and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.

Largeacceleratedfiler☑Acceleratedfiler☐Non-acceleratedfiler☐Smallerreportingcompany☐Emerginggrowthcompany☐

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).

Yes☐No☑

Theaggregatemarketvalue(closingprice)ofthevotingstockheldbynon-affiliatesoftheregistrantasofFebruary28,2018wasapproximately$1,695,560,161.

AsofOctober17,2018,therewere13,836,690sharesoftheregistrant’scommonstockoutstanding.

Documents Incorporated by Reference:

TheProxyStatementfortheannualmeetingofstockholdersonDecember11,2018isincorporatedbyreferenceintoPartIII,Items10through14ofthisAnnualReportonForm10-K.

WD-40 COMPANY

ANNUAL REPORT ON FORM 10-KFor the Fiscal Year Ended August 31, 2018

TABLE OF CONTENTS

PART I Page

Item1. Business 1Item1A. RiskFactors 5Item1B. UnresolvedStaffComments 14Item2. Properties 14Item3. LegalProceedings 15Item4. MineSafetyDisclosures 15

PART II

Item5. MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquity

Securities 16Item6. SelectedFinancialData 17Item7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 18Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 42Item8. FinancialStatementsandSupplementaryData 43Item9. ChangesinandDisagreementsWithAccountantsonAccountingandFinancialDisclosure 43Item9A. ControlsandProcedures 43Item9B. OtherInformation 44

PART III

Item10. Directors,ExecutiveOfficersandCorporateGovernance 44Item11. ExecutiveCompensation 44Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 45Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 45Item14. PrincipalAccountantFeesandServices 45

PART IV

Item15. Exhibits,FinancialStatementSchedules 46Item16. Form10-KSummary 48

PART I

Forward-Looking Statements

This Annual Report on Form 10-K contains forward-looking statements within the “safe harbor” provisions of the Private SecuritiesLitigationReformActof1995.Allstatementsotherthanthosethatarepurelyhistoricalareforward-lookingstatementswhichreflecttheCompany’scurrentviewswithrespecttofutureeventsandfinancialperformance.

These forward-looking statements include, but are not limited to, discussions about future financial and operating results,including:growthexpectationsformaintenanceproducts;expectedlevelsofpromotionalandadvertisingspending;plansforandsuccessof product innovation, the impact of newproduct introductions onthe growthof sales; anticipated results fromproduct line extensionsales;theimpactofthe“TaxCutsandJobAct”;andforecastedforeigncurrencyexchangeratesandcommodityprices.Theseforward-lookingstatementsaregenerallyidentifiedwithwordssuchas“believe,”“expect,”“intend,”“plan,”“could,”“may,”“aim,”“anticipate,”“target,”“estimate”andsimilarexpressions.TheCompanyundertakesnoobligationtoreviseorupdateanyforwardlookingstatements.

Actualeventsorresultsmaydiffermateriallyfromthoseprojectedinforward-lookingstatementsduetovariousfactors, including,butnotlimitedto,thoseidentifiedinItem1Aofthisreport.Asusedinthisreport,theterms“we,”“our,”“us”and“theCompany”refertoWD-40Companyanditswholly-ownedsubsidiaries, unlessthecontextsuggestsotherwise. Amountsandpercentagesintablesanddiscussionsmaynottotalduetorounding.

Item 1 . Business

Overview

WD-40Companyisaglobalmarketingorganizationdedicatedtocreatingpositivelastingmemoriesbydevelopingandsellingproductsthatsolveproblemsinworkshops,factoriesandhomesaroundtheworld.TheCompanywasfoundedin1953andisheadquarteredinSanDiego,California.

Formorethanfourdecades,theCompanysoldonlyoneproduct,WD-40®Multi-UseProduct,amaintenanceproductwhichactsasalubricant,rustpreventative,penetrant,cleanerandmoisturedisplacer.Overthelasttwodecades,theCompanyhasevolvedandexpandedits product offerings through both research and development activities and through the acquisition of several brands worldwide. As aresult,theCompanyhasbuiltafamilyofbrandsandproductlinesthatdeliverhighqualityperformanceatanextremelygoodvaluetoitsendusers.

TheCompanycurrentlymarketsandsellsitsproductsinmorethan176countriesandterritoriesworldwideprimarilythroughmassretailandhomecenterstores,warehouseclubstores,grocerystores,hardwarestores,automotivepartsoutlets,sportretailers,independentbikedealers,onlineretailersandindustrialdistributorsandsuppliers.

The Company’s sales come from its two product groups – maintenance products and homecare and cleaning products. Maintenanceproducts are sold worldwide in markets throughout North, Central and South America, Asia, Australia, Europe, the Middle East andAfrica.HomecareandcleaningproductsaresoldprimarilyinNorthAmerica,theUnitedKingdom(“U.K.”)andAustralia.

TheCompany’sstrategicinitiativesandtheareaswhereitwillcontinuetofocusitstime,talentandresourcesinfutureperiodsinclude:(i)maximizingWD-40Multi-UseProductsales throughgeographic expansion, increasedmarket penetrationandthedevelopment of newand unique delivery systems; (ii) leveraging the WD-40 brand by growing the WD-40 Specialist product line; (iii) leveraging thestrengthsoftheCompanythroughbroadenedproductandrevenuebase;(iv)attracting,developingandretainingtalentedpeople;and(v)operatingwithexcellence.

TheprincipaldriveroftheCompany’sgrowthcontinuestobetakingtheCompany’sflagshipproduct,WD-40Multi-UseProduct,tonewusers in global markets. The Company is focused on and committed to innovation and renovation of its products. The Company seesinnovationandrenovationasimportantfactorstothelong-termgrowthofitsbrandsandproductlines,anditintendstocontinuetoworkon future products, product lines, product packaging, product delivery systems and promotional innovations and renovations. TheCompanyis alsofocusedonexpandingits current brandsin existingmarkets withnewproduct development. TheCompany’s productdevelopmentteamssupportnewproductdevelopmentandcurrentproductimprovementfortheCompany’sbrands.Overtheyears,theCompany’sresearchanddevelopmentteamhasmadeaninnovationimpactonmostoftheCompany’sbrands.KeyinnovationsfortheCompany’sproductsinclude,butarenotlimitedto,WD-40EZReach

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FlexibleStraw,WD-40SmartStraw®,WD-40TriggerPro®,WD-40Specialist®,WD-40Bike™,and3-IN-ONEProfessionalGarageDoorLube™.

TheCompany’shomecareandcleaningproducts,particularlythoseintheU.S.,areconsideredharvestbrandswhichcontinuetoprovidepositive returns to the Company but are becoming a smaller part of the business as sales of the maintenance products grow with theexecutionoftheCompany’sstrategicinitiatives.AlthoughtheCompanyhasevaluatedstrategicalternativesforcertainofitshomecareand cleaning products, particularly those in the U.S., it has continued to sell products of these brands but with a reduced level ofmarketinginvestment.

Financial Information about Operating Segments

TheCompany’soperatingsegmentsaredeterminedconsistentwiththewaymanagementorganizesandevaluatesfinancialinformationinternallyformakingoperatingdecisionsandassessingperformance.TheCompanyisorganizedonthebasisofgeographicalareaintothefollowingthreesegments:

· AmericassegmentconsistsoftheUnitedStates(“U.S.”),CanadaandLatinAmerica;· Europe,MiddleEastandAfrica(“EMEA”)segmentconsistsofcountriesinEurope,theMiddleEast,AfricaandIndia;and· Asia-PacificsegmentconsistsofAustralia,ChinaandothercountriesintheAsiaregion.

TheCompany’smanagementreviewsproductperformanceonthebasisofsales,whichcomefromitstwoproductgroups–maintenanceproductsandhomecareandcleaningproducts.ThefinancialinformationrequiredbyoperatingsegmentisincludedinNote15–BusinessSegments and Foreign Operations of the Company’s consolidated financial statements, included in Item 15 of this report, and in“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”,includedinItem7ofthisreport.

Products

MaintenanceProducts

Included in the Company’s maintenance products are both multi-purpose maintenance products and specialty maintenanceproducts. These maintenance products are sold worldwide and they provide end users with a variety of product and delivery systemoptions.

TheCompany’ssignatureproductistheWD-40Multi-UseProductintheblueandyellowcanwiththeredtop,whichisincludedwithinthemaintenanceproductcategoryanditaccountsforasignificantmajorityoftheCompany’ssales.TheCompanyhasvariousproductsandproductlineswhichitcurrentlysellsundertheWD-40brandandtheyareasfollows:

WD-40 Multi-Use Product - The WD-40 Multi-Use Product is a market leader in many countries among multi-purpose maintenanceproductsandissoldasanaerosolspraywithvariousuniquedeliverysystems,anon-aerosoltriggersprayandinliquid-bulkformthroughmass retail stores, hardware stores, warehouse club stores, automotive parts outlets, online retailers and industrial distributors andsuppliers. TheWD-40Multi-UseProductis soldworldwideinNorth, Central andSouthAmerica, Asia, Australia, Europe, theMiddleEast andAfrica. TheWD-40Multi-Use Product has a wide variety of consumer uses in, for example, household, marine, automotive,construction,repair,sportinggoodsandgardeningapplications,inadditiontonumerousindustrialapplications.

WD-40Specialistproductline–WD-40Specialist consistsofalineofprofessional-gradespecialtymaintenanceproductsthat includepenetrants,degreasers,corrosioninhibitors,greases,lubricantsandrustremoversthatareaimedatprofessionalsaswellasendusersthatcurrently use the WD-40 Multi-Use Product. The WD-40 Specialist product line is sold primarily in the U.S. and manycountriesinEurope,aswellaspartsofCanada,LatinAmerica,AustraliaandAsia.WithintheWD-40Specialistproductline,theCompanyalsosellsWD-40Specialist MotorbikeintheUnitedStatesandEurope,WD-40Specialist LawnandGardeninAustralia, andWD-40SpecialistAutomotiveinAsia.

WD-40Bikeproductline-TheWD-40Bikeproductlineconsistsofacomprehensivelineofbicyclemaintenanceproductsthatincludewetanddrychaindriplubricants,chaincleanersanddegreasers,andfoamingwashthataredesignedforavidandrecreationalcyclists,bikeenthusiastsandmechanics.TheCompanylaunchedthisproductlineintheU.S.infiscalyear2013,inAustraliaandEuropeinfiscalyear2014,andinLatinAmericaandselectcountriesinAsiainearlyfiscalyear2016.Althoughtheinitialfocusforsuchsaleswasonsmallerindependentbikedealers,distributionofWD-40Bikeproductshasbeenexpandedtoincludeselectdistributorsandretailers incountrieswheretheCompanysellsthisproduct.

TheCompanyalsohasthefollowingadditionalbrandswhichareincludedwithinitsmaintenanceproductsgroup:

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3-IN-ONE -The3-IN-ONEbrandconsistsofmulti-purposedripoil,specialtydripoils,andspraylubricantproducts,aswellasotherspecialtymaintenanceproducts.Themulti-purposedripoilisalubricantwithuniquespoutoptionsthatallowforpreciseapplicationstosmall mechanismsandassemblies, toolmaintenanceandthreadsonscrewsandbolts. 3-IN-ONEOilis themarket shareleaderamongdrip oils for household consumers. It also has wide industrial applications in suchareas as locksmithing, HVAC,marine, farming andconstruction.Inadditiontothedripoillineofproducts,the3-IN-ONEbrandalsoincludesaprofessionallineofproductsknownas3-IN-ONEProfessional, which is a line of professional-grade maintenance products, as well as 3-IN-ONERVcare products and 3-IN-ONEGarageDoorLubricant.Thehighqualityofthe3-IN-ONEbrandanditsestablisheddistributionnetworkhaveenabledtheseproductstogaininternationalacceptance.3-IN-ONEproductsaresoldprimarilyintheU.S.,Europe,Canada,LatinAmerica,AustraliaandAsia.

GT85 - TheGT85 brand is a multi-purpose bike maintenance product that consists of professional spray maintenance products andlubricantswhicharesoldprimarilyinthebikemarketthroughtheautomotiveandindustrialchannelsintheU.K.,withadditionalsalesinforeignmarketsincludingthoseinSpainandotherEuropeancountries. ThisbrandwasacquiredbytheCompany’sU.K.subsidiaryinSeptember2014andithashelpedbuildupontheCompany’sstrategytodevelopnewproductcategoriesforWD-40SpecialistandWD-40BIKE.

HomecareandCleaningProducts

TheCompanysellsitshomecareandcleaningproductsincertainlocationsworldwideandtheyincludeaportfolioofwell-knownbrandsasfollows:

2000Flushes-The2000Flushesbrandisalineoflong-lastingautomatictoiletbowlcleanerswhichincludesavarietyofformulas.2000FlushesissoldprimarilyintheU.S.andCanadathroughgroceryandmassretailchannelsaswellasthroughonlineretailers.

SpotShot-TheSpotShotbrandissoldasanaerosolcarpetstainremoverandaliquidtriggercarpetstainandodoreliminator.ThebrandalsoincludesenvironmentallyfriendlyproductssuchasSpotShotInstant CarpetStain&OdorEliminator™andSpotShotPetClean,whicharenon-toxicandbiodegradable.SpotShotproductsaresoldprimarilythroughgroceryandmassretailchannels,onlineretailers,warehouseclubstoresandhardwareandhomecenterstoresintheU.S.,CanadaandtheUnitedKingdom.SpotShotproductsaresoldintheU.K.underthe1001brandname.

CarpetFresh-TheCarpetFreshbrandisalineofroomandrugdeodorizerssoldaspowder,aerosolquick-dryfoamandtriggersprayproducts.CarpetFreshissoldprimarilythroughgrocery,mass,andvalueretailchannelsaswellasthroughonlineretailersintheU.S.,theU.K.andAustralia.IntheU.K.,theseproductsaresoldunderthe1001brandnameandinAustralia,theyaresoldundertheNoVacbrandname.

1001- The 1001 brand includes carpet and household cleaners and rug and roomdeodorizers which are sold primarily through massretail, grocery and home center stores in the U.K. The brand was acquired in order to introduce the Company’s other homecare andcleaningproductformulationsunderthe1001brandandtoexpandtheCompany’shomecareandcleaningproductsbusinessintotheU.K.market.

Lava/Solvol - The Lava and Solvol brands consist of heavy-duty hand cleaner products which are sold in bar soap and liquid formthroughhardware,grocery,industrial,automotiveandmassretailchannelsaswellasthroughonlineretailers.LavaissoldprimarilyintheU.S.,whileSolvolissoldexclusivelyinAustralia.

X-14-TheX-14brandisalineofqualityproductsdesignedforuniquecleaningneeds.X-14issoldasaliquidmildewstainremoverandasanautomatictoiletbowlcleaner.X-14issoldprimarilyintheU.S.throughgroceryandmassretailchannelsaswellasthroughonlineretailers.

FinancialinformationaboutoperatingsegmentsandproductlinesisincludedinNote15–BusinessSegmentsandForeignOperationsoftheconsolidatedfinancialstatements,includedinItem15ofthisreport.

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Sales and Marketing

TheCompany’ssalesdonotreflect anysignificantdegreeofseasonality. However, it iscommonfortheCompany’ssalestofluctuatefromperiodtoperiodoryeartoyearduetovariousfactorsincluding,butnotlimitedto,neworlostdistribution,thenumberofproductofferings carried by a customer and the level of promotional activities and programs being run at customer locations. New or lostdistributionoccurswhentheCompanygainsorlosescustomers,whenitgainsorlosesstorecountforacustomerorwhenitsproductsareaddedtonewlocationswithinastoreorremovedfromexistinglocations.Fromtimetotime,aspartofnewproductofferinglaunches,the Company may gain access to entirely new distribution channels. The number of product offerings refers to the number of brandsand/orthenumberofproductswithineachofthosebrandsthattheCompany’scustomersofferforsaletoendusercustomers.Thelevelofpromotionalactivitiesandprogramsrelatestothenumberofeventsorvolumesofpurchasesbycustomersinsupportofoff-shelforpromotionaldisplayactivities.ChangesinanyoneofthesethreefactorsoracombinationofthemcancausetheCompany’ssaleslevelsto increase or decrease fromperiod to period. It is also commonand/or possible that the Companycould lose distribution or productofferingsandexperienceadecreaseinpromotionalactivitiesandprogramsinoneperiodandsubsequentlyregainthisbusinessinafutureperiod.TheCompanyisaccustomedtosuchfluctuationsandmanagesthisaspartofitsnormalbusinessactivities.

Manufacturing

TheCompanyoutsourcesdirectlyorthroughitsmarketingdistributorsthemanufacturingofitsfinishedproductstovariousthird-partycontract manufacturers. The Company or its marketing distributors use contract manufacturers in the U.S., Canada, Mexico, Brazil,Argentina,Columbia,theU.K.,Italy,Australia,China,SouthKoreaandIndia.AlthoughtheCompanyhasdefinitiveminimumpurchaseobligationsincludedinthecontracttermswithcertainofitscontractmanufacturers,whensuchobligationshavebeenincluded,theyhaveeitherbeenimmaterialortheminimumamountshavebeensuchthattheyarewell belowthevolumeofgoodsthattheCompanyhashistoricallypurchased.SupplyneedsarecommunicatedbytheCompanytoitscontractmanufacturers,andtheCompanyiscommittedtopurchasetheproductsmanufacturedbasedonordersandshort-termprojections,rangingfromtwotofivemonths,providedtothecontractmanufacturers.TheCompanyalsoformulatesandmanufacturesconcentrateusedinitsWD-40productsatitsownfacilitiesandatthird-partycontractmanufacturers.

In addition to the commitments to purchase products fromcontract manufacturers described above, the Company may also enter intocommitments with other manufacturers from time to time to purchase finished goods and components to support innovation andrenovationinitiativesand/orsupplychaininitiatives.

Sources and Availability of Components and Raw Materials

The Company and its third-party contract manufacturers rely on a limited number of suppliers, including single or sole suppliers, forcertainofitsrawmaterials,packaging,productcomponentsandothernecessarysupplies.TheprimarycomponentsandrawmaterialsfortheCompany’sproductsincludepetroleum-basedspecialtychemicalsandaerosolcans,whicharemanufacturedfromcommoditiesthatare subject to volatile price changes. The availability of these components and raw materials is affected by a variety of supply anddemandfactors,includingglobalmarkettrends,plantcapacitydecisionsandnaturaldisasters.TheCompanyexpectsthesecomponentsandrawmaterials tocontinuetobereadilyavailableinthefuture, althoughtheCompanywill continuetobeexposedtovolatilepricechanges.Research and Development

The Company recognizes the importance of innovation and renovation to its long-term success and is focused on and committed toresearchandnewproductdevelopmentactivities,primarilyinitsmaintenanceproductgroup.TheCompany’sproductdevelopmentteamengagesinconsumerresearch,productdevelopment,currentproductimprovementandtestingactivities.Theproductdevelopmentteamalso leverages its development capabilities by partnering with a network of outside resources including the Company’s current andprospective outsource suppliers. In addition, the research anddevelopment teamengages in activities andproduct development effortswhich are necessary to ensure that theCompany meets all regulatory requirements for the formulation of its products. The Companyincurred research and development expenses of $ 7.0million, $8.4 million, and $7.7 million in fiscal years 2018, 2017 and 2016,respectively.Noneofthisresearchanddevelopmentactivitywascustomer-sponsored.

Order Backlog

OrderbacklogisnotasignificantfactorintheCompany’sbusiness.

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Competition

ThemarketsfortheCompany’sproducts,particularlythoserelatedtoitshomecareandcleaningproducts,arehighlycompetitive.TheCompany’sproductscompetebothwithintheirownproductclassesaswellaswithinproductdistributionchannels,competingwithmanyother products for store placement andshelf space. Competitionininternational markets varies bycountry. TheCompanyis awareofmany competing products, some of which sell for lower prices or are produced and marketed by companies with greater financialresourcesthanthoseoftheCompany.TheCompanyreliesontheawarenessofitsbrandsamongconsumers,thevalueofferedbythosebrandsasperceivedbyconsumers,productinnovationandrenovationanditsmultiplechanneldistributionsasitsprimarystrategies.Newproducts typically encounter intense competition, which mayrequire advertising and promotional support and activities. Whenor if anew product achieves consumer acceptance, ongoing advertising and promotional support may be required in order to maintain itsrelativemarketposition.

Trademarks and Patents

The Company owns a number of patents, but relies primarily upon its established trademarks, brand names and marketing efforts,including advertising and sales promotions, to compete effectively. The WD-40 brand, 3-IN-ONE, Lava, Solvol, X-14, 2000 Flushes,Carpet Fresh and No Vac, Spot Shot, GT85, and 1001 trademarks are registered or have pending registrations in various countriesthroughouttheworld.

Employees

AtAugust31,2018,theCompanyemployed480peopleworldwide:178bytheU.S.parentcorporation;203bytheU.K.subsidiary;57bytheChinasubsidiary;22bytheAustraliasubsidiary;11bytheCanadasubsidiary;7bytheMalaysiasubsidiary;and2byWD-40ManufacturingCompany,theCompany’smanufacturingsubsidiary.

Financial Information about Foreign and Domestic Operations

FordetailedinformationabouttheCompany’sforeignanddomesticoperations,includingnetsalesbyreportablesegmentandlong-livedassetsbygeography,refertoNote15-BusinessSegmentsandForeignOperationsoftheconsolidatedfinancialstatements,includedinItem15ofthisreport.

Access to SEC Filings

TheCompany’sAnnualReportsonForm10-K,QuarterlyReportsonForm10-Q,CurrentReportsonForm8-K,andanyamendmentstothose reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are availablethroughtheInvestorssectionoftheCompany’swebsiteatwww.wd40company.com.ThesereportscanbeaccessedfreeofchargefromtheCompany’swebsiteassoonasreasonablypracticableaftertheCompanyelectronicallyfilessuchmaterialswith,orfurnishesthemto,the Securities and Exchange Commission (“SEC”). Information contained on the Company’s website is not included as a part of, orincorporatedbyreferenceinto,thisreport.

InterestedreadersmayalsoreadandcopyanymaterialsthattheCompanyfilesattheSECPublicReferenceRoomat100FStreet,N.E.,Washington,D.C.20549.ReadersmayobtaininformationontheoperationofthePublicReferenceRoombycallingtheSECat1-800-SEC-0330.TheSECalsomaintainsaninternetsite(www.sec.gov)thatcontainstheCompany’sreports.

Item 1A . Risk Factors

Thefollowingrisksanduncertainties,aswellasotherfactorsdescribedelsewhereinthisreportorinotherSECfilingsbytheCompany,couldadverselyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.

The Company’s financial results could suffer if the Company is unable to implement and successfully manage its strategic initiativesor if the Company’s strategic initiatives do not achieve the intended results.

There is no assurance that the Company will be able to implement and successfully manage its strategic initiatives, including its fivemajorstrategicinitiatives,orthatthestrategicinitiativeswillachievetheintendedresults.TheCompany’sfivecorestrategicinitiativesinclude: (i) maximizing WD-40 Multi-Use Product sales through geographic expansion and increased market penetration and thedevelopmentofnewanduniquedeliverysystems;(ii)leveragingtheWD-40brandbygrowingtheWD-40Specialistproductline;(iii)leveragingthestrengthsoftheCompanythroughbroadenedproductandrevenuebase;(iv)attracting,developingandretainingtalentedpeople;and(v)operatingwithexcellence.AnimportantpartoftheCompany’ssuccessdependsonitscontinuingabilitytoattract,retainand develop highly qualified people. The Company’s future performance depends in significant part on maintaining high levels ofemployeeengagementandnurturingtheCompany’svaluesandculture.Inaddition,itdependsonthecontinuedserviceofitsexecutiveofficers,keyemployeesandothertalentedpeople,aswellaseffective

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succession planning. The loss of the services of key employees could have a material adverse effect on the Company’s business andprospects.Competitionforsuchtalentisintense,andtherecanbenoassurancethattheCompanycanretainitskeyemployeesorattract,assimilateandretainemployeeswhoarefullyengagedinthefuture.IftheCompanyisunabletoimplementandsuccessfullymanageitsstrategic initiatives in accordance with its business plans, the Company’s business and financial results could be adversely affected.Moreover, the Company cannot be certain that the implementation of its strategic initiatives will necessarily advance its business orfinancialresultsasintended.

Global operations outside the U.S. expose the Company to uncertain conditions, foreign currency exchange rate risk and other risksin international markets.

TheCompany’ssalesoutsideoftheU.S.wereapproximately62%ofconsolidatednetsalesinfiscalyear2018andoneofitsstrategicinitiatives includes maximizing the WD-40 Multi-Use Product through geographic expansion and market penetration. As a result, theCompanycurrentlyfaces,andwillcontinuetoface,substantialrisksassociatedwithhavingincreasedglobaloperationsoutsidetheU.S.,including:

· economic or political instability in the Company’s global markets, including Canada, Latin America, Asia, Australia, andEurope;

· challengesassociatedwithconductingbusinessinforeignjurisdictions,includingthoserelatedtotheCompany’sunderstandingofandcompliancewithbusinesslawsandregulationsinsuchforeignjurisdictions;

· increasingtaxcomplexityassociatedwithoperatinginmultipletaxjurisdictions;· dispersedemployeebaseandcompliancewithemploymentregulationsandotherlaborissues,suchaslaborlawsandminimum

wages,incountriesoutsidetheU.S.;and· theimpositionoftariffsortraderestrictionsandcosts,burdensandrestrictionsassociatedwithothergovernmentalactions.

TheseriskscouldhaveasignificantimpactontheCompany’sabilitytosellitsproductsonacompetitivebasisinglobalmarketsoutsidetheUnitedStates. Inaddition,recentdevelopmentsintheU.S.political climatehaveintroducedgreateruncertaintywithrespecttotaxpolicies,traderelations,tariffsandgovernmentregulationsaffectingtradebetweentheU.S.andothercountries.Thesedevelopments,aswell as the risks outlined above ,could have a material adverse effect on the Company’s business, financial condition and results ofoperations.

Approximately41%oftheCompany’srevenuesinfiscalyear2018weregeneratedincurrenciesotherthantheU.S.dollar,whichisthereportingcurrencyoftheCompany.Inaddition,alloftheCompany’sforeignoperatingsubsidiarieshavefunctionalcurrenciesotherthantheU.S.DollarandtheCompany’slargestsubsidiaryislocatedintheU.K.andgeneratessignificantsalesinPoundSterlingandEuro.Asa result, the Company is exposed to foreign currency exchange rate risk with respect to its sales, expenses, profits, cash and cashequivalents,otherassetsandliabilitiesdenominatedincurrenciesotherthantheU.S.Dollar.Inparticular,theCompany’sfinancialresultsarenegativelyimpactedwhentheforeigncurrenciesinwhichitssubsidiaryofficesoperateweakenrelativetotheU.S.Dollar.AlthoughtheCompanyusesinstrumentstohedgecertainforeigncurrencyrisks,primarilythoseassociatedwithitsU.K.subsidiaryandnetassetsdenominated in non-functional currencies, it is not fully protected against foreign currency fluctuations and, therefore, the Company’sreportedearningsmaybeaffectedbychangesinforeigncurrencyexchangerates.Moreover,anyfavorableimpactstoprofitmarginsorfinancialresultsfromfluctuationsinforeigncurrencyexchangeratesarelikelytobeunsustainableovertime.

AsaresultoftheJune2016referendumbyBritishvoterstoexittheEuropeanUnion(“Brexit”),globalmarketsandforeigncurrencieswereadverselyimpactedinthemonthsfollowingthevote.Inparticular,thevalueofthePoundSterlingsharplydeclinedascomparedtothe U.S. Dollar and other currencies in late fiscal year 2016 and early fiscal year 2017. Subsequently, on March 29, 2017, the U.K.invokedArticle50oftheLisbonTreaty,whichprovidesatwo-yeartimeperiodthroughMarch2019fortheU.K.andtheremainingEUcountriestonegotiateawithdrawalagreement.AdditionalvolatilityinforeigncurrenciesmayresultastheU.K.negotiatesandexecutesitsimpendingexitfromtheEuropeanUnion.AsignificantlyweakerPoundSterlingcomparedtotheU.S.Dollaroverasustainedperiodof time may have a significant negative effect on the Company’s reported results of operations. In addition, the legal and regulatoryframework that will apply to the U.K. andits future relationship with the EuropeanUnionafter the exit is completed maychange themanner in which businesses operate in Europe, including how products and services are imported and exported between countries inEurope,andthiscouldadverselyimpacttheCompany’sfinancialconditionandresultsofoperations.TheoutcomesofthenegotiationsbetweentheU.K.andtheEuropeanUnionarecurrentlyunknownandduetothelackofcomparableprecedent,theextentofanyadverseconsequencestotheCompany’sbusinessisuncertain.

Additionally, the Company’s global operations outside the U.S. are subject to risks relating to appropriate compliance with legal andregulatoryrequirementsinlocaljurisdictions,potentialdifficultiesinstaffingandmanaginglocaloperations,potentiallyhigherincidenceoffraudorcorruption,creditriskoflocalcustomersanddistributorsandpotentiallyadversetaxconsequences.AstheCompanyfurtherdevelopsandgrowsitsbusinessoperationsoutsidetheU.S.,theCompanyisexposedtoadditional

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complexities andrisks, particularlyinChina,Russiaandotheremergingmarkets. Inmanyforeigncountries, particularlyinthosewithdevelopingeconomies,businesspracticesthatareprohibitedbytheU.S.ForeignCorruptPracticesAct(“FCPA”),theU.K.BriberyActor other applicable anti-corruption lawsandregulations maybe prevalent. Anyfailure to comply with these laws, evenif inadvertent,could result in significant penalties or otherwise harm the Company’s reputation and business. Although the Company hasadopted policies and contract terms to mandate compliance with these laws, there can be no assurance that all of its employees,contractorsandagentswillcomplywiththeCompany’srequirements.ViolationsoftheselawscouldbecostlyanddisrupttheCompany’sbusiness,whichcouldhaveamaterialadverseeffectonitsbusiness,financialconditionandresultsofoperations.

If the success and reputation of one or more of the Company’s leading brands erodes, its business, financial condition and results ofoperations could be negatively impacted.

ThefinancialsuccessoftheCompanyisdirectlydependentonthesuccessandreputationofitsbrands,particularlyitsWD-40brand.Thesuccess and reputation of the Company’s brands can suffer if marketing plans or product development and improvement initiatives,including the release of newproducts or innovative packaging, do not have the desired impact on the brands’ image or do not attractcustomersasintended.TheCompany’sbrandscanalsobeadverselyimpactedduetotheactivitiesandpressuresplacedonthembytheCompany’scompetitors.Further,theCompany’sbusiness,financialconditionandresultsofoperationscouldbenegativelyimpactedifoneofitsleadingbrandssuffersdamagetoitsreputationduetorealorperceivedqualityorsafetyissues.Qualityissues,whichcanleadto large scale recalls of the Company’s products, can be due to items such as product contamination, regulatory non-compliance,packagingerrors, incorrect ingredientsorcomponentsintheCompany’sproductorlowqualityingredientsintheCompany’sproductsdue to suppliers delivering items that do not meet the Company’s specifications. Product quality issues, which could include lowerproductefficacyduetoformulationchangesattributabletoregulatoryrequirements,couldalsoresultindecreasedcustomerconfidenceintheCompany’sbrandsandadeclineinproductqualitycouldresultinproductliabilityclaims.Inaddition,theCompany’sbrandvaluedependsonitsabilitytomaintainapositiveconsumerperceptionofitscorporateintegrityandbrandculture.NegativeclaimsorpublicityinvolvingtheCompany, its products, or anyofits keyemployeescouldseriouslydamagetheCompany’sreputationandbrandimage,regardless of whether such claims are accurate. Although the Company makes every effort to prevent brand erosion and preserve itsreputationandthereputationofitsbrands,therecanbenoassurancethatsucheffortswillbesuccessful.

Sales unit volume growth may be difficult to achieve.

TheCompany’sabilitytoachievesalesvolumegrowthwilldependonitsabilityto(i)executeitsstrategicinitiatives,(ii)drivegrowthinnewmarketsbymakingtargetedendusersawareoftheCompany’sproductsandmakingthemeasiertobuy,(iii)drivegrowthwithinitsexistingmarkets throughinnovation, renovationandenhancedmerchandisingandmarketingof its establishedbrands, and(iv) capturemarketsharefromitscompetitors.ItismoredifficultfortheCompanytoachievesalesvolumegrowthindevelopedmarketswheretheCompany’sproductsarewidelyusedascomparedtoindevelopingoremergingmarketswheretheCompany’sproductshavebeennewlyintroducedorarenotaswellknownbyconsumers.InordertoprotecttheCompany’sexistingmarketshareorcaptureadditionalmarketsharefromits competitors, theCompanymayneedto increase its expenditures relatedto promotionsandadvertisingor introduceandestablishnewproductsorproductlines.Inpastperiods,theCompanyhasalsoincreasedsalespricesoncertainofitsproductsinresponsetoincreasedcostsforcomponentsandrawmaterials.Salespriceincreasesmayslowsalesvolumegrowthorcreatedeclinesinvolumeintheshorttermascustomersandendusersadjusttosalespriceincreases.Inaddition,thecontinuedprominenceandgrowthoftheonlineretail sales channel has presented both the Company and its customers that sell the Company’s products online with the challenge ofbalancingonlineandphysicalstoreretailingmethods.AlthoughtheCompanyisengagedine-commercewithrespecttoitsproducts,ifitis not successful in expanding sales in such alternative retail channels or it experiences challenges with operating in such channels,includingchallengesassociatedwiththeincreaseddemandfornon-flammableairshippableproducts,theCompany’sfinancialconditionand results of operations may be negatively impacted. In addition, a change in the strategies of the Company’s existing customers,includingshelfsimplification,thediscontinuationofcertainproductofferingsortheshiftinshelfspacetocompetitors’productscouldreduce the Company’s sales and potentially offset sales volume increases achieved as a result of other sales growth initiatives. If theCompanyisunabletoincreasemarketshareinitsexistingproductlinesbydevelopingproductimprovements,investingadequatelyinitsexisting brands, building usage among new customers, developing, acquiring or successfully launching new products or product lineextensions,orsuccessfullypenetratingemerginganddevelopingmarketsandsaleschannelsglobally,theCompanymaynotachieveitssalesvolumegrowthobjectives.

Cost increases or cost volatility in finished goods, components, raw materials, transportation and other necessary supplies or servicescould harm or impact the Company’s financial condition and results of operations.

Increases in the cost of finished goods, components and rawmaterials and increases in the cost of transportation and other necessarysupplies or services may harm the Company’s financial condition and results of operations. Petroleum-based specialty chemicals andaerosol cans, which constitute a significant portion of the costs for many of the Company’s maintenance products, have experiencedsignificantpricevolatilityinthepast,andmaycontinuetodosointhefuture.Inparticular,volatilityinthe

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priceofoildirectlyimpactsthecostofpetroleum-basedspecialtychemicalswhichareindexedtothepriceofcrudeoil.Fluctuationsinoil and diesel fuel prices have also historically impacted the Company’s cost of transporting its products, compounded recently byincreased regulations imposed on the freight industry and additional macroeconomic factors which have resulted in increased freightcosts. If there are significant increases in the costs of components, rawmaterials and other expenses, and the Companyis not able toincreasethepricesofitsproductsorachievecostsavingstooffsetsuchcostincreases,theCompany’sgrossmarginsandoperatingresultswill be negatively impacted. In addition, if the Company increases its sales prices in response to increases in the cost of such rawmaterials,andthoserawmaterialcostslaterdeclinesignificantly,theCompanymaynotbeabletosustainitssalespricesatthesehigherlevels.AscomponentandrawmaterialcostsaretheprincipalcontributorstothecostofgoodssoldforalloftheCompany’sproducts,anysignificantfluctuationinthecostsofcomponentsandrawmaterials couldhaveamaterial impactonthegrossmarginsrealizedontheCompany’s products. Sustained increases in the cost of raw materials, components, transportation and other necessary supplies orservices,orsignificantvolatilityinsuchcosts,couldhaveamaterialadverseeffectontheCompany’sfinancialconditionandresultsofoperations.

Reliance on a limited base of third-party contract manufacturers, logistics providers and suppliers of raw materials and componentsmay result in disruption to the Company’s business and this could adversely affect the Company’s financial condition and results ofoperations.

TheCompanyreliesonalimitednumberofthird-partycontractmanufacturers,logisticsprovidersandsuppliers,includingsingleorsolesource suppliers for certain of its rawmaterials, packaging, product components andother necessary supplies. TheCompanydoes nothavedirectcontroloverthemanagementorbusinessofthesethirdparties,exceptindirectlythroughtermsnegotiatedinserviceorsupplycontracts.ShouldthetermsofdoingbusinesswiththeCompany’sprimarythird-partycontractmanufacturers,suppliersand/orlogisticsproviderschangeorshouldtheCompanyhaveadisagreementwithorbeunabletomaintainrelationshipswithsuchthirdpartiesorshouldsuchthirdpartiesexperiencefinancialdifficulties, theCompany’sbusinessmaybedisrupted.Inaddition,iftheCompanyisunabletocontract with third-party manufacturers or suppliers for the quantity and quality levels needed for its business, the Company couldexperiencedisruptionsinproductionanditsfinancialresultscouldbeadverselyaffected.

Global economic conditions may negatively impact the Company’s financial condition and results of operations.

Ageneralweakeningordeclineintheglobaleconomyorareductioninindustrialoutputs,businessorconsumerspendingorconfidencecould delay or significantly decrease purchases of the Company’s products by its customers and end users. Consumer purchases ofdiscretionaryitems,whichcouldincludetheCompany’smaintenanceproductsandhomecareandcleaningproducts,maydeclineduringperiodswheredisposableincomeisreducedorthereiseconomicuncertainty, andthismaynegativelyimpacttheCompany’sfinancialcondition andresults of operations. Duringunfavorable or uncertain economic times, endusers mayalso increase purchases of lower-priced or non-branded products and the Company’s competitors may increase their level of promotional activities to maintain salesvolumes,bothofwhichmaynegativelyimpacttheCompany’sfinancialconditionandresultsofoperations.Inaddition,theCompany’ssales and operating results may be affected by uncertain or changing economic and market conditions, including inflation, deflation,prolonged weak consumer demand, political instability or other changes thatmay affect the principal markets, trade channels, andindustrialsegmentsinwhichtheCompanyconductsitsbusiness.Ifeconomicormarketconditionsinkeyglobalmarketsdeteriorate,theCompanymayexperiencematerialadverseeffectsonitsbusiness,financialconditionandresultsofoperations.

AdverseeconomicandmarketconditionscouldalsoharmtheCompany’sbusinessbynegativelyaffectingthepartieswithwhomitdoesbusiness, including its customers, retailers, distributors and wholesalers, and third-party contract manufacturers and suppliers. TheseconditionscouldimpairtheabilityoftheCompany’scustomerstopayforproductstheyhavepurchasedfromtheCompany.Asaresult,allowances for doubtful accounts and write-offs of accounts receivable from the Company’s customers may increase. In addition, theCompany’s third-party contract manufacturers and its suppliers may experience financial difficulties that could negatively affect theiroperationsandtheirabilitytosupplytheCompanywithfinishedgoodsandtherawmaterials,packaging,andcomponentsrequiredfortheCompany’sproducts.

Government laws and regulations, including environmental laws and regulations, could result in material costs or otherwise adverselyaffect the Company’s financial condition and results of operations.

Themanufacturing, chemical composition, packaging, storage, distribution andlabelingof the Company’s products andthe manner inwhich the Company’s business operations are conducted must comply with an extensive array of federal, state and foreign laws andregulations.IftheCompanyisnotsuccessfulincomplyingwiththerequirementsofallsuchregulations,itcouldbefinedorotheractionscouldbetakenagainsttheCompanybytheapplicablegoverningbody,includingthepossibilityofarequiredproductrecall. AnysuchregulatoryactioncouldadverselyaffecttheCompany’sfinancialconditionandresultsofoperations.Itisalsopossiblethatgovernmentsandregulatoryagencieswillincreaseregulation,includingtheadoptionoffurtherregulationsrelatingtothetransportation,storageoruseofcertainchemicals,toenhancehomelandsecurityorprotecttheenvironmentandsuchincreasedregulationcouldnegativelyimpacttheCompany’sabilitytoobtainrawmaterials,components

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and/orfinishedgoodsorcouldresultinincreasedcosts.Intheeventthatsuchregulationsresultinincreasedproductcosts,theCompanymaynotbeinapositiontoraisesellingprices,andthereforeanincreaseincostscouldhaveamaterialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

Some of the Company’s products have chemical compositions that are controlled by various state, federal and international laws andregulations,suchasregulationsissuedbytheCaliforniaAirResourcesBoardrelatingtopermittedlevelsofvolatileorganiccompounds.TheCompanyisrequiredtocomplywiththeselawsandregulationsanditseekstoanticipateregulatorydevelopmentsthatcouldimpactthe Company’s ability to continue to produceandmarket its products. TheCompanyinvests in research anddevelopment to maintainproductformulationsthat complywithsuchlawsandregulations. Therecanbenoassurancethat theCompanywill notberequiredtoalterthechemicalcompositionofoneormoreoftheCompany’sproductsinawaythatwillhaveanadverseeffectupontheproduct’sefficacy or marketability. A delay or other inability of the Company to complete product research and development and successfullyreformulateitsproductsinresponsetoanysuchregulatoryrequirementscouldhaveamaterialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

TheCompanyissubjecttoanSECrulemandatedbySection1502oftheDodd-FrankWallStreetReformandConsumerProtectionActthat requires management to conduct annual due diligence to determine whether certain minerals and metals, known as “conflictminerals”,arecontainedintheCompany’sproductsand,ifso,whethertheyoriginatefromtheDemocraticRepublicofCongo(“DRC”)oradjoiningcountries.AlthoughtheCompanyhasconcludedthatitscurrentproductsdonotcontainsuchconflictmineralsinitsannualevaluations to date, if the Company were to conclude that these materials exist within the Company’s products in future periods, theCompanymayhavedifficultyverifyingtheoriginofsuchmaterialsforpurposesofdisclosuresrequiredbytheSECrules.

TheCompanyisalsosubjecttonumerousenvironmentallawsandregulationsthatimposevariousenvironmentalcontrolsonitsbusinessoperations, including, among other things, the discharge of pollutants into the air and water, the handling, use, treatment, storage andclean-upofsolidandhazardouswastesandtheinvestigationandremediationofsoilandgroundwateraffectedbyhazardoussubstances.SuchlawsandregulationsmayotherwiserelatetovarioushealthandsafetymattersthatimposeburdensupontheCompany’soperations.These laws and regulations also impose strict, retroactive and joint and several liability for the costs of, and damages resulting from,cleaningupcurrent sites, past spills, disposalsandotherreleasesofhazardoussubstances. TheCompanybelievesthat its expendituresrelatedtoenvironmentalmattershavenothad,andarenotcurrentlyexpectedtohave,amaterialadverseeffectonitsfinancialcondition,resultsofoperationsorcashflows.However,theenvironmentallawsunderwhichtheCompanyoperatesarecomplicated,oftenbecomeincreasingly more stringent and may be applied retroactively. Accordingly, there can be no assurance that the Company will not berequiredtoincuradditional expenditurestoremaininortoachievecompliancewithenvironmental lawsinthefutureorthatanysuchadditionalexpenditureswillnothaveamaterialadverseeffectontheCompany’sbusiness,financialconditionorresultsofoperations.

In addition, certain countries and other jurisdictions in which the Company operates have data protection laws that impose strictregulationsontheCompany.Forinstance,TheEuropeanCommissionapprovedtheGeneralDataProtectionRegulation(“GDPR”)whichbecameeffectivefortheCompanybeginninginMay2018.GDPRrequiredcertainoperationalchangestobemadewithregardtohowtheCompany receives and processes personal data of residents of the European Union. Non-compliance with GDPR would result insignificant penalties being imposed on the Company. In addition, other international governmental authorities are considering similartypesoflegislativeandregulatoryrequirementsconcerningprotectionofpersonaldata.

AdditionallawsandregulationsrequirethattheCompanycarefullymanageitssupplychainfortheproduction,distributionandsaleofgoods. For instance, regulations under the California Transparency in Supply Chains Act and the U.K. Modern Slavery Act requireattentiontotheemploymentpracticesoftheCompany’ssuppliers.Variousregulationsaffectthepackaging,labellingandshipmentoftheCompany’s products, including the Globally Harmonized System of Classification and Labelling of Chemicals which is applicable inmanycountriesworldwide,regulationsissuedgoverningthesafestorageandtransportationofdangerousgoods,andregulationsissuedbytheU.S.ConsumerProductSafetyCommission,theU.S.EnvironmentalProtectionAgency,theU.S.FederalTradeCommission,aswellas similar foreign jurisdiction regulatory agencies. Failure by the Company to comply with any of these regulations or its inability toadequately predict the manner in which these regulations are interpreted and applied to the Company’s business by the applicableenforcementagenciescouldhaveamateriallyadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

Failure to maximize or to successfully assert the Company’s intellectual property rights or infringement by the Company on theintellectual property rights of others could impact its competitiveness or otherwise adversely affect the Company’s financial conditionand results of operations.

TheCompanyreliesontrademark,tradesecretprotection,patentandcopyrightlawstoprotectitsintellectualpropertyrights.Althoughthe Company maintains a global enforcement program to protect its intellectual property rights, there can be no assurance that theseintellectual property rights will be maximized or that they can be successfully asserted. Trade secret protection, particularly for theCompany’smostvaluableproductformulationfortheWD-40Multi-UseProduct,requiresspecific

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agreements, policies and procedures to assure the secrecy of information classified as a trade secret. If such agreements, policies andprocedures are not effective to maintain the secrecy of the Company’s trade secrets, the loss of trade secret protection could have anadverse effect on the Company’s financial condition. There is a risk that the Company will not be able to obtain and perfect its ownintellectual propertyrights or, whereappropriate, licenseintellectual propertyrights necessarytosupport newproduct introductions oracquiredproductlines.TheCompanycannotbecertainthattheserights,ifobtained,willnotbeinvalidated,circumventedorchallengedinthefuture,andtheCompanycouldincursignificantcostsinconnectionwithlegalactionstodefenditsintellectualpropertyrights.Inaddition, even if such rights are obtained in the U.S., it may be that the laws of someof the other countries in which the Company’sproductsareormaybesolddonotprotectintellectualpropertyrightstothesameextentasthelawsoftheUnitedStates,ortheymaybedifficult toenforce.IfothercompaniesinfringetheCompany’sintellectual propertyrightsortakepartincounterfeitingactivities, theymay dilute the value of the Company’s brands in the marketplace, which could diminish the value that consumers associate with theCompany’sbrandsandharmitssales. ThefailureoftheCompanytoprotect orsuccessfullyassert its intellectual propertyrightsortoprotectitsotherproprietaryinformationcouldmaketheCompanylesscompetitiveandthiscouldhaveamaterial adverseeffect onitsbusiness,financialconditionandresultsofoperations.

IftheCompanyisfoundtohaveviolatedthetrademark,copyright, patentorotherintellectual propertyrightsofothers,suchafindingcouldresultintheneedtoceasetheuseofatrademark,tradesecret,copyrightedworkorpatentedinventionintheCompany’sbusinessandanobligationtopayasubstantialamountforpastinfringement.ItcouldalsobenecessarytopayasubstantialamountinthefutureiftheholdersofsuchrightsarewillingtopermittheCompanytocontinuetousetheintellectualpropertyrights.Eitherhavingtoceaseuseor pay such amounts could make the Company less competitive and could have a material adverse impact on its business, financialconditionandresultsofoperations.

The Company’s operating results and financial performance may not meet expectations which could adversely affect the Company’sstock price.

TheCompanycannotbesurethatitsoperatingresultsandfinancialperformance,whichincludesalesgrowth,netincome,earningspercommonshare,grossmarginandcashflows,willmeetexpectations.IftheCompany’sassumptionsandestimatesareincorrectordonotcometofruition,oriftheCompanydoesnotachieveallofitskeygoalsorstrategicinitiatives,thentheCompany’sactualperformancecouldvarymateriallyfromitsinternalexpectationsandthoseofthemarket.Failuretomeetorexceedtheseexpectationscouldcausethemarket price of the Company’s stock to decline. The Company’s operating results and financial performance may be negativelyinfluencedbyanumberoffactors,manyofwhicharediscussedinthisItem1A“RiskFactors”.In addition, sales volume growth, whether due to acquisitions or internal growth, can place burdens on management resources andfinancialcontrolsthat,inturn,canhaveanegativeimpactonoperatingresultsandfinancialconditionoftheCompany.Tosomeextent,the Company plans its expense levels in anticipation of future revenues. If actual revenues fall short of these expectations, operatingresultsmaybeadverselyaffectedbyreducedoperatingmarginsduetoactualexpenselevelsthatarehigherthanmightotherwisehavebeenappropriate.

Malfunctions of the critical information systems that the Company uses for the daily operations of its business, cyberattacks andprivacy breaches could adversely affect the Company’s ability to conduct business.

Toconductitsbusiness,theCompanyreliesextensivelyoninformationtechnologysystems,networksandservices,someofwhicharemanaged, hostedandprovidedbythird-party service providers. TheCompanycannot guaranteethat its security measureswill preventcyberattacksresultinginbreachesoftheCompany’soritsthird-partyserviceproviders’databasesandsystems.Techniquesusedintheseattackschangefrequentlyandmaybedifficulttodetectforperiodsoftime.AlthoughtheCompanyhaspoliciesandproceduresinplacegoverning(i)thetimelyinvestigationofcybersecurityincidents,(ii)thetimelydisclosureofanyrelatedmaterialnonpublicinformationresulting from a material cybersecurity incident, and (iii) the safeguarding against insider trading of directors, officers, and othercorporateinsidersbetweentheperiodofinvestigationandthepublicdisclosureofsuchanincident;cybersecurityincidentsthemselves,suchasthereleaseofsensitivedatafromtheCompany’sdatabasesandsystems,couldadverselyaffecttheCompany’sbusiness,financialcondition and results of operations. The increasing number of information technology security threats and the development of moresophisticatedcyberattacks,includingransomware,poseapotentialrisktothesecurityoftheCompany’sinformationtechnologysystemsand networks, as well as to the confidentiality, availability and integrity of the Company’s data. Further, such an incident could alsomateriallyincreasethecoststhattheCompanyalreadyincurstoprotectagainstsuchrisks.

In addition, systemfailure, malfunction or loss of data thatis housed in the Company’s critical information systems could disrupt itsabilitytotimelyandaccuratelyprocesstransactionsandproducekeyfinancialreports,includinginformationontheCompany’soperatingresults,financialpositionandcashflows.TheCompany’sinformationsystemscouldbedamagedorceasetofunctionproperlyduetoanumberofotherreasonsaswell,includingcatastrophiceventsandpoweroutages.AlthoughtheCompanyhascertainbusinesscontinuityplansinplacetoaddresssuchserviceinterruptions,thereisnoguaranteethatthese

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businesscontinuityplanswillprovidealternativeprocessesinatimelymanner.Asaresult,theCompanymayexperienceinterruptionsinits ability to manage its daily operations and this could adversely affect the Company’s business, financial condition and results ofoperations.

Theinformationsystemthat theU.S. office uses for its business operations is a market specific applicationthat is not widelyusedbyother companies. This systemsupports two other regional offices outside the U.S. as well. The company that owns and supports thisapplicationmaynotbeabletoprovidethesamelevelofsupportasthatofcompanieswhichownlarger,morewidelyspreadinformationsystems.IfthecompanythatsupportsthisapplicationintheU.S.weretoceaseitsoperationsorwereunabletoprovidecontinuedsupportforthisapplication,itcouldadverselyaffecttheCompany’sdailyoperationsoritsbusiness,financialconditionandresultsofoperations.

The Company faces competition in its markets which could lead to reduced sales and profitability.

TheCompanyencounterscompetitionfromsimilarandalternativeproducts,manyofwhichareproducedandmarketedbymajornationalormultinationalcompanies.Inaddition,theCompanyfrequentlydiscoversproductsincertainmarketsthatarecounterfeitreproductionsoftheCompany’sWD-40productsaswellasproductsotherwisebearinganinfringingtradedress.Theavailabilityofcounterfeitsandother infringing products, particularly in China, Russia and other emerging markets, could adversely impact the Company’s sales andpotentiallydamagethevalueandreputationofitsbrands.TheCompany’s products generally compete onthebasis of product performance, brandrecognition, price, quality or other benefits toconsumers and meeting end users’ needs. Advertising, promotions, merchandising and packaging also have a significant impact onconsumer purchasing decisions. A newly introduced consumer product, whether improved or recently developed, usually encountersintense competition requiring substantial expenditures for advertising, sales and consumer promotion. If a product gains consumeracceptance, it normallyrequirescontinuedadvertising, promotional support andproduct improvements inordertomaintainits relativemarketposition.

SomeofthecompetitorsfortheCompany’shomecareandcleaningproductsarelargerandhavefinancialresourcesgreaterthanthoseoftheCompany.Thesecompetitorsmaybeabletospendmoreaggressivelyonadvertisingandpromotionalactivities,introducecompetingproductsmorequicklyandrespondmoreeffectivelytochangingbusinessandeconomicconditionsthantheCompany.

Competitive activity may require the Company to increase its investment in marketing or reduce its sales prices and this may lead toreduced profit margins, a loss of market share or loss of distribution, each of which could have a material adverse effect on theCompany’sbusiness,financialconditionandresultsofoperations.TherecanbenoassurancethattheCompanywillbeabletocompetesuccessfullyagainstcurrentandfuturecompetitorsorthatcompetitivepressuresfacedbytheCompanyortheinfringementofitsproductsandbrandswillnothaveamaterialadverseeffectonitsbusiness,financialconditionandresultsofoperations.

Dependence on key customers could adversely affect the Company’s business, financial condition and results of operations.

TheCompanysellsitsproductsthroughanetworkofdomesticandinternationalmassretail,tradesupplyandconsumerretailersaswellas industrial distributors and suppliers. The retail industry has historically been the subject of consolidation, and as a result, thedevelopmentoflargechainstoreshastakenplace.Today,theretailchanneliscomprisedofseveraloftheselargechainstoresthatcapturethebulkofthemarketshare.SincemanyoftheCompany’scustomershavebeenpartofconsolidationsintheretailindustry,theselimitedcustomers account for a large percentage of the Company’s net sales. Although the Company expects that a significant portion of itsrevenueswillcontinuetobederivedfromthislimitednumberofcustomers,therewasnoindividualcustomerthatcontributedtomorethan 10% of the Company’s consolidated net sales in fiscal year 2018. However, changes in the strategies of the Company’s largestcustomers, includingshelf simplification, a reductionin the number of brandstheycarry or a shift in shelf spaceto “private label” orcompetitors’products,mayharmtheCompany’ssales.Thelossof,orreductionin,ordersfromanyoftheCompany’smostsignificantcustomerscouldhaveamaterial adverseeffect ontheCompany’sbrandvalues, business,financial conditionandresultsofoperations.Largecustomersmayseekpricereductions,addedsupportorpromotionalconcessions.IftheCompanyagreestosuchcustomerdemandsand/orrequests,itcouldnegativelyimpacttheCompany’sabilitytomaintainexistingprofitmargins.

Inaddition,theCompany’sbusinessisbasedprimarilyuponindividualsalesorders,andtheCompanytypicallydoesnotenterintolong-termcontractswithitscustomers.Accordingly,thesecustomerscouldreducetheirpurchasinglevelsorceasebuyingproductsfromtheCompany at any time and for any reason. The Company is also subject to changes in customer purchasing patterns or the level ofpromotionalactivities.Thesetypesofchangesmayresultfromchangesinthemannerinwhichcustomerspurchaseandmanageinventorylevels,ordisplayandpromoteproductswithintheirstores.Otherpotentialfactorssuchascustomerdisputesregardingshipments,fees,merchandiseconditionorrelatedmattersmayalsoimpactoperatingresults.Ifthe

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Companyceasesdoingbusinesswithasignificantcustomerorifsalesofitsproductstoasignificantcustomermateriallydecrease,theCompany’sbusiness,financialconditionandresultsofoperationsmaybeharmed.

The Company may not successfully develop, introduce and /or establish new products and line extensions.

The Company’s future performance and growth depend, in part, on its ability to successfully develop, introduce and/or establish newproducts asbothbrandextensionsand/orlineextensions. TheCompanycannot becertainthat it will successfully achievethosegoals.TheCompanycompetesinseveralproductcategorieswheretherearefrequentintroductionsofnewproductsandlineextensionsandsuchproduct introductions often require significant investment and support. The ability of the Company to understand end user needs andpreferencesiskeytomaintainingandimprovingthecompetitivenessofitsproductofferings.Thedevelopmentandintroductionofnewproducts, as well as the renovation of current products and product lines, require substantial and effective research, development andmarketingexpenditures,whichtheCompanymaybeunabletorecoupiftheneworrenovatedproductsdonotgainwidespreadmarketacceptance.Thereareinherentrisksassociatedwithnewproductdevelopmentandmarketingefforts,includingproductdevelopmentorlaunch delays, product performance issues during development, changing regulatory frameworks that affect the new products indevelopmentandtheavailabilityofkeyrawmaterialsincludedinsuchproducts.Theseinherentriskscouldresultinthefailureofnewproducts and product line extensions to achieve anticipated levels of market acceptance, additional costs resulting fromfailed productintroductions and the Company not being first to market. As the Company continues to focus on innovation and renovation of itsproducts,theCompany’sbusiness,financialconditionorresultsofoperationscouldbeadverselyaffectedintheeventthattheCompanyisnotabletoeffectivelydevelopandintroduceneworrenovatedproductsandlineorbrandextensions.

Goodwill and intangible assets are subject to impairment risk.

Inaccordancewiththeauthoritativeaccountingguidanceongoodwillandintangibles,theCompanyassessesthepotentialimpairmentofitsexistinggoodwillduringthesecondquarterofeachfiscalyearandotherwisewheneventsorchangesincircumstancesindicatethatanimpairmentconditionmayexist.TheCompanyalsoassessesitsdefinite-livedintangibleassetsforpotentialimpairmentwheneventsandcircumstancesindicatethatthecarryingamountoftheassetmaynotberecoverableoritsestimatedremainingusefullifemaynolongerbeappropriate.Indicatorssuchasunderperformancerelativetohistoricalorprojectedfutureoperatingresults,changesintheCompany’sstrategy for its overall business or use of acquired assets, unexpected negative industry or economic trends, decline in the Company’sstock price for a sustained period, decreased market capitalization relative to net book values, unanticipated technological change orcompetitiveactivities, lossofkeydistribution, changeinconsumerdemand,lossofkeypersonnelandactsbygovernmentsandcourtsmaysignalthatanassethasbecomeimpaired.

TheassessmentforpossibleimpairmentoftheCompany’sgoodwillandintangibleassetsrequiresmanagementtomakejudgmentsonanumberofsignificantestimatesandassumptions,includingmacroeconomicconditions,overallcategorygrowthrates,salesgrowthrates,cost containmentandmarginexpansionandexpenselevelsforadvertisingandpromotionsandgeneral overhead, all ofwhichmustbedevelopedfromamarketparticipantstandpoint.TheCompanymayberequiredtorecordasignificantchargeinitsconsolidatedfinancialstatementsduringtheperiodinwhichanyimpairmentofitsgoodwillorintangibleassetsisidentifiedandthiscouldnegativelyimpacttheCompany’sfinancialconditionandresultsofoperations.ChangesinmanagementestimatesandassumptionsastheyrelatetovaluationofgoodwillandintangibleassetscouldaffecttheCompany’sfinancialconditionorresultsofoperationsinthefuture.

TheCompanymayalsodivestofcertainofitsassets,businessesorbrandsthatdonotalignwiththeCompany’sstrategicinitiatives.AnydivestiturecouldnegativelyimpacttheprofitabilityoftheCompanyasaresultoflossesthatmayresultfromsuchasale,thelossofsalesand operating income or a decrease in cash flows subsequent to the divestiture. The Company may also be required to recognizeimpairmentchargesasaresultofadivestiture.

Changes in marketing distributor relationships that are not managed successfully by the Company could result in a disruption in theaffected markets.

TheCompanydistributesitsproductsthroughouttheworldinoneoftwoways:thedirectdistributionmodel,inwhichproductsaresolddirectlybytheCompanytowholesalersandretailersintheU.S.,Canada,Australia, China,theU.K.andanumberofothercountries ,includingthosethroughoutEurope;andthemarketingdistributormodel,inwhichproductsaresoldtomarketingdistributorswhointurnselltowholesalersandretailers.ThemarketingdistributormodelisgenerallyusedincertaincountrieswheretheCompanydoesnothavedirect Company-owned operations. Instead, the Company partners with local companies who perform the sales, marketing anddistribution functions. The Company invests time and resources into these relationships. Should the Company’s relationship with amarketingdistributorchangeorterminate,theCompany’ssaleswithinsuchmarketingdistributor’sterritorycouldbeadverselyimpacteduntil suchtimeasasuitablereplacementcouldbefoundandtheCompany’skeymarketingstrategiesareimplemented.Thereisariskthatchangesinsuchmarketingdistributorrelationships,includingchangesinkeymarketingdistributorpersonnel,thatarenotmanagedsuccessfully, could result in a disruption in the affected markets and that such disruption could have a material adverse effect on theCompany’sbusiness,financialconditionandresults

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of operations. Additionally, in somecountries, local lawsmayrequire substantial payments to terminate existingmarketing distributorrelationships,whichcouldalsohaveamaterialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

Product liability claims and other litigation and/or regulatory action could adversely affect the Company’s sales and operating results.

While the Company makes every effort to ensure that the products it develops and markets are safe for consumers, the use of theCompany’s products may expose the Company to liability claims resulting fromsuch use. Claims could be based on allegations that,among other things, the Company’s products contain contaminants, provide inadequate instructions regarding their use or inadequatewarningsconcerningtheiruseorinteractionswithothersubstances.ProductliabilityclaimscouldresultinnegativepublicitythatcouldharmtheCompany’ssalesandoperatingresults.TheCompanymaintainsproductliabilityinsurancethatitbelieveswillbeadequatetoprotecttheCompanyfrommateriallossattributabletosuchclaimsbuttheextentofsuchlosscouldexceedavailablelimitsofinsuranceorcouldariseoutofcircumstancesunderwhichsuchinsurancecoveragewouldbeunavailable.OtherbusinessactivitiesoftheCompanymay also expose the Company to litigation risks, including risks that may not be covered by insurance such as contract disputes. IfsuccessfulclaimsareassertedbythirdpartiesagainsttheCompanyforuninsuredliabilitiesorliabilitiesinexcessofapplicablelimitsofinsurancecoverage,theCompany’sbusiness,financialconditionandresultsofoperationsmaybeadverselyaffected.Inaddition,ifoneoftheCompany’sproductswasdeterminedtobedefective,theCompanycouldberequiredtorecalltheproduct,whichcouldresultinadversepublicity,lossofrevenuesandsignificantexpenses.

Additionally,theCompany’sproductsmaybeassociatedwithcompetitorproductsorotherproductsinthesamecategory,whichmaybeallegedtohavecausedharmtoconsumers.Asaresultofthisassociation,theCompanymaybenamedinunwarrantedlegalactions.ThepotentialcoststodefendsuchclaimsmaymateriallyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.

Resolution of income tax matters may impact the Company’s financial condition and results of operations.

Significant judgment is required in determining the Company’s effective income tax rate and in evaluating tax positions, particularlythose related to uncertain tax positions. The Company provides for uncertain tax positions when such tax positions do not meet therecognitionthresholdsormeasurementstandardsprescribedbytheaccountingstandardforuncertaintaxpositions.Changesinuncertaintax positions or other adjustments resulting from tax audits and settlements with taxing authorities, including related interest andpenalties,impacttheCompany’seffectivetaxrate.Whenparticulartaxmattersarise,anumberofyearsmayelapsebeforesuchmattersareauditedandfinallyresolved.FavorableresolutionofsuchmatterscouldberecognizedasareductiontotheCompany’seffectivetaxrateintheyearofresolution.UnfavorableresolutionofanytaxmattercouldincreasetheCompany’seffectivetaxrate.Anyresolutionofa tax matter may require the adjustment of tax assets or tax liabilities or the use of cash in the year of resolution. For additionalinformationonsuchmatters,seePartIV–Item15,“Exhibits,FinancialStatementSchedules”Note12–IncomeTaxes,includedinthisreport.

Inaddition,changesintaxrulesmaymateriallyaffect,eitheradverselyorfavorably,theCompany’sfuturefinancialresultsorthewaymanagementconductsitsbusiness.Forexample,onDecember22,2017the“TaxCutsandJobsAct”(the“TaxAct”)wassignedintolawandbecameeffectivebeginningJanuary1,2018.TheTaxActsignificantlychangedU.S.taxlawandtaxrates,aswellasmandatedthe application of a one-time “toll tax” on unremitted foreign earnings, among other things. During fiscal year 2018, the Companyrecordedprovisional amountsfortheincometaxeffects ofthesechangesintaxlawandtaxrates. Itispossiblethatitemsreflectedasprovisional amounts may change materially following review of historical records, refinement of calculations, modifications ofassumptionsandfurtherinterpretationoftheTaxActbasedonU.S.TreasuryregulationsandguidancefromtheInternalRevenueServiceand state tax authorities. In addition, the Company reevaluated its indefinite reinvestment assertion for its foreign subsidiaries duringfiscalyear2018.InMay2018,theCompanycompletedthisreevaluationandnolongerconsidersunremittedforeignearningsofanyofitssubsidiaries to be indefinitely reinvested. For additional information on the Tax Act, the impact of potential changes in provisionalamounts,andthechangeinindefinitereinvestmentassertionsforcertainforeignsubsidiaries,seePartIV–Item15,“Exhibits,FinancialStatementSchedules”Note12–IncomeTaxes,includedinthisreport.

AlthoughmanyimpactsoftheTaxActarefavorablefortheCompanybothintheneartermandlongterm,theTaxActalsoauthorizestheTreasuryDepartmenttoissueregulationswithrespecttothenewprovisions.TheCompanycannotpredicthowthechangesintheTaxAct,regulations,orotherguidanceissuedunderit,includingconformingornon-conformingstatetaxrules,mightaffecttheCompany’sbusiness,financialconditionandresultsofoperations.Inaddition,therecanbenoassurancethatU.S.taxlaws,includingthecorporateincometaxrate,willnotundergosignificantadditionalchangesinthenearfuture.

13

The Company may not have sufficient cash to service its indebtedness or to pay cash dividends.

TheCompany’sdebtconsistsoffixedrateseniornotesandarevolvingcreditfacility.Managementhasusedtheproceedsoftherevolvingcreditfacilityprimarilyforstockrepurchases.Inordertoservicesuchdebt,theCompanyisrequiredtouseitsincomefromoperationstomake interest and principal payments required by the terms of its borrowing agreements. In addition, the Company’s borrowingagreements include covenants to maintain certain financial ratios and to comply with other financial terms, conditions and covenants.Also,theCompanyhashistoricallypaidoutalargepartofitsearningstostockholdersintheformofregularquarterlycashdividends.

TheCompanymayincursubstantial debt inthefutureforacquisitionsor other general businessor businessdevelopmentactivities. Inaddition,theCompanymaycontinuetouseavailablecashbalancestoexecutesharerepurchasesunderapprovedsharebuy-backplans.TotheextentthattheCompanyisrequiredtoseekadditionalfinancingtosupportcertainoftheseactivities,suchfinancingmaynotbeavailableinsufficientamountsorontermsacceptabletotheCompany.IftheCompanyisunabletoobtainsuchfinancingortoserviceitsexisting or future debt with its operating income, or if available cash balances are affected by future business performance, liquidity,capitalneeds,alternativeinvestmentopportunitiesordebtcovenants,theCompanycouldberequiredtoreduce,suspendoreliminateitsdividendpaymentstoitsstockholders.

The Company’s business development activities may not be successful.

TheCompanymayincreasegrowththroughbusinessdevelopmentactivities suchasacquisitions, joint ventures, licensingand/orotherstrategicpartnershipsintheU.S.andinternationally.However,iftheCompanyisnotabletoidentify,acquireandsuccessfullyintegrateacquiredproductsorcompaniesorsuccessfullymanagejoint venturesorotherstrategicpartnerships, theCompanymaynotbeabletomaximizetheseopportunities.Thefailuretoproperlymanagebusinessdevelopmentactivitiesbecauseofdifficultiesintheassimilationofoperationsandproducts,thediversionofmanagement’sattentionfromotherbusinessconcerns,thelossofkeyemployeesorotherfactorscould materially adversely affect the Company’s business, financial condition and results of operations. In addition, there can be noassurancethattheCompany’sbusinessdevelopmentactivitieswill beprofitableattheirinceptionorthattheywill achievesaleslevelsandprofitabilitythatjustifytheinvestmentsmade.

Future acquisitions, joint ventures or strategic partnerships couldalso result in the incurrence of debt, potentially dilutive issuances ofequitysecurities,contingentliabilities,amortizationexpensesrelatedtocertainintangibleassets,unanticipatedregulatorycomplicationsand/orincreasedoperatingexpenses,allofwhichcouldadverselyaffecttheCompany’sresultsofoperationsandfinancialcondition.Inaddition,totheextentthattheeconomicbenefitsassociatedwithanyoftheCompany’sbusinessdevelopmentactivitiesdiminishinthefuture,theCompanymayberequiredtorecordimpairmentstogoodwill,intangibleassetsorotherassetsassociatedwithsuchactivities,whichcouldalsoadverselyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.

Item 1B . Unresolved Staff Comments

None.

Item 2 . Properties

Americas

The Company owns and occupies an office located at 9715 Businesspark Avenue, San Diego, California 92131, which houses bothcorporateemployeesandemployeesintheCompany’sAmericassegment.Inaddition,theCompanyownsandutilizesaplantfacilitylocated at 1061 Cudahy Place, San Diego, California 92110. The Company also leases a regional sales office in Miami, Florida, aresearchanddevelopmentofficeinPineBrook,NewJerseyandofficespaceinToronto,Ontario,Canada.

EMEAThe Company owns and occupies an office and plant facility, consisting of office, plant and storage space, in Milton Keynes, UnitedKingdom.TheCompanypurchasedanewofficebuildingandrelatedlandinFebruary2018,alsolocatedinMiltonKeynes,andisintheprocessofrenovatingthisofficebuilding.TheCompanyexpectstocompletetheserenovationslateinfiscalyear2019andwillrelocateemployeesoftheCompany’sEMEAsegmentwhoarelocatedintheU.K.tothisofficebuildinguponitscompletion.Inaddition,theCompanyalsoleasesanotherofficeintheUnitedKingdomandspacesforitsbranchofficesinGermany,France,Italy,Spain,PortugalandtheNetherlands.

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Asia-Pacific

TheCompanyleasesofficespaceinEpping,NewSouthWales,Australia;Shanghai,China;andKualaLumpur,Malaysia.

Item 3 . Legal Proceedings

TheinformationrequiredbythisitemisincorporatedbyreferencetotheinformationsetforthinItem15ofPartIV,“Exhibits,FinancialStatementSchedules”Note11—CommitmentsandContingencies,intheaccompanyingnotestotheconsolidatedfinancialstatementsincludedinthisreport.

Item 4 . Mine Safety Disclosures

Notapplicable.

Executive Officers of the Registrant

Thefollowingtable sets forth the names, ages, fiscal year elected to current position andcurrent titles of the executive officers of theCompanyasofAugust31,2018:

Name, Age and Year Elected to Current Position TitleGarryO.Ridge 62 1997 PresidentandChiefExecutiveOfficerJayW.Rembolt 67 2008 VicePresident,Finance,TreasurerandChiefFinancialOfficerStanleyA.Sewitch 65 2012 VicePresident,GlobalOrganizationDevelopmentRichardT.Clampitt 63 2014 VicePresident,GeneralCounselandCorporateSecretaryMichaelL.Freeman 65 2016 ChiefStrategyOfficerGeoffreyJ.Holdsworth 56 1997 ManagingDirector,Asia-PacificWilliamB.Noble 60 1996 ManagingDirector,EMEAStevenA.Brass 52 2016 DivisionPresident,TheAmericas

Mr. Ridgejoinedthe Company’s Australian subsidiary, WD-40Company(Australia) Pty. Limited, in 1987as ManagingDirector. HeheldseveralseniormanagementpositionspriortohiselectionasChiefExecutiveOfficerin1997.

Mr. Rembolt joined the Company in 1997 as Manager of Financial Services. He was promoted to Controller in 1999 and to VicePresident,Finance/Controllerin2001.HewasthennamedVicePresident,FinanceandChiefFinancialOfficerin2008.

Mr. Sewitch joined the Company in 2012 as Vice President, Global Organization Development. Prior to joining the Company, Mr.Sewitchwasafounderoffourbusinesses,includingahumanresourcesandorganizationalconsultingfirm(HRGInc.)whichheledfrom1989untiljoiningtheCompany.

Mr. Clampitt was named as Corporate Secretary on October 15, 2013 and joined the Company in 2014 as Vice President, GeneralCounsel and Corporate Secretary. He has been licensed to practice law in the State of California since 1981. Prior to joining theCompany,Mr.ClampittservedasapartneratGordon&ReesLLPfrom2002through2013.

Mr.FreemanjoinedtheCompanyin1990asDirectorofMarketingandwaspromotedtoDirectorofOperationsin1994.HebecameVicePresident, Administration and Chief Information Officer in 1996, and was named Senior Vice President, Operations in 2001. He thenserved as Division President, The Americas, from 2002 until 2016 when he was appointed to his current position as Chief StrategyOfficer.

Mr.HoldsworthjoinedtheCompany’sAustraliasubsidiary,WD-40Company(Australia)Pty.Limited,in1996asGeneralManagerandwaspromotedtohiscurrentpositionofManagingDirector,Asia-PacificandasaDirectorofWD-40Company(Australia)Pty.Limitedin1997.

Mr. Noble joined the Company’s Australia subsidiary, WD-40 Company (Australia) Pty. Limited, in 1993 as International MarketingManager for the Asia Region. He was then promoted to his current position of Managing Director, EMEA and as a Director of theCompany’sU.K.subsidiary,WD-40CompanyLimited,in1996.

Mr. Brass joined the Company in 1991 as International Area Manager at the Company’s U.K. subsidiary and has since held severalmanagement positions including Country Manager in Germany, Director of Continental Europe, European Sales Director, and mostrecentlyEuropeanCommercialDirectorpriortohispromotiontoDivisionPresident,TheAmericas,in2016.

AllexecutiveofficersholdofficeatthediscretionoftheBoardofDirectors.

15

PART II

Item 5 . Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

TheCompany’scommonstockistradedontheNASDAQGlobalSelectMarketunderthetradingsymbolWDFC.ThefollowingtablesetsforththehighandlowsalespricespershareoftheCompany’scommonstockforeachofthequarterlyperiodsindicatedasreportedbytheNASDAQGlobalSelectMarket,aswellasthequarterlycashdividenddeclaredpershare.

Fiscal Year 2018 Fiscal Year 2017High Low Dividend High Low Dividend

FirstQuarter $ 120.00 $ 106.30 $ 0.49 $ 121.10 $ 101.35 $ 0.42SecondQuarter $ 129.85 $ 115.55 $ 0.54 $ 119.90 $ 100.65 $ 0.49ThirdQuarter $ 141.20 $ 122.50 $ 0.54 $ 113.25 $ 100.60 $ 0.49FourthQuarter $ 178.25 $ 136.75 $ 0.54 $ 114.10 $ 103.80 $ 0.49

OnOctober17,2018,thelastreportedsalespriceoftheCompany’scommonstockontheNASDAQGlobalSelectMarketwas$157.95pershare,andtherewere13,836,690sharesofcommonstockoutstandingheldbyapproximately634holdersofrecord.

Dividends

The Company has historically paid regular quarterly cash dividends on its common stock. In December 2017, the Board of Directorsdeclareda10%increaseintheregularquarterlycashdividend,increasingitfrom$0.49pershareto$0.54pershare.OnOctober9,2018,theCompany’sBoardofDirectorsdeclaredacashdividendof$0.54persharepayableonOctober31,2018toshareholdersofrecordonOctober19,2018.

TheBoardofDirectorsoftheCompanypresentlyintendstocontinuethepaymentofregularquarterlycashdividendsontheCompany’scommon stock. The Company’s ability to pay dividends could be affected by future business performance, liquidity, capital needs,alternativeinvestmentopportunitiesanddebtcovenants.

Purchases of Equity Securities By the Issuer and Affiliated Purchasers

On June 21, 2016, the Company’s Board of Directors approved a share buy-back plan. Under the plan, which became effective onSeptember1,2016,theCompanywasauthorizedtoacquireupto$75.0millionofitsoutstandingsharesthroughAugust31,2018.ThetimingandamountofrepurchaseswerebasedontermsandconditionsthatwereacceptabletotheCompany’sChiefExecutiveOfficerandChief Financial Officer andin compliance with all lawsandregulationsapplicable thereto . Duringthe periodfromSeptember 1,2016throughAugust31,2018,theCompanyrepurchased465,879sharesatatotalcostof$53.7millionunderthis$75.0millionplan.

OnJune19,2018,theCompany’sBoardofDirectorsapprovedanewsharebuy-backplan.Undertheplan,whichbecameeffectiveonSeptember1,2018andwillremainineffect throughAugust31,2020,theCompanyisauthorizedtoacquireupto$75.0millionofitsoutstandingsharesontermsandconditionsasmaybeacceptabletotheCompany’sChiefExecutiveOfficerandChiefFinancialOfficerandincompliancewithalllawsandregulationsthereto.

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ThefollowingtableprovidesinformationwithrespecttoallpurchasesmadebytheCompanyduringthethreemonthsendedAugust31,2018.Allpurchaseslistedbelowweremadeintheopenmarketatprevailingmarketprices.PurchasetransactionsbetweenJune1,2018andJuly13,2018andbetweenAugust17,2018andAugust31,2018wereexecutedpursuanttotradingplansadoptedbytheCompanypursuanttoRule10b5-1undertheSecuritiesExchangeActof1934,asamended.

Total Number Maximum of Shares Dollar Value of Total Purchased as Part Shares that May Number of Average of Publicly Yet Be Purchased Shares Price Paid Announced Plans Under the Plans Purchased Per Share or Programs or Programs

PeriodJune1-June30 7,800 $ 142.42 7,800 $ 24,995,393July1-July31 7,600 $ 158.18 7,600 $ 23,793,099August1-August31 14,900 $ 169.04 14,900 $ - (1)

Total 30,300 $ 159.47 30,300

(1) OnAugust 31, 2018, the previous share buy-back plan which was approved on June 21, 2016expired with less than the entire $75.0 million of authorizedtreasury share purchases having been executed. As a result, no remaining amount of shares may be purchased under this plan. The new June 19, 2018approved$75.0millionsharebuy-backplanbecameeffectivebeginningSeptember1,2018.

Item 6 . Selected Financial Data

The following data has been derived from the Company’s audited consolidated financial statements. The data should be read inconjunctionwithsuchconsolidatedfinancialstatementsandotherfinancialinformationincludedelsewhereinthisreport(inthousands,exceptpershareamounts):

As of and for the Fiscal Year Ended August 31,2018 2017 2016 2015 2014

Netsales $ 408,518 $ 380,506 $ 380,670 $ 378,150 $ 382,997Costofproductssold 183,255 166,621 166,301 177,972 184,144

Grossprofit 225,263 213,885 214,369 200,178 198,853Operatingexpenses 146,659 137,976 143,021 134,788 135,116

Incomefromoperations 78,604 75,909 71,348 65,390 63,737Interestandother(expense)income,net (3,426) (1,287) 1,441 (2,280) (778)

Incomebeforeincometaxes 75,178 74,622 72,789 63,110 62,959Provisionforincometaxes 9,963 21,692 20,161 18,303 19,213

Netincome $ 65,215 $ 52,930 $ 52,628 $ 44,807 $ 43,746

Earningspercommonshare:Basic $ 4.65 $ 3.73 $ 3.65 $ 3.05 $ 2.89Diluted $ 4.64 $ 3.72 $ 3.64 $ 3.04 $ 2.87

Dividendspershare $ 2.11 $ 1.89 $ 1.64 $ 1.48 $ 1.33Weighted-averagesharesoutstanding-

diluted 13,962 14,123 14,379 14,649 15,148Totalassets $ 317,059 $ 369,717 $ 339,668 $ 339,257 $ 347,680Long-termobligations(1) $ 75,667 $ 154,907 $ 140,579 $ 133,427 $ 26,354

(1)Long-termobligationsincludelong-termdebt,deferredtaxliabilities,netandotherlong-termliabilities.

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Item 7 . Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations(“MD&A”)isdesignedtoprovidethereaderoftheCompany’sfinancialstatementswithanarrativefromtheperspectiveofmanagementontheCompany’sfinancialcondition,resultsofoperations, liquidity and certain other factors that may affect future results. This MD&A includes the following sections: Overview,Highlights, Results of Operations, Performance Measures and Non-GAAP Reconciliations, Liquidity and Capital Resources, CriticalAccountingPolicies,RecentlyIssuedAccountingStandardsandRelatedParties.TheMD&Aisprovidedasasupplementto,andshouldbereadinconjunctionwith, theCompany’sauditedconsolidatedfinancial statementsandtherelatednotesincludedinItem15ofthisreport.

In order to show the impact of changes in foreign currency exchange rates on our results of operations, we have included constantcurrencydisclosures,wherenecessary,intheOverviewandResultsofOperationssectionswhichfollow.ConstantcurrencydisclosuresrepresentthetranslationofourcurrentfiscalyearrevenuesandexpensesfromthefunctionalcurrenciesofoursubsidiariestoU.S.dollarsusingtheexchangeratesineffectforthecorrespondingperiodofthepriorfiscalyear.Weuseresultsonaconstantcurrencybasisasoneofthemeasurestounderstandouroperatingresultsandevaluateourperformanceincomparisontopriorperiods.ResultsonaconstantcurrencybasisarenotinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(“non-GAAP”)andshouldbeconsideredinadditionto,notasasubstitutefor,resultspreparedinaccordancewithGAAP.

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Overview

The Company

WD-40 Company (“the Company”), based in San Diego, California, is a global marketing organization dedicated to creating positivelastingmemoriesbydevelopingandsellingproductsthatsolveproblemsinworkshops,factoriesandhomesaroundtheworld.Wemarketour maintenance products and our homecare and cleaning products under the following well-known brands: WD-40®, 3-IN-ONE®,GT85®,X-14®,2000Flushes®,CarpetFresh®,novac®,SpotShot®,1001®,Lava®andSolvol®.CurrentlyincludedintheWD-40brandaretheWD-40Multi-UseProductandtheWD-40Specialist®andWD-40BIKE®productlines.

Ourbrandsaresoldinvariouslocationsaroundtheworld.MaintenanceproductsaresoldworldwideinmarketsthroughoutNorth,CentralandSouthAmerica, Asia, Australia, Europe, theMiddleEast andAfrica. Homecare andcleaningproducts are soldprimarily inNorthAmerica, the United Kingdom (“U.K.”) and Australia. We sell our products primarily through mass retail and home center stores,warehouseclubstores,grocerystores,hardwarestores,automotivepartsoutlets,sportretailers,independentbikedealers,onlineretailersandindustrialdistributorsandsuppliers.Highlights

ThefollowingsummarizesthefinancialandoperationalhighlightsforourbusinessduringthefiscalyearendedAugust31,2018:

· Consolidated net sales increased $28.0 million , or 7%, for fiscal year 2018 compared to the prior fiscal year. Changes inforeigncurrencyexchangerateshadafavorableimpactof$10.5milliononconsolidatednetsalesforfiscalyear2018.Thus,onaconstantcurrencybasis,netsaleswouldhaveincreasedby$17.5million,or5%,forfiscalyear2018comparedtothepriorfiscal year.This favorable impact from changes in foreign currency exchange rates mainly came from our EMEAsegment ,whichaccountedfor37%ofourconsolidatedsalesforthefiscalyearendedAugust31,2018.

· ConsolidatednetsalesfortheWD-40Specialistproductlinewere$31.4millionwhichisa22%increaseforfiscalyear2018comparedtothepriorfiscalyear.AlthoughtheWD-40Specialist productlineisexpectedtoprovidetheCompanywithlong-termgrowth opportunities, we will see some volatility in sales levels fromperiod to period due to the timing of promotionalprograms,thebuildingofdistribution,andvariousotherfactorsthatcomewithbuildinganewproductline.

· Grossprofitasapercentageofnetsalesdecreasedto55.1%forfiscalyear2018comparedto56.2%forthepriorfiscalyear.

· Consolidatednetincomeincreased$12.3million,or23%,forfiscalyear2018comparedtothepriorfiscalyear.Changesinforeigncurrencyexchangerateshadafavorableimpactof$1.9milliononconsolidatednetincomeforfiscalyear2018.Thus,onaconstantcurrencybasis,netincomewouldhaveincreasedby$10.4million,or20%,forfiscalyear2018comparedtothepriorfiscalyear.

· Dilutedearningspercommonshareforfiscalyear2018were$4.64versus$3.72inthepriorfiscalyear.

· Netincomeanddilutedearningspercommonsharewerefavorablyimpactedforfiscalyear2018bytheU.S.“TaxCutsandJobsAct”,whichbecameeffectivefortheCompanyonJanuary1,2018andresultedinalowereffectiveincometaxratefromperiodtoperiodaswellasafavorableremeasurementoftheCompany’sdeferredtaxliabilityof$6.8millionduringfiscalyear2018.

· Sharerepurchaseswereexecutedunderourcurrent$75.0millionsharebuy-backplan,whichwasapprovedbytheCompany’sBoardofDirectorsinJune2016andbecameeffectiveonSeptember1,2016.DuringtheperiodfromSeptember1,2017throughAugust31,2018,theCompanyrepurchased175,306sharesatanaveragepriceof$128.99pershare,foratotalcostof$22.6million.

Our strategic initiatives and the areas where we will continue to focus our time, talent and resources in future periods include: (i)maximizingWD-40Multi-Useproduct sales throughgeographic expansion, increasedmarket penetrationandthedevelopment of newand unique delivery systems; (ii) leveraging the WD-40 brand by growing the WD-40 Specialist product line; (iii) leveraging thestrengthsoftheCompanythroughbroadenedproductandrevenuebase;(iv)attracting,developingandretainingtalentedpeople;and(v)operatingwithexcellence.

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Results of Operations

Fiscal Year Ended August 31, 2018 Compared to Fiscal Year Ended August 31, 2017

Operating Items

Thefollowingtablesummarizesoperatingdataforourconsolidatedoperations(inthousands,exceptpercentagesandpershareamounts):

Fiscal Year Ended August 31,

Change from Prior Year

2018 2017 Dollars PercentNetsales:Maintenanceproducts $ 372,391 $ 342,295 $ 30,096 9%Homecareandcleaningproducts 36,127 38,211 (2,084) (5)%

Totalnetsales 408,518 380,506 28,012 7%Costofproductssold 183,255 166,621 16,634 10%

Grossprofit 225,263 213,885 11,378 5%Operatingexpenses 146,659 137,976 8,683 6%

Incomefromoperations $ 78,604 $ 75,909 $ 2,695 4%Netincome $ 65,215 $ 52,930 $ 12,285 23%Earningspercommonshare-diluted $ 4.64 $ 3.72 $ 0.92 25%

Net Sales by Segment

Thefollowingtablesummarizesnetsalesbysegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2018 2017 Dollars Percent

Americas $ 192,878 $ 184,929 $ 7,949 4%EMEA 150,878 136,771 14,107 10%Asia-Pacific 64,762 58,806 5,956 10%Total $ 408,518 $ 380,506 $ 28,012 7%

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AmericasThefollowingtablesummarizesnetsalesbyproductlinefortheAmericassegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2018 2017 Dollars PercentMaintenanceproducts $ 170,160 $ 159,167 $ 10,993 7%Homecareandcleaningproducts 22,718 25,762 (3,044) (12)%Total $ 192,878 $ 184,929 $ 7,949 4%

% of consolidated net sales 47% 49%

SalesintheAmericassegment,whichincludestheU.S.,CanadaandLatinAmerica,increasedto$192.9million,up$7.9million,or4%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.Changesinforeigncurrencyexchangerateshadafavorableimpact on sales for the Americas segment from period to period. Sales for the fiscal year ended August 31, 2018 translated at theexchangeratesineffectforthepriorfiscalyearwouldhavebeen$192.5millionintheAmericassegment.Thus,onaconstantcurrencybasis,saleswouldhaveincreasedby$7.6millionforthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.

Sales of maintenance products in the Americas segment increased $11.0 million, or 7%, for the fiscal year ended August 31, 2018comparedtothepriorfiscalyear.ThissalesincreasewasmainlydrivenbyhighersalesofmaintenanceproductsintheU.S.andLatinAmerica, which were up $ 8.0million and $2.3 million, or 6% and 10% respectively, from period to period. In addition, sales ofmaintenance products also increased by$0.7 million in Canada, up8%, fromperiod to period. The sales increase in the U.S. wasprimarilyduetothesuccessofcertainonlinepromotional andadvertisingactivities whichwereconductedinthefirst quarter offiscalyear2018aswellascertaincustomersbuyingproductinadvanceofapriceincrease,particularlyonWD-40Multi-UseProduct,whichtookplaceat thebeginningofthefourthquarter offiscal year2018.Inaddition, thesalesincreaseintheU.S.wasalsoattributabletohigher sales of WD-40 EZ-REACH Flexible Straw product, which were up $2.9 million, or 29%, from period to period. The salesincreaseinLatinAmericafromperiodtoperiodwasprimarilyduetosuccessfulpromotionalprogramswhichwereconductedinthethirdquarteroffiscalyear2018,highersalesinMexicoduetoimprovedmarketandeconomicconditions ,newdistributionfortheWD-40Multi-UseProductinCentralAmericaandhighersalesinChileduetosuccessfulpromotionalprograms.ThesalesincreaseinCanadawasprimarilydrivenbysuccessfulpromotionalprogramswhichwereconductedinthethirdquarteroffiscalyear2018.AlsocontributingtotheoverallsalesincreaseofthemaintenanceproductsintheAmericassegmentfromperiodtoperiodwerehighersalesoftheWD-40Specialistproductline,whichwereup$0.7million,or5%,fromperiodtoperiodduetonewdistribution,particularlyofcertainnewproductswithinthisproductlineduringfiscalyear2018.

SalesofhomecareandcleaningproductsintheAmericassegmentdecreased$3.1million,or12%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.ThissalesdecreasewasdrivenprimarilybyadecreaseinsalesoftheCarpetFresh,2000FlushesandSpotShotbrandproducts,whichweredown37%,14%and10%,respectively,fromperiodtoperiod.Whileeachofourhomecareandcleaningproductscontinuetogeneratepositivecashflows,wehavecontinuedtoexperiencedecreasedorflatsalesformanyoftheseproducts primarily due to lost distribution, reduced product offerings, competition, category declines and the volatility of orders frompromotionalprogramswithcertainofourcustomers,particularlythoseinthewarehouseclubandmassretailchannels.

FortheAmericassegment,80%ofsalescamefromtheU.S.,and20%ofsalescamefromCanadaandLatinAmericacombinedforthefiscalyearendedAugust31,2018comparedtothepriorfiscalyearwhen81%ofsalescamefromtheU.S.,and19%ofsalescamefromCanadaandLatinAmericacombined.

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EMEA

ThefollowingtablesummarizesnetsalesbyproductlinefortheEMEAsegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2018 2017 Dollars PercentMaintenanceproducts $ 144,932 $ 131,562 $ 13,370 10%Homecareandcleaningproducts 5,946 5,209 737 14%Total(1) $ 150,878 $ 136,771 $ 14,107 10%

% of consolidated net sales 37% 36%

(1) While the Company’s reporting currency is U.S. Dollar, the functional currency of our U.K. subsidiary, the entity in which the EMEA results aregenerated,isPoundSterling.AlthoughthefunctionalcurrencyofthissubsidiaryisPoundSterling,approximately50%ofitssalesaregeneratedinEuroand20%aregeneratedinU.S.Dollar.Asaresult,thePoundSterlingsalesandearningsfortheEMEAsegmentcanbenegativelyorpositivelyimpacted from period to period upon translation from these currencies depending on whether the Euro and U.S. Dollar are weakening orstrengtheningagainstthePoundSterling.

SalesintheEMEAsegment,whichincludesEurope,theMiddleEast,AfricaandIndia,increasedto$150.9million,up$14.1million,or10%, for the fiscal year ended August 31, 2018compared to the prior fiscal year.Changes in foreign currencyexchangerates hadafavorableimpactonsalesfortheEMEAsegmentfromperiodtoperiod.SalesforthefiscalyearendedAugust31,2018translatedattheexchangeratesineffectforthepriorfiscalyearwouldhavebeen$141.7millionintheEMEAsegment. Thus,onaconstantcurrencybasis,saleswouldhaveincreasedby$4.9million,or4%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.

The countries in Europe where we sell through a direct sales force include the U.K., Italy, France, Iberia (which includes Spain andPortugal)andtheGermanicssalesregion(whichincludesGermany,Austria,Denmark,Switzerland,BelgiumandtheNetherlands).Salesin the direct markets increased $13.5 million, or 15%, for the fiscal year ended August 31, 2018 compared to the prior fiscal yearprimarilyduetoasalesincreaseof$8.0million,or13%,oftheWD-40Multi-UseProductacrossallmarkets.Thisincreaseinsaleswasalsoaresultofthefavorableimpactsofchangesinforeigncurrencyexchangerates,specificallythestrengtheningofthePoundSterlingagainsttheU.S.Dollar,aswellasahigherlevelofpromotionalactivities,particularlyinthedo-it-yourself(“DIY”)andretailchannels.AlsocontributingtotheoverallsalesincreaseinthedirectmarketswashighersalesoftheWD-40Specialistproductline,whichwereup$3.5million,or45%,fromperiodtoperiodduetonewdistributionandahigherlevelofpromotionalactivities,particularlyinFrance,theU.K.andtheGermanicsregions.Salesfromdirectmarketsaccountedfor68%oftheEMEAsegment’ssalesforthefiscalyearendedAugust31,2018comparedto65%oftheEMEAsegment’ssalesforthepriorfiscalyear.

TheregionsintheEMEAsegmentwherewesellthroughlocaldistributorsincludetheMiddleEast,Africa,India,EasternandNorthernEurope.Salesinthedistributormarketsincreased$0.6million,or1%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscal year, primarily due to higher sales of WD-40Multi-Use Product in Northern Europe and the Middle East as a result of varioussuccessfulpromotional programsin those regions. This sales increase wasalmostcompletelyoffset bylower sales in Eastern Europefromperiodtoperiod.AlthoughtherewereincreasedsalesinvariouscountriesinEasternEuropefromperiodtoperiod,salesinRussiadeclinedby33%,whichresultedinanoveralldeclineinsalesinthisregion.ThedeclinesinRussiawereduetocontinuedinstabilityintheregionandthetimingofordersfromthedistributor.Thedistributormarketsaccountedfor32%oftheEMEAsegment’stotalsalesforthefiscalyearendedAugust31,2018,comparedto35%forthepriorfiscalyear.

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Asia-Pacific

ThefollowingtablesummarizesnetsalesbyproductlinefortheAsia-Pacificsegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2018 2017 Dollars PercentMaintenanceproducts $ 57,299 $ 51,567 $ 5,732 11%Homecareandcleaningproducts 7,463 7,239 224 3%Total $ 64,762 $ 58,806 $ 5,956 10%

% of consolidated net sales 16% 15%

SalesintheAsia-Pacificsegment,whichincludesAustralia,ChinaandothercountriesintheAsiaregion,increasedto$64.8million,up$6.0million,or10%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.ChangesinforeigncurrencyexchangerateshadafavorableimpactonsalesfortheAsia-Pacificsegmentfromperiodtoperiod.SalesforthefiscalyearendedAugust31,2018translatedattheexchangeratesineffectforthepriorfiscalyearwouldhavebeen$63.8millionintheAsia-Pacificsegment.Thus,onaconstantcurrencybasis,saleswouldhaveincreasedby$5.0million,or9%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.

SalesinAsia,whichrepresented72%ofthetotalsalesintheAsia-Pacificsegment,increased$6.0million,or14%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.SalesintheAsiadistributormarketsincreased$3.6million,or14%,primarilydue to a highersales of the WD-40 Multi-Use Product in thePhilippines, TaiwanandSouth Koreamarkets as a result of successfulpromotionprogramsaswellasthetimingofcustomerordersfromperiodtoperiod.Inaddition,salesinIndonesiareturnedtomorenormallevelsinthefourthquarteroffiscalyear2018asresultofthesuccessfultransitiontoanewmarketingdistributorinthisregionduringtheyear.SalesinChinaincreased$2.4million,or16%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.ChangesinforeigncurrencyexchangerateshadafavorableimpactonsalesinChina.Onaconstantcurrencybasis,saleswouldhaveincreasedby$1.7million,or11%,fromperiodtoperiodprimarilyduetoahigherlevelofpromotionalactivitiesandmanycustomersbuyingproductinadvanceofapriceincreasethatwentintoeffectatthebeginningoffiscalyear2019.

SalesinAustraliaremainedconstant at $17.8millionforeachofthefiscalyearsendedAugust31,2018and2017.AlthoughsalesinAustraliaremainedconstantfromperiodtoperiod,onaconstantcurrencybasis,salesdecreasedslightlyby1%primarilyduetoalowersalesoftheWD-40Multi-UseProductasaresultofamajorcustomerreducingtheirinventorylevelsofaerosolcanproductsduetocertainregulatoryconstraints.

Gross Profit

Grossprofitincreasedto$225.3millionforthefiscalyearendedAugust31,2018comparedto$213.9millionforthepriorfiscalyear.Asapercentageofnetsales,grossprofitdecreasedto55.1%forthefiscalyearendedAugust31,2018comparedto56.2%forthepriorfiscalyear.

Grossmarginwasnegativelyimpactedby1.3percentagepointsfromperiodtoperiodduetounfavorablenetchangesinthecostsofpetroleum-basedspecialtychemicalsandaerosolcansinallthreesegments.Thereisoftenadelayofonequarterormorebeforechangesinrawmaterialcostsimpactcostofproductssoldduetoproductionandinventorylifecycles.Theaveragecostofcrudeoilwhichflowedthroughourcostofgoodssoldwashigherduringfiscalyear2018comparedtothepriorfiscalyear,thusresultinginnegativeimpactstoourgrossmarginfromperiodtoperiod.Duetothevolatilityofthepriceofcrudeoil,itisuncertaintheleveltowhichgrossmarginwillbeimpactedbysuchcostsinfutureperiods.Grossmarginwasalsonegativelyimpactedby0.2percentagepointsfromperiodtoperiodduetohigherwarehousingandin-boundfreightcostsinallthreesegments.Advertising,promotionalandotherdiscountsthatwegivetoourcustomersalsoincreasedfromperiodtoperiodwhichnegativelyimpactedgrossmarginby0.1percentagepoints.Theseunfavorableimpacts to gross margin were partially offset by 0. 5 percentage points from period to period primarily due to sales price increasesimplementedintheEMEAandAsia-Pacificsegmentslateinfiscalyear2017andthefirsthalfoffiscalyear2018,aswellassalespriceincreasesimplementedintheAmericassegmentinthefourthquarteroffiscalyear2018.

Notethatourgrossprofitandgrossmarginmaynotbecomparabletothoseofotherconsumerproductcompanies,sincesomeofthesecompaniesincludeallcostsrelatedtodistributionoftheirproductsincostofproductssold,whereasweexcludetheportionassociatedwithamountspaidtothirdpartiesforshipmenttoourcustomersfromourdistributioncentersandcontract

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manufacturersandincludethesecosts inselling, general andadministrative expenses. Thesecosts totaled$17.7millionand$16.4millionforthefiscalyearsendedAugust31,2018and2017,respectively.

Selling, General and Administrative Expenses

Selling, general andadministrative (“SG&A”)expenses for the fiscal year ended August 31, 2018 increased$6.8million to $121.4millionfrom$114.6millionforthepriorfiscalyear.Asapercentageofnetsales,SG&Aexpensesdecreasedto29.7%forthefiscalyearended August 31, 2018 from 30.1% for the prior fiscal year. The increase in SG&A expenses was primarily attributable to theunfavorableimpactofchangesinforeigncurrencyexchangeratesof$2.8millionfromperiodtoperiod,aswellasincreasesinemployee-relatedcosts,depreciationexpenseandgeneralofficeoverheadcosts,freightcosts,andahigherlevelofexpensesassociatedwithtravelandmeetingsfromperiodtoperiod.Employee-relatedcosts,whichincludesalaries,incentivecompensation,profitsharing,stock-basedcompensationandotherfringebenefits,increasedby$2.7million.Thisincreasewasprimarilyduetoincreasedheadcount,higherearnedincentivecompensationandannualcompensationincreasesthattakeeffectinthefirstquarterofthefiscalyear.Depreciationexpenseandgeneralofficeoverheadcostsincreased$0.9millionprimarilyduetothedepreciationandexpensesassociatedwiththeCompany’snewSan Diego, California office building, which was completed in August 2017. Freight costs associated with shipping products to ourcustomersincreased$0.7millionprimarilyduetohighersalesvolumesinall threesegmentsfromperiodtoperiod, aswell asvariousmacroeconomic factors impacting the freight industry which have resulted in increased shipping costs. Travel and meeting expensesincreased $0.3 million due to a higher level of travel expenses associated with various sales meetings and activities in support of ourstrategicinitiatives.Inaddition,othermiscellaneousexpensesalsoincreasedintotalby$0.7millionperiodoverperiod,primarilyduetoanincreaseincharitablecontributionsandbaddebtexpense. Theseoverall increaseswereslightlyoffset byadecreaseinprofessionalservices costs and research and development costs from period to period. Professional service costs decreased $0.8 million due to afavorablelegaljudgmentof$1.5millionreceivedandrecordedinthefourthquarteroffiscalyear2018(foradditionalinformation,seePartIV–Item15,“Exhibits,FinancialStatementSchedules”Note11–CommitmentsandContingencies, includedinthisreport),whichwaspartiallyoffsetbytheincreaseduseofprofessionalservicesintheEMEAsegmentfromperiodtoperiodprimarilyduetotheimplementationoftheGeneralDataProtectionRegulationwhichbecameeffectivefortheCompanybeginninginMay2018.Inaddition,research and development costs, including new product exploration expenses, decreased $0.5 million from period to period due todecreasesinsuchspendingintheAmericassegment.

Wecontinuedourresearchanddevelopmentinvestment,themajorityofwhichisassociatedwithourmaintenanceproducts,insupportofourfocusoninnovationandrenovationofourproducts.ResearchanddevelopmentcostsforthefiscalyearsendedAugust31,2018and2017were $7.0million and$8 .4 million, respectively.Our research and development teamengages in consumer research, productdevelopment,currentproductimprovementandtestingactivities.Thisteamleveragesitsdevelopmentcapabilitiesbypartneringwithanetworkofoutsideresourcesincludingourcurrentandprospectivesuppliers. Thelevelandtypesofexpensesincurredwithinresearchanddevelopmentcanvaryfromperiodtoperioddependinguponthetypesofactivitiesbeingperformed.

Advertising and Sales Promotion Expenses

AdvertisingandsalespromotionexpensesforthefiscalyearendedAugust31,2018increased$1.8millionto$22.3millionfrom$20.5forthepriorfiscalyear.Asapercentageofnetsales,theseexpensesincreasedto5.5%forthefiscalyearendedAugust31,2018from5.4%forthepriorfiscalyear.Changesinforeigncurrencyexchangerateshadanunfavorableimpactonsuchexpensesof$0.6millionfromperiodtoperiod.Thus,onaconstantcurrencybasis,advertisingandsalespromotionexpensesforfiscalyear2018wouldhaveincreasedby$1.2million,primarilyduetocorporatefundedcostsassociatedwithincreasingtheCompany’sdigitalpresenceandbuildingbrandawarenessinallthreesegmentsfromperiodtoperiod.Investmentinglobaladvertisingandsalespromotionexpensesforfiscalyear2019isexpectedtobebetween5.5%and6.0%ofnetsales.

Asapercentageofnetsales,advertisingandsalespromotionexpensesmayfluctuateperiodtoperiodbaseduponthetypeofmarketingactivitiesweemployandtheperiodinwhichthecostsareincurred.Totalpromotionalcostsrecordedasareductiontosaleswere$19.7millionand$17.5millionforthefiscalyearsendedAugust31,2018and2017,respectively.Therefore,ourtotalinvestmentinadvertisingandsalespromotionactivitiestotaled$42.0millionand$38.0millionforthefiscalyearsendedAugust31,2018and2017,respectively.

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Amortization of Definite-lived Intangible Assets Expense

Amortization of our definite-lived intangible assets remained relatively constant at $ 3.0million and $2.9 million for the fiscal yearsendedAugust31,2018and2017,respectively.

Income from Operations by Segment

Thefollowingtablesummarizesincomefromoperationsbysegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2018 2017 Dollars Percent

Americas $ 48,954 $ 48,303 $ 651 1%EMEA 36,241 35,389 852 2%Asia-Pacific 19,098 16,765 2,333 14%Unallocatedcorporate(1) (25,689) (24,548) (1,141) 5%Total $ 78,604 $ 75,909 $ 2,695 4%

(1) Unallocatedcorporateexpensesaregeneralcorporateoverheadexpensesnotdirectlyattributabletoanyoneoftheoperatingsegments.TheseexpensesarereportedseparatefromtheCompany’sidentifiedsegmentsandareincludedinSelling,GeneralandAdministrativeexpensesontheCompany’sconsolidatedstatementsofoperations.

Americas

IncomefromoperationsfortheAmericassegmentincreasedto$49.0million,up$0. 7million,or1%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear,primarilyduetoa$7.9millionincreaseinsales,whichwaspartiallyoffsetbyalowergrossmarginandhigheroperatingexpenses.Asapercentageofnetsales,grossprofitfortheAmericassegmentdecreasedfrom54.4%to53.5%periodoverperiod.Thisdecreaseinthegrossmarginwasprimarilyduetothecombinednegativeimpactsofincreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcans,aswellashigherwarehousingandin-boundfreightcostsfromperiodtoperiod.These unfavorable impacts were partially offset by a lower level of advertising, promotional and other discounts that we gave to ourcustomersandtheimpactofsalespriceincreasesfromperiodtoperiod.ThehighersalesintheAmericassegmentwereaccompaniedbya$2.0millionincreaseintotaloperatingexpensesperiodoverperiodduetohigheremployee-relatedexpenses,primarilythoseassociatedwithearnedincentivecompensation,aswellashigherprofessionalservicecosts.Theseincreasesinoperatingexpenseswerepartiallyoffsetbyalowerlevelofadvertisingandsalespromotionexpenses,decreasedresearchanddevelopmentcosts,andloweroverheadcostsfromperiodtoperiod.Operatingincomeasapercentageofnetsalesdecreasedfrom26.1%to25.4%periodoverperiod.

EMEA

IncomefromoperationsfortheEMEAsegmentincreasedto$36.2million,up$0.9million,or2%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear,primarilyduetoa$14.1millionincreaseinsales,whichwassignificantlyoffsetbyalowergrossmarginandhigheroperatingexpenses. Asapercentageofnet sales, grossprofit for theEMEAsegmentdecreasedfrom59.6%to57.7%periodoverperiodprimarily dueto the combined negative impacts of increased costs of petroleum-based specialtychemicalsandaerosolcansaswellasahigherlevelofadvertising,promotionalandotherdiscountsthatwegavetoourcustomersfromperiodtoperiod.Theseunfavorableimpactswerepartiallyoffsetbysalespriceincreasesfromperiodtoperiod.ThehighersalesintheEMEAsegmentwereaccompaniedbya$4.8millionincreaseintotal operatingexpensesperiodoverperiod,primarilyduetotheunfavorable impacts of changes in foreign currency exchange rates, as well as increased headcount, higher freight costs , higherprofessionalservicescostsandincreasedadvertisingandsalespromotionexpensesfromperiodtoperiod.Theseincreasesinoperatingexpenseswerepartiallyoffsetbylowerearnedincentivecompensationfromperiodtoperiod.Operatingincomeasapercentageofnetsalesdecreasedfrom25.9%to24.0%periodoverperiod.

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Asia-Pacific

IncomefromoperationsfortheAsia-Pacificsegmentincreasedto$19.1million,up$2.3million,or14%,forthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear,primarilyduetoa$6.0millionincreaseinsales,whichwaspartiallyoffsetbyalowergross margin and higher operating expenses . As a percentage of net sales, gross profit for the Asia-Pacific segment decrea sedfrom54.2%to54.0%periodoverperiodprimarilyduetothenegativeimpactofincreasedcostsofpetroleum-basedspecialtychemicalsandahigherlevelofadvertising, promotional andotherdiscountsthat wegavetoourcustomersfromperiodtoperiod. Theseunfavorableimpactsweremostlyoffsetbysalespriceincreasesandfavorablesalesmixchangesfromperiodtoperiod.ThehighersalesintheAsia-Pacificsegmentwereaccompaniedbya$0.8millionincreaseintotaloperatingexpensesperiodoverperiod,primarilyduetoincreasedadvertisingandsalespromotionexpensesandhigherfreightcosts.Operatingincomeasapercentageofnetsalesincreasedfrom28.5%to29.5%periodoverperiod.

Non-Operating Items

Thefollowingtablesummarizesnon-operatingincomeandexpensesforourconsolidatedoperations(inthousands):

Fiscal Year Ended August 31,2018 2017 Change

Interestincome $ 454 $ 508 $ (54)Interestexpense $ (4,219) $ (2,582) $ (1,637)Otherincome $ 339 $ 787 $ (448)Provisionforincometaxes $ 9,963 $ 21,692 $ (11,729)

Interest Income

InterestincomeremainedrelativelyconstantforthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.

Interest Expense

Interest expense increased $1.6million for the fiscal year ended August 31, 2018 compared to the prior fiscal year primarily duetohigher interest rates and an increased averageoutstanding balance on our revolving credit facility period over period .Interestexpensealsoincreasedfromperiodtoperiodduetotheinterestassociatedwiththe$20.0millionSeriesANoteswhichwereissuedinNovember2017.

Other Income

Otherincomedecreasedby$0.4millionforthefiscalyearendedAugust31,2018comparedtothepriorfiscalyearprimarilyduetoadecreaseof$0.2millioninnetforeigncurrencyexchangegainsfromperiodtoperiod,aswellasa$0.2millionmiscellaneousincomeitemrecordedinourAsia-Pacificsegmentinthethirdquarteroffiscalyear2017thatdidnotreoccurinfiscalyear2018.Thedecreaseinforeigncurrencyexchangegainswasprimarilyduetotherelativemovementinforeigncurrencyexchangeratesandthefluctuationofnon-functionalcurrencybalancesheetaccounts,particularlythoseassociatedwithourUKsubsidiary,duringthefiscalyearendedAugust31,2018comparedtothepriorfiscalyear.

Provision for Income Taxes

Theprovisionforincometaxeswas13.3%ofincomebeforeincometaxesforthefiscalyearendedAugust31,2018comparedto29.1%forthepriorfiscalyear.Thedecreaseintheeffectiveincometaxratefromperiodtoperiodwasprimarilyduetothefavorableimpactofthereducedtaxrateresultingfromthe“TaxCutsandJobsAct”(the“TaxAct”),whichbecameeffectiveduringthesecondquarteroftheCompany’sfiscalyear2018.SincetheCompanyhasafiscalyearwhichendsonAugust31,theCompanyissubjecttoa“blended”corporatefederalstatutoryrateinitsfiscalyear2018whichiscalculatedbasedontheapplicabletaxratesbeforeandafterpassageoftheTaxActandthenumberofdaysinthefiscalyear.Asaresultofthiscalculation,theCompany’sblendedcorporatefederalstatutorytaxrateforfiscalyear2018is25.7%,whichismorethan9percentagepointslowerthanthestatutoryrateof35%inthepriorfiscalyear.TheCompanyalsorecordedtwodiscreteitemsrelatedtotheTaxActduringfiscalyear2018,a$6.8millionprovisionalremeasurementoftheCompany’snetdeferredtaxliabilityanda$0.3millionprovisionalbenefitrelatedtothetolltaxnetofforeigntaxcredits,bothofwhichloweredtheCompany’seffectiveincometaxratefromperiodtoperiod.ForadditionalinformationontheimpactsoftheTaxActon the Company’s provision for income taxes and its consolidated financial statements, see Part IV – Item 15, “Exhibits, FinancialStatementSchedules”Note12–IncomeTaxes,includedinthisreport.

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The decrease in the effective income tax rate from period to period was also driven in part by the adoption of ASU 2016-09, “ImprovementstoEmployeeShare-BasedPaymentAccounting”,inthefirstquarteroftheCompany’sfiscalyear2018,whichresultedinexcesstaxbenefits fromsettlementsofstock-basedequityawardsof$0.7millionbeingrecognizedintheprovisionforincometaxes,whereassuchbenefitswererecognizedasanincreasetoadditionalpaid-incapitalinpriorperiods.Inaddition,theeffectiveincometaxrate for the fiscal year ended August 31, 2017 was higher due to the unfavorable impact of a non-recurring immaterial out-of-periodcorrectionthattheCompanyrecordedinthesecondquarteroffiscalyear2017associatedwiththetaximpactsfromcertainunrealizedforeigncurrencyexchangelosses.

Net Income

Netincomewas$65.2million,or$4.64percommonshareonafullydilutedbasis,forfiscalyear2018comparedto$52.9million,or$3.72percommonshareonafullydilutedbasis,forthepriorfiscalyear.Changesinforeigncurrencyexchangeratesyearoveryearhadafavorableimpactof$1.9milliononnetincomeforfiscalyear2018.Thus,onaconstantcurrencybasis,netincomeforfiscalyear2018wouldhavebeen$63.3million.

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Fiscal Year Ended August 31, 2017 Compared to Fiscal Year Ended August 31, 2016

Operating Items

Thefollowingtablesummarizesoperatingdataforourconsolidatedoperations(inthousands,exceptpercentagesandpershareamounts):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars PercentNetsales:Maintenanceproducts $ 342,295 $ 339,974 $ 2,321 1%Homecareandcleaningproducts 38,211 40,696 (2,485) (6)%

Totalnetsales 380,506 380,670 (164) -Costofproductssold 166,621 166,301 320 -

Grossprofit 213,885 214,369 (484) -Operatingexpenses 137,976 143,021 (5,045) (4)%

Incomefromoperations $ 75,909 $ 71,348 $ 4,561 6%Netincome $ 52,930 $ 52,628 $ 302 1%Earningspercommonshare-diluted $ 3.72 $ 3.64 $ 0.08 2%

Net Sales by Segment

Thefollowingtablesummarizesnetsalesbysegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars Percent

Americas $ 184,929 $ 191,397 $ (6,468) (3)%EMEA 136,771 135,235 1,536 1%Asia-Pacific 58,806 54,038 4,768 9%Total $ 380,506 $ 380,670 $ (164) -

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AmericasThefollowingtablesummarizesnetsalesbyproductlinefortheAmericassegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars PercentMaintenanceproducts $ 159,167 $ 163,655 $ (4,488) (3)%Homecareandcleaningproducts 25,762 27,742 (1,980) (7)%Total $ 184,929 $ 191,397 $ (6,468) (3)%

% of consolidated net sales 49% 50%

SalesintheAmericassegment,whichincludestheU.S.,CanadaandLatinAmerica,decreasedto$184.9million,down$6.5million,or3%,forthefiscalyearendedAugust31,2017comparedtofiscalyear2016.ChangesinforeigncurrencyexchangeratesdidnothaveasignificantimpactonsalesfortheAmericassegmentfromperiodtoperiod.

Sales of maintenance products in the Americas segment decreased $4.5 million, or 3%, for the fiscal year ended August 31, 2017compared to fiscal year 2016 . This sales decrease was mainly driven by lower sales of maintenance products in the U.S.,whichdeclined5%fromperiodtoperiod. ThisdeclineinsalesfromperiodtoperiodwasprimarilyduetodecreasedsalesassociatedwithalowerlevelofpromotionalactivitiesandthetimingofcustomerordersfortheWD-40Multi-UseProduct.ThislowerlevelofsalesintheU.S.wasalsoattributabletoeffortsofcertainofourcustomersinlatefiscalyear2017tomorecloselymanagetheirinventorylevels. The sales decrease of maintenance products in the U.S. was partially offset by increased sales of such products in Canada andLatin America, which increased 10%and 4%, respectively, fromperiod to period. The sales increase in Canada was primarily due toaddeddistributionoftheWD-40Bikeproductaswellashighersalesduetosuccessfulpromotionalprograms,whichwaspartiallydrivenbyimprovingmarketandeconomicconditions,includingthosewithintheindustrialchannelinWesternCanadaasaresultofincreasedactivitylevelsintheoilindustry.ThesalesincreaseinLatinAmericawasprimarilyduetoimprovedeconomicconditionsinPuertoRicoinfiscalyear2017comparedtofiscalyear2016,aswellasnewdistributionandsuccessfulpromotionalprogramsinseveralcountriesinSouthAmerica.TheoveralldecreaseinsalesofWD-40Multi-UseProductintheAmericassegmentwaspartiallyoffsetbyhighersalesoftheWD-40Specialistproductline,whichwereup$1.5million,or13%,fromperiodtoperiodduetonewdistribution,particularlyofcertainnewproductswithinthisproductlineduringfiscalyear2017.

SalesofhomecareandcleaningproductsintheAmericassegmentdecreased$2.0million,or7%,forthefiscalyearendedAugust31,2017comparedto fiscal year 2016. This sales decrease wasdrivenprimarily by a decrease in sales of theX-14, Spot Shot and LavabrandproductsintheU.S.,whichweredown13%,9%and9%,respectively,fromperiodtoperiod.Whileeachofourhomecareandcleaning products continue to generate positive cashflows, wehavecontinuedto experience decreased or flat sales for manyof theseproducts primarily due to lost distribution, reduced product offerings, competition, category declines and the volatility of orders frompromotionalprogramswithcertainofourcustomers,particularlythoseinthewarehouseclubandmassretailchannels.

FortheAmericassegment,81%ofsalescamefromtheU.S.,and19%ofsalescamefromCanadaandLatinAmericacombinedforthefiscalyearendedAugust31,2017comparedtofiscalyear2016when83%ofsalescamefromtheU.S.,and17%ofsalescamefromCanadaandLatinAmericacombined.

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EMEA

ThefollowingtablesummarizesnetsalesbyproductlinefortheEMEAsegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars PercentMaintenanceproducts $ 131,562 $ 129,217 $ 2,345 2%Homecareandcleaningproducts 5,209 6,018 (809) (13)%Total(1) $ 136,771 $ 135,235 $ 1,536 1%

% of consolidated net sales 36% 36%

(1) While the Company’s reporting currency is U.S. Dollar, the functional currency of our U.K. subsidiary, the entity in which the EMEA results aregenerated,isPoundSterling.AlthoughthefunctionalcurrencyofthissubsidiaryisPoundSterling,approximately45%ofitssalesaregeneratedinEuroand25%aregeneratedinU.S.Dollar.Asaresult,thePoundSterlingsalesandearningsfortheEMEAsegmentcanbenegativelyorpositivelyimpacted from period to period upon translation from these currencies depending on whether the Euro and U.S. Dollar are weakening orstrengtheningagainstthePoundSterling.

SalesintheEMEAsegment,whichincludesEurope,theMiddleEast,AfricaandIndia,increasedto$136.8million,up$1.5million,or1%, for the fiscal year ended August 31, 2017 compared to fiscal year 2016. Changes in foreign currency exchange rates had anunfavorableimpactonsalesfortheEMEAsegmentfromperiodtoperiod.SalesforthefiscalyearendedAugust31,2017translatedattheexchangerates ineffect for fiscal year 2016wouldhavebeen$155.9millionintheEMEAsegment. Thus, onaconstant currencybasis,saleswouldhaveincreasedby$20.6million,or15%,forthefiscalyearendedAugust31,2017comparedtofiscalyear2016.

The countries in Europe where we sell through a direct sales force include the U.K., Italy, France, Iberia (which includes Spain andPortugal) and the Germanics sales region (which includes Germany, Austria, Denmark, Switzerland, Belgium and the Netherlands).Overall,salesfromthedirectmarketsincreased$1.3million,or1%,forthefiscalyearendedAugust31,2017comparedtofiscalyear2016.Changes in foreign currency exchange rates had an unfavorable impact on sales in the direct markets in EMEAfromperiod toperiod.Onaconstantcurrencybasis,salesinthedirectmarketswouldhaveincreasedby15%fromfiscalyear2017comparedtofiscalyear2016.

We experienced sales increases throughout most of the EMEAdirect markets for the fiscal year ended August 31, 2017 compared tofiscalyear2016primarilyduetoasalesincreaseof$3.5million,or6%,intheEuro-baseddirectmarketsasaresultofcontinuedgrowthofthebasebusinessandhighersalesofWD-40Specialist. Salesof WD-40Specialist intheEuro-baseddirect markets increased$1.6million,or36%,fromperiodtoperiodasaresultofexpandeddistributioninmostmarkets,butparticularlyinFrance.AlthoughsalesintheEuro-baseddirectmarketsalsobenefitedfromthestrengtheningoftheEuroagainstthePoundSterling,thefunctionalcurrencyofourU.K.subsidiary,theywereimpactedintheoppositedirectionbyapproximatelythesameamountduetheweakeningofthePoundSterlingagainsttheU.S.Dollarfromperiodtoperiod.ThesalesincreaseintheEuro-baseddirectmarketswaspartiallyoffsetbyasalesdecreaseintheU.K.of$2.2million,or8%,asaresultoftheunfavorableimpactsofchangesinforeigncurrencyexchangerates,specificallythePoundSterlingagainst theU.S. Dollar. In functional currency, sales in theU.K.increasedby4%primarily dueto a favorable shift inproduct mix within the WD-40Multi-Use Product fromperiod to period. Sales fromdirect markets accounted for 65%of the EMEAsegment’ssalesforthefiscalyearendedAugust31,2017comparedto66%oftheEMEAsegment’ssalesforfiscalyear2016.

TheregionsintheEMEAsegmentwherewesellthroughlocaldistributorsincludetheMiddleEast,Africa,India,EasternandNorthernEurope.Salesinthedistributormarketsincreased$0.2million,or1%,forthefiscalyearendedAugust31,2017comparedtofiscalyear2016 primarilydueincreased sales of WD-40 Multi-Use Product in the Eastern Europe and India . Overall, sales in the distributormarketswereincreasedfromperiodtoperiodprimarilyduetothecontinuedgrowthofthebasebusinessinkeymarkets.Thedistributormarketsaccountedfor35%oftheEMEAsegment’stotalsalesforthefiscalyearendedAugust31,2017,comparedto34%forfiscalyear2016.

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Asia-Pacific

ThefollowingtablesummarizesnetsalesbyproductlinefortheAsia-Pacificsegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars PercentMaintenanceproducts $ 51,567 $ 47,102 $ 4,465 9%Homecareandcleaningproducts 7,239 6,936 303 4%Total $ 58,806 $ 54,038 $ 4,768 9%

% of consolidated net sales 15% 14%

SalesintheAsia-Pacificsegment,whichincludesAustralia,ChinaandothercountriesintheAsiaregion,increasedto$58.8million,up$4.8 million, or 9%, for the fiscal year ended August 31, 2017 compared to fiscal year 2016 .Although changes in foreign currencyexchange rates did not have a significant impact on sales in the Asia-Pacific segment from period to period, fluctuations in foreigncurrencyexchangeratesimpactedsalesinbothChinaandAustralia.

SalesinAsia,whichrepresented70%ofthetotal salesintheAsia-Pacificsegment, increased$3.7million,or10%,forthefiscalyearended August 31, 2017 compared to fiscal year 2016. Sales in the Asia distributor markets increased $2.2 million, or 9%, primarilyattributable to successful promotional programs and expanded distribution in the Asia distributor markets, particularly those in thePhilippines,BangladeshandMalaysia,fromperiodtoperiod. SalesinChinaincreased$1.5million,or11%,forthefiscalyearendedAugust31,2017comparedtofiscalyear2016.ChangesinforeigncurrencyexchangerateshadanunfavorableimpactonsalesinChina.Onaconstantcurrencybasis,saleswouldhaveincreasedby16%fromperiodtoperiodprimarilyduetonewdistributionandcontinuedgrowthinsalestoourlargestcustomersthroughoutChina.

SalesinAustraliaincreasedby$1.1million,or6%,forthefiscalyearendedAugust31,2017comparedtofiscalyear2016.ChangesinforeigncurrencyexchangerateshadafavorableimpactonAustraliasales.Onaconstantcurrencybasis,saleswouldhaveincreasedby2%forthefiscalyearendedAugust31,2017comparedtofiscalyear2016primarilyduetoincreaseddistributionandhighersaleslevelsresultingfromsuccessfulpromotionalprogramsaswellascontinuedgrowthofourbasebusiness.

Gross Profit

Grossprofitdecreasedto$213.9millionforthefiscalyearendedAugust31,2017comparedto$214.4millionforfiscalyear2016.Asapercentageofnetsales,grossprofitdecreasedto56.2%forthefiscalyearendedAugust31,2017comparedto56.3%forfiscalyear2016.

Gross margin was negatively impacted by 1.0 percentage points fromperiod to period due to unfavorable net changes in the costs ofpetroleum-basedspecialtychemicalsandaerosolcans,primarilyinourEMEAsegment.TheunfavorableimpactsinourEMEAsegmentwereprimarilyduetoincreasedcostsofpetroleum-basedspecialtychemicalsfromperiodtoperiod.Whilethecostsofpetroleum-basedspecialtychemicalsforourEMEAsegmentaresourcedinPoundSterling,theunderlyinginputsaredenominatedinU.S.Dollars.Asaresult, theoverall strengtheningoftheU.S.DollaragainstthePoundSterlingduringfiscal year2017comparedtofiscal year2016resultedinasignificantincreaseincostofgoodsinPoundSterling.Thereisoftenadelayofonequarterormorebeforechangesinrawmaterialcostsimpactcostofproductssoldduetoproductionandinventorylifecycles.Inaddition,thecombinedeffectsofunfavorablesales mix changes and other miscellaneous costs negatively impacted gross margin by 0.4 percentage points primarily due to anunfavorable shift in product mix as a result of a higher portion of sales in the Americas segment being made to lower marginmaintenanceproductsfromperiodtoperiod.Grossmarginwasalsonegativelyimpactedby0.1percentagepointsfromperiodtoperiodprimarilyduetohigherwarehousingandin-boundfreightcostsintheAmericassegment.

These unfavorable impacts to gross margin were almost completely offset by changes in foreign currency exchange rates,whichpositivelyimpactedgrossmarginby1.3percentagepointsduetothefluctuationsintheexchangeratesforboththeEuroandU.S.DollaragainstthePoundSterlinginourEMEAsegmentfromperiodtoperiod.IntheEMEAsegment,themajorityofourcostofgoodssoldisdenominatedinPoundSterlingwhereassalesaregeneratedinPoundSterling,EuroandtheU.S.Dollar.ThecombinedeffectofthestrengtheningofboththeEuroandU.S.DollaragainstthePoundSterlingfromperiodtoperiodcausedanincreaseinourPoundSterlingsales,resultinginfavorableimpactstothegrossmargin.Inaddition,salespriceincreasesintheEMEAsegmentoverthelasttwelvemonthsalsopositivelyimpactedgrossmarginby0.1percentagepointsfromperiodtoperiod.

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Notethatourgrossprofitandgrossmarginmaynotbecomparabletothoseofotherconsumerproductcompanies,sincesomeofthesecompaniesincludeallcostsrelatedtodistributionoftheirproductsincostofproductssold,whereasweexcludetheportionassociatedwithamounts paidto third parties for shipment to our customers fromour distribution centers andcontractmanufacturersandincludethesecostsinselling,generalandadministrativeexpenses.Thesecoststotaled$16.4millionand$16.1millionforthefiscalyearsendedAugust31,2017and2016,respectively

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses for the fiscal year ended August 31, 2017 decreased $3.2 million to $114.6millionfrom$117.8millionforfiscalyear2016.Asapercentageofnetsales,SG&Aexpensesdecreasedto30.1%forthefiscalyearended August 31, 2017 from 30.9% for fiscal year 2016. The decrease in SG&A expenses was primarily attributable to favorableimpactsduetochangesinforeigncurrencyexchangeratesandloweremployee-relatedcostsfromperiodtoperiod.Changesinforeigncurrencyexchangerateshadafavorableimpactof$5.4milliononSG&AexpensesforthefiscalyearendedAugust31,2017comparedtofiscalyear2016.Employee-relatedcosts,whichincludesalaries,incentivecompensation,profitsharing,stock-basedcompensationandother fringe benefits, decreased by $2.7 million primarily due to lower earned incentive compensation, which was partially offset byincreased headcount and higher stock-based compensation expense from period to period. The increase in stock-based compensationexpensewasduetotheaccelerationofexpenseof $0.8millionfor certainequityawardsgrantedduringthefirst quarter of fiscal year2017underupdatedequityawardagreementsthatincludeexpandedacceleratedvestingprovisionsintheeventofretirementoftheawardrecipients.Thesedecreaseswerepartiallyoffsetbyincreasedcostsassociatedwithfreight,professionalservices,travelandmeetings,generalofficeoverheadanddepreciation,andothermiscellaneousexpensesfromperiodtoperiod.Freightcostsassociatedwithshippingproductstoourcustomersincreased$1.3millionprimarilyduetohighersalesvolumesintheEMEAsegmentfromperiodtoperiodaswellastheunfavorableimpactfromchangesinforeigncurrencyexchangeratesinourEuro-baseddirectmarketsfromperiodtoperiod.Professionalservicescostsincreased$1.1millionduetoincreaseduseofsuchservicesfromperiodtoperiod,primarilyintheAmericasandEMEAsegments.Travelandmeetingexpensesincreased$0.9millionduetoahigherleveloftravelexpensesassociatedwithvarioussalesmeetingsandactivitiesinsupportofourstrategicinitiatives.Inaddition,generalofficeoverheadanddepreciationexpenseincreased$0.7 million primarily due to higher rent expense for certain offices that the Company leases as well as higher depreciation expense,primarilyintheEMEAsegment.Othermiscellaneousexpenses,thelargestofwhichwererelatedtosalescommissionsandresearchanddevelopmentcosts,increasedby$0.9millionforthefiscalyearendedAugust31,2017comparedtofiscalyear2016.

Wecontinuedourresearchanddevelopmentinvestment,themajorityofwhichisassociatedwithourmaintenanceproducts,insupportofourfocusoninnovationandrenovationofourproducts.ResearchanddevelopmentcostsforthefiscalyearsendedAugust31,2017and2016 were $8.4 million and $7.7 million, respectively. Our research and development team engages in consumer research, productdevelopment,currentproductimprovementandtestingactivities.Thisteamleveragesitsdevelopmentcapabilitiesbypartneringwithanetworkofoutsideresourcesincludingourcurrentandprospectivesuppliers. Thelevelandtypesofexpensesincurredwithinresearchanddevelopmentcanvaryfromperiodtoperioddependinguponthetypesofactivitiesbeingperformed.

Advertising and Sales Promotion Expenses

AdvertisingandsalespromotionexpensesforthefiscalyearendedAugust31,2017decreased$1.8millionto$20.5millionfrom$22.3millionforfiscal year2016.Asapercentageofnetsales, theseexpensesdecreasedto5.4%forthefiscal yearendedAugust31,2017from5.9%forfiscalyear2016.Changesinforeigncurrencyexchangerateshadafavorableimpactonsuchexpensesof$1.1millionfromperiodtoperiod. Thus,onaconstantcurrencybasis, advertisingandsalespromotionexpensesforfiscal year2017 wouldhavedecreasedby$0.7million,primarilyduetoalowerlevelofpromotionalprogramsandmarketingsupportintheAmericassegmentfromperiodtoperiod.

Asapercentageofnetsales,advertisingandsalespromotionexpensesmayfluctuateperiodtoperiodbaseduponthetypeofmarketingactivitiesweemployandtheperiodinwhichthecostsareincurred.Totalpromotionalcostsrecordedasareductiontosaleswere$17.5millionand$16.1millionforthefiscalyearsendedAugust31,2017and2016,respectively.Therefore,ourtotalinvestmentinadvertisingandsalespromotionactivitiestotaled$38.0millionand$38.4millionforthefiscalyearsendedAugust31,2017and2016,respectively.

Amortization of Definite-lived Intangible Assets Expense

Amortizationofourdefinite-livedintangibleassetsremainedrelativelyconstantat$2.9millionand$3.0millionforthefiscalyearsendedAugust31,2017and2016,respectively.

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Income from Operations by Segment

Thefollowingtablesummarizesincomefromoperationsbysegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars Percent

Americas $ 48,303 $ 48,404 $ (101) -EMEA 35,389 31,702 3,687 12%Asia-Pacific 16,765 15,162 1,603 11%Unallocatedcorporate(1) (24,548) (23,920) (628) 3%Total $ 75,909 $ 71,348 $ 4,561 6%

(1) Unallocatedcorporateexpensesaregeneralcorporateoverheadexpensesnotdirectlyattributabletoanyoneoftheoperatingsegments.TheseexpensesarereportedseparatefromtheCompany’sidentifiedsegmentsandareincludedinSelling,GeneralandAdministrativeexpensesontheCompany’sconsolidatedstatementsofoperations.

Americas

IncomefromoperationsfortheAmericassegmentdecreasedto$48.3million,down$0.1million,forthefiscalyearendedAugust31,2017 compared to fiscal year 2016, primarily due to a $6.5 million decrease in sales and a lower gross margin, which were almostcompletelyoffsetbyloweroperatingexpenses.Asapercentageofnetsales,grossprofitfortheAmericassegmentdecreasedfrom55.1%to 54.4% period over period. This decrease in the gross margin was primarily due to the negative impacts of unfavorable sales mixchanges as well as higher warehousing and in-bound freight costs from period to period. These unfavorable impacts were partiallyoffsetbythecombinedpositiveimpactsofdecreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcansaswellasalowerlevelofadvertising,promotionalandotherdiscountsthatwegavetoourcustomersfromperiodtoperiod.Operatingexpensesdecreased$4.8millionperiodoverperiodduetoloweremployee-relatedexpenses,primarilythoseassociatedwithearnedincentivecompensation,anddecreasedadvertisingandsalespromotionexpensesfromperiodtoperiod.Operatingincomeasapercentageofnetsalesincreasedfrom25.3%to26.1%periodoverperiod.

EMEA

IncomefromoperationsfortheEMEAsegmentincreasedto$35.4million,up$3.7million,or12%,forthefiscalyearendedAugust 31, 2017comparedtofiscal year 2016, primarilyduetoa higher gross margin, lower operatingexpenses anda $1.5millionincreaseinsales. Asapercentageofnet sales, grossprofit for theEMEAsegmentincreasedfrom58.7%to59.6%periodoverperiodprimarilyduetothecombinedpositiveimpactsoffavorablefluctuationsinforeigncurrencyexchangeratesandsalesmixchanges,whichwerepartiallyoffsetbythenegativeimpactsofincreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcansfromperiodtoperiod. Operatingexpensesdecreased$1.6millionprimarilyduetothefavorableimpacts offluctuationsinforeigncurrencyexchangeratesandlowerearnedincentivecompensationexpense,whichwerepartiallyoffsetbyincreasedheadcountandotheremployee-relatedexpensesfromperiodtoperiod.Operatingincomeasapercentageofnetsalesincreasedfrom23.4%to25.9%periodoverperiod.

Asia-Pacific

IncomefromoperationsfortheAsia-Pacific segmentincreasedto$16.8million, up$1.6 million,or11%,for thefiscal yearendedAugust31,2017comparedtofiscalyear2016,primarilyduetoa$4.8millionincreaseinsales,whichwaspartiallyoffsetbyalowergrossmarginandanincreaseinoperatingexpenses.Asapercentageofnetsales,grossprofitfortheAsia-Pacificsegmentdecreasedfrom54.8%to54.2%periodoverperiodduetothecombinednegativeimpactsofincreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcansaswellahigherlevelofadvertising,promotionalandotherdiscountsthatwegavetoourcustomersfromperiodtoperiod.Operating expenses increased $0.7 million period over periodprimarily due to higher employee-related expenses and informationsystemssupportcosts.Operatingincomeasapercentageofnetsalesincreasedfrom28.1%to28.5%periodoverperiod.

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Non-Operating Items

Thefollowingtablesummarizesnon-operatingincomeandexpensesforourconsolidatedoperations(inthousands):

Fiscal Year Ended August 31,2017 2016 Change

Interestincome $ 508 $ 683 $ (175)Interestexpense $ 2,582 $ 1,703 $ 879Otherincome $ 787 $ 2,461 $ (1,674)Provisionforincometaxes $ 21,692 $ 20,161 $ 1,531

Interest Income

InterestincomeremainedrelativelyconstantforthefiscalyearendedAugust31,2017comparedtofiscalyear2016.

Interest Expense

Interestexpenseincreased$0.9millionforthefiscalyearendedAugust31,2017comparedtofiscalyear2016primarilyduetohigherinterestratesandanincreasedoutstandingbalanceonourrevolvingcreditfacilityperiodoverperiod.

Other Income

Otherincomedecreasedby$1.7millionforthefiscalyearendedAugust31,2017comparedtofiscalyear2016primarilyduetolowernetforeigncurrencyexchangegainsfromperiodtoperiod.Thissignificantdecreaseinforeigncurrencyexchangegainswasprimarilyduetothe relative movement in foreign currency exchange rates and the fluctuation of non-functional currency balance sheet accounts,particularlythoseassociatedwithourUKsubsidiary,duringthefiscalyearendedAugust31,2017comparedtofiscalyear2016.

Provision for Income Taxes

Theprovisionforincometaxeswas29.1%ofincomebeforeincometaxesforthefiscalyearendedAugust31,2017comparedto27.7%forfiscalyear2016.Theincreaseintheeffectiveincometaxratefromperiodtoperiodwasprimarilydrivenbyanimmaterial out-of-period correction that we recorded in the second quarter of fiscal year 2017 associated with the tax impacts from certain unrealizedforeigncurrencyexchangelosses.

Net Income

Netincomewas$52.9million, or$3.72percommonshareonafullydilutedbasis, forfiscal year2017comparedto$52.6million, or$3.64percommonshareonafullydilutedbasis,forfiscalyear2016.Changesinforeigncurrencyexchangeratesyearoveryearhadanunfavorableimpactof$3.5milliononnetincomeforfiscalyear2017.Thus,onaconstantcurrencybasis,netincomeforfiscalyear2017wouldhavebeen$56.4million.

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Performance Measures and Non-GAAP Reconciliations

Inmanagingourbusinessoperationsandassessingourfinancialperformance,wesupplementtheinformationprovidedbyourfinancialstatementswithcertainnon-GAAPperformancemeasures.Theseperformancemeasuresarepartofourcurrent55/30/25businessmodel,which includes gross margin, cost of doing business, and earnings before interest, income taxes, depreciation and amortization(“EBITDA”),thelattertwoofwhicharenon-GAAPperformancemeasures.Costofdoingbusinessisdefinedastotaloperatingexpensesless amortization of definite-lived intangible assets, impairment charges related to intangible assets and depreciation in operatingdepartments, and EBITDAis defined as net income (loss) before interest, income taxes, depreciation and amortization. Wetarget ourgrossmargintobeabove55%ofnetsales,ourcostofdoingbusinesstobeat30%ofnetsales,andourEBITDAtobeabove25%ofnetsales. Results for these performance measures may vary from period to period depending on various factors, including economicconditionsandourlevelofinvestmentinactivitiesforthefuturesuchasthoserelatedtoqualityassurance,regulatorycompliance,andintellectual propertyprotectioninordertosafeguardourWD-40brand. Thetargets for theseperformancemeasures are long-terminnature,particularlythoseforcostofdoingbusinessandEBITDA,andweexpecttomakeprogresstowardsachievingthemovertimeasourrevenuesincrease.

Thefollowingtablesummarizestheresultsoftheseperformancemeasures:

Fiscal Year Ended August 31,2018 2017 2016

Gross margin - GAAP 55% 56% 56%Costofdoingbusinessasapercentageofnetsales-non-GAAP 34% 35% 36%EBITDAasapercentageofnetsales-non-GAAP(1) 21% 22% 21%

(1) PercentagesmaynotaggregatetoEBITDApercentageduetoroundingandbecauseamountsrecordedinotherincome(expense),netontheCompany’sconsolidatedstatementofoperationsarenotincludedasanadjustmenttoearningsintheEBITDAcalculation.

WeusetheperformancemeasuresabovetoestablishfinancialgoalsandtogainanunderstandingofthecomparativeperformanceoftheCompanyfromperiodtoperiod. Webelievethat thesemeasuresprovideourshareholderswithadditional insightsintotheCompany’sresults of operations and how we run our business. The non-GAAPfinancial measures are supplemental in nature and should not beconsidered in isolation or as alternatives to net income, incomefromoperations or other financial information prepared in accordancewithGAAPasindicatorsoftheCompany’sperformanceoroperations.Theuseofanynon-GAAPmeasuremayproduceresultsthatvaryfromtheGAAPmeasureandmaynotbecomparabletoasimilarlydefinednon-GAAPmeasureusedbyothercompanies.Reconciliationsofthesenon-GAAPfinancialmeasurestoourfinancialstatementsaspreparedinaccordancewithGAAPareasfollows:

Cost of Doing Business (inthousands,exceptpercentages):

Fiscal Year Ended August 31, 2018 2017 2016

Total operating expenses - GAAP $ 146,659 $ 137,976 $ 143,021Amortizationofdefinite-livedintangibleassets (2,951) (2,879) (2,976)Depreciation(inoperatingdepartments) (3,725) (2,789) (2,744)

Costofdoingbusiness $ 139,983 $ 132,308 $ 137,301Netsales $ 408,518 $ 380,506 $ 380,670Costofdoingbusinessasapercentageofnetsales-non-GAAP 34% 35% 36%

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EBITDA (inthousands,exceptpercentages):

Fiscal Year Ended August 31, 2018 2017 2016

Net income - GAAP $ 65,215 $ 52,930 $ 52,628Provisionforincometaxes 9,963 21,692 20,161Interestincome (454) (508) (683)Interestexpense 4,219 2,582 1,703Amortizationofdefinite-livedintangibleassets 2,951 2,879 2,976

Depreciation 4,849 3,890 3,489EBITDA $ 86,743 $ 83,465 $ 80,274Netsales $ 408,518 $ 380,506 $ 380,670EBITDAasapercentageofnetsales-non-GAAP 21% 22% 21%

Liquidity and Capital Resources

Overview

TheCompany’sfinancialconditionandliquidityremainstrong.Netcashprovidedbyoperationswas$64.8millionforfiscalyear2018comparedto$55.6millionforfiscalyear2017.Webelievewecontinuetobewellpositionedtoweatheranyuncertaintyinthecapitalmarketsandglobaleconomyduetoourstrongbalancesheetandefficientbusinessmodel,alongwithourgrowinganddiversifiedglobalrevenues. We continue to manage all aspects of our business including, but not limited to, monitoring the financial health of ourcustomers, suppliers and other third-party relationships, implementing gross margin enhancement strategies and developing newopportunitiesforgrowth.

Ourprincipalsourcesofliquidityareourexistingcashandcashequivalents,short-terminvestments,cashgeneratedfromoperationsandcashcurrentlyavailablefromourexisting$175.0millionunsecuredCreditAgreementwithBankofAmerica,whichexpiresonMay13,2020.Todate,wehaveusedtheproceedsoftherevolvingcreditfacilityforourstockrepurchasesandplantocontinueusingsuchproceedsforourgeneralworkingcapitalneedsandstockrepurchasesunderourboardapprovedsharebuy-backplan.InNovember2017,theCompanyalsoenteredintoaNotePurchaseandPrivateShelfAgreement,pursuanttowhichtheCompanyagreedtosell$20.0millionaggregate principal amount of Series ANotes to certain purchasers. SeeNote7–Debt for additional informationonthis noteagreement.TheCompanyusedtheproceedsfromtheSeriesANotestopaydown$20.0millionofshort-termborrowingsheldundertheCredit Agreement during fiscal year August 31, 2018. The $20.0 million of short term borrowings under the Credit Agreementweredrawninfiscalyear2017primarilytofundthepurchaseandbuildoutoftheCompany’snewSanDiego,Californiaofficebuilding,purchasedinSeptember2016andcompletedforoccupancyinAugust2017.ThenewofficebuildinghousesbothcorporateemployeesandemployeesintheCompany’sAmericassegment.

Asa result of the “TaxCuts andJobsAct” (the “TaxAct”), whichbecameeffective for theCompanybeginningJanuary1, 2018, webeganreevaluatingourindefinitereinvestmentassertionforourforeignsubsidiaries.InMay2018,wecompletedthisreevaluationandchanged our indefinite reinvestment assertion for certain of our foreign subsidiaries. As a result, we no longer consider unremittedearningsofanyofourforeignsubsidiariestobeindefinitelyreinvested.ForadditionalinformationontheTaxAct,seePartIV—Item15,“Exhibits, Financial Statement Schedules”, Note 12 —IncomeTaxes, included in this report. The costs associated with repatriatingunremittedforeignearnings,includingU.S.stateincometaxesandforeignwithholdingtaxes,areimmaterialtoourconsolidatedfinancialstatements.Inthefourthquarteroffiscalyear2018,werepatriatedaportionofourunremittedforeignearningsintheamountof$79.6millionfromourU.K.subsidiaryandusedthesefundstowardsrepaying$80.0millionofoutstandingdrawsonourlineofcredit.Theserepaymentsonourlineofcreditwereslightlyoffsetbynewborrowingsof$12.8millionasaresultof$10.0millionborrowedundertherevolvingcreditfacilityand$2.8millioninnetborrowingsundertheautoborrowagreement.Weregularlyconvertmanyofourdrawsonourlineofcredit tonewdrawswithnewmaturitydatesandinterest rates .AsofAugust31,2018,wehada$64.0millionbalanceofoutstandingdrawsontherevolvingcreditfacility,ofwhich$44.0millionwasclassifiedaslong-termand$20.0millionwasclassifiedasshort-term.Inaddition,wepaid$0.4millioninprincipalpaymentsonourSeriesANotesduringfiscalyear2018.TherewerenootherlettersofcreditoutstandingorrestrictionsontheamountavailableonthislineofcreditortheSeriesANotes.PerthetermsofboththeNote Agreement and the Credit Agreement, our consolidated leverage ratio cannot be greater than three to one and our consolidatedinterest coverageratio cannot beless thanthree to one. SeeNote7–Debt for additional informationonthesefinancial covenants. AtAugust31,2018,wewereincompliancewithalldebtcovenantsandbelieveitisunlikelywewillfailto

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comply with any of these covenants over the next twelve months. We would need to have a significant decrease in sales and/or asignificantincreaseinexpensesinorderforustonotcomplywiththedebtcovenants.

We believe that our future cash from domestic and international operations, together with our access to funds available under ourunsecuredrevolvingcreditfacility,willprovideadequateresourcestofundbothshort-termandlong-termoperatingrequirements,capitalexpenditures,sharerepurchases,dividendpayments,acquisitionsandnewbusinessdevelopmentactivitiesintheUnitedStates.AtAugust31, 2018, we had a total of $49.1 million in cash and cash equivalents and short-term investments. Although we currently hold asignificantamountofdebt,primarilyduetodrawsonourcreditfacilitymadebyourentityintheUnitedStates,wedonotforeseeanyongoingissueswithrepayingtheseloansandwecloselymonitortheuseofthiscreditfacility.

Cash Flows

Thefollowingtablesummarizesourcashflowsbycategoryfortheperiodspresented(inthousands):

Fiscal Year Ended August 31,2018 2017 2016

Netcashprovidedbyoperatingactivities $ 64,822 $ 55,572 $ 65,302Netcashprovidedby(usedin)investingactivities 71,207 (42,291) (20,920)Netcashusedinfinancingactivities (121,409) (26,838) (43,234)Effectofexchangeratechangesoncashandcashequivalents (2,836) (252) (4,153)Netincrease(decrease)incashandcashequivalents $ 11,784 $ (13,809) $ (3,005)

OperatingActivities

Netcashprovidedbyoperatingactivitiesincreased$9.2millionto$64.8millionforfiscalyear2018from$55.6millionforfiscalyear2017.Cashflowsfromoperatingactivitiesdependheavilyonoperatingperformanceandchangesinworkingcapital.OurprimarysourceofoperatingcashflowsforfiscalyearendedAugust31,2018wasnetincomeof$65.2million,whichincreased$ 12.3millionfromperiod to period. The changes in our working capital from period to period were primarily attributable to the remeasurement of theCompany’snetdeferredincometaxliabilityasaresultoftheTaxAct’sreductionintheU.S.corporatefederalstatutorytaxrate,aswellasincreases in thetradeaccounts receivable balancedueto increasedsales andthetimingof payments receivedfromcustomers fromperiodtoperiod.Thesechangesinourworkingcapitalweresignificantlyoffsetbymuchlowerdecreasesinaccruedpayrollandrelatedexpensesduetolowerearnedincentivepayoutsinthefirstquarteroffiscalyear2018comparedtothesameperiodofthepriorfiscalyear.

Netcashprovidedbyoperatingactivitiesdecreased$9.7millionto$55.6millionforfiscalyear2017from$65.3millionforfiscalyear2016.Cashflowsfromoperatingactivitiesdependheavilyonoperatingperformanceandchangesinworkingcapital.Ourprimarysourceof operating cash flows for fiscal year ended August 31, 2017 was net income of $52.9 million,whichincreased$ 0.3 million fromperiodtoperiod.Thechangesinourworkingcapitalfromperiodtoperiodwereprimarilyattributabletoanoveralldecreaseinaccruedpayrollandrelatedexpensesduetohigherearnedincentivepayoutsinthefirstquarteroffiscalyear2017comparedtothesameperiodofthe prior fiscal year as well as lower earnedincentive accruals duringthe fiscal year endedAugust 31, 2017as comparedto the priorfiscal year. These earnedincentive payouts andaccruals are basedonthe Companyachieving targets for EBITDAwhichare set eachfiscal year. As a result, these amounts have varied year over year due to the Company’s actual or expected achievement of thesetargets. Higher incometaxes receivable balances alsocontributedto theoverall decrease in cashprovidedbyoperatingactivities fromperiod to period. These impacts to working capital were partially offset by changes in trade accounts receivable balances year overyear.Suchbalancesadecreasedslightlyfromfiscalyear2016tofiscalyear2017whereastheyincreasedsignificantlyfromfiscalyear2015tofiscalyear2016.Thesignificantincreaseinthetradeaccountsreceivablebalanceattheendoffiscalyear2016wasprimarilyduetoincreasedsalesvolumesinthefourthquarteroffiscalyear2016ascomparedtothesamequarterinfiscalyear2015andthetimingofpaymentsreceivedfromourcustomersfromperiodtoperiod.

InvestingActivities

Netcashprovidedbyinvestingactivitieswas$71.2millionforfiscalyear2018comparedtonetcashusedininvestingactivitiesof$42.3millionforfiscalyear2017.Thischangewasprimarilyduetonetmaturitiesofshort-terminvestmentsof$83.3millionduringfiscalyear2018comparedto$22.6millioninnetpurchasesofshort-terminvestmentmadeinfiscalyear2017.The$83.3millionnetmaturityforfiscal year 2018 was entirely due to a short-term investment held by our U.K. subsidiary which matured in April 2018 and was notreinvested.Alsocontributingtothechangeintotalnetcashinflowsandoutflowswasadecreaseof$7.8millionincapitalexpenditures,primarilyrelatedto$16.4millionincashoutflowsduringfiscal year2017forthepurchaseandbuildoutoftheCompany’sSanDiegoofficebuildingwhichwasacquiredduringthefirstquarteroffiscalyear2017,partially

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offsetbythe£5.6millionpurchaseandbuildoutoftheCompany’snewofficebuildinglocatedinMiltonKeynes, Englandwhichwasacquiredduringthesecondquarteroffiscalyear2018($7.6millioninU.S.Dollarsasconvertedataverageexchangeratesforfiscalyear2018). These increases in net cash inflows were slightly offset by $0.2 million in cash paid pursuant to the execution of a settlementagreementinOctober2017thatprovidedfortheCompany’sacquisitionoftheEZREACHtradename.

Netcashusedininvestingactivitiesincreased$21.4millionto$42.3millionforfiscalyear2017from$20.9millionforfiscalyear2016primarily due to an increase of $16.4 million in cash outflow during the fiscal year 2017 related to the purchase and buildout of theCompany’snewofficebuilding,whichwascompletedinAugust2017.Alsocontributingtothetotalcashoutflowswasa$5.7millionnetincreasefromperiodtoperiodinpurchasesofshort-terminvestmentsthatweremadeprimarilybyourU.K.andAustraliasubsidiaries.

FinancingActivities

Netcashusedinfinancingactivities increased$94.6millionto$121.4millionfor fiscal year 2018from$26.8millionforfiscalyear2017primarilydueto$87.2millioninnetrepaymentsoftheCompany’srevolvinglineofcredit duringfiscal year2018,comparedto$32.0 million in net proceeds from the revolving line of credit in fiscal year 2017 . Also contributing to the increase in total cashoutflowswasanincreaseof$2.8millionindividendspaid,a$0.6milliondecreaseinproceedsfromtheissuanceofcommonstockupontheexerciseofstockoptionsanda$0.1millionincreaseinshareswithheldtocovertaxesuponconversionsofequityawardsfromperiodto period. These increases in cash outflows from financing activities were partially offset by $20.0 million in proceeds from theCompany’sSeriesANotesissuedinNovember2017,slightlyoffsetby$0.4millioninprincipalpaymentsmadeonthese,aswellasadecreaseof$8.5millionfortreasurystockpurchasesfromperiodtoperiod.

Netcashusedinfinancingactivitiesdecreased$16.4millionto$26.8millionforfiscalyear2017from$43.2millionforfiscalyear2016primarilyduetoan$18.0millionincreaseincashinflowsfromourrevolvingcreditfacilityanda$1.0milliondecreaseincashoutflowsfor treasury stock purchases from period to period. In addition, shares withheld to cover taxes upon conversions of equity awardsdecreased$0.9millionfromperiodtoperiod .Thesedecreases incashoutflowsfromfinancingactivities werepartially offset byanincreaseof$3.1millionindividendspaidanda$0.5milliondecreaseinproceedsfromtheissuanceofcommonstockupontheexerciseofstockoptionsfromperiodtoperiod

EffectofExchangeRateChanges

AllofourforeignsubsidiariescurrentlyoperateincurrenciesotherthantheU.S.Dollarandasignificantportionofourconsolidatedcashbalanceisdenominatedintheseforeignfunctionalcurrencies,particularlyatourU.K.subsidiarywhichoperatesinPoundSterling.Asaresult,ourcashandcashequivalentsbalancesaresubjecttotheeffectsofthefluctuationsinthesefunctionalcurrenciesagainsttheU.S.Dollarattheendofeachreportingperiod.Theneteffectofexchangeratechangesoncashandcashequivalents,whenexpressedinU.S.Dollarterms, wasadecreaseincashof$2.8million, $0.3millionand$4.2millionforfiscal years2018,2017and2016,respectively.Thesechangeswereprimarilyduetofluctuationsinvariousforeigncurrencyexchangeratesfromperiodtoperiod,butthemajorityisrelatedtothefluctuationsinthePoundSterlingagainsttheU.S.Dollar.

Share Repurchase Plans

TheinformationrequiredbythisitemisincorporatedbyreferencetoPartIV—Item15,“Exhibits,FinancialStatementSchedules”Note8—ShareRepurchasePlans,includedinthisreport.

Dividends

The Company has historically paid regular quarterly cash dividends on its common stock. In December 2017, the Board of Directorsdeclareda10%increaseintheregularquarterlycashdividend,increasingitfrom$0.49pershareto$0.54pershare.OnOctober9,2018,theCompany’sBoardofDirectorsdeclaredacashdividendof$0.54persharepayableonOctober31,2018toshareholdersofrecordonOctober 19, 2018. Our ability to pay dividends could be affected by future business performance, liquidity, capital needs, alternativeinvestmentopportunitiesandloancovenants.

Off-Balance Sheet Arrangements

Wehavenooff-balancesheetarrangementsasdefinedbyItem303(a)(4)(ii)ofRegulationS-K.

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Contractual Obligations

ThefollowingtablesetsforthourbestestimatesastotheamountsandtimingofminimumcontractualpaymentsforourmostsignificantcontractualobligationsandcommitmentsasofAugust31,2018forthenextfiveyearsandthereafter(inthousands).Futureeventscouldcauseactualpaymentstodiffersignificantlyfromtheseamounts.

Total 1 year 2-3 years 4-5 years ThereafterLeases $ 6,959 $ 2,003 $ 2,685 $ 1,073 $ 1,198

TheCompanywascommittedundernon-cancellable capital andoperatingleases at August 31, 2018. TheCompany's capital leaseswerenotsignificant asofAugust31, 2018.ThefollowingsummarizesothercommitmentswhichareexcludedfromthecontractualobligationstableaboveasofAugust31,2018:

· Wehave ongoing relationships with various suppliers (contract manufacturers) who manufacture our products. The contractmanufacturersmaintaintitleandcontrolofcertainrawmaterialsandcomponents,materialsutilizedinfinishedproducts,andofthefinishedproductsthemselvesuntil shipmenttoourcustomersorthird-partydistributioncentersinaccordancewithagreeduponshipmentterms.Althoughwehavedefinitiveminimumpurchaseobligationsincludedinthecontracttermswithcertainofour contract manufacturers, when such obligations have been included, they have eitherbeen immaterial o rtheminimumamounts have been such that they are well belowthe volumeof goods that the Company has historically purchased. Intheordinary course of business, we communicate supply needs to our contract manufacturers based on orders and short-termprojections, ranging from two to five months. We are committed to purchase the products produced by the contractmanufacturers based on the projections provided. Upon the termination of contracts with contract manufacturers, we obtaincertaininventorycontrolrightsandareobligatedtoworkwiththecontractmanufacturertosellthroughallproductheldbyormanufacturedbythecontractmanufactureronourbehalfduringtheterminationnotificationperiod.Ifanyinventoryremainsatthecontractmanufacturerattheterminationdate,weareobligatedtopurchasesuchinventorywhichmayincluderawmaterials,componentsandfinishedgoods.Theamountsforinventorypurchasedunderterminationcommitmentshavebeenimmaterial.

· Under the current terms of the credit facility agreement with Bank of America, we may borrow funds in U.S. dollars or inforeign currencies fromtime to timeduring the five-year period commencing March 13, 2015 through May 13, 2020. As ofAugust 31, 2018, we had $ 64.0million of outstanding draws on this credit facility and $2.8 million in net borrowingsoutstandingundertheautoborrowagreement.Basedonourmostrecentcashprojectionsandanticipatedbusinessactivities,wedonotexpecttoborrowadditionalamountsonthiscreditfacilityduringfiscalyear2019.TheCompanyintendstorepay$20.0millioninoutstandingdrawsonthelineofcreditwithinthenexttwelvemonths.Asaresult,theCompanyhasclassified$20.0millionofoutstandingdrawsonthiscreditfacilityasshort-termasofAugust31,2018.Inadditiontoourcreditfacility,weholdseniornotesunderaNotePurchaseandPrivateShelfAgreementbyandamongtheCompanyanditsnotepurchasersintheamount of $19.6 million as of August 31, 2018. These senior notes bear interest at 3.39% per annum and will mature onNovember15, 2032. Principal payments arerequiredsemi-annually beginningonMay15, 2018inequal installments of $0.4million through May 15, 2032, and the remaining outstanding principal in the amount of $8.4 million will become due onNovember15,2032.Foradditionaldetailsontheseborrowings,refertotheinformationsetforthinPartIV—Item15,“Exhibits,FinancialStatementSchedules”Note7–Debt.

· At August 31, 2018, the liability recorded for uncertain tax positions, excluding associated interest and penalties, wasapproximately $1.0 million. We have estimated that up to $0. 2million of unrecognized tax benefits related to income taxpositionsmaybeaffectedbytheresolutionoftaxexaminationsorexpiringstatutesoflimitationwithinthenexttwelvemonths.

Critical Accounting Policies

Ourresultsofoperationsandfinancialcondition,asreflectedinourconsolidatedfinancialstatements,havebeenpreparedinaccordancewithaccountingprinciples generally acceptedintheUnitedStatesof America. Preparationoffinancial statements requires ustomakeestimatesandassumptionsaffectingthereportedamountsofassets,liabilities, revenuesandexpensesandthedisclosuresofcontingentassets and liabilities. We use historical experience and other relevant factors when developing estimates and assumptions and theseestimatesandassumptionsarecontinuallyevaluated.Note2toourconsolidatedfinancial statementsincludedinItem15ofthisreportincludesadiscussionoftheCompany’ssignificantaccountingpolicies.Theaccountingpoliciesdiscussedbelowaretheonesweconsiderto be most critical to an understanding of our consolidated financial statements because their application places the most significantdemandsonourjudgment.Ourfinancialresultsmayhavevaried

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from those reported had different assumptions been used or other conditions prevailed. Our critical accounting policies have beenreviewedwiththeAuditCommitteeoftheBoardofDirectors.

RevenueRecognitionandSalesIncentives

Salesarerecognizedasrevenueatthetimeofdeliverytoourcustomerwhenrisksoflossandtitlehavepassed.Salesarerecordednetofallowancesfordamagedgoodsandothersalesreturns,salesincentives,tradepromotionsandcashdiscounts.Forcertainofoursaleswemustmakejudgmentsandcertainassumptionsinordertodeterminewhendeliveryhasoccurred.Throughananalysisofend-of-periodshipmentsfortheseparticularsales,wedetermineanaveragetimeoftransitofproducttoourcustomers,andthisisusedtoestimatethetime of delivery and whether revenue should be recognized during the current reporting period for such shipments. Differences injudgmentsorestimatesrelatedtothelengtheningorshorteningoftheestimateddeliverytimeusedcouldresultinmaterialdifferencesinthetimingofrevenuerecognition.

Salesincentivesarerecordedasareductionofsalesinourconsolidatedstatementsofoperations.Salesincentivesincludeon-goingtradepromotionprogramswithcustomersandconsumercouponprogramsthatrequireustoestimateandaccruefortheexpectedcostsofsuchprograms. These programs include cooperative marketing programs, shelf price reductions, coupons, rebates, consideration andallowances given to retailers for shelf space and/or favorable display positions in their stores and other promotional activities. Costsrelated to these sales incentive programs, with the exception of coupon costs, are recorded as a reduction to sales upon delivery ofproductstocustomers.Couponcostsarebaseduponhistoricalredemptionratesandarerecordedasareductiontosalesasincurred,whichiswhenthecouponsarecirculated.

Salesincentivesarecalculatedbasedprimarilyonhistoricalratesandconsiderationofrecentpromotionalactivities.Thedeterminationofsales incentive costs and the related liabilities require us to use judgment for estimates that include current and past trade promotionspendingpatterns,statusoftradepromotionactivitiesandtheinterpretationofhistoricalspendingtrendsbycustomerandcategory.Wereviewourassumptionsandadjustoursalesincentiveallowancesaccordinglyonaquarterlybasis.Ourconsolidatedfinancialstatementscould be materially impacted if the actual promotion rates are different from the estimated rates. If our accrual estimates for sales incentivesatAugust31,2018weretodifferby10%,theimpactonnetsaleswouldbeapproximately$0.9million.

AccountingforIncomeTaxes

Currentincometaxexpenseistheamountofincometaxesexpectedtobepayableforthecurrentyear.Adeferredincometaxliabilityorassetisestablishedfortheexpectedfuturetaxconsequencesresultingfromthedifferencesinfinancialreportingandtaxbasesofassetsandliabilities.Avaluationallowanceisprovidedifitismorelikelythannotthatsomeorallofthedeferredtaxassetswillnotberealized.Inadditiontovaluationallowances,weprovideforuncertaintaxpositionswhensuchtaxpositionsdonotmeettherecognitionthresholdsormeasurementstandardsprescribedbytheauthoritativeguidanceonincometaxes.Amountsforuncertaintaxpositionsareadjustedinperiodswhennewinformationbecomesavailableorwhenpositionsareeffectivelysettled.Werecognizeaccruedinterestandpenaltiesrelatedtouncertaintaxpositionsasacomponentofincometaxexpense.

Asaresultofthe“TaxCutsandJobsAct”(the“TaxAct”),whichbecameeffectivebeginningJanuary1,2018,theU.S.hastransitionedfromaworldwidetaxsystemtoamodifiedterritorialtaxsystem,underwhichcorporationsareprimarilytaxedonincomeearnedwithinthecountry’sborders,ratherthanonaworldwidebasis.Wearestillrequiredtomakeassertionsonwhetherourforeignsubsidiarieswillinvesttheirundistributedearningsindefinitelyandtheseassertionsarebasedonthecapitalneedsoftheforeignsubsidiaries.Duetothepassage of the Tax Act , we began reevaluating the indefinite reinvestment assertion for our foreign subsidiaries. In May 2018, wecompletedthisreevaluationandchangedourindefinitereinvestmentassertionforcertainofourforeignsubsidiaries.Asaresult,wenolongerconsiderunremittedearningsofanyofourforeignsubsidiariestobeindefinitelyreinvested.ForadditionalinformationontheTaxAct,seePartIV—Item15,“Exhibits,FinancialStatementSchedules”Note12—IncomeTaxes,includedinthisreport.

ValuationofGoodwill

The carrying value of goodwill is reviewed for possible impairment in accordance with the authoritative guidance on goodwill,intangibles andother. Weassess for possible impairments to goodwill at least annually duringoursecondfiscal quarter andotherwisewheneventsorchangesincircumstancesindicatethatanimpairmentconditionmayexist.

Duringthesecondquarteroffiscalyear2018,weperformedourannualgoodwillimpairmenttest.Theannualgoodwillimpairmenttestwas performed at the reporting unit level as required by the authoritative guidance. In accordance with ASC 350-20, “Goodwill ”,companies are permitted to first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwillimpairmenttest.Inaddition,weearlyadoptedASU2017-04“SimplifyingtheTestforGoodwillImpairment”inthesecondquarteroffiscalyear2018.Theamendmentsinthisupdatedguidancesimplifyhowanentityis

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requiredtotestgoodwillforimpairmentifaquantitativeapproachisusedduringtheannualgoodwillimpairmenttest.Theadoptionofthis guidance did not have a material impact on our consolidated financial statements and related disclosures. See “Recently AdoptedAccounting Standards” within Part IV—Item 15, “ Exhibits, Financial Statement Schedules ” Note 2 – Basis of Presentation andSummaryofSignificantAccountingPolicies,includedinthisreport,foradditionalinformationonASU2017-04.Duringthefiscalyear2018annualgoodwill impairmenttest, weperformedaqualitativeassessmentofeachreportingunit todeterminewhetherit wasmorelikely than not that the fair value of a reporting unit was less than its carrying amount. In performing this qualitative assessment, weassessedrelevanteventsandcircumstancesthatmayimpactthefairvalueandthecarryingamountofeachofourreportingunits.Factorsthatwereconsideredincluded,butwerenotlimitedto,thefollowing:(1)macroeconomicconditions;(2)industryandmarketconditions;(3)historicalfinancialperformanceandexpectedfinancialperformance,includingtheanticipatedimpactsoftheTaxAct;(4)otherentityspecificevents, suchaschangesinmanagementorkeypersonnel; and(5)eventsaffectingourreportingunits, suchasachangeinthecompositionofnetassetsoranyexpecteddispositions.Basedontheresultsofthisqualitativeassessment,wedeterminedthatitismorelikelythannotthatthecarryingvalueofeachofourreportingunitsislessthanitsfairvalueand,thus,thequantitativeanalysiswasnotrequired.Asaresult,weconcludedthatnoimpairmentofourgoodwillexistedasofFebruary28,2018.Wealsodidnotidentifyorrecordanyimpairmentlossesrelatedtoourgoodwillduringourannualimpairmenttestsperformedinfiscalyears2017and2016.

Whilewebelievethattheestimatesandassumptionsusedinourgoodwillimpairmenttestandanalysesarereasonable,actualeventsandresultscoulddiffersubstantiallyfromthoseincludedinthecalculation.Intheeventthatbusinessconditionschangeinthefuture,wemayberequiredtoreassessandupdateourforecastsandestimatesusedinsubsequentgoodwill impairmentanalyses. If theresultsofthesefutureanalysesarelowerthancurrentestimates,animpairmentchargetoourgoodwillbalancesmayresultatthattime.

Inaddition,therewerenoindicatorsofimpairmentidentifiedasaresultofourreviewofeventsandcircumstancesrelatedtoourgoodwillsubsequenttoFebruary28,2018.

ImpairmentofDefinite-LivedIntangibleAssets

Weassessforpotentialimpairmentstoourlong-livedassetswhenthereisevidencethateventsorchangesincircumstancesindicatethatthe carrying amount of an asset may not be recoverable and/or its estimated remaining useful life mayno longer be appropriate. Anyrequired impairment loss would be measured as the amount by which the asset’s carrying amount exceeds its fair value, which is theamountatwhichtheassetcouldbeboughtorsoldinacurrenttransactionbetweenwillingmarketparticipantsandwouldberecordedasareductioninthecarryingamountoftherelatedassetandachargetoresultsofoperations.Animpairmentlosswouldberecognizedwhenthesumoftheexpectedfutureundiscountednetcashflowsislessthanthecarryingamountoftheasset.

TherewerenoindicatorsofpotentialimpairmentidentifiedasaresultoftheCompany’sreviewofeventsandcircumstancesrelatedtoitsexistingdefinite-livedintangibleassetsfortheperiodsendedAugust31,2018,2017and2016.

Recently Issued Accounting Standards

InformationonRecentlyIssuedAccountingStandardsthatcouldpotentiallyimpacttheCompany’sconsolidatedfinancialstatementsandrelated disclosures is incorporated by reference to Part IV—Item 15, “Exhibits, Financial Statement Schedules ” Note 2 —Basis ofPresentationandSummaryofSignificantAccountingPolicies,includedinthisreport.

Related Parties

TheinformationrequiredbythisitemisincorporatedbyreferencetoPartIV—Item15,“Exhibits,FinancialStatementSchedules”Note10—RelatedParties,includedinthisreport.

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Item 7A . Quantitative and Qualitative Disclosures About Market Risk

Foreign Currency Risk

TheCompanyisexposedtoavarietyofrisks,includingforeigncurrencyexchangeratefluctuations.Inthenormalcourseofbusiness,theCompanyemploysestablishedpoliciesandprocedurestomanageitsexposuretofluctuationsinforeigncurrencyvalues.

AlloftheCompany’sinternationalsubsidiariesoperateinfunctionalcurrenciesotherthantheU.S.dollar. Asaresult, theCompanyisexposed to foreign currency related risk when the financial statements of its international subsidiaries are translated for consolidationpurposesfromfunctionalcurrenciestoU.S.dollars.Thisforeigncurrencyriskcanaffectsales,expensesandprofitsaswellasassetsandliabilities that are denominated in currencies other than the U.S. dollar. The Company does not enter into any hedging activities tomitigatethisforeigncurrencytranslationrisk.

The Company’s U.K. subsidiary, whose functional currency is Pound Sterling, utilizes foreign currency forward contracts to limit itsexposure to net asset balances held in non-functional currencies, specifically the Euro. The Company regularly monitors its foreignexchangeexposurestoensuretheoverall effectivenessofits foreigncurrencyhedgepositions. WhiletheCompanyengagesinforeigncurrency hedging activity to reduce its risk, for accounting purposes, none of its foreign currency forward contracts are designated ashedges.

Commodity Price Risk

Petroleum-basedspecialtychemicalsandaerosolcansconstituteasignificantportionofthecostofmanyoftheCompany’smaintenanceproducts.Inparticular,volatilityinthepriceofoildirectlyimpactsthecostofpetroleum-basedspecialtychemicalswhichareindexedtothepriceofcrudeoil.Iftherearesignificantincreasesinthecostsofcrudeoil,theCompany’sgrossmarginsandoperatingresultswillbenegativelyimpacted. TheCompanydoesnotcurrently haveastrategyorpolicyto enter into transactions to hedge crude oil pricevolatility,buttheCompanyregularlyreviewsthispolicybasedonmarketconditionsandotherfactors.

Interest Rate Risk

AsofAugust31,2018,theCompanyhada$66.8millionoutstandingbalanceonitsexisting$175.0millionrevolvingcreditfacilityagreementwithBankofAmerica.This$175.0millionrevolvingcreditfacilityissubjecttointerestratefluctuations.Underthetermsofthe credit facility agreement, the Companymayborrowloans in U.S. dollars or in foreigncurrencies fromtimeto timeuntil May13,2020. All loans denominated in U.S. dollars will accrue interest at the bank’s Prime rate or at LIBORplus a margin of 0.85 percent(togetherwithanyapplicablemandatoryliquidassetcostsimposedbynon-U.S.bankingregulatoryauthorities).AllloansdenominatedinforeigncurrencieswillaccrueinterestatLIBORplus0.85percent.Anysignificantincreaseinthebank’sPrimerateand/orLIBORratecouldhaveamaterialeffectoninterestexpenseincurredonanyborrowingsoutstandingunderthecreditfacility.

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Item 8 . Financial Statements and Supplementary Data

TheCompany’sconsolidatedfinancialstatementsatAugust31,2018and2017andforeachofthethreefiscalyearsintheperiodendedAugust31,2018,andtheReportofIndependentRegisteredPublicAccountingFirm,areincludedinItem15ofthisreport.

Quarterly Financial Data (Unaudited)

Thefollowingtablesetsforthcertainunauditedquarterlyconsolidatedfinancialdata(inthousands,exceptpersharedata):

Fiscal Year Ended August 31, 20181st 2nd 3rd 4th Total

Netsales $ 97,597 $ 101,256 $ 107,025 $ 102,640 $ 408,518Grossprofit $ 54,197 $ 55,758 $ 58,658 $ 56,650 $ 225,263NetIncome(1) $ 12,630 $ 14,818 $ 16,130 $ 21,637 $ 65,215Dilutedearningspercommonshare(1) $ 0.90 $ 1.05 $ 1.15 $ 1.54 $ 4.64

Fiscal Year Ended August 31, 20171st 2nd 3rd 4th Total

Netsales $ 89,248 $ 96,519 $ 98,178 $ 96,561 $ 380,506Grossprofit $ 51,040 $ 54,462 $ 54,287 $ 54,096 $ 213,885Netincome $ 11,758 $ 12,360 $ 14,444 $ 14,368 $ 52,930Dilutedearningspercommonshare $ 0.82 $ 0.87 $ 1.02 $ 1.01 $ 3.72

(1) Netincomeanddilutedearningspercommonsharewerefavorablyimpactedduetoa$7.1millionprovisionaltaxbenefitrecordedduringthefourthquarteroffiscalyear2018associatedwiththetolltax,netofforeigntaxcredits,undertheU.S.TaxCutsandJobsAct(the“TaxAct”).Foradditionalinformation on the Tax Act and the impact of potential changes in provisional amounts, see Part IV – Item 15, “Exhibits, Financial StatementSchedules”Note12–IncomeTaxes,includedinthisreport.

Item 9 . Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A . Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Theterm“disclosurecontrolsandprocedures”isdefinedinRules13a-15(e)and15d-15(e)promulgatedundertheSecuritiesExchangeAct of 1934, as amended (“Exchange Act”). The term disclosure controls and procedures means controls and other procedures of aCompanythataredesignedtoensuretheinformationrequiredtobedisclosedbytheCompanyinthereportsthatitfilesorsubmitsunderthe Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosurecontrolsandproceduresinclude,withoutlimitation,controlsandproceduresdesignedtoensurethatinformationrequiredtobedisclosedby a Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’smanagement,includingitsprincipalexecutiveandprincipalfinancialofficers,orpersonsperformingsimilarfunctions,asappropriatetoallow timely decisions regarding required disclosures. The Company’s Chief Executive Officer and Chief Financial Officer haveevaluatedtheeffectivenessoftheCompany’sdisclosurecontrolsandproceduresasofAugust31,2018,theendoftheperiodcoveredbythisreport(theEvaluationDate),andtheyhaveconcludedthat,asoftheEvaluationDate,suchcontrolsandprocedureswereeffectiveatensuringthatrequiredinformationwillbedisclosedonatimelybasisintheCompany’sreportsfiledundertheExchangeAct.AlthoughmanagementbelievestheCompany’sexistingdisclosurecontrolsandproceduresareadequatetoenabletheCompanytocomplywithitsdisclosure obligations, management continues to review and update such controls and procedures. The Company has a disclosurecommittee,whichconsistsofcertainmembersoftheCompany’sseniormanagement.

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Management’s Report on Internal Control over Financial Reporting

Managementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,assuchtermisdefinedinExchange Act Rule 13a-15(f). Under the supervision and with the participation of our Chief Executive Officer and Chief FinancialOfficer, management conducted an evaluation of the effectiveness of its internal control over financial reporting based upon theframework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the TreadwayCommissionin2013.Basedonthatevaluation,managementconcludedthatitsinternalcontroloverfinancialreportingiseffectiveasofAugust31,2018.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofany evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes inconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

PricewaterhouseCoopers LLP, independent registered public accounting firm, who audited and reported on the consolidated financialstatementsofWD-40CompanyincludedinItem15ofthis report, hasauditedtheeffectivenessofWD-40Company’sinternal controloverfinancialreportingasofAugust31,2018,asstatedintheirreportincludedinItem15ofthisreport.

Changes in Internal Control over Financial Reporting

ForthequarterendedAugust31,2018,therewerenosignificantchangestotheCompany’sinternalcontroloverfinancialreportingthatmateriallyaffected,orwouldbereasonablylikelytomateriallyaffect,itsinternalcontroloverfinancialreporting.

Item 9B . Other Information

None.PART III

Item 10 . Directors, Executive Officers and Corporate Governance

Certain information required by this item is set forth under the headings “Security Ownership of Directors and Executive Officers,”“Nominees for Election as Directors,” “Audit Committee” and “Section 16(a) Beneficial Ownership Reporting Compliance” in theCompany’sProxyStatementtobefiledwiththeSecuritiesandExchangeCommissioninconnectionwiththe2018AnnualMeetingofStockholdersonDecember11,2018(“ProxyStatement”),whichinformationisincorporatedbyreferenceherein.Additionalinformationconcerning executive officers of the Registrant required by this item is included in this report following Item 4 of Part I under theheading,"ExecutiveOfficersoftheRegistrant."

The Registrant has a code of ethics (as defined in Item 406 of Regulation S-K under the Exchange Act) applicable to its principalexecutiveofficer,principalfinancialofficer,principalaccountingofficerorcontrollerandpersonsperformingsimilarfunctions.ThecodeofethicsisrepresentedbytheRegistrant’sCodeofConductapplicabletoallemployeesanddirectors.AcopyoftheCodeofConductmaybefoundontheRegistrant’sinternetwebsiteontheCorporateGovernancelinkfromtheInvestorspageatwww.wd40company.com.

Item 11 . Executive Compensation

Information required by this item is incorporated by reference to the Proxy Statement under the headings “Board of DirectorsCompensation,” “Compensation Committee Interlocks and Insider Participation,” “Compensation Discussion and Analysis,”“Compensation Committee Report,” “Executive Compensation,” “Supplemental Death Benefit Plans and Supplemental InsuranceBenefits”and“ChangeofControlSeveranceAgreements.”

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Item 12 . Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Certain information required by this item is incorporated by reference to the Proxy Statement under the headings “Principal SecurityHolders”and“SecurityOwnershipofDirectorsandExecutiveOfficers.”

Equity Compensation Plan Information

The following table provides information regarding shares of the Company’s common stock authorized for issuance under equitycompensationplansasofAugust31,2018:

Number of securities remaining available for Number of securities to future issuance under be issued upon exercise Weighted-average exercise equity compensation plans of outstanding options, price of outstanding options (excluding securities warrants and rights warrants and rights reflected in column (a)) (a) (b) (c)

Plan categoryEquitycompensationplansapprovedbysecurityholders 188,284(1) $ - 786,364

Equitycompensationplansnotapprovedbysecurityholders n/a n/a n/a

188,284(1) $ - 786,364

(1)Includes115,308securitiestobeissuedpursuanttooutstandingrestrictedstockunits;42,208securitiestobeissuedpursuanttooutstandingmarketshareunits(“MSUs”)basedon100%ofthetargetnumberofMSUsharestobeissueduponachievementoftheapplicableperformancemeasurespecifiedforsuchMSUs;and30,768securitiestobeissuedpursuanttooutstandingdeferredperformanceunits(“DPUs”)basedon100%ofthemaximumnumberofDPUsharestobeissueduponachievementoftheapplicableperformancemeasurespecifiedforsuchDPUs.

Item 13 . Certain Relationships and Related Transactions, and Director Independence

Information required by this item is incorporated by reference to the Proxy Statement under the headings “Director Independence”,“AuditCommittee”and“RelatedPartyTransactionsReviewandOversight.”

Item 14 . Principal Accountant Fees and Services

InformationrequiredbythisitemisincorporatedbyreferencetotheProxyStatementundertheheading“RatificationofAppointmentofIndependentRegisteredPublicAccountingFirm.”

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PART IV

Item 15 . Exhibits, Financial Statement Schedules Page

(a) Documentsfiledaspartofthisreport

(1) ReportofIndependentRegisteredPublicAccountingFirm F-1 ConsolidatedBalanceSheets F-3 ConsolidatedStatementsofOperations F-4 ConsolidatedStatementsofComprehensiveIncome F-5ConsolidatedStatementsofShareholders’Equity F-6

ConsolidatedStatementsofCashFlows F-7 NotestoConsolidatedFinancialStatements F-8

(2) Financial statement schedules are omitted because they are not applicable or the required information is shown in the consolidated financialstatementsornotesthereto.

(3)Exhibits

Exhibit

No. Description ArticlesofIncorporationandBylaws. 3(a) CertificateofIncorporation. 3(b) AmendedandRestatedBylawsofWD-40Company,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledAugust16,

2018,Exhibit3.1thereto. MaterialContracts. ExecutiveCompensationPlansandArrangements(Exhibits10(a)through10(t)aremanagementcontractsandcompensatoryplans

orarrangementsrequiredtobefiledasexhibitspursuanttoItem15(b)). 10(a) WD-40Company2016StockIncentivePlan,incorporatedbyreferencefromtheRegistrant’sProxyStatementfiledNovember3,

2016,AppendixAthereto.

10(b) WD-40Company2007StockIncentivePlan.

10(c) FourthAmendedandRestatedWD-40Company1990IncentiveStockOptionPlan,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober22,2015,Exhibit10(b)thereto.

10(d) WD-40Directors’CompensationPolicyandElectionPlandatedOctober8,2018.

10(e) FormofIndemnityAgreementbetweentheRegistrantanditsexecutiveofficersanddirectors,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober22,2013,Exhibit10(d)thereto.

10(f) Formof RestrictedStockUnit AwardAgreement for grants of RestrictedStockUnits to ExecutiveOfficersinfiscalyear2016,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober24,2016,Exhibit10(e)thereto.

10(g) FormofRestrictedStockUnitAgreementforgrantsofRestrictedStockUnitstoExecutiveOfficersinfiscalyears2017and2018,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober23,2017,Exhibit10(g)thereto.

10(h) FormofMarketShareUnitAwardAgreementforgrantsofMarketShareUnitstoExecutiveOfficersinfiscalyear2016.

10(i) FormofMarketShareUnitAwardAgreementforgrantsofMarketShareUnitstoExecutiveOfficersinfiscalyears2017and2018,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober23,2017,Exhibit10(i)thereto.

10(j) FormofDeferredPerformanceUnitAwardAgreementforgrantsofDeferredPerformanceUnitstoExecutiveOfficers.

10(k) WD-40 Company 2017 Performance Incentive Compensation Plan , incorporated by reference from the Registrant’s ProxyStatementfiledNovember2,2017,AppendixAthereto.

10(l) FormofWD-40CompanySupplementalDeathBenefitPlanapplicabletocertainexecutiveofficersoftheRegistrant,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober24,2016,Exhibit10(i)thereto.

10(m) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandJayW.RemboltdatedOctober16,2008,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober21,2014,Exhibit10(h)thereto.

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10(n) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandRichardT.ClampittdatedOctober15,2014,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober21,2014,Exhibit10(i)thereto.

10(o) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandStanleyA.SewitchdatedOctober15,2014,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober21,2014,Exhibit10(j)thereto.

10(p) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandGarryO.RidgedatedFebruary14,2006,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober23,2017,Exhibit10(p)thereto.

10(q) Change of Control Severance Agreement between WD-40 Company and Michael L. Freeman dated February 14, 2006 ,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober23,2017,Exhibit10(q)thereto.

10(r) Change of Control Severance Agreement between WD-40 Company and Geoffrey J. Holdsworth dated February 14, 2006 ,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober23,2017,Exhibit10(r)thereto.

10(s) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandWilliamB.NobledatedFebruary14,2006,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober23,2017,Exhibit10(s)thereto.

10(t) Change of Control Severance Agreement between WD-40 Company and Steven Brass dated June 22, 2016, incorporated byreferencefromtheRegistrant’sForm10-QfiledJanuary9,2017,Exhibit10(c)thereto

10(u) CreditAgreementdatedJune17,2011amongWD-40CompanyandBankofAmerica,N.A.,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober23,2017,Exhibit10(u)thereto.

10(v) FirstAmendmenttoCreditAgreementdatedJanuary7,2013amongWD-40CompanyandBankofAmerica,N.A.,incorporatedbyreferencefromtheRegistrant’sForm10-QfiledJanuary9,2013,Exhibit10(b)thereto.

10(w) SecondAmendmenttoCreditAgreementdatedMay13,2015amongWD-40CompanyandBankofAmerica,N.A.,incorporatedbyreferencefromtheRegistrant’sForm8-K/AfiledMay18,2015,Exhibit10(a)thereto.

10(x) Third Amendment to Credit Agreement dated November 16, 2015 among WD-40 Company and Bank of America, N.A.,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledNovember19,2015,Exhibit10(a)thereto.

10(y) Fourth Amendment to Credit Agreement dated September 1, 2016 among WD-40 Company and Bank of America, N.A.,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledSeptember2,2016,Exhibit10(a)thereto.

10(z) FifthAmendmenttoCredit AgreementdatedNovember15,2017byandbetweenWD-40CompanyandBankofAmerica, N.A.,

incorporatedbyreferencefromtheRegistrant’sForm8-KfiledNovember17,2018,Exhibit10(b)thereto.

10(aa) Sixth Amendment to Credit Agreement dated February 23, 2018by andbetweenWD-40CompanyandBankof America, N.A.,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledFebruary27,2018,Exhibit10(c)thereto.

10(ab) NotePurchase andPrivate Shelf Agreement datedNovember 15, 2017byandbetweenWD-40CompanyandPrudential andtheNotePurchasers,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledNovember17,2017,Exhibit10(a)thereto.

10(ac) FirstAmendmenttoNotePurchaseAgreementdatedFebruary23,2018byandbetweenWD-40CompanyandPrudentialandtheNotePurchasers,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledFebruary27,2018,Exhibit10(b)thereto.

10(ad) StandardFormofAgreementbetweenOwnerandContractordatedFebruary23,2017andChangeOrder#1datedMarch9,2017betweenWD-40CompanyandBack’sConstruction,Inc.,incorporatedbyreferencefromtheRegistrant’sForm10-QfiledApril6,2017,Exhibit10(d)thereto.

10(ae) Contract for the Sale of 252 Upper Third Street, Milton Keynes, MK9 1NP dated February 23, 2018 by and between WD-40

Company Limited and BCP(Milton Keynes) LLP, incorporated by reference fromthe Registrant’s Form8-Kfiled February 27,2018,Exhibit10(a)thereto.

21 SubsidiariesoftheRegistrant.

23 ConsentofIndependentRegisteredPublicAccountingFirmdatedOctober22,2018.

31(a) CertificationofChiefExecutiveOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002.

31(b) CertificationofChiefFinancialOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002.

32(a) CertificationofChiefExecutiveOfficerpursuanttoSection906oftheSarbanes-OxleyActof2002.

32(b) CertificationofChiefFinancialOfficerpursuanttoSection906oftheSarbanes-OxleyActof2002.

101.INS XBRLInstanceDocument

101.SCH XBRLTaxonomyExtensionSchemaDocument

47

101.CAL XBRLTaxonomyExtensionCalculationLinkbaseDocument

101.DEF XBRLTaxonomyExtensionDefinitionLinkbaseDocument

101.LAB XBRLTaxonomyExtensionLabelsLinkbaseDocument

101.PRE XBRLTaxonomyExtensionPresentationLinkbaseDocument

Item 16. Form 10-K S um mary

Notapplicable.

48

WD-40COMPANYRegistrant

/s/JAYW.REMBOLTJAYW.REMBOLTVicePresident,FinanceTreasurerandChiefFinancialOfficerDate:October22,2018

/s/GARRYO.RIDGEGARRYO.RIDGEChiefExecutiveOfficerandDirector(PrincipalExecutiveOfficer)Date:October22,2018

/s/PETERD.BEWLEYPETERD.BEWLEY,DirectorDate:October22,2018

/s/DANIELT.CARTERDANIELT.CARTER,DirectorDate:October22,2018

/s/MELISSACLAASSENMELISSACLAASSEN,DirectorDate:October22,2018

/s/ERICP.ETCHARTERICP.ETCHART,DirectorDate:October22,2018

/s/LINDAA.LANGLINDAA.LANG,DirectorDate:October22,2018

/s/DAVIDB.PENDARVISDAVIDB.PENDARVIS,DirectorDate:October22,2018

/s/DANIELE.PITTARDDANIELE.PITTARD,DirectorDate:October22,2018

/s/GREGORYA.SANDFORTGREGORYA.SANDFORT,DirectorDate:October22,2018

/s/NEALE.SCHMALENEALE.SCHMALE,DirectorDate:October22,2018

SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theRegistranthasdulycausedthisannualreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons onbehalfoftheRegistrantandinthecapacitiesandonthedatesindicated.

49

Report of Independent Registered Public Accounting Firm

TotheBoardofDirectorsandShareholdersofWD-40Company

Opinions on the Financial Statements and Internal Control over Financial Reporting

Wehaveauditedtheconsolidatedfinancialstatements,includingtherelatednotes,aslistedintheindexappearingunderItem15(a)(1)of WD-40Companyandits subsidiaries(collectivelyreferredtoasthe“consolidatedfinancialstatements”).WealsohaveauditedtheCompany'sinternalcontroloverfinancialreportingasofAugust31,2018,basedoncriteriaestablishedinInternalControl-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).

Inouropinion,theconsolidatedfinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyasofAugust31,2018and2017andtheresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodendedAugust31,2018inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Alsoinouropinion,the Company maintained, in all material respects, effective internal control over financial reporting as of August 31, 2018, based oncriteriaestablishedinInternalControl-IntegratedFramework(2013)issuedbytheCOSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control overfinancial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’sReport on Internal Control over Financial Reporting under Item 9A. Our responsibility is to express opinions on the Company’sconsolidatedfinancial statements andontheCompany's internal control overfinancial reportingbasedonouraudits. Weareapublicaccounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to beindependentwithrespecttotheCompanyinaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB.

WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsarefreeofmaterialmisstatement,whetherduetoerrororfraud,andwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of theconsolidatedfinancialstatements,whetherduetoerrororfraud,andperformingproceduresthatrespondtothoserisks.Suchproceduresincludedexamining,onatestbasis,evidenceregardingtheamountsanddisclosuresintheconsolidatedfinancialstatements.Ourauditsalsoincludedevaluatingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining anunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesign and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such otherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditsprovideareasonablebasisforouropinions.

Definition and Limitations of Internal Control over Financial Reporting

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accountingprinciples. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to themaintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of thecompany; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only inaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(iii)providereasonableassuranceregardingpreventionor timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on thefinancialstatements.

F-1

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofany evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes inconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

/s/PricewaterhouseCoopersLLP

SanDiego,CaliforniaOctober22,2018

WehaveservedastheCompany’sauditorsinceatleast1972.WehavenotbeenabletodeterminethespecificyearwebeganservingasauditoroftheCompany.

F-2

WD-40 COMPANYCONSOLIDATED B ALANCE SHEETS

(In thousands, except share and per share amounts) August 31, August 31,

2018 2017AssetsCurrentassets:Cashandcashequivalents $ 48,866 $ 37,082Short-terminvestments 219 80,166Tradeaccountsreceivable,lessallowancefordoubtfulaccountsof$340and$240atAugust31,2018and2017,respectively 69,025 64,259

Inventories 36,536 35,340Othercurrentassets 13,337 8,007

Totalcurrentassets 167,983 224,854Propertyandequipment,net 36,357 29,439Goodwill 95,621 95,597Otherintangibleassets,net 13,513 16,244Deferredtaxassets,net 511 495Otherassets 3,074 3,088

Totalassets $ 317,059 $ 369,717

Liabilities and Shareholders' EquityCurrentliabilities:Accountspayable $ 19,115 $ 20,898Accruedliabilities 26,240 18,997Accruedpayrollandrelatedexpenses 14,823 14,222Short-termborrowings 23,600 20,000Incometaxespayable 2,125 1,306

Totalcurrentliabilities 85,903 75,423Long-termborrowings 62,800 134,000Deferredtaxliabilities,net 11,050 18,949Otherlong-termliabilities 1,817 1,958

Totalliabilities 161,570 230,330

CommitmentsandContingencies(Note11)

Shareholders'equity:Commonstock―authorized36,000,000shares,$0.001parvalue;19,729,774and19,688,238sharesissuedatAugust31,2018and2017,respectively;and13,850,413and13,984,183sharesoutstandingatAugust31,2018and2017,respectively 20 20

Additionalpaid-incapital 153,469 150,692Retainedearnings 351,266 315,764Accumulatedothercomprehensiveincome(loss) (27,636) (28,075)Commonstockheldintreasury,atcost―5,879,361and5,704,055sharesatAugust31,2018and2017,respectively (321,630) (299,014)

Totalshareholders'equity 155,489 139,387Totalliabilitiesandshareholders'equity $ 317,059 $ 369,717

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-3

WD-40 COMPANYCONSOLIDATED STATEM ENTS OF OPERATIONS

(In thousands, except per share amounts)

Fiscal Year Ended August 31,2018 2017 2016

Netsales $ 408,518 $ 380,506 $ 380,670Costofproductssold 183,255 166,621 166,301

Grossprofit 225,263 213,885 214,369

Operatingexpenses:Selling,generalandadministrative 121,394 114,560 117,767Advertisingandsalespromotion 22,314 20,537 22,278Amortizationofdefinite-livedintangibleassets 2,951 2,879 2,976

Totaloperatingexpenses 146,659 137,976 143,021

Incomefromoperations 78,604 75,909 71,348

Otherincome(expense):Interestincome 454 508 683Interestexpense (4,219) (2,582) (1,703)Otherincome 339 787 2,461

Incomebeforeincometaxes 75,178 74,622 72,789Provisionforincometaxes 9,963 21,692 20,161

Netincome $ 65,215 $ 52,930 $ 52,628

Earningspercommonshare:Basic $ 4.65 $ 3.73 $ 3.65Diluted $ 4.64 $ 3.72 $ 3.64

Sharesusedinpersharecalculations:Basic 13,929 14,089 14,332Diluted 13,962 14,123 14,379

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-4

WD-40 COMPANYCONSOLIDATED STATEMENTS O F COMPREHENSIVE INCOME

(In thousands)

Fiscal Year Ended August 31,2018 2017 2016

Netincome $ 65,215 $ 52,930 $ 52,628Othercomprehensiveincome(loss):Foreigncurrencytranslationadjustment 439 (777) (18,576)

Totalcomprehensiveincome $ 65,654 $ 52,153 $ 34,052

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-5

WD-40 COMPANYCONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(In thousands, except share and per share amounts)

Accumulated

Additional Other Total

Common Stock Paid-in Retained Comprehensive Treasury Stock Shareholders'

Shares Amount Capital Earnings Income (Loss) Shares Amount Equity

Balance at August 31, 2015 19,546,888 $ 20 $ 141,651 $ 260,683 $ (8,722) 5,096,398 $ (235,774) $ 157,858Issuanceofcommonstockundershare-basedcompensationplan,netofshareswithheldfortaxes 74,932 (1,434) (1,434)

Stock-basedcompensation 3,655 3,655Taxbenefitsfromsettlementsofstock-basedequityawards 2,064 2,064

Cashdividends($1.64pershare) (23,669) (23,669)Acquisitionoftreasurystock 317,084 (32,131) (32,131)Foreigncurrencytranslationadjustment (18,576) (18,576)Netincome 52,628 52,628

Balance at August 31, 2016 19,621,820 $ 20 $ 145,936 $ 289,642 $ (27,298) 5,413,482 $ (267,905) $ 140,395Issuanceofcommonstockundershare-basedcompensationplan,netofshareswithheldfortaxes 66,418 (921) (921)

Stock-basedcompensation 4,138 4,138Taxbenefitsfromsettlementsofstock-basedequityawards 1,539 1,539

Cashdividends($1.89pershare) (26,808) (26,808)Acquisitionoftreasurystock 290,573 (31,109) (31,109)Foreigncurrencytranslationadjustment (777) (777)Netincome 52,930 52,930

Balance at August 31, 2017 19,688,238 $ 20 $ 150,692 $ 315,764 $ (28,075) 5,704,055 $ (299,014) $ 139,387Issuanceofcommonstockundershare-basedcompensationplan,netofshareswithheldfortaxes 41,536 (1,607) (1,607)

Stock-basedcompensation 4,195 4,195Cashdividends($2.11pershare) (29,585) (29,585)Acquisitionoftreasurystock 175,306 (22,616) (22,616)Foreigncurrencytranslationadjustment 439 439Cumulativeeffectofchangeinaccountingprinciple 189 (128) 61Netincome 65,215 65,215

Balance at August 31, 2018 19,729,774 $ 20 $ 153,469 $ 351,266 $ (27,636) 5,879,361 $ (321,630) $ 155,489

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-6

WD-40 COMPANYCONSOLIDATED STATEM ENTS OF CASH FLOWS

(In thousands)

Fiscal Year Ended August 31,

2018 2017 2016Operatingactivities:

Netincome $ 65,215 $ 52,930 $ 52,628Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:Depreciationandamortization 7,800 6,769 6,465Netgainsonsalesanddisposalsofpropertyandequipment (164) (115) (75)Deferredincometaxes (7,186) 1,608 (2,227)Stock-basedcompensation 4,195 4,138 3,655Unrealizedforeigncurrencyexchangelosses(gains),net (302) 364 (986)Provisionforbaddebts 121 (138) 52Changesinassetsandliabilities:

Tradeaccountsreceivable (5,635) 482 (9,936)Inventories (1,299) (3,487) (1,001)Otherassets (5,353) (3,514) 1,557Accountspayableandaccruedliabilities 6,107 2,827 2,871Accruedpayrollandrelatedexpenses 590 (6,632) 8,120Otherlong-termliabilitiesandincometaxespayable 733 340 4,179

Netcashprovidedbyoperatingactivities 64,822 55,572 65,302

Investingactivities:Purchasesofpropertyandequipment (12,356) (20,150) (4,354)Proceedsfromsalesofpropertyandequipment 458 430 301Purchasesofintangibleassets (175) - -Purchasesofshort-terminvestments (83,704) (27,136) (24,899)Maturitiesofshort-terminvestments 166,984 4,565 8,032

Netcashprovidedby(usedin)investingactivities 71,207 (42,291) (20,920)

Financingactivities:Treasurystockpurchases (22,616) (31,109) (32,131)Dividendspaid (29,585) (26,808) (23,669)Proceedsfromissuanceofcommonstock 215 775 1,200Proceedsfromissuanceoflong-termseniornotes 20,000 - -Repaymentsoflong-termseniornotes (400) - -Net(repayments)proceedsfromrevolvingcreditfacility (87,200) 32,000 14,000Shareswithheldtocovertaxesuponconversionofequityawards (1,823) (1,696) (2,634)

Netcashusedinfinancingactivities (121,409) (26,838) (43,234)Effectofexchangeratechangesoncashandcashequivalents (2,836) (252) (4,153)Netincrease(decrease)incashandcashequivalents 11,784 (13,809) (3,005)Cashandcashequivalentsatbeginningofperiod 37,082 50,891 53,896Cashandcashequivalentsatendofperiod $ 48,866 $ 37,082 $ 50,891

Supplemental cash flow information:Cashpaidfor:

Interest $ 4,286 $ 2,625 $ 1,573Incometaxes,netoftaxrefundsreceived $ 10,478 $ 21,933 $ 16,494

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. The Company

WD-40 Company (“the Company”), based in San Diego, California, is a global marketing organization dedicated to creating positivelasting memories by developing and selling products that solve problems in workshops, factories and homes around the world. TheCompanymarketsitsmaintenanceproductsanditshomecareandcleaningproductsunderthefollowingwell-knownbrands:WD-40®,3-IN-ONE®,GT85®,X-14®,2000Flushes®,CarpetFresh®,novac®,SpotShot®,1001®,Lava®andSolvol®.CurrentlyincludedintheWD-40brandaretheWD-40Multi-UseProductandtheWD-40Specialist®andWD-40BIKE®productlines.

TheCompany’sbrandsaresoldinvariouslocationsaroundtheworld.MaintenanceproductsaresoldworldwideinmarketsthroughoutNorth, Central and South America, Asia, Australia, Europe, the Middle East and Africa. Homecare and cleaning products are soldprimarilyinNorthAmerica,theUnitedKingdom(“U.K.”)andAustralia.TheCompany’sproductsaresoldprimarilythroughmassretailandhomecenterstores,warehouseclubstores,grocerystores,hardwarestores,automotivepartsoutlets,sportsretailers,independentbikedealers,onlineretailersandindustrialdistributorsandsuppliers.

Note 2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompanytransactionsandbalanceshavebeeneliminatedinconsolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAPrequires management to make estimates and assumptions thataffectthereportedamountsofassets,liabilities,revenuesandexpensesandthedisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandthereportedamountsofrevenuesandexpensesduringthereportingperiods.Actualresultscoulddifferfromthoseestimates.

Supplier Risk

TheCompanyreliesonalimitednumberofsuppliers,includingsingleorsolesourcesuppliersforcertainofitsrawmaterials,packaging,product components and other necessary supplies. Where possible and where it makes business sense, the Company works withsecondaryormultiplesupplierstoqualifyadditionalsupplysources.Todate,theCompanyhasbeenabletoobtainadequatesuppliesofthese materials whichare used in the production of its maintenance products andhomecare and cleaning products in a timely mannerfromexistingsources.

Cash and Cash Equivalents

Cashequivalentsarehighlyliquidinvestmentspurchasedwithanoriginalmaturityofthreemonthsorless.

Short-term Investments

TheCompany'sshort-terminvestmentsconsistoftermdepositsandcallabletimedeposits.Theseshort-terminvestmentshadacarryingvalueof$0.2millionand$80.2millionatAugust31,2018and2017,respectively.Thedecreaseinshort-terminvestmentsduringfiscalyear2018wasduetothematurityoftheCompany’scallabletimedepositsheldbyitsU.K.subsidiary.ThesedepositsmaturedinApril2018andwerenotreinvested.AsofAugust31,2018,theCompany’sshort-terminvestmentbalanceconsistedoftermdepositsthataresubjecttopenaltyforearlyredemptionbeforetheirmaturity. Trade Accounts Receivable and Allowance for Doubtful Accounts

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is theCompany’sbestestimateoftheamountofprobablecreditlossesinexistingaccountsreceivable.TheCompanydeterminestheallowancefor doubtful accounts based on historical write-off experience and the identification of specific balances deemed uncollectible. TradeaccountsreceivablearechargedagainsttheallowancewhentheCompanybelievesitisprobablethatthetradeaccountsreceivablewillnot be recovered. The Company does not have any off-balance sheet credit exposure related to its customers.Allowance for doubtfulaccountsrelatedtotheCompany’stradeaccountsreceivablewerenotsignificantatAugust31,2018and2017.

F-8

Inventories

Inventoriesarestatedatthelowerofcostornetrealizablevalue.Costisdeterminedbasedonafirst-in,first-outmethodor,foraportionof rawmaterials inventory, the average cost method. When necessary, the Company adjusts the carrying value of its inventory to thelowerofcostornetrealizablevalue,includinganycoststosellordisposeofsuchinventory.AppropriateconsiderationisgivenbytheCompanytoobsolescence,excessiveinventorylevels,productdeteriorationandotherfactorswhenevaluatingnetrealizablevalueforthepurposesofdeterminingthelowerofcostornetrealizablevalue.

IncludedininventoriesareamountsforcertainrawmaterialsandcomponentsthattheCompanyhasprovidedtoitsthird-partycontractmanufacturers but that remain unpaid to the Company as of the balance sheet date. The Company’s contract manufacturers packageproductstotheCompany’sspecificationsand,uponorderfromtheCompany,shipready-to-sellinventorytoeithertheCompany’sthird-party distribution centers or directly to its customers. The Company transfers certain raw materials and components to these contractmanufacturersforuseinthemanufacturingprocess.ContractmanufacturersareobligatedtopaytheCompanyfortheserawmaterialsandcomponentsuponreceipt.Amountsreceivablefromthecontractmanufacturersasofthebalancesheetdaterelatedtotransfersoftheseraw materials and components by the Company to its contract manufacturers are considered product held at third-party contractmanufacturersandareincludedininventoriesintheaccompanyingconsolidatedbalancesheets.

Property and Equipment

Propertyandequipmentisstatedatcost.Depreciationiscomputedusingthestraight-linemethodbaseduponestimatedusefullivesoftentofortyyearsforbuildingsandimprovements,threetofifteenyearsformachineryandequipment,threetofiveyearsforvehicles,threetoten years for furniture and fixtures and three to five years for software and computer equipment. Depreciation expense totaled $4.8million,$3.9million and$3.5million for fiscal years 2018, 2017 and 2016, respectively. These amounts include factory depreciationexpensewhichisrecognizedascostofproductssoldandtotaled$1.1millionforeachofthefiscalyears2018and2017,respectively,and$0.8millionforfiscalyear2016.Software TheCompanycapitalizescostsrelatedtocomputersoftwareobtainedordevelopedforinternaluse.Softwareobtainedforinternalusehasgenerallybeenenterprise-levelbusinessandfinancesoftwarethattheCompanycustomizestomeetitsspecificoperationalneeds.Costsincurred in the application development phase are capitalized and amortized over their useful lives, which are generally threetofiveyears.

Goodwill

Goodwillrepresentstheexcessofthepurchasepriceoverthefairvalueoftangibleandintangibleassetsacquired.Thecarryingvalueofgoodwill is reviewed for possible impairment in accordance with the authoritative guidance on goodwill, intangibles and other. TheCompany assesses possible impairments to goodwill at least annually during its second fiscal quarter and otherwise when events orchangesincircumstancesindicatethatanimpairmentconditionmayexist.Inperformingtheannualimpairmenttestofitsgoodwill,theCompanyconsidersthefairvalueconceptsofamarketparticipantandthehighestandbestuseforitsintangibleassets.Inadditiontotheannual impairment test, goodwill is evaluatedeachreportingperiodtodeterminewhether events andcircumstances wouldmorelikelythannotreducethefairvalueofareportingunitbelowitscarryingvalue.

Whentestinggoodwillforimpairment,theCompanyfirstassessesqualitativefactorstodeterminewhetheritisnecessarytoperformaquantitativegoodwillimpairmenttest.If,afterassessingqualitativefactors,theCompanydeterminesitisnotmorelikelythannotthatthefairvalueofareportingunitislessthanitscarryingamount,thenperformingaquantitativetestisunnecessary.Otherwise,aquantitativetest is performed to identify the potential impairment and to measure the amount of goodwill impairment, if any. Any requiredimpairmentlossesarerecordedasareductioninthecarryingamountoftherelatedassetandchargedtoresultsofoperations.NogoodwillimpairmentswereidentifiedbytheCompanyduringfiscalyears2018,2017and2016.

Long-lived Assets

TheCompany’slong-livedassetsconsistofpropertyandequipmentanddefinite-livedintangibleassets.Long-livedassetsaredepreciatedoramortized,asapplicable,onastraight-linebasisovertheirestimatedusefullives.TheCompanyassessespotentialimpairmentstoitslong-livedassetswhenthereisevidencethateventsorchangesincircumstancesindicatethatthecarryingamountofanassetmaynotberecoverable and/or its remaining useful life may no longer be appropriate. Any required impairment loss would be measured as theamountbywhichtheasset’scarryingamountexceedsitsfairvalue,whichistheamountatwhichtheassetcouldbeboughtorsoldinacurrenttransactionbetweenwillingmarketparticipantsandwouldberecordedasareductioninthecarryingamountoftherelatedassetandachargetoresultsofoperations.Animpairmentlosswouldberecognizedwhen

F-9

thesumoftheexpectedfutureundiscountednetcashflowsislessthanthecarryingamountoftheasset.Noimpairmentstoitslong-livedassetswereidentifiedbytheCompanyduringfiscalyears2018,2017and2016.

Fair Value of Financial Instruments

AccountingStandardsCodification(“ASC”)820,“FairValueMeasurementsandDisclosures”,definesfairvalueastheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate. The Company categorizes its financial assets and liabilities measured at fair value into a hierarchy that categorizes fair valuemeasurementsintothefollowingthreelevelsbasedonthetypesofinputsusedinmeasuringtheirfairvalue:

Level1:Observableinputssuchasquotedmarketpricesinactivemarketsforidenticalassetsorliabilities;Level2:Observablemarket-basedinputsorobservableinputsthatarecorroboratedbymarketdata;andLevel3:UnobservableinputsreflectingtheCompany’sownassumptions.

Underfairvalueaccounting,assetsandliabilitiesareclassifiedintheirentiretybasedonthelowestlevelofinputthatissignificanttothefairvaluemeasurement.AsofAugust31,2018,theCompanyhadnoassetsorliabilitiesthataremeasuredatfairvalueinthefinancialstatementsonarecurringbasis,withtheexceptionoftheforeigncurrencyforwardcontracts,whichareclassifiedasLevel2withinthefair value hierarchy. The carrying values of cash equivalents, short-term investments and short-term borrowings are recorded at cost,which approximates their fair values primarily due to their short-term maturities and are classified as Level 2 within the fair valuehierarchy.Inaddition,thecarryingvalueofborrowingsheldundertheCompany’srevolvingcreditfacilityapproximatesfairvalueduetothevariablenatureofunderlyinginterestrates,whichgenerallyreflectmarketconditionsandsuchborrowingsareclassifiedasLevel2withinthefairvaluehierarchy.TheCompany’sfixedratelong-termborrowingsconsistofseniornoteswhicharealsoclassifiedasLevel2withinthefair valuehierarchyandarerecordedat carryingvalue. TheCompanyestimatesthat thefair valueofits seniornoteswasapproximately$18.8millionasofAugust31,2018,whichwasdeterminedbasedonadiscountedcashflowanalysisusingcurrentmarketinterestratesforinstrumentswithsimilarterms,comparedtoitscarryingvalueof$19.6million.DuringthefiscalyearsendedAugust31,2018,2017and2016,theCompanydidnotrecordanysignificantnonrecurringfairvaluemeasurementsforassetsorliabilitiesinperiodssubsequenttotheirinitialrecognition.

Concentration of Credit Risk

Financialinstruments,whichpotentiallysubjecttheCompanytosignificantconcentrationsofcreditrisk,consistprincipallyofcashandcashequivalents,short-terminvestmentsandtradeaccountsreceivable.TheCompany’spolicyistoplaceitscashinhighcreditqualityfinancial institutions, in investments that include demand deposits, term deposits and callable time deposits. The Company’s tradeaccountsreceivablearederivedfromcustomerslocatedinNorthAmerica,SouthAmerica,Asia-Pacific,Europe,theMiddleEast,Africaand India. The Company limits its credit exposure from trade accounts receivable by performing on-going credit evaluations ofcustomers,aswellasinsuringitstradeaccountsreceivableinselectedmarkets.

Insurance Coverage

The Company carries insurance policies to cover insurable risks such as property damage, business interruption, product liability,workers’compensationandotherrisks,withcoverageandothertermsthatitbelievestobeadequateandappropriate.Thesepoliciesmaybe subject to applicable deductible or retention amounts, coverage limitations and exclusions. The Company does not maintain self-insurancewithrespecttoitsmaterialrisks;therefore,theCompanyhasnotprovidedforself-insurancereservesasofAugust31,2018and2017.

Revenue Recognition and Sales Incentives

Salesarerecognizedasrevenueatthetimeofdeliverytothecustomerwhenrisksoflossandtitlehavepassed.Salesarerecordednetofallowancesfordamagedgoodsandothersalesreturns,salesincentives,tradepromotionsandcashdiscounts.

TheCompanyrecordsthecostsofpromotionalactivitiessuchassalesincentives,tradepromotions,couponoffersandcashdiscountsthatare given to its customers as a reduction of sales in its consolidated statements of operations. The Company offers on-going tradepromotionprogramswithcustomersandconsumercouponprogramsthatrequiretheCompanytoestimateandaccruetheexpectedcostsfor such programs. Programs include cooperative marketing programs, shelf price reductions, coupons, rebates, consideration andallowances given to retailers for shelf space and/or favorable display positions in their stores and other promotional activities. Costsrelated to rebates, cooperative advertising and other promotional activities are recorded as a reduction to sales upon delivery of theCompany’sproductstoitscustomers.Couponcostsarebaseduponhistoricalredemptionratesandarerecordedasareductiontosalesasincurred,whichiswhenthecouponsarecirculated.

F-10

Cost of Products Sold

Cost of products sold primarily includes the cost of products manufactured on the Company’s behalf by its third-party contractmanufacturers,netofvolumeandotherrebates.CostofproductssoldalsoincludesthecoststomanufactureWD-40concentrate,whichisdoneattheCompany’sownfacilitiesoratthird-partycontractmanufacturers. WhentheconcentrateismanufacturedbytheCompany,cost ofproducts soldincludesdirect labor, direct materials andsupplies; in-boundfreight costs relatedtopurchasedrawmaterials andfinishedproduct;anddepreciationofmachineryandequipmentusedinthemanufacturingprocess.

Selling, General and Administrative Expenses

Selling,generalandadministrativeexpensesincludecostsrelatedtosellingtheCompany’sproducts,suchasthecostofthesalesforceandrelatedsalesandbrokercommissions;shippingandhandlingcostspaidtothird-partycompaniestodistributefinishedgoodsfromtheCompany’sthird-partycontractmanufacturersanddistributioncenterstoitscustomers;othergeneralandadministrativecostsrelatedtothe Company’s business such as general overhead, legal and accounting fees, insurance, and depreciation; and other employee-relatedcoststosupportmarketing,humanresources,finance,supplychain,informationtechnologyandresearchanddevelopmentactivities.

Shipping and Handling Costs

Shippingandhandlingcosts associatedwithin-boundfreight andmovement of product fromthird-party contract manufacturers to theCompany’sthird-partywarehousesarecapitalizedinthecostofinventoryandsubsequentlyincludedincostofsaleswhenrecognizedinthe statement of operations. Shipping and handling costs associated with out-bound transportation are included in selling, general andadministrative expenses and are recorded at the time of shipment of product to the Company’s customers. Out-bound shipping andhandlingcostswere$17.7million,$16.4millionand$16.1millionforfiscalyears2018,2017and2016,respectively.

Advertising and Sales Promotion Expenses

Advertisingandsalespromotionexpensesareexpensedasincurred.Advertisingandsalespromotionexpensesincludecostsassociatedwith promotional activities that the Company pays to third parties, which include costs for advertising (television, print media andinternet), administration of coupon programs, consumer promotions, product demonstrations, public relations, agency costs, packagedesignexpensesandmarketresearchcosts. Totaladvertisingandsalespromotionexpenseswere$22.3million,$20.5millionand$22.3millionforfiscalyears2018,2017and2016,respectively.

Research and Development

TheCompanyisinvolvedinresearchanddevelopmenteffortsthatincludetheongoingdevelopmentorinnovationofnewproductsandthe improvement, extension or renovation of existing products or product lines. All research and development costs are expensed asincurredandareincludedinselling,generalandadministrativeexpenses.Researchanddevelopmentexpenseswere$7.0million,$8.4millionand$7.7millioninfiscalyears2018,2017and2016,respectively.Theseexpensesincludecostsassociatedwithgeneralresearchanddevelopmentactivities,aswellasthoseassociatedwithinternalstaff,overhead,designtesting,marketresearchandconsultants.

Income Taxes

Currentincometaxexpenseistheamountofincometaxesexpectedtobepayableforthecurrentyear.Adeferredincometaxliabilityorassetisestablishedfortheexpectedfuturetaxconsequencesresultingfromthedifferencesinfinancialreportingandtaxbasesofassetsandliabilities.Avaluationallowanceisprovidedifitismorelikelythannotthatsomeorallofthedeferredtaxassetswillnotberealized.Inadditiontovaluationallowances,theCompanyprovidesforuncertaintaxpositionswhensuchtaxpositionsdonotmeettherecognitionthresholdsormeasurementstandardsprescribedbytheauthoritativeguidanceonincometaxes.Amountsforuncertaintaxpositionsareadjustedinperiodswhennewinformationbecomesavailableorwhenpositionsareeffectivelysettled.TheCompanyrecognizesaccruedinterestandpenaltiesrelatedtouncertaintaxpositionsasacomponentofincometaxexpense.

Asaresultofthe“TaxCutsandJobsAct”(the“TaxAct”)whichbecameeffectivebeginningJanuary1,2018,theU.S.hastransitionedfromaworldwidetaxsystemtoamodifiedterritorialtaxsystem,underwhichcorporationsareprimarilytaxedonincomeearnedwithinthe country’s borders, rather than on a worldwide basis. The Company is still required to make assertions on whether its foreignsubsidiaries will invest their undistributed earnings indefinitely and these assertions are based on the capital needs of the foreignsubsidiaries. Due to the passage of the Tax Act, the Company began reevaluating the indefinite reinvestment assertion for its foreignsubsidiaries.InMay2018,theCompanycompletedthisreevaluationandchangeditsindefinitereinvestmentassertionforcertainofitsforeignsubsidiaries.Asaresult,theCompanynolongerconsidersunremitted

F-11

earningsofanyofitsforeignsubsidiariestobeindefinitelyreinvested.ForadditionalinformationontheTaxAct,seeNote12—IncomeTaxes,includedinthisreport.

Foreign Currency

TheCompanytranslatestheassetsandliabilitiesofitsforeignsubsidiariesintoU.S.dollarsatcurrentratesofexchangeineffectattheendofthereportingperiod.Incomeandexpenseitemsaretranslatedatratesthatapproximatetheratesineffectatthetransactiondate.Gainsandlossesfromtranslationareincludedinaccumulatedothercomprehensiveincomeorloss.Gainsorlossesresultingfromforeigncurrencytransactions(transactionsdenominatedinacurrencyotherthantheentity’sfunctionalcurrency)areincludedasotherincomeinthe Company’s consolidated statements of operations. The Company had $0.1million,$0.4million and$2.4million of net gains inforeigncurrencytransactionsinfiscalyears2018,2017and2016,respectively.

In the normal course of business, the Companyemploys established policies and procedures to manage its exposure to fluctuations inforeigncurrencyexchangerates.TheCompany’sU.K.subsidiary,whosefunctionalcurrencyisPoundSterling,utilizesforeigncurrencyforward contracts to limit its exposure to net asset balances held in non-functional currencies, specifically the Euro. The Companyregularlymonitorsitsforeigncurrencyexchangerateexposurestoensuretheoveralleffectivenessofitsforeigncurrencyhedgepositions.WhiletheCompanyengagesinforeigncurrencyhedgingactivitytoreduceitsrisk,foraccountingpurposes,noneofitsforeigncurrencyforwardcontractsaredesignatedashedges.

Foreign currency forward contracts are carried at fair value, with net realized and unrealized gains and losses recognized currently inotherincome(expense)intheCompany’sconsolidatedstatementsofoperations.Cashflowsfromsettlementsofforeigncurrencyforwardcontractsareincludedinoperatingactivitiesintheconsolidatedstatementsofcashflows.Foreigncurrencyforwardcontractsinanassetposition at the end of the reporting period are included in other current assets, while foreign currency forward contracts in a liabilitypositionattheendofthereportingperiodareincludedinaccruedliabilitiesintheCompany’sconsolidatedbalancesheets.AtAugust31,2018, the Company had a notional amount of $23 .1million outstanding in foreign currency forward contracts, which matured inSeptember 2018 . Unrealized net gains related to foreign currency forward contracts were not significant at August 31, 2018, whileunrealizednetlosseswere$0.6millionatAugust31,2017.Realizednetlossesrelatedtoforeigncurrencyforwardcontractswerenotsignificant for thefiscal year endedAugust 31, 2018, while realized net losses were$0.5million for the fiscal year endedAugust 31,2017. Both unrealized and realized net gains and losses are recorded in other income on the Company’s consolidated statements ofoperations.

Earnings per Common Share

Unvestedshare-basedpaymentawardsthatcontainnonforfeitablerightstodividendsordividendequivalents,whetherpaidorunpaid,areparticipating securities that are required to be included in the computation of earnings per common share pursuant to the two-classmethod.Accordingly,theCompany’soutstandingunvested,ifany,andoutstandingvestedstock-basedequityawardsthatprovidesuchnonforfeitable rights to dividend equivalents are included as participating securities in the calculation of earnings per common share(“EPS”)pursuanttothetwo-classmethod.

TheCompanycalculates EPSusingthetwo-class method, whichprovidesfor anallocationofnet incomebetweencommonstockandotherparticipatingsecuritiesbasedontheirrespectiveparticipationrightstoshareindividends.BasicEPSiscalculatedbydividingnetincome available to common shareholders for the period by the weighted-average number of common shares outstanding during theperiod.Netincomeavailabletocommonshareholdersfortheperiodincludesdividendspaidtocommonshareholdersduringtheperiodplus a proportionate share of undistributed net income allocable to common shareholders for the period; the proportionate share ofundistributednetincomeallocabletocommonshareholdersfortheperiodisbasedontheproportionateshareoftotalweighted-averagecommonsharesandparticipatingsecuritiesoutstandingduringtheperiod.

DilutedEPSiscalculatedbydividingnetincomeavailabletocommonshareholdersfortheperiodbytheweighted-averagenumberofcommonsharesoutstandingduringtheperiodincreasedbytheweighted-averagenumberofpotentiallydilutivecommonshares(dilutivesecurities) that were outstandingduringthe periodif the effect is dilutive. Dilutive securities are comprised ofvarious types of stock-basedequityawardsgrantedundertheCompany’spriorandcurrentequityincentiveplans.

Stock-based Compensation

TheCompanyaccountsforstock-basedequityawardsexchangedforemployeeandnon-employeedirectorservicesinaccordancewiththeauthoritativeguidanceforshare-basedpayments.Stock-basedequityawardsaremeasuredatthegrantdate,basedontheestimatedfairvalueoftheaward,andarerecognizedasstock-basedcompensationexpenseonastraight-linebasisovertherequisiteserviceperiodoftheentireaward,netoftheimpactsofawardforfeituresastheyoccur.Therequisiteserviceperiodisgenerallythemaximumvestingperiod of the award. Compensation expense related to the Company’s stock-based equity awards is recorded as selling, general andadministrativeexpensesintheCompany’sconsolidatedstatementsofoperations.

F-12

ThefairvalueofstockoptionsisdeterminedusingaBlack-Scholesoptionpricingmodel.Thefairvaluesofrestrictedstockunitawardsand deferred performance unit awards are based on the fair value of the Company’s common stock on the date that such awards aregranted.ThefairvalueofmarketshareunitawardsisdeterminedusingaMonteCarlosimulationmodel.Forthedeferredperformanceunitawards, theCompanyadjuststhecompensationexpenseovertheserviceperiodbasedupontheexpectedachievementleveloftheapplicableperformancecondition.Asthegrantdatefairvalueofmarketshareunitawardsreflectstheprobabilitiesoftheactualnumberofsuchawardsexpectedtovest,compensationexpenseforsuchawardsisnotadjustedbasedontheexpectedachievementleveloftheapplicableperformancecondition.TheCompanyrecordsanyexcesstaxbenefitsordeficienciesfromsettlementsofitsstock-basedequityawardswithintheprovisionforincometaxesontheCompany’sconsolidatedstatementsofoperationsinthereportingperiodsinwhichthesettlementoftheequityawardsoccur.

Segment Information

TheCompanydisclosescertaininformationaboutitsbusinesssegments, whicharedeterminedconsistentwiththewaytheCompany’sChiefOperatingDecisionMakerorganizesandevaluates financial informationinternallyformakingoperatingdecisionsandassessingperformance.Inaddition,theChiefOperatingDecisionMakerassessesandmeasuresrevenuebasedonproductgroups.

Recently Adopted Accounting Standards

In March 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-05,“Amendments to SEC ParagraphsPursuanttoSECStaffAccountingBulletinNo.118”,toaddvariousSECparagraphspursuanttotheissuanceofSECStaffAccountingBulletinNo.118(“SAB118”),toASC740“IncomeTaxes”.SAB118wasissuedbytheSECinDecember2018toprovideimmediateguidanceforaccountingimplicationsofU.S.taxreformunderthe“TaxCutsandJobsAct”(the“TaxAct”),whichbecameeffectiveforthe Companyon January 1, 2018. The Companyhas evaluated the potential impacts of SAB118 and has applied this guidance to itsconsolidated financial statements and related disclosures beginning in the second quarter of its fiscal year 2018. For additionalinformationonSAB118andtheimpactsoftheTaxActontheCompany’sconsolidatedfinancialstatementsandrelateddisclosures,seeNote12—IncomeTaxes,includedinthisreport.

In January 2017, the FASB issued ASU No. 2017-04, “ Simplifying the Test for Goodwill Impairment ”. The amendments in thisupdatedguidancesimplifyhowanentityisrequiredtotestgoodwillforimpairmentduetoconcernsthatwereraisedaboutthecostandcomplexity of annual impairment tests under the existing standard. This updated guidance eliminates Step 2 of the previous two-stepquantitative model for goodwill impairment tests. Step 2 required an entity to calculate an implied fair value, which includes ahypothetical purchase price allocation requirement, for reporting units that failed Step 1. Per this updated guidance, a goodwillimpairmentwillinsteadbemeasuredastheamountbywhichareportingunit’scarryingvalueexceedsitsfairvalueasidentifiedinStep1.Step1willbereferredtosimplyasa“quantitativegoodwillimpairmenttest”subsequenttotheCompany’sadoptionofthisupdatedguidance, since Step 2 has been eliminated and “steps” are no longer referred to within the updated guidance. However, the updatedguidancestillpermitstheCompanytofirstconductaqualitativeassessmenttodeterminewhetheritisnecessarytoperformaquantitativegoodwillimpairmenttest.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2019,includinginterimperiodswithinthatreportingperiod.EarlyadoptionispermittedforinterimorannualgoodwillimpairmenttestsperformedontestingdatesafterJanuary1,2017.TheCompanyearlyadoptedthisguidanceinitsfiscalyear2018duringthesecondquarter, theperiodinwhichtheCompanyperformsitsannualgoodwillimpairmenttest.TheguidancewasadoptedonaprospectivebasisandisapplicabletoalloftheCompany’sfutureannualgoodwillimpairmenttests.TheadoptionofthisguidancedidnothaveanimpactontheCompany’sconsolidatedfinancialstatements and related disclosures. See Note 5 – Goodwill and Other Intangible Assets for additional information on the Company’sgoodwill.

InMarch2016,theFASBissuedASUNo.2016-09,“ImprovementstoEmployeeShare-BasedPaymentAccounting”.TheamendmentsinthisupdatedguidanceincludechangestosimplifytheCodificationforseveralaspectsoftheaccountingforshare-basedpaymenttransactions,includingthoserelatedtotheincometaxconsequences,classificationofawardsaseitherequityorliabilities,accountingforforfeitures, minimumstatutory withholding requirements and classification of certain items on the statement of cash flows. Certain ofthesechangesarerequiredtobeappliedretrospectively whileotherchangesarerequiredtobeappliedprospectively. ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2016,includinginterimperiodswithinthatreportingperiod.Earlyadoptionwaspermitted.TheCompanydidnotadoptthisupdatedguidanceearlyandthereforethisguidancebecameeffectivefortheCompanyduringthefirst quarter ofits fiscal year2018.Theimpacts oftheadoptionbytheCompanyofASUNo.2016-09infiscal year2018wereasfollows:

· The Company recorded excess tax benefits of$0.7million within the provision for income taxes for fiscal year 2018 fromsettlementsofstock-basedequityawards.Priortotheadoptionofthisnewguidance,theseamountswouldhavebeenrecordedasanincreasetoadditionalpaid-incapital.

· TheCompanyelectedtochangeitspolicyrelatedtoforfeituresofstock-basedequityawardsuponadoptionofthisnewguidancesuch that it will now recognize the impacts of forfeitures as they occur rather than recognizing them based on an estimatedforfeiturerate.Asaresult,theCompanyrecordedacumulative-effectadjustmenttoretainedearnings.

F-13

This adjustment to retained earnings and the impact of this change in policy for forfeitures on the Company’s consolidatedfinancialstatementswasnotmaterial.

· TheCompanyelectedtoapplythepresentationrequirementsforthestatementofcashflowsrelatedtoexcesstaxbenefitsfromsettlementsofstock-basedequityawardsretrospectivelyforallperiodspresentedwhichresultedinanincreaseof$1.5millionand$2.1million,respectively,to bothnet cash providedbyoperatingactivities andnet cash usedin financingactivitiesforfiscalyears2017and2016,respectively.

· TheCompany’spresentationinthestatementofcashflowsofemployeetaxespaiduponsettlementofcertainstock-basedequityawardsviashareswithheldbytheCompanyfortax-withholdingpurposesalsochangedasaresultoftheadoptionofthisnewguidance since the Company previously reported such activity as an operating activity rather than a financing activity. Asrequired, the Company applied this change in presentation for the statement of cash flows retrospectively for all periodspresentedwhichresultedinanincreaseof$1.7millionand$2.6million,respectively,tobothnetcashprovidedbyoperatingactivitiesandnetcashusedinfinancingactivitiesforfiscalyears2017and2016,respectively.

· TheCompanyexcludedtheexcesstaxbenefitsfromtheassumedproceedsavailabletorepurchasesharesinthecomputationofits diluted earnings per share for the fiscal year ended August 31, 2018. The resulting increase in the Company’s dilutedweightedaveragecommonsharesoutstandingwasnotmaterial.

Recently Issued Accounting Standards

InAugust2018,theFASBissuedASUNo.2018-15,“Customer’sAccountingforImplementationCostsIncurredinaCloudComputingArrangement That Is a Service Contract ” to align the requirements for capitalizing implementation costs incurred in a hostingarrangementthatisaservicecontractwiththerequirementsforcapitalizingimplementationcostsincurredtodeveloporobtaininternal-usesoftware.Theupdatedguidancealsorequiresanentitytoexpensethecapitalizedimplementationcostsofahostingarrangementthatisaservicecontractoverthetermofthehostingarrangement. ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2019,andinterimperiodswithinthosefiscalyears.Earlyadoptionispermitted.TheCompanyisintheprocessofevaluatingtheimpactsofthisguidanceonitsconsolidatedfinancialstatementsandrelateddisclosures.

In June 2018, the FASB issued ASU No. 2018-07, “ Improvements to Nonemployee Share-Based Payment Accounting ”. Theamendments in this updated guidance simplifies the accounting for nonemployee share-based payment transactions by expanding thescope of ASC 718 “ Stock Compensation ” to include share-based payment transactions for acquiring goods and services fromnonemployees.Additionally,theamendmentsclarifythatanyshare-basedpaymentawardsissuedtocustomersshouldbeevaluatedunderASC606“RevenuefromContractswithCustomers”(“ASC606”).ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2018,includinginterimperiodswithinthatfiscalyear.Earlyadoptionispermitted,butnoearlierthananentity’sadoptionofASC606.TheCompanyhasevaluatedthepotentialimpactsofthisupdatedguidance,anditdoesnotexpecttheadoptionofthisguidancetohaveamaterialimpactonitsconsolidatedfinancialstatementsandrelateddisclosures.

InFebruary2018,theFASBissuedASUNo.2018-02,“ReclassificationofCertainTaxEffectsfromAccumulatedOtherComprehensiveIncome” , to optionally allow entities to reclassify stranded tax effects, resulting from the Tax Act, from accumulated othercomprehensiveincometoretainedearnings.SincetheamendmentswithinthisguidanceonlyrelatetothereclassificationoftheincometaxeffectsassociatedwiththeTaxAct,theunderlyingguidancethatrequiresthattheeffectofachangeintaxlawsorratesbeincludedinincome from continuing operations is not affected. This guidance is effective for fiscal years beginning after December 15, 2018,includinginterimperiodswithinthatreportingperiod.Earlyadoptionispermitted.TheamendmentsinthisupdatedguidanceshouldbeappliedeitherintheperiodofadoptionorretrospectivelytoeachperiodinwhichtheeffectofthechangeintheU.S.corporatefederalincometaxrateintheTaxActisrecognized.TheCompanyhasevaluatedthepotentialimpactsofthisupdatedguidance,anditdoesnotexpecttheadoptionofthisguidancetohaveamaterial impact onitsconsolidatedfinancial statementsandrelateddisclosures, assuchstrandedtaxeffectsareimmaterial.

InAugust2016,theFASBissuedASUNo.2016-15,“ClassificationofCertainCashReceiptsandCashPayments”.Theamendmentsinthisupdatedguidanceaddresseightspecificcashflowissuestoreducetheexistingdiversityinpracticeinhowcertaincashreceiptsandcashpaymentsarepresentedandclassifiedinthestatementofcashflows.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember 15, 2017, including interimperiods within that reporting period. Early adoption is permitted and should be applied using aretrospectiveapproach.TheCompanyhasevaluatedthepotentialimpactsofthisupdatedguidance,anditdoesnotexpecttheadoptionofthisguidancetohaveamaterialimpactonitsconsolidatedfinancialstatementsandrelateddisclosures.

InFebruary2016,theFASBissuedASUNo.2016-02,“Leases”.Thenewstandardestablishesaright-of-usemodelthatrequiresalesseetorecordaright-of-useassetandaleaseliabilityonthebalancesheetforallleaseswithtermslongerthantwelvemonths.Leaseswillbeclassifiedaseitherfinanceoroperating,withclassificationaffectingthepatternofexpenserecognitioninthe

F-14

incomestatement.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2018,includinginterimperiodswithinthatreportingperiod.Althoughearlyadoptionispermitted,theCompanyhasconcludedthatitwillnotadoptthisguidanceearlyanditwillbecomeeffectivefortheCompanyonSeptember1,2019.TheCompanywilladoptthisnewguidancefollowingtheoptionaltransitionmethod described in ASUNo. 2018-11, “Leases – Targeted Improvements”which was issued in July 2018 , rather than the originalmodified retrospective approach that requires entities to apply the guidance at the beginning of the earliest period presented in thefinancial statements. Under the optional transition method, the Company will recognize the cumulative effect of initially applying theguidanceasanadjustmenttotheopeningbalanceofretainedearningsonSeptember1,2019.Therefore,therequirementsofthisguidancewillapplyonlyforperiodspresentedthatareafterthedateofadoptionandwillnotaffectcomparativeperiodsTheCompanyisintheprocessofevaluatingtheimpactsofthisguidanceonitsconsolidatedfinancialstatementsandrelateddisclosures.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers ”, which supersedes the revenuerecognitionrequirementsinASC605,“RevenueRecognition”.Thecoreprincipleofthisupdatedguidanceandrelatedamendmentsisthatanentityshouldrecognizerevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangeforthosegoodsorservices.Thisnewguidancerequiresanentitytorecognize revenue for product sales at the point in time in which control of goods transfers to the Company’s customers which, asdefined, could be different than the point in time in which revenue had been recognized by the Companyunder existing U.S. GAAP,whichwasbasedonwhentitleandtherisksandrewardsofownershipweretransferredtothecustomer.Thenewguidancealsorequiresadditional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts,includingsignificantjudgmentsandchangesinjudgmentsandassetsrecognizedfromcostsincurredtoobtainorfulfillacontract.TheCompanywilladoptthisnewguidancefollowingthemodifiedretrospectiveapproachonSeptember1,2018.ManagementperformedadetailedreviewoftheCompany’scustomercontractswhichwasfocusedprincipallyon,butnotlimitedto,identifyingthepointintimeatwhichthecontrolofgoodstransferstocustomers.Managementhasalsocompletedbothitsqualitativeandquantitativeanalysisofthisnewguidance.AlthoughtheCompanydoesnotexpectasignificantimpactonconsolidatednetsalesfortheCompanyasaresultofthisnewguidance,managementexpectsaslightchangeinthetimingforrecognizingrevenueforcertainofitscustomers.Inaddition,theCompany has finalized all of the necessary updates to its accounting policies, internal controls, processes and information systemsregardingrevenuerecognition,anditisalsointheprocessofdraftingnewdisclosuresasrequiredunderthenewguidance.

Note 3. Inventories

Inventoriesconsistedofthefollowing(inthousands):

August 31, August 31,2018 2017

Productheldatthird-partycontractmanufacturers $ 2,841 $ 3,021Rawmaterialsandcomponents 3,692 3,021Work-in-process 448 215Finishedgoods 29,555 29,083

Total $ 36,536 $ 35,340

F-15

Note 4. Property and Equipment

Propertyandequipment,net,consistedofthefollowing(inthousands):

August 31, August 31,2018 2017

Machinery,equipmentandvehicles $ 17,848 $ 17,491Buildingsandimprovements 17,100 16,953Computerandofficeequipment 5,046 4,552Software 9,481 7,947Furnitureandfixtures 1,820 1,608Capitalinprogress 8,042 861Land 3,453 3,453

Subtotal 62,790 52,865Less:accumulateddepreciationandamortization (26,433) (23,426)

Total $ 36,357 $ 29,439

At August 31, 2018, capital in progress on the balance sheet included£5.6million Pound Sterling ( $7.3million in U.S.Dollarsasconvertedat exchangerates as of August 31, 2018)associatedwithcapital costs relatedto the purchase of the Company’s newofficebuildingandrelatedlandinMiltonKeynes,England,whichwillhouseemployeesoftheCompany’sEMEAsegmentthatarebasedintheUnited Kingdom.The Company expects to incur additional capital costs related to the buildout of the acquired building and for thepurchaseofnewfurniture,fixturesandequipment.Uponcompletionofthebuildout,theCompanywillplacetheseassetsintoserviceandreclassifytheamountsrecordedincapitalinprogresstotherespectivefixedassetcategories,whichincludesamountsattributabletotheland.SinceallassetsassociatedwiththisnewofficebuildingaredenominatedinPoundSterling,amountswillfluctuateinU.S.Dollarsfromperiodtoperiodduetochangesinforeigncurrencyexchangerates.Forfurtherinformation,seetheLiquidityandCapitalResourcessectioninPartII—Item7,“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”.

Note 5. Goodwill and Other Intangible Assets

Acquisitions

Duringthefirstquarteroffiscalyear2018,theCompanyenteredintoaconfidentialsettlementagreementwithFirstPowerGroup,LLC(“FirstPower”)fordismissalofFirstPower’strademarkinfringementcomplaintagainsttheCompanyrelatingtouseofthewords,“EZ-REACH” for the Company’s WD-40 EZ-REACH Flexible Straw product. The settlement agreement provided for the Company’sacquisition of FirstPower’s trademark rights associated with the words “EZ REACH” for lubricating oil products for a purchaseconsideration of $0.2 million. The Company has used the words “EZ-REACH” since the introduction of the WD-40 EZ-REACHFlexibleStrawproductinfiscalyear2015.

Theentirepurchaseconsiderationof$0.2millionwaspaidincashuponexecutionofthesettlementagreementandwasallocatedtothetradename-relatedintangibleassetscategory.TheCompanybegantoamortizethisdefinite-livedintangibleassetonastraight-linebasisoveranestimatedusefullifeoffiveyearsinthefirstquarteroffiscalyear2018.ThisacquisitiondidnothaveamaterialimpactontheCompany’scondensedconsolidatedfinancialstatements.

Goodwill

Thefollowingtablesummarizesthechangesinthecarryingamountsofgoodwillbysegment(inthousands):

Americas EMEA Asia-Pacific TotalBalanceasofAugust31,2016 $ 85,452 $ 8,987 $ 1,210 $ 95,649

Translationadjustments (4) (48) - (52)BalanceasofAugust31,2017 85,448 8,939 1,210 95,597

Translationadjustments 1 23 - 24BalanceasofAugust31,2018 $ 85,449 $ 8,962 $ 1,210 $ 95,621

During the second quarter of fiscal year 2018, the Company performed its annual goodwill impairment test. The annual goodwillimpairment test was performed at the reporting unit level as required by the authoritative guidance as of the Company’s most recentgoodwillimpairmenttestingdate,November30,2017.Duringthefiscalyear2018annualgoodwillimpairmenttest,the

F-16

Companyperformedaqualitativeassessmentofeachreportingunittodeterminewhetheritwasmorelikelythannotthatthefairvalueofareportingunit waslessthanitscarryingamount. Inperformingthisqualitativeassessment, theCompanyassessedrelevantevents and circumstances that may impact the fair value and the carrying amount of each of its reporting units. Factors that wereconsidered included, but were not limited to, the following: (1) macroeconomic conditions; (2) industry and market conditions;(3)historicalfinancialperformanceandexpectedfinancialperformance,includingtheanticipatedimpactsofthe“TaxCutsandJobsAct”,whichwassignedintolawonDecember22,2017andbecameeffectivebeginningJanuary1,2018;(4)otherentityspecificevents,such as changes in management or key personnel; and (5) events affecting the Company’s reporting units, such as a change in thecompositionofnetassetsoranyexpecteddispositions.Basedontheresultsofthisqualitativeassessment,theCompanydeterminedthatitismorelikelythannotthatthecarryingvalueofeachofitsreportingunitsislessthanitsfairvalueasofthegoodwillimpairmenttestingdateand,thus,aquantitativeanalysiswasnotrequired.Asaresult,theCompanyconcludedthatnoimpairmentofitsgoodwillexistedasofFebruary28,2018.

Inaddition,therewerenoindicatorsofimpairmentidentifiedasaresultoftheCompany’sreviewofeventsandcircumstancesrelatedtoitsgoodwillsubsequenttoFebruary28,2018,thedateofitsmostrecentannualgoodwillimpairmenttest.Todate,therehavebeennoimpairmentlossesidentifiedandrecordedrelatedtotheCompany’sgoodwill.

Definite-lived Intangible Assets

TheCompany’sdefinite-livedintangibleassets,whichincludethe2000Flushes,SpotShot,CarpetFresh,1001,EZREACHandGT85tradenames,theBelgiumcustomerlist,theGT85customerrelationshipsandtheGT85technologyareincludedinotherintangibleassets,netintheCompany’scondensedconsolidatedbalancesheets.Thefollowingtablesummarizesthedefinite-livedintangibleassetsandtherelatedaccumulatedamortization(inthousands):

August 31, August 31,2018 2017

Grosscarryingamount $ 36,122 $ 35,891Accumulatedamortization (22,609) (19,647)

Netcarryingamount $ 13,513 $ 16,244

There has be en no impairment charge for the period ended August 31, 2018 as a result of the Company’s review of events andcircumstancesrelatedtoitsexistingdefinite-livedintangibleassets.

Changesinthecarryingamountsofdefinite-livedintangibleassetsbysegmentaresummarizedbelow(inthousands):

Americas EMEA Asia-Pacific TotalBalanceasofAugust31,2016 $ 14,913 $ 4,278 $ - $ 19,191

Amortizationexpense (2,207) (672) - (2,879)Translationadjustments - (68) - (68)

BalanceasofAugust31,2017 12,706 3,538 - 16,244Amortizationexpense (2,237) (714) - (2,951)EZREACHtradename 175 - - 175Translationadjustments - 45 - 45

BalanceasofAugust31,2018 $ 10,644 $ 2,869 $ - $ 13,513

TheestimatedamortizationexpensefortheCompany’sdefinite-livedintangibleassetsinfuturefiscalyearsisasfollows(inthousands):

Trade Names Customer-BasedFiscalyear2019 $ 2,455 $ 260Fiscalyear2020 2,055 166Fiscalyear2021 1,266 166Fiscalyear2022 1,266 166Fiscalyear2023 1,020 -Thereafter 4,693 -

Total $ 12,755 $ 758

F-17

Includedinthetotalestimatedfutureamortizationexpenseistheamortizationexpenseforthe1001tradenameandtheGT85intangibleassets, which are based on current foreign currency exchange rates, and as a result amounts in future periods may differ from thosepresentedduetofluctuationsinthoserates.

Note 6. Accrued and Other Liabilities

Accruedliabilitiesconsistedofthefollowing(inthousands):

August 31, August 31,2018 2017

Accruedadvertisingandsalespromotionexpenses $ 11,972 $ 10,889Accruedprofessionalservicesfees 1,712 1,456Accruedsalestaxesandothertaxes 1,642 1,701Accruedliabilityforwardcontract(1) 6,893 -Other 4,021 4,951

Total $ 26,240 $ 18,997

(1) ThisaccruedliabilityrelatestoaforeigncurrencyforwardcontractthattheCompany’sU.K.subsidiaryenteredintowithBankofAmericatosellU.S.DollarsandreceivePoundSterling.ThisforeigncurrencyforwardcontractmaturedonAugust30,2018,butthesettlementofthecurrenciesintheamountof$6.9milliondidnotoccuruntilSeptember4,2018.Asaresult,asofAugust31,2018,theCompanyowedBankofAmerica$6.9millionwhichwasrecordedinaccruedandotherliabilities.BankofAmericaalsoowedtheCompany$6.9  millionequivalentinPoundSterlingandthiswasrecordedinothercurrentassetsasofAugust31,2018.

Accruedpayrollandrelatedexpensesconsistedofthefollowing(inthousands):

August 31, August 31,2018 2017

Accruedincentivecompensation $ 6,719 $ 6,554Accruedpayroll 3,792 3,338Accruedprofitsharing 2,561 2,257Accruedpayrolltaxes 1,236 1,503Other 515 570

Total $ 14,823 $ 14,222

Note 7. Debt

AsofAugust31,2018,theCompanyheldborrowingsundertwoseparateagreementsasdetailedbelow.

NotePurchaseandPrivateShelfAgreement

On November 15, 2017, the Company entered into the Note Purchase and Private Shelf Agreement (the “Note Agreement”) by andamong the Company, PGIM, Inc. (“Prudential”), and certain affiliates and managed accounts of Prudential (the “Note Purchasers”),pursuanttowhichtheCompanyagreedtosell$20.0millionaggregateprincipalamountofseniornotes(the“SeriesANotes”)tocertainoftheNotePurchasers.TheSeriesANoteswillbearinterestat3.39%perannumandwillmatureonNovember15,2032,unlessearlierpaidbytheCompany.Principalpaymentsarerequiredsemi-annuallybeginningonMay15,2018inequalinstallmentsof$0.4millionthroughMay15,2032,andtheremainingoutstandingprincipalintheamountof$8.4millionwillbecomedueonNovember15,2032.Interestisalsopayablesemi-annuallybeginningonMay15,2018.TheCompanyusedtheproceedstopaydown$20.0millionofshort-termborrowingsunder theCompany’s existing$175.0millionunsecuredCredit Agreement duringfiscal year 2018 .OnFebruary23,2018,thisNoteAgreementwasamended(the“NoteAmendment”)inconnectionwiththepurchaseoftheCompany’snewofficebuildingandrelatedlandlocatedinMiltonKeynes,England,(the“Property”).TheNoteAmendmentamendstheNoteAgreementtopermittheCompanytospendanaggregateamountnottoexceed$15.0millionfortheacquisitionandimprovementcostsforthePropertythroughthe end of the Company’s fiscal year 2019. During the twelve months ended August 31, 2018, the Company repaid $0.4million inprincipalontheSeriesANotespursuanttoitssemi-annualprincipalpaymentrequirements.

F-18

PursuanttotheNoteAgreement,theCompanymayfromtimetotimeofferforsale,inoneoraseriesoftransactions,additionalseniornotesoftheCompany(the“ShelfNotes”)inanaggregateprincipalamountofupto$105.0million.TheShelfNoteswillhaveamaturitydateofnomorethan15½yearsafterthedateoforiginalissuanceandmaybeissuednolaterthanNovember15,2020.TheShelfNotes,ifissued,wouldbearinterestatarateperannumasagreeduponamongsttheCompanyandthepurchasingpartiesandwouldhavesuchotherparticularterms,aswouldbesetforthinaconfirmationofacceptanceexecutedbythepurchasingpartiespriortotheclosingofeachpurchaseandsaletransaction.Todate,theCompanyhasissuednoShelfNotes.PursuanttotheNoteAgreement,theSeriesANotesandanyShelfNotes(collectively,the"Notes")canbeprepaidattheCompany’ssolediscretion,inwholeatanytimeorinpartfromtimetotime, at 100% of the principal amount of the Notes being prepaid, together with accrued and unpaid interest thereon as well as anadditionalmake-wholepaymentwithrespecttosuchNotes.

CreditAgreement

OnJune 17, 2011, the Company entered into an unsecured Credit Agreement (the “Credit Agreement”) with Bank of America, N.A.(“BankofAmerica”).SinceJune17,2011,thisunsecuredcreditagreementhasbeenamendedsixtimes,mostrecentlyonNovember15,2017,(the“FifthAmendment”)andonFebruary23,2018,(the“SixthAmendment”).TheFifthAmendmentamendedcertainprovisionsandcovenantsintheCreditAgreementtogenerallyconformthemtothecorrespondingprovisionsandcovenantscontainedintheNoteAgreementandpermitstheCompanytoincurindebtednessarisingundertheNoteAgreementinanaggregateprincipalamountnottoexceed the $20.0million, the amount of the Series A Notes sold pursuant to the Note Agreement in November 2017. The SixthAmendmentamendedtheCredit Agreementtopermit theCompanytospendanaggregateamountnottoexceed$15.0millionfortheacquisitionandimprovementcostsfortheCompany’snewofficebuildingandrelatedlandinMiltonKeynes,England,throughtheendoftheCompany’sfiscalyear2019.TheSixthAmendmentalsopermitstheCompanytoincuranadditional$15.0millionofindebtednessundertheNoteAgreementbyissuanceandsaleofShelfNotespursuanttotheNoteAgreement.

Per the termsof the amended agreement, the revolving commitment may not exceed$175.0million and the aggregate amount of theCompany’scapitalstockthatitmayrepurchasemaynotexceed$150.0millionduringtheperiodfromNovember16,2015tothematuritydateoftheagreementsolongasnodefaultexistsimmediatelypriorandaftergivingeffectthereto.ThisrevolvingcreditfacilitymaturesonMay13,2020.Inaddition,asallowedperthetermsoftheCreditAgreement,theCompanyandBankofAmericaenteredintoanautoborrowagreement providingfortheautomaticadvanceofrevolvingloansinU.S.DollarstotheCompany’sdesignatedaccountatBankofAmerica.Thisagreementwasenteredintoduringthesecondquarteroffiscalyear2016andthisagreementhasbeenineffectsincethattime.SincetheautoborrowfeatureprovidesforborrowingstobemadeandrepaidbytheCompanyonadailybasis,anysuchborrowingsmadeunderanactiveautoborrowagreementareclassifiedasshort-termontheCompany’sconsolidatedbalancesheets.TheCompanyhad$2.8millioninnetborrowingsoutstandingundertheautoborrowagreementasofAugust31,2018.

Duringthefirsthalfoffiscalyear2018,theCompanyrepaid$20.0millioninborrowingsoutstandingunderthelineofcreditbyutilizingthe proceeds fromthe $20.0 million in Series ANotes issued in November 2017 and subsequently borrowed$10.0million under therevolvingcreditfacilityduringtheremainderoffiscalyear2018.Inaddition,asaresultofthe“TaxCutsandJobsAct”(the“TaxAct”)whichbecameeffectivebeginningJanuary1,2018,theCompanybeganreevaluatingitsindefinitereinvestmentassertionforitsforeignsubsidiaries.InMay2018,theCompanycompletedthisreevaluationandchangeditsindefinitereinvestmentassertionforcertainofitsforeign subsidiaries. As a result, the Company no longer considers unremitted earnings of any of its foreign subsidiaries to beindefinitelyreinvested.ForadditionalinformationontheTaxAct,seeNote12—IncomeTaxes,includedinthisreport.TheCompanyrepatriatedaportionofitsunremittedforeignearningsduringthefourthquarteroffiscalyear2018intheamountof$79.6millionfromitsU.K.subsidiaryandusedthesefundstowardsrepaying$80.0millionofoutstandingdrawsonthelineofcredit.

TheCompanyassessesitsabilityandintenttorefinancetheoutstandingdrawsonthelineofcreditattheendofeachreportingperiodinordertodeterminetheproperbalancesheetclassificationforamountsoutstandingonthelineofcredit.Outstandingdrawsonthelineofcredit which the Company intends to repay in less than twelve months are classified as short-term. Outstanding draws for whichmanagement has the ability and intent to refinance with successive short- term borrowings for a period of at least twelve months areclassifiedaslong-term.AsofAugust31,2018,theCompanyhadabalanceof$64.0millionofoutstandingdrawsonthelineofcredit,of which$44.0million was classified as long-term based on management’s ability and intent to refinance with successive short-termborrowingsforaperiodofatleasttwelvemonths.Theremaining$20.0millionofoutstandingdrawswasclassifiedasshort-termasofAugust31,2018.

F-19

Short-termandlong-termborrowingsconsistedofthefollowing(inthousands):

August 31, August 31,2018 2017

Short-termborrowings:Revolvingcreditfacility,short-term $ 20,000 $ 20,000Revolvingcreditfacility,autoborrowfeature 2,800 -SeriesANotes,currentportionoflong-termdebt 800 -Totalshort-termborrowings 23,600 20,000

Long-termborrowings:Revolvingcreditfacility 44,000 134,000SeriesANotes 18,800 -Totallong-termborrowings 62,800 134,000Total $ 86,400 $ 154,000

Both the Note Agreement and the Credit Agreement contain representations, warranties, events of default and remedies, as well asaffirmative, negative and other financial covenants customary for these types of agreements. These covenants include, among otherthings,certainlimitationsontheabilityoftheCompanyanditssubsidiariestoincurindebtedness,createliens,disposeofassets,makeinvestments, repurchase shares of the Company’s capital stock and enter into certain merger or consolidation transactions. Eachagreement alsoincludes a most favoredlender provisionwhichrequires that anytimeanyother lender hasthebenefit of oneor morefinancialoroperationalcovenantsthatisdifferentthan,orsimilarto,butmorerestrictivethanthosecontainedinitsownagreement,thosecovenantsshallbeimmediatelyandautomaticallyincorporatedbyreferenceintheotherlender’sagreement.

BoththeNoteAgreement andtheCredit Agreementrequire theCompanytoadheretothesamefinancial covenants. Forthefinancialcovenants, the definition of consolidated EBITDA includes the add back of non-cash stock-based compensation to consolidated netincomewhenarrivingatconsolidatedEBITDA.Thetermsofthefinancialcovenantsareasfollows:

· Theconsolidatedleverageratio cannot begreater thanthreeto one. Theconsolidatedleverageratio means, as of anydate ofdetermination, the ratio of (a) consolidated funded indebtedness as of such date to (b) consolidated EBITDA for the mostrecentlycompletedfourfiscalquarters.

· Theconsolidatedinterestcoverageratiocannotbelessthanthreetoone.Theconsolidatedinterestcoverageratiomeans,asofany date of determination, the ratio of (a) consolidated EBITDA for the most recently completed four fiscal quarters to (b)consolidatedinterestchargesforthemostrecentlycompletedfourfiscalquarters.

AsofAugust31,2018theCompanywasincompliancewithalldebtcovenantsunderboththeNoteAgreementandtheCreditAgreement.

Note 8. Share Repurchase Plans

On June 21, 2016, the Company’s Board of Directors approved a share buy-back plan. Under the plan, which became effective onSeptember1,2016,theCompanywasauthorizedtoacquireupto$75.0millionofitsoutstandingsharesthroughAugust31,2018.ThetimingandamountofrepurchaseswerebasedontermsandconditionsthatwereacceptabletotheCompany’sChiefExecutiveOfficerandChief Financial Officer andin compliance withall lawsandregulations applicable thereto . Duringthe periodfromSeptember 1,2016throughAugust31,2018,theCompanyrepurchased465,879sharesatatotalcostof$53.7millionunderthis$75.0millionplan.During fiscal year 2018, the Company repurchased175,306shares at an average price of$128.99per share, for a total cost of $22.6million

OnJune19,2018,theCompany’sBoardofDirectorsapprovedanewsharebuy-backplan.Undertheplan,whichbecameeffectiveonSeptember1,2018andwillremainineffect throughAugust31,2020,theCompanyisauthorizedtoacquireupto$75.0millionofitsoutstandingsharesontermsandconditionsasmaybeacceptabletotheCompany’sChiefExecutiveOfficerandChiefFinancialOfficerandincompliancewithalllawsandregulationsthereto.

F-20

Note 9. Earnings per Common Share

Thetablebelowreconcilesnetincometonetincomeavailabletocommonshareholders(inthousands):

Fiscal Year Ended August 31,2018 2017 2016

Netincome $ 65,215 $ 52,930 $ 52,628Less:Netincomeallocatedtoparticipatingsecurities (423) (323) (334)Netincomeavailabletocommonshareholders $ 64,792 $ 52,607 $ 52,294

Thetablebelowsummarizestheweighted-averagenumberofcommonsharesoutstandingincludedinthecalculationofbasicanddilutedEPS(inthousands):

Fiscal Year Ended August 31,2018 2017 2016

Weighted-averagecommonsharesoutstanding,basic 13,929 14,089 14,332Weighted-averagedilutivesecurities 33 34 47Weighted-averagecommonsharesoutstanding,diluted 13,962 14,123 14,379

Therewerenoanti-dilutivestock-basedequityawardsoutstandingforthefiscalyearsendedAugust31,2018and2017.ForthefiscalyearendedAugust31,2016,weighted-averagestock-basedequityawardsoutstandingthatarenon-participatingsecuritiesintheamountof4,501wereexcludedfromthecalculationofdilutedEPSunderthetreasurystockmethodastheywereanti-dilutive.

Note 10. Related Parties

OnOctober11,2011,theCompany’sBoardofDirectorselectedMr.GregoryA.SandfortasadirectorofWD-40Company.Mr.Sandfortis the Chief Executive Officer of Tractor Supply Company (“Tractor Supply”), which is a WD-40 Company customer that acquiresproductsfromtheCompanyintheordinarycourseofbusiness.

TheconsolidatedfinancialstatementsincludesalestoTractorSupplyof$1.4millionforfiscalyear2018and$1.2millionforeachofthefiscalyears2017and2016,respectively.AccountsreceivablefromTractorSupplywere$0.5millionasofAugust31,2018andwerenotsignificantasofAugust31,2017.

Note 11. Commitments and Contingencies

Leases

TheCompanywascommittedundercertainnon-cancellablecapitalandoperatingleasesatAugust31,2018.TheCompany'scapitalleaseswerenotsignificantasofAugust31,2018.TheCompany’sleasesprovideforthefollowingfuturefiscalyearminimumpayments(inthousands):

2019 2020 2021 2022 2023 ThereafterLeases $ 2,003 $ 1,517 $ 1,168 $ 694 $ 379 $ 1,198

Rentexpensewas$2.0million,$2.1million,and$1.9millionforthefiscalyearsendedAugust31,2018,2017and2016,respectively.

F-21

PurchaseCommitments

TheCompanyhasongoingrelationshipswithvarioussuppliers(contractmanufacturers)whomanufacturetheCompany’sproducts.Thecontractmanufacturersmaintaintitleandcontrolofcertainrawmaterialsandcomponents,materialsutilizedinfinishedproducts,andofthefinishedproductsthemselvesuntilshipmenttotheCompany’scustomersorthird-partydistributioncentersinaccordancewithagreeduponshipmentterms.AlthoughtheCompanyhasdefinitiveminimumpurchaseobligationsincludedinthecontracttermswithcertainofitscontractmanufacturers,whensuchobligationshavebeenincluded,theyhaveeitherbeenimmaterialortheminimumamountshavebeensuchthattheyarewellbelowthevolumeofgoodsthattheCompanyhashistoricallypurchased.Intheordinarycourseofbusiness,supplyneedsarecommunicatedbytheCompanytoitscontractmanufacturersbasedonordersandshort-termprojections,rangingfromtwotofivemonths.TheCompanyiscommittedtopurchasetheproductsproducedbythecontractmanufacturersbasedontheprojectionsprovided.

Upontheterminationofcontractswithcontractmanufacturers,theCompanyobtainscertaininventorycontrolrightsandisobligatedtoworkwiththecontract manufacturertosell throughall productheldbyormanufacturedbythecontract manufactureronbehalfoftheCompanyduringthe termination notification period. If anyinventory remains at the contract manufacturer at the termination date, theCompanyis obligated to purchase suchinventory whichmayinclude rawmaterials, components andfinishedgoods. Theamounts forinventorypurchasedunderterminationcommitmentshavebeenimmaterial.

In addition to the commitments to purchase products fromcontract manufacturers described above, the Company may also enter intocommitments with other manufacturers to purchase finished goods and components to support innovation and renovation initiativesand/orsupplychaininitiatives.AsofAugust31,2018,nosuchcommitmentswereoutstanding.

Litigation

Fromtimetotime,theCompanyissubjecttovariousclaims,lawsuits,investigationsandproceedingsarisingintheordinarycourseofbusiness,includingbutnotlimitedto,productliabilitylitigationandotherclaimsandproceedingswithrespecttointellectualproperty,breachofcontract,laborandemployment,taxandothermatters.Exceptasdisclosedherein,therearenounassertedclaimsorpendingproceedingsforclaimsagainsttheCompanythattheCompanybelieveswillresultinaprobablelossfortheCompanyand,astoclaimsthattheCompanybelievesmayresult inareasonablypossibleloss,theCompanybelievesthatnoreasonablypossibleoutcomeofanysuchclaimwillhaveamateriallyadverseimpactontheCompany’sfinancialcondition,resultsofoperationsorcashflows.

OnoraboutJuly31,2018,claimsfordamageswereassertedagainsttheCompanyinan“AmendedStatementofClaim”filedinacivilproceedinginMalaysiabeforetheHighCourtofMalayaatShahAlamintheStateofSelangorDarulEhsan,CivilSuitNo.BA-22NCvC-531-09/2017(the“MalayLitigation”).TheMalayLitigationwasfirstfiledinSeptember2017bySunwayWinstarSdn.Bhd.(“Sunway”)against a former employeeof Sunwayandtheformer employee’s newemployer, EkotrendsCapital Sdn. Bdh(“Ekotrends”). Sunwaywasamarketingdistributor for theCompanyfor thecountryof Malaysia from2004until 2017. Ekotrendsis anaffiliate of BunSengHardwareSdn. Bdh. (“BunSeng”), theCompany’s current marketingdistributor for Malaysia. TheMalayLitigationassertedthat theformeremployeeandEkotrendsmisappropriatedconfidentialinformation,includingcustomerlists,associatedwithSunway’sterminatedrelationshipastheCompany’sexclusivemarketingdistributor. Byorderof thecourt followingtheCompany’smotiontointerveneinordertoprotectandassertitsrighttoownershipofthecustomerlistsandotherconfidentialinformationassociatedwiththeCompany’sbusiness in Malaysia, Sunway filed its Amended Statement of Claim to add Bun Seng as a defendant and to assert newand separateclaimsagainsttheCompanyallegingconspiracywithEkotrendsandBunSengtoinjurethebusinessandreputationofSunway.

The Company denies the allegations asserted by Sunway and will vigorously defend itself in the Malay Litigation. The CompanybelievesthatanunfavorableoutcomeintheMalayLitigationisnotprobable,butthatanawardofdamagesisreasonablypossible.DuetouncertaintyastothetheoriesforrecoveryofdamagesassertedbySunwayagainsttheCompanyandastoresultsinproceedingsunderMalaysianlaw,theCompanyisunabletoestimatethepossiblelossorrangeofloss.

OnJune11,2018,theUnitedStatesSupremeCourtdeniedapetitionforawritofcertiorarifiledbyIQProductsCompanyonJanuary10,2018. IQProductsCompanywasseekingSupremeCourt reviewoftheSeptember13, 2017decisionoftheFifthCircuit Court ofAppeals that affirmed a judgment entered in favor of the Company by the federal district court for the Southern District of Texas onAugust25,2016.ThejudgmentobligatedIQProductsCompanytopaytotheCompanythesumofapproximately$1.5million,includingpost-judgment interest from August 25, 2016. The Company received this$1.5million in July 2018 and recorded the amount as areductiontoitsselling,generalandadministrativeexpensesinitsconsolidatedfinancialstatementsinthefourthquarteroffiscalyear2018.ForfurtherinformationontheriskstheCompanyfacesfromexistingandfutureclaims,suits,investigationsandproceedings,seetheCompany’sriskfactorsdisclosedinPartI―Item1A,“RiskFactors,”includedinthisreport.

F-22

Indemnifications

AspermittedunderDelawarelaw,theCompanyhasagreementswherebyitindemnifiesseniorofficersanddirectorsforcertaineventsoroccurrenceswhiletheofficerordirectoris,orwas,servingattheCompany’srequestinsuchcapacity.ThemaximumpotentialamountoffuturepaymentstheCompanycouldberequiredtomakeundertheseindemnificationagreementsis unlimited; however, theCompanymaintainsDirectorandOfficerinsurancecoveragethatmitigatestheCompany’sexposurewithrespecttosuchobligations.AsaresultoftheCompany’sinsurancecoverage,managementbelievesthattheestimatedfairvalueoftheseindemnificationagreementsisminimal.Thus,noliabilitieshavebeenrecordedfortheseagreementsasofAugust31,2018.

From time to time, the Company enters into indemnification agreements with certain contractual parties in the ordinary course ofbusiness,includingagreementswithlenders,lessors,contractmanufacturers, marketingdistributors,customersandcertainvendors.Allsuchindemnificationagreementsareenteredintointhecontextoftheparticularagreementsandareprovidedinanattempttoproperlyallocateriskoflossinconnectionwiththeconsummationoftheunderlyingcontractualarrangements.AlthoughthemaximumamountoffuturepaymentsthattheCompanycouldberequiredtomakeundertheseindemnificationagreementsisunlimited,managementbelievesthattheCompanymaintainsadequatelevelsofinsurancecoveragetoprotecttheCompanywithrespecttomostpotentialclaimsarisingfrom such agreements and that such agreements do not otherwise have value separate and apart from the liabilities incurred in theordinarycourseoftheCompany’sbusiness.Thus,noliabilitieshavebeenrecordedwithrespecttosuchindemnificationagreementsasofAugust31,2018.

Note 12. Income Taxes

Incomebeforeincometaxesconsistedofthefollowing(inthousands):

Fiscal Year Ended August 31,2018 2017 2016

UnitedStates $ 42,634 $ 42,060 $ 41,128Foreign(1) 32,544 32,562 31,661Incomebeforeincometaxes $ 75,178 $ 74,622 $ 72,789

(1) IncludedintheseamountsareincomebeforeincometaxesfortheEMEAsegmentof$27.4million,$28.1millionand$28.3millionforthefiscalyearsendedAugust31,2018,2017and2016,respectively.

Theprovisionforincometaxesconsistedofthefollowing(inthousands):

Fiscal Year Ended August 31,2018 2017 2016

Current:Federal $ 10,100 $ 10,813 $ 13,269State 651 744 894Foreign 6,750 7,465 7,593

Totalcurrent 17,501 19,022 21,756

Deferred:UnitedStates (7,496) 2,627 (1,100)Foreign (42) 43 (495)

Totaldeferred (7,538) 2,670 (1,595)Provisionforincometaxes $ 9,963 $ 21,692 $ 20,161

F-23

Deferredtaxassetsanddeferredtaxliabilitiesconsistedofthefollowing(inthousands):

August 31, August 31,2018 2017

Deferredtaxassets:Accruedpayrollandrelatedexpenses $ 916 $ 1,252Accountsreceivable 303 644Reservesandaccruals 1,496 2,393Stock-basedcompensationexpense 2,321 3,213Uniformcapitalization 959 1,598Taxcreditcarryforwards 2,790 2,309Other 938 1,289Totalgrossdeferredtaxassets 9,723 12,698Valuationallowance (2,505) (2,328)

Totalnetdeferredtaxassets 7,218 10,370

Deferredtaxliabilities:Propertyandequipment,net (1,305) (2,109)Amortizationoftaxgoodwillandintangibleassets (16,108) (26,036)Investmentsinpartnerships (222) (679)Other (122) -

Totaldeferredtaxliabilities (17,757) (28,824)Netdeferredtaxliabilities $ (10,539) $ (18,454)

The Company had state net operating loss (“NOL”) carryforwards of$3.0million and$2.6million as of August 31, 2018 and 2017,respectively, which generated a net deferred tax asset of $0.2million for each of the fiscal years 2018 and 2017. The state NOLcarryforwards,ifunused,willexpirebetweenfiscalyear2019and2038.TheCompanyalsohadtaxcreditcarryforwardsof$2.8millionand$2.3millionasofAugust31,2018and2017,respectively,ofwhich$2.5millionand$2.1million,respectively,isattributabletoU.K. tax credit carryforwards, which do not expire. Future utilization of the U.K. tax credit carryforwards and certain state NOLcarryforwardsisuncertainandisdependentuponseveralfactorsthatmaynotoccur,includingthegenerationoffuturetaxableincomeincertainjurisdictions.Atthistime,managementcannotconcludethatitis“morelikelythannot”thattherelateddeferredtaxassetswillberealized. Accordingly, a full valuation allowance has been recorded against the related deferred tax asset associated with the U.K. taxcreditcarryforwardsandcertainstateNOLcarryforwards.

AreconciliationofthestatutoryfederalincometaxratetotheCompany’seffectivetaxrateisasfollows(inthousands):

Fiscal Year Ended August 31,2018 2017 2016

AmountcomputedatU.S.statutoryfederaltaxrate $ 19,298 $ 26,118 $ 25,476Stateincometaxes,netoffederaltaxbenefits 453 327 397Effectofforeignoperations (1,412) (4,277) (4,382)Benefitfromqualifieddomesticproductiondeduction (1,121) (1,295) (1,190)TaxCutsandJobsAct:Remeasurementofdeferredincometaxes (6,762) - -Tolltax,netofforeigntaxcredits (282) - -

BenefitfromStockCompensation (725) - -Other 514 819 (140)Provisionforincometaxes $ 9,963 $ 21,692 $ 20,161

F-24

OnDecember20,2017theUnitedStatesHouseofRepresentativesandtheSenatepassedthe“TaxCutsandJobsAct”(the“TaxAct”),whichwassignedintolawonDecember22,2017andbecameeffectivebeginningJanuary1,2018.DuetothecomplexityoftheTaxAct,theSECissuedguidanceinSAB118whichclarifiestheaccountingforincometaxesunderASC740ifinformationisnotyetavailable,prepared or analyzed in reasonable detail to complete the accounting for income tax effects of the Tax Act. SAB118 provides for ameasurementperiodofuptooneyearaftertheenactmentoftheTaxAct,duringwhichtimetherequiredanalysesandaccountingmustbecompleted.Duringthemeasurementperiod,(i)incometaxeffectsoftheTaxActmustbereportediftheaccountinghasbeencompleted;(ii)provisionalamountsmustbereportedforincometaxeffectsoftheTaxActforwhichtheaccountingisincompletebutareasonableestimatecanbedetermined;and(iii)provisionalamountsarenotrequiredtobereportedforincometaxeffectsoftheTaxActforwhichareasonableestimatecannotbedetermined.Duringfiscalyear2018,theCompanyrecordedprovisionalamountsfortheincometaxeffectsof the changes in tax law and tax rates, as reasonable estimates were determined by management during this period. These estimatesincludetheremeasurementofthedeferredincometaxbalanceontheCompany’sconsolidatedbalancesheetsduetothereductioninthecorporatefederalstatutorytaxratefrom35%to21%,aswellastheapplicationofamandatoryone-time“tolltax”onunremittedforeignearnings.

Thecombinedimpactoftheremeasurementofdeferredincometaxesandthemeasurementofthetolltax,bothofwhichwererecordedasprovisionalamountsanddiscreteitems,resultedinanetfavorableimpactof$7.1milliontotheCompany’sprovisionforincometaxesforthefiscal yearendedAugust31,2018.Theinitial remeasurement oftheCompany’snetdeferredincometaxliabilitywasrecordedduringthesecondquarteroffiscalyear2018andresultedinareductionofthenetliabilityof$6.9million.Thisprovisionalbenefitwasdecreased by$0.1million during the fourth quarter of fiscal year 2018 to reflect year-end deferred balances remeasured at the newapplicable statutory tax rates, which resulted in a total provisional benefit of$6.8million for fiscal year 2018. The Company’s initialprovisionalestimateofthedeemedtolltax,netofforeigntaxcredits,wasrecordedasachargetotheprovisionforincometaxesof$6.8millionduringthesecondquarteroffiscalyear2018.Aspartofitsyear-endprocedures,theCompanycompletedadditionalanalysisthatsignificantly revised management’s estimate of this provisional amount. As a result of this a nalysis, the Company recorded a $7.1milliontaxbenefitduringthefourthquarteroffiscalyear2018toreflectatotalprovisionalbenefitrelatedtothetolltaxof$0.3millionforfiscalyear2018.ThisprovisionalbenefitreflectstheCompany’srevisedanalysis,whichestimatesthatforeigntaxcreditsassociatedwiththetolltaxareexpectedtoexceedamountspayableunderthetolltax.Theseprovisionaltaxbenefitsmaybereducedoreliminatedbyfuturelegislation.Ifsuchlegislationisenacted,theCompanywillrecordtheimpactofthelegislationinthequarterofenactment.

Thedeterminationoftheimpactoftheincometaxeffectsoftheitemsreflectedasprovisionalamountsmaychange,possiblymaterially,followingadditionalreviewofhistoricalrecords,refinementofcalculations,modificationsofassumptions,orfuturelegislation,aswellasfurther interpretationoftheTaxActbasedonU.S.TreasuryregulationsandguidancefromtheInternal RevenueServiceandstatetaxauthorities.TheCompanywillreportrevisedprovisionalamountsinaccordancewithSAB118whenadditionalinformationandguidancehasbecomeavailable.

AsaresultoftheTaxAct,theCompanyhasbeenreevaluatingitsindefinitereinvestmentassertionforitsforeignsubsidiaries.InMay2018,theCompanycompletedthisreevaluationanddecidedtochangeits assertionforits U.K.,ChinaandAustraliasubsidiariessuchthat unremitted earningsfor thesesubsidiaries are nolonger consideredto beindefinitely reinvested. TheCompanydidnot changeitsassertion for its Canada or Malaysia subsidiaries as a result of its reevaluation and neither previously had an assertion of indefinitereinvestmentofunremittedearnings.Asaresult,theCompanynolongerconsidersunremittedforeignearningsofanyofitssubsidiariestobeindefinitelyreinvested.TheCompanyrepatriatedaportionofitsunremittedforeignearningsduringthefourthquarteroffiscalyear2018intheamountof$79.6millionfromitsU.K.subsidiaryandusedthesefundstowardsrepaying$80.0millionofoutstandingdrawsonitslineofcredit.Thecostsassociatedwithrepatriatingunremittedforeignearnings,includingU.S.stateincometaxesandforeignwithholdingtaxes,areimmaterialtotheCompany’sconsolidatedfinancialstatements.

Management will continue to review the Tax Act and is still in the process of determining the full impacts of the Tax Act on theCompany.ManagementexpectsthattheCompanywilllosethebenefitfromtheQualifiedProductionDeductioninfiscalyear2019butalsoexpectstoacquirecertainbenefitsfromtheForeignDerivedIntangibleIncomesectionoftheTaxAct.Othersignificantsectionsofthenewtaxlaw,includingtheGlobalIntangibleLow-TaxedIncome(“GILTI”)andtheBaseErosionAnti-AbuseTax(“BEAT”),donotapplytotheCompany’sfiscalyear2018.TheCompanywillcontinuetoevaluatetheGILTIandtheBEATtodeterminewhethertheywillhaveanysignificantimpactontheCompany’sconsolidatedfinancialstatementsinfutureyears.

F-25

Theprovisionforincometaxeswas13.3%and29.1%ofincomebeforeincometaxesforthefiscalyearsendedAugust31,2018and2017,respectively.ThedecreaseintheeffectiveincometaxratefromperiodtoperiodwasprimarilyduetothefavorableimpactsofthereducedtaxrateresultingfromtheTaxAct,whichbecameeffectiveduringthesecondquarteroftheCompany’sfiscalyear.SincetheCompanyhasafiscalyearwhichendsonAugust31st,theCompanyissubjecttoa“blended”corporatefederalstatutoryrateinitsfiscalyear2018whichiscalculatedbasedontheapplicabletaxratesbeforeandafterpassageoftheTaxActandthenumberofdaysinthefiscalyear.Asaresultofthiscalculation,theCompany’sblendedfederalstatutorytaxrateforfiscalyear2018is25.7%whichismorethan9percentage points lower than the statutory rate of 35%in the prior fiscal year. The Company also recorded two discrete itemsrelatedtotheTaxActduringfiscalyear2018,the$6.8millionprovisionalremeasurementoftheCompany’snetdeferredtaxliabilityandthe $0.3million provisional benefit related to the toll tax, both of which lowered the Company’s effective income tax rate fromperiodtoperiod.ThedecreaseintheeffectiveincometaxratefromperiodtoperiodwasalsodriveninpartbytheadoptionofASU2016-09, “ Improvements to Employee Share-Based Payment Accounting ”, in the first quarter of the Company’s fiscal year 2018 whichresultedinexcesstaxbenefitsfromsettlementsofstock-basedequityawardsof$0.7millionbeingrecognizedintheprovisionforincometaxes,whereassuchbenefitswererecognizedasanincreasetoadditionalpaid-incapitalinpriorperiods.Inaddition,theeffectiveincometaxrateforthefiscalyearendedAugust31,2017washigherduetotheunfavorableimpactofanon-recurringimmaterialout-of-periodcorrectionthattheCompanyrecordedinthesecondquarteroffiscalyear2017associatedwiththetaximpactsfromcertainunrealizedforeigncurrencyexchangelosses.ReconciliationsofthebeginningandendingamountsoftheCompany’sgrossunrecognizedtaxbenefits,excludinginterestandpenalties,areasfollows(inthousands):

Fiscal Year Ended August 31,2018 2017

Unrecognizedtaxbenefits-beginningoffiscalyear $ 981 $ 1,239Netincreases(decreases)-priorperiodtaxpositions 62 (68)Netincreases-currentperiodtaxpositions 263 228Expirationsofstatuteoflimitationsforassessment (197) (382)Settlements (71) (36)

Unrecognizedtaxbenefits-endoffiscalyear $ 1,038 $ 981

Grossunrecognizedtaxbenefitstotaled$1.0millionforeachofthefiscalyearsendedAugust31,2018and2017,ofwhich$0.9millionand$0.6million, respectively, wouldaffect theCompany’s effective incometaxrate if recognized. There werenomaterialinterestorpenaltiesincludedinincometaxexpenseforthefiscalyearsendedAugust31,2018and2017.ThetotalbalanceofaccruedinterestandpenaltiesrelatedtouncertaintaxpositionswasalsoimmaterialatAugust31,2018and2017.

TheCompanyissubjecttotaxationintheU.S.andinvariousstateandforeignjurisdictions.Duetoexpiredstatutesandclosedaudits,theCompany’s federal incometax returns for years prior to fiscal year 2016are not subject to examination bythe U.S. Internal RevenueService.Generally, for themajority of state andforeignjurisdictions wheretheCompanydoesbusiness, periodsprior tofiscal year2014arenolongersubject toexamination. TheCompanyhasestimatedthat upto$0.2millionofunrecognizedtaxbenefits relatedtoincome tax positions may be affected by the resolution of tax examinations or expiring statutes of limitation within the next twelvemonths.Auditoutcomesandthetimingofsettlementsaresubjecttosignificantuncertainty.

Note 13. Stock-based Compensation

AsofAugust31,2018,theCompanyhadonestockincentiveplan,theWD-40Company2016StockIncentivePlan(“2016Plan”),whichwasapprovedbytheCompany’sshareholderseffectiveasofDecember13,2016.The2016Planpermitsthegrantingofvariousstock-basedequityawards,includingnon-qualifiedstockoptions,incentivestockoptions,stockappreciationrights,restrictedstock,restrictedstockunits,performanceshares,performanceunitsandotherstock-basedawardstoemployees,directorsandconsultants.TodatethroughAugust 31, 2018, the Company had granted awards of restricted stock units (“RSUs”) , market share units (“MSUs”) and defe rredperformance units (“DPUs”)under the 2016Plan. Additionally, as of August 31, 2018, there were still outstanding RSUs, MSUsandDPUswhichhadbeengrantedundertheCompany’spriorequityincentiveplan.The2016PlanisadministeredbytheBoardofDirectors(the “Board”) or the Compensation Committee or other designated committee of the Board(the “Committee”). All stock-based equityawardsgrantedunderthe2016PlanaresubjecttothespecifictermsandconditionsasdeterminedbytheCommitteeatthetimeofgrantofsuchawardsinaccordancewiththevarioustermsandconditionsspecifiedforeachawardtypeperthe2016Plan.Thetotalnumberofsharesofcommonstockauthorizedforissuancepursuanttograntsofawardsunderthe2016Planis1,000,000.AsofAugust31,2018,786,364sharesofcommonstockremainedavailableforfutureissuancepursuanttograntsofawardsunderthe2016Plan.Thesharesofcommonstocktobeissuedpursuanttoawardsunderthe2016Planmaybeauthorizedsharesnotpreviouslyissued,ortreasuryshares.TheCompanyhashistoricallyissuednewauthorizedsharesnotpreviouslyissueduponthesettlementofthevariousstock-basedequityawardsunderitsequityincentiveplans.

F-26

VestingoftheRSUsgrantedtodirectorsisimmediate, withsharestobeissuedpursuanttothevestedRSUsuponterminationofeachdirector’sserviceasadirectoroftheCompany.Vestingoftheone-timegrantofRSUsgrantedtocertainkeyexecutivesoftheCompanyinMarch2008insettlementofthesekeyexecutives’benefitsundertheCompany’ssupplementalemployeeretirementplanagreementswasoveraperiodofthreeyearsfromthedateofgrant,withsharestobeissuedpursuanttothevestedRSUssixmonthsfollowingthedayaftereachexecutiveofficer’sterminationofemploymentwiththeCompany.VestingoftheRSUsgrantedtocertainhighlevelemployeesisoveraperiodofthreeyearsfromthedateofgrant, subjecttopotential earliervestingintheeventofretirementoftheholderoftheawardinaccordancewiththeawardagreement, withsharestobeissuedpursuant tothevestedRSUsat thetimeofvest. ThedirectorRSUholdersandtheexecutiveofficer March2008grantdateRSUholdersareentitledtoreceivedividendequivalentswithrespect totheirRSUs,payableincashasandwhendividendsaredeclaredbytheCompany’sBoardofDirectors.

Vesting of the MSUs granted to certain high level employees follows a performance measurement period of three fiscal yearscommencingwiththeCompany’sfiscalyearinwhichtheMSUawardsaregranted(the“MeasurementPeriod”).ShareswillbeissuedpursuanttothevestedMSUsfollowingtheconclusionoftheapplicableMSUMeasurementPeriodaftertheCommittee’scertificationofachievementoftheapplicableperformancemeasureforsuchawardsandthevestingoftheMSUawardsandtheapplicablepercentageofthetargetnumberofMSUsharestobeissued.TherecipientmustremainemployedwiththeCompanyforvestingpurposesuntilthedateonwhichtheCommitteecertifiesachievementoftheapplicableperformancemeasurefortheMSUawards,subjecttopotentialpro-ratavestingintheeventofearlierretirementoftheholderoftheawardinaccordancewiththeawardagreement.

Vestingof the DPUsgrantedto certain highlevel employees followsa performance measurement periodofonefiscal year that is thesamefiscalyearinwhichtheDPUawardsaregranted(the“MeasurementYear”).AnumberofDPUsequaltotheapplicablepercentageofthemaximumnumberof DPUsawardedwill beconfirmedasvestedfollowingtheconclusionoftheapplicableDPUMeasurementYear after theCommittee’s certification of achievement of the applicable performance measure for suchawards(the “VestedDPUs”).The recipient must remain employed with the Company for vesting purposes until August 31 of the Measurement Year, subject topotential pro-rata vesting in the event of earlier retirement of the holder of the award in accordance with the award agreement. ForrecipientswhoareresidentsoftheUnitedStates,theVestedDPUsmustbehelduntilterminationofemployment,withsharestobeissuedpursuanttotheVestedDPUssixmonthsfollowingthedayaftereachsuchrecipient’sterminationofemploymentwiththeCompany.Forrecipients who are not residents of the United States, the Committee has discretion to either defer settlement of each such recipient’sVestedDPUsbyissuanceofsharesfollowingterminationofemploymentorsettleeachVestedDPUincashbypaymentofanamountequal to theclosingprice of oneshare of theCompany’s commonstockas of thedate of theCommittee’s certification of therelativeachievementoftheapplicableperformancemeasurefortheDPUawards.UntilissuanceofsharesinsettlementoftheVestedDPUs,theholders of each Vested DPUthat is not settled in cash are entitled to receive dividendequivalents with respect to their Vested DPUs,payableincashasandwhendividendsaredeclaredbytheCompany’sBoardofDirectors.

Stock-basedcompensationexpenseisamortizedonastraight-linebasisovertherequisiteserviceperiodfortheentireaward.Stock-basedcompensationexpenserelatedtotheCompany’sstock-basedequityawardstotaled$4.2million,$4.1millionand$3.7millionforthefiscal years endedAugust 31, 2018, 2017and2016, respectively. TheCompanyrecognizedincometaxbenefits relatedto suchstock-based compensation of $1.1 million, $1.4 million and $1.2 million for the fiscal years ended August 31, 2018, 2017 and 2016,respectively.AsofAugust31,2018,thetotalunamortizedcompensationcostrelatedtonon-vestedstock-basedequityawardswas$0.6millionand$1.7millionforRSUsandMSUs,respectively,whichtheCompanyexpectstorecognizeoverremainingweighted-averagevestingperiodsof1.6and1.8yearsforRSUsandMSUs,respectively.Nounamortizedcompensationcost forDPUsremainedasofAugust31,2018.

F-27

Stock Options

Fiscal year 2008 was the last fiscal period in which the Company granted stock options. The estimated fair value of each of theCompany’s stock option awards granted in andprior to fiscal year 2008was determined onthe date of grant usingthe Black-Scholesoptionpricingmodel.

AsummaryoftheCompany’sstockoptionawardactivityisasfollows(inthousands,exceptshareandpershareamountsandcontractualterminyearsdata):

Weighted-AverageRemaining

Weighted-Average Contractual TermNumber of Exercise Price Per Share Aggregate

Stock Options Shares Per Share (in years) Intrinsic ValueOutstandingatAugust31,2017 5,960 $ 36.03

Granted - $ -Exercised (5,960) $ 36.03Forfeitedorexpired - $ -

OutstandingatAugust31,2018 - $ - - $ -ExercisableatAugust31,2018 - $ - - $ -

Thetotalintrinsicvalueofstockoptionsexercisedwas$0.5million,$1.6millionand$2.5millionforthefiscalyearsendedAugust31,2018,2017and2016,respectively.

The income tax benefits from stock options exercised totaled $0.1million,$0.4million and$0.7million for the fiscal years endedAugust31,2018,2017and2016,respectively.

Restricted Stock Units

TheestimatedfairvalueofeachoftheCompany’sRSUawardswasdeterminedonthedateofgrantbasedontheclosingmarketpriceoftheCompany’scommonstockonthedateofgrantforthoseRSUswhichareentitledtoreceivedividendequivalentswithrespecttotheRSUs, or basedonthe closing market price of the Company’s commonstockonthe date of grant less the grant date present value ofexpecteddividendsduringthevestingperiodforthoseRSUswhicharenotentitledtoreceivedividendequivalentswithrespect totheRSUs.

AsummaryoftheCompany’srestrictedstockunitactivityisasfollows(inthousands,exceptshareandpershareamounts):

Weighted-AverageGrant Date

Number of Fair Value AggregateRestricted Stock Units Shares Per Share Intrinsic ValueOutstandingatAugust31,2017 116,770 $ 63.61

Granted 24,114 $ 111.71Convertedtocommonshares (24,471) $ 76.58Forfeited (1,105) $ 104.24

OutstandingatAugust31,2018 115,308 $ 70.52 $ 20,461VestedatAugust31,2018 87,309 $ 59.22 $ 15,493

Theweighted-averagegrantdatefairvalueofallRSUsgrantedduringthefiscalyearsendedAugust31,2018,2017and2016was$111.71,$109.23and$95.89,respectively.ThetotalintrinsicvalueofallRSUsconvertedtocommonshareswas$2.8million,$3.6millionand$2.8millionforthefiscalyearsendedAugust31,2018,2017and2016,respectively.

TheincometaxbenefitsfromRSUsconvertedtocommonsharestotaled$0.7million,$1.3millionand$1.0millionforthefiscalyearsendedAugust31,2018,2017and2016,respectively.

F-28

Market Share Units

TheMSUsaremarketperformance-basedawardsthatshallvestwithrespecttotheapplicablepercentageofthetargetnumberofMSUshares based on relative total stockholder return (“TSR”) for the Companyas compared to the total return for the Russell 2000Index(“Index”)overtheperformanceMeasurementPeriod.TheultimatenumberofMSUsthatvestmayrangefrom0%to200%oftheoriginaltargetnumberofsharesdependingontherelativeachievementoftheTSRperformancemeasureattheendoftheMeasurementPeriod.TheprobabilitiesoftheactualnumberofMSUsexpectedtovestandresultantactualnumberofsharesofcommonstockexpectedtobeawardedarereflectedinthegrantdatefairvaluesofthevariousMSUawards;therefore,thecompensationexpensefortheMSUawardswillberecognizedassumingtherequisiteserviceperiodisrenderedandwillnotbeadjustedbasedontheactualnumberofsuchMSUawardstoultimatelyvest.

TheestimatedfairvalueofeachoftheCompany’sMSUawards,whicharenotentitledtoreceivedividendequivalentswithrespecttotheMSUs,wasdeterminedonthedateofgrantusingtheMonteCarlosimulationmodel,whichutilizesmultipleinputvariablestosimulatearangeof possible future stockprices for boththeCompanyandtheIndexandestimates theprobabilities of thepotential payouts. ThedeterminationoftheestimatedgrantdatefairvalueoftheMSUsisaffectedbytheCompany’sstockpriceandanumberofassumptionsincludingtheexpectedvolatilitiesoftheCompany’sstockandtheIndex,theCompany’srisk-freeinterestrateandexpecteddividends.The following weighted-average assumptions for MSUgrants for the last three fiscal years were used in the Monte Carlo simulationmodel:

Fiscal Year Ended August 31,2018 2017 2016

Expectedvolatility 20.4% 21.1% 22.2%Risk-freeinterestrate 1.6% 1.0% 0.9%Expecteddividendyield 0.0% 0.0% 0.0%

TheexpectedvolatilityutilizedwasbasedonthehistoricalvolatilitiesoftheCompany’scommonstockandtheIndexinordertomodelthestockpricemovements.Thevolatilityusedwascalculatedoverthemostrecent2.89-yearperiodsforMSUsgrantedduringeachofthefiscalyearsendedAugust31,2018,2017and2016,whichweretheremainingtermsoftheperformanceMeasurementPeriodatthedates of grant. The risk-free interest rates used were based on the implied yield available on a U.S. Treasury zero-coupon bill with aremainingtermequivalenttotheremainingperformanceMeasurementPeriod.TheMSUawardsstipulatethat,forpurposesofcomputingtherelativeTSRfortheCompanyascomparedtothereturnfortheIndex,dividendspaidwithrespecttoboththeCompany’sstockandtheIndexaretobetreatedasbeingreinvestedintothestockofeachentityasoftheex-dividenddate.Accordingly,anexpecteddividendyieldofzerowasusedintheMonteCarlosimulationmodel,whichisthemathematicalequivalenttoreinvestingdividendsintheissuingentityovertheperformanceMeasurementPeriod.

AsummaryoftheCompany’smarketshareunitactivityisasfollows(inthousands,exceptshareandpershareamounts):

Weighted-AverageGrant Date

Number of Fair Value AggregateMarket Share Units Shares Per Share Intrinsic ValueOutstandingatAugust31,2017 44,919 $ 94.95

Granted 15,729 $ 101.93Performancefactoradjustments 12,194 $ 76.04Convertedtocommonshares (27,589) $ 74.30Forfeited (3,045) $ 91.87

OutstandingatAugust31,2018(1) 42,208 $ 105.81 $ 7,490

(1) ThisfigurerepresentsthetotalnumberofsharesunderlyingMSUgrantsassumingachievementofthetargetnumberofsharesat100%.Astheultimatenumberofsharesthatvestcouldbeashighas200%ofthetarget,theCompanymayberequiredtoissueadditionalsharestosatisfyoutstandingMSUawardgrants.

Theweighted-averagegrantdatefairvalueofallMSUsgrantedduringthefiscalyearsendedAugust31,2018,2017and2016was$101.93,$90.91and$120.99,respectively.ThetotalintrinsicvalueofallMSUsconvertedtocommonshareswas$3.0million,2.8millionand$3.7millionforthefiscalyearsendedAugust31,2018,2017and2016,respectively.

TheincometaxbenefitsfromMSUsconvertedtocommonsharestotaled$0.8million,$0.9millionand$1.2millionforthefiscalyearsendedAugust31,2018,2017and2016,respectively.

F-29

Deferred Performance Units

TheDPUawards providefor performance-based vestingover a performance measurement periodof the fiscal year in whichthe DPUawards are granted. The performance vesting provisions of the DPUs are based on relative achievement within an establishedperformancemeasurerangeoftheCompany’sreportedearningsbeforeinterest,incometaxes,depreciationinoperatingdepartments,andamortizationcomputedonaconsolidatedbasisfortheMeasurementYear,beforedeductionofthestock-basedcompensationexpensefortheVestedDPUsandexcludingothernon-operatingincomeandexpenseamounts(“AdjustedGlobalEBITDA”).TheultimatenumberofDPUsthatvestmayrangefrom0%to100%oftheoriginalmaximumnumberofDPUsawardeddependingontherelativeachievementoftheAdjustedGlobalEBITDAperformancemeasureattheendoftheMeasurementYear.

TheestimatedfairvalueofeachoftheCompany’sDPUawardswasdeterminedonthedateofgrantbasedontheclosingmarketpriceoftheCompany’scommonstockonthedateofgrantlessthegrantdatepresentvalueofexpecteddividendsduringthevestingperiodfortheDPUs,whicharenotentitledtoreceivedividendequivalentswithrespecttotheunvestedDPUs.

AsummaryoftheCompany’sdeferredperformanceunitactivityisasfollows(inthousands,exceptshareandpershareamounts):

Weighted-AverageGrant Date

Number of Fair Value AggregateDeferred Performance Units Shares Per Share Intrinsic ValueOutstandingatAugust31,2017 30,876 $ 107.66

Granted 26,906 $ 110.65Performancefactoradjustments (25,882) $ 110.19Convertedtocommonshares (192) $ 94.54Forfeited (940) $ 110.65

OutstandingatAugust31,2018 30,768 $ 108.14 $ 5,460VestedatAugust31,2018 4,802 $ 94.54 $ 852

Theweighted-averagegrantdatefairvalueofallDPUsgrantedduringthefiscalyearsendedAugust31,2018,2017and2016was$110.65,$110.19and$94.54,respectively.ThetotalintrinsicvalueofallDPUsconvertedtocommonshareswasnotsignificantforeachofthefiscalyearsendedAugust31,2018and2017,andnoDPUswereconvertedtocommonsharesduringthefiscalyearendedAugust31,2016.

TheincometaxbenefitsfromDPUsconvertedtocommonshareswerenotsignificantforeachofthefiscalyearsendedAugust31,2018and2017.

Note 14. Other Benefit PlansThe Company has a WD-40 Company Profit Sharing/401(k) Plan and Trust (the “Profit Sharing/401(k) Plan”) whereby regular U.S.employees who have completed certain minimumservice requirements can defer a portion of their income through contributions to atrust.TheProfitSharing/401(k)PlanprovidesforCompanycontributionstothetrust,asapprovedbytheBoardofDirectors,asfollows:1)matchingcontributionstoeachparticipantupto50%ofthefirst6.6%ofcompensationcontributedbytheparticipant;2)fixednon-electivecontributionsintheamountequalto10%ofeligiblecompensation;and3)adiscretionarynon-electivecontributioninanamountto be determined by the Board of Directors up to 5% of eligible compensation. The Company’s contributions are subject to overallemployercontributionlimitsandmaynotexceedtheamountdeductibleforincometaxpurposes.TheProfitSharing/401(k)PlanmaybeamendedordiscontinuedatanytimebytheCompany.TheCompany’scontributionexpensefortheProfitSharing/401(k)Planwas$3.3millionforeachofthefiscalyears2018and2017,respectively,and$3.2millionforfiscalyears2016.

The Company’s international subsidiaries have similar benefit plan arrangements, dependent upon the local applicable laws andregulations.TheplansprovideforCompanycontributionstoanappropriatethird-partyplan,asapprovedbythesubsidiary’sBoardofDirectors.TheCompany’scontributionexpenserelatedtotheinternationalplanswas$1.6million,$1.4millionand$1.5millionforthefiscalyearsendedAugust31,2018,2017and2016,respectively.

F-30

Note 15. Business Segments and Foreign Operations

The Company evaluates the performance of its segments and allocates resources to them based on sales and operating income. TheCompany is organized on the basis of geographical area into the following three segments: the Americas; EMEA; and Asia-Pacific.Segment data does not include inter-segment revenues. Unallocated corporate expenses are general corporate overhead expenses notdirectlyattributabletotheoperatingsegmentsandarereportedseparatefromtheCompany’sidentifiedsegments.ThecorporateoverheadcostsincludeexpensesfortheCompany’saccountingandfinance,informationtechnology,humanresources,researchanddevelopment,quality control and executive management functions, as well as all direct costs associated with public company compliance mattersincludinglegal,auditandotherprofessionalservicescosts.Alsoincludedincorporateoverheadcostsforfiscalyear2018arecorporatefundedadvertisingandsalespromotionexpensesfocusedonincreasingtheCompany’sdigitalpresenceandbuildingbrandawareness.

UnallocatedAmericas EMEA Asia-Pacific Corporate (1) Total

Fiscal Year Ended August 31, 2018Netsales $ 192,878 $ 150,878 $ 64,762 $ - $ 408,518Incomefromoperations $ 48,954 $ 36,241 $ 19,098 $ (25,689) $ 78,604Depreciationandamortizationexpense $ 4,142 $ 2,561 $ 313 $ 784 $ 7,800

Interestincome $ 13 $ 320 $ 121 $ - $ 454Interestexpense $ 4,209 $ - $ 10 $ - $ 4,219

Fiscal Year Ended August 31, 2017Netsales $ 184,929 $ 136,771 $ 58,806 $ - $ 380,506Incomefromoperations $ 48,303 $ 35,389 $ 16,765 $ (24,548) $ 75,909Depreciationandamortizationexpense $ 4,270 $ 2,090 $ 254 $ 155 $ 6,769

Interestincome $ 8 $ 389 $ 111 $ - $ 508Interestexpense $ 2,570 $ - $ 12 $ - $ 2,582

Fiscal Year Ended August 31, 2016Netsales $ 191,397 $ 135,235 $ 54,038 $ - $ 380,670Incomefromoperations $ 48,404 $ 31,702 $ 15,162 $ (23,920) $ 71,348Depreciationandamortizationexpense $ 4,071 $ 2,084 $ 280 $ 30 $ 6,465

Interestincome $ 5 $ 485 $ 193 $ - $ 683Interestexpense $ 1,689 $ - $ 14 $ - $ 1,703

(1) Unallocatedcorporateexpensesaregeneralcorporateoverheadexpensesnotdirectlyattributabletoanyoneoftheoperatingsegments.Theseexpensesare reported separate fromthe Company’s identified segments and are included in Selling, General and Administrative expenses on the Company’sconsolidatedstatementsofoperations.

TheCompany’s Chief OperatingDecisionMaker does not reviewassets bysegment as part of the financial information providedandtherefore,noassetinformationisprovidedintheabovetable.

Netsalesbyproductgroupareasfollows(inthousands):

Fiscal Year Ended August 31,2018 2017 2016

Maintenanceproducts $ 372,391 $ 342,295 $ 339,974Homecareandcleaningproducts 36,127 38,211 40,696

Total $ 408,518 $ 380,506 $ 380,670

F-31

Netsalesandlong-livedassetsbygeographicareaareasfollows(inthousands):

Fiscal Year Ended August 31,2018 2017 2016

Net Sales by Geography:UnitedStates $ 154,986 $ 150,086 $ 158,139International 253,532 230,420 222,531

Total $ 408,518 $ 380,506 $ 380,670

Long-lived Assets by Geography (2) :UnitedStates $ 21,986 $ 23,346 $ 6,419International 14,371 6,093 5,126

Total $ 36,357 $ 29,439 $ 11,545

(2)Includestangibleassetsandpropertyandequipment,net,attributedtothegeographiclocationinwhichsuchassetsarelocated.

Note 16. Subsequent Events

OnOctober9,2018,theCompany’sBoardofDirectorsdeclaredacashdividendof$0.54persharepayableonOctober31,2018toshareholdersofrecordonOctober19,2018.

F-32

Exhibit 3(a )

ARTICLEI

Thenameofthecorporation(the“Corporation”)is:

WD-40COMPANY

ARTICLEII

TheaddressoftheCorporation’sregisteredofficeintheStateofDelawareis1209OrangeStreet,intheCityofWilmington,CountyofNewCastle.ThenameoftheCorporation’sregisteredagentatsuchaddressisTheCorporationTrustCompany.

ARTICLEIII

ThepurposeoftheCorporationistoengageinanylawfulactoractivityforwhichacorporationmaybeorganizedundertheGeneralCorporationLawoftheStateofDelaware.

ARTICLEIV

TheCorporationisauthorizedtoissueonlyoneclassofstock,tobedesignated“CommonStock.”ThetotalnumberofsharesofCommonStockwhichtheCorporationisauthorizedtoissueisThirty-SixMillion(36,000,000),withaparvalueof$0.001pershare.

ARTICLEV

InadditiontotherequirementsofapplicablelawandtheotherprovisionsofthisCertificateofIncorporation:

1.Theaffirmativevoteorconsentofeighty-fivepercent(85%)oftheoutstandingsharesofVotingStock(definedbelow)oftheCorporationshallberequiredfortheadoptionorauthorizationofaBusinessCombination(definedbelow)unless:

(a)TheBoardofDirectorsoftheCorporationshallhaveapprovedtheproposedBusinessCombinationpriortothedateaControllingPerson(definedbelow)whoproposestoenterintoorbeapartytoorbeinvolvedintheBusinessCombinationfirstbecameaControllingPerson;or

(b) (i) The Business Combination will result in an involuntary sale, redemption, cancellation or other termination ofownershipofallsharesofVotingStockoftheCorporationownedbystockholderswhodonotvoteinfavorof,orconsentinwritingto,theBusinessCombinationandthecashorfairvalueofotherreadilymarketableconsiderationtobereceivedbysuchstockholdersforsuchsharesshallatleastbeequaltotheMinimumPricePerShare(definedbelow);and

(ii)AproxystatementresponsivetotherequirementsoftheSecuritiesExchangeActof1934(definedbelow)willbemailed to the stockholders of the Corporation for the purposes of soliciting stockholder approval of the proposedBusinessCombination.SuchproxystatementshallallowindividualDirectorstoexpresstheiropinionastotherelativemeritsoftheproposedBusinessCombinationinaprominentplacetherein;and

(iii) After the Controlling Person who proposes to enter into or be a party to or be involved in the BusinessCombinationhasbecomeaControllingPersonandpriortotheconsummationoftheproposedBusinessCombination:

(1)exceptasapprovedbyaunanimousvoteoftheDirectors,thereshallhavebeennofailuretodeclareandpayatthe regular date therefor any full quarterly dividends (whether or not cumulative) on any outstanding preferredstock;

(2)thereshallhavebeen(A)noreductionintheannualrateofdividendspaidontheCommonStock(exceptasnecessary to reflect any subdivision of the Common Stock), except as approved by a unanimous vote of theDirectors,and(B)anincreaseinsuchannualrateofdividendsasnecessarytoreflectany

reclassification (including any reverse stock split), recapitalization, reorganization, or any similar transactionwhichhastheeffectofreducingthenumberofoutstandingsharesoftheCommonStock,unlessthefailuresotoincreasesuchannualrateisapprovedbyaunanimousvoteoftheDirectors;and

(3)suchControllingPersonshallhavenotbecometheBeneficialOwner(definedbelow)ofanyadditionalsharesofVotingStockexceptaspartofthetransactionwhichresultsinsuchControllingPersonbecomingaControllingPerson;and

(iv)AftersuchControllingPersonhasbecomeaControllingPerson,suchControllingPersonshallnothavereceivedthebenefit,directlyorindirectly(exceptproportionately,solelyinsuchControllingPerson’scapacityasastockholderoftheCorporation),ofanyloans,advances,guarantees,pledges,orotherfinancialassistanceoranytaxcreditsorothertax advantage provided by the Corporation, whether in anticipation of or in connection with the proposed BusinessCombinationorotherwise.

2.ForpurposesofthisArticleV,thefollowingdefinitionsshallapply:

(a)An“Affiliate”ofthespecifiedPerson(definedbelow)shallmeanaPersonthatdirectly,orindirectlythroughoneormoreintermediaries,controls,oriscontrolledby,orisundercommoncontrolwiththePersonspecified.

(b)An“Associate”ofaspecifiedPersonshallmean(1)anycorporationororganizationofwhichsuchPersonisanofficerorpartneroris,directlyorindirectlytheBeneficialOwneroffivepercent(5%)ormoreofanyclassofequitysecurities,(2)anytrustorotherestateinwhichsuchPersonhasafivepercent(5%)orlargerbeneficialinterestofanynatureorastowhichsuchPersonservesastrusteeorinasimilarfiduciarycapacity,(3)anyspouseofsuchPerson,and(4)anyrelativeofsuchPerson,oranyrelativeofaspouseofsuchPerson,whohasthesameresidenceassuchPersonorspouse.

(c)“Beneficial Ownership”ofsharesofVotingStockshall includewithoutlimitation(i) all sharesdirectlyorindirectlyownedbyaPerson,byanAffiliateofsuchPersonorbyanAssociateofsuchPersonorsuchAffiliate,(ii)allshareswhichsuchPerson,Affiliate,orAssociatehastherighttoacquirethroughtheexerciseofanyoption,warrantorright(whetherornot currently exercisable), through the conversion of a security, pursuant to the power to revoke a trust, discretionaryaccount or similar arrangement, or pursuant to the automatic termination of a trust, discretionary account or similararrangement,and(iii)allshareswhicharebeneficiallyowned,directlyorindirectly,byanyotherPersonwithwhomsuchfirst-mentioned Person, Affiliate, or Associate has, directly or indirectly, any contract, arrangement, understanding,relationshiporotherwise(includingwithoutlimitationanywrittenorunwrittenagreementtoactinconcertbutspecificallyexcluding any participation agreement, arrangement, understanding or relationship between or among any two or morecommercialbanksmadeorestablishedinconnectionwithandinfurtheranceofabonafidelendingarrangementwiththeCorporationand/oroneormoreSubsidiaries(definedbelow))withrespecttoexerciseofthevotingpower(whichincludesthepowertovoteortodirectthevotingofsuchshares)orinvestmentpower(whichincludesthepowertodisposeortodirectthedispositionofsuchshares,orboth)incidenttoownershipofsuchshares.

(d) “Business Combination” shall mean (1) any merger or consolidation of the Corporation with or into a ControllingPerson or Affiliate of a Controlling Person or Associate of such Controlling Person or Affiliate, (2) any sale, lease,exchange, transfer or other disposition, includingwithout limitationamortgageor anyother securitydevice, ina singletransactionorseriesofrelatedtransactions,ofalloranySubstantialPart(definedbelow)oftheassetsoftheCorporation,includingwithoutlimitationanyvotingsecuritiesofaSubsidiary,orofaSubsidiary,toaControllingPersonorAffiliateofaControllingPersonorAssociateofsuchControllingPersonorAffiliate, (3)anymergerintotheCorporation,orintoaSubsidiary,ofaControllingPersonoranAffiliateofaControllingPersonoranAssociateofsuchControllingPersonorAffiliate,(4)anysale,lease,exchange,transferorotherdispositiontotheCorporationoraSubsidiaryofalloranypartoftheassetsofaControllingPersonorAffiliateofaControllingPersonorAssociateofsuchControllingPersonorAffiliate,but not includinganydispositionsof assets which, if includedwithall other dispositionsconsummatedduringthesamefiscalyearoftheCorporationbythesameControllingPerson,AffiliatesthereofandAssociatesofsuchControllingPersonorAffiliates,wouldnotresultindispositionsduringsuchyearbyallsuchPersonsofassetshavinganaggregatefairvalue(determinedatthetimeofdispositionoftherespectiveassets)inexcessofonepercent(1%)ofthetotalconsolidatedassetsoftheCorporation(asshownonitscertifiedbalancesheetasoftheendofthefiscalyearprecedingtheproposed

disposition),provided,however,thatinnoeventshallanydispositionofassetsbeexceptedfromstockholderapprovalbyreasonof

theprecedingexclusionifsuchdispositionwhenincludedwithallotherdispositionsconsummatedduringthesame,andimmediately preceding nine, fiscal years of the Corporation by the same Controlling Person, Affiliates thereof andAssociates of suchControllingPersonorAffiliates, wouldresult indispositionsbyall suchPersonsof assets havinganaggregatefairvalue(determinedatthetimeofdispositionoftherespectiveassets)inexcessoffivepercent(5%)ofthetotal consolidated assets of the Corporation (as shown on its certified balance sheet as of the end of the fiscal yearprecedingtheproposeddisposition),(5)anyreclassificationofCommonStockoftheCorporation,oranyrecapitalizationinvolvingCommonStockof the Corporation, consummated within ten years after the Controlling Personwhoproposessuch reclassification or recapitalization becomes a Controlling Person, and (6) any agreement, contract or otherarrangement providing for any of the transactions described in this definition of Business Combination, but,notwithstanding anything to the contrary herein, Business Combination shall not include any transaction involving aControllingPersonorAffiliateofaControllingPersonorAssociateofsuchControllingPersonorAffiliatewhichistobeconsummated or becomeeffective after suchControlling Personhas beena Controlling Personfor at least tenyears. APersonwhoisorwasaControllingPersonasof(i)thetimeanydefinitiveagreementrelatingtoaBusinessCombinationisentered into, (ii) the record date for the determination of stockholders entitled to notice of and to vote on a BusinessCombination, or (iii) immediately prior to the consummation of a Business Combination shall be deemed to be aControllingPersonforpurposesofthisdefinition.

(e)“Control”ofaPersonshallmeanthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofthemanagementandpoliciesofsuchPerson,whetherthroughtheownershipofvotingsecurities,bycontractorotherwise.

(f) “Controlling Person” shall mean any Person who Beneficially Owns a number of shares of Voting Stock of theCorporation,whetherornotsuchnumberincludessharesnotthenoutstandingorentitledtovote,whichexceedsanumberequaltotenpercent(10%)oftheoutstandingsharesofVotingStockoftheCorporation,butdoesnotincludeanyoneoragroupofmorethanoneofthemembersoftheBoardofDirectorsoftheCorporationwho(i)weremembersoftheBoardofDirectorsonthedatethisArticleVbecameeffective,(ii)aremembersoftheBoardofDirectorspromptlyfollowingthemergerofWD-40Company,aCaliforniacorporation,withandintotheCorporation,or(iii)werefirstelectedasDirectorspriortothedateaControllingPersonwhoproposestoenterintoorbeapartytoorbeinvolvedinaBusinessCombinationbecameaControllingPerson.

(g)“MinimumPricePerShare”shallmeanthesumof(a)thehigherof(i)thehighestgrosspersharepricepaidoragreedtobepaidtoacquireanysharesofVotingStockoftheCorporationBeneficiallyOwnedbyaControllingPerson,providedsuch payment or agreement to make payment was made within ten years immediately prior to the record date set todeterminethestockholdersentitledtovoteorconsenttotheBusinessCombinationinquestion,or(ii)thehighestpershareclosingpublicmarketpriceforsuchVotingStockduringsuchten-yearperiod,plus(b)theaggregateamount,ifany,bywhich ten percent (10%) for each year, beginning on the date on which such Controlling Person became a ControllingPerson,ofsuchhigherpersharepriceexceedstheaggregateamountofallCommonStockdividendspersharepaidincashsincethedateonwhichsuchPersonbecameaControllingPerson.ThecalculationoftheMinimumPricePerShareshallrequireappropriateadjustmentsforcapitalchanges,includingwithoutlimitationstocksplits,stockdividendsandreversestocksplits.

(h) “Person” shall mean an individual, a corporation, a partnership, an association, a limited liability company, a joint-stockcompany,atrust,anyunincorporatedorganization,agovernmentorpoliticalsubdivisionthereofandanyotherentity(otherthantheCorporation,itsSubsidiariesoratrusteeholdingstockforthebenefitofemployeesoftheCorporationoritsSubsidiaries,oranyoneofthem,pursuanttooneormoreemployeebenefitplansorarrangements).

(i)“SecuritiesExchangeActof1934”shallmeantheSecuritiesExchangeActof1934,asamendedfromtimetotime,aswellasanysuccessororreplacementstatute.

(j) “Subsidiary” shall mean any corporation more than twenty-five percent (25%) of whose outstanding securitiesrepresentingtherighttovotefortheelectionofDirectorsisBeneficiallyOwnedbytheCorporationand/oroneormoreSubsidiaries.

(k)“SubstantialPart”shallmeanmorethantenpercent(10%)ofthetotalassetsofthecorporationinquestion,asshownonitscertifiedbalancesheetasoftheendofthemostrecentfiscalyearendingpriortothetimethedeterminationisbeingmade.

(l)“VotingStock”oftheCorporationshallmeanalloutstandingsharesofCapitalStockoftheCorporationentitledtovotegenerally in the election of Directors, and each reference to a proportion of shares of Voting Stock shall refer to suchproportionofthevotesentitledtobecastbysuchshares.

3.ThisArticleVshallnotbealtered,changedorrepealedunlesstheamendmenteffectingsuchalteration,changeorrepealshallhavereceivedtheaffirmativevoteorconsentofeighty-fivepercent(85%)oftheoutstandingsharesofCommonStockoftheCorporation;PROVIDED,HOWEVER,thatthisParagraph3shallnotapplyto,andsuchvoteshallnotberequiredfor,any such alteration, change or repeal recommended to stockholders by a unanimous vote of the Directors and any suchalteration,changeorrepealsorecommendedshallrequireonlythevote,ifany,requiredundertheapplicableprovisionsoftheGeneralCorporationLawoftheStateofDelaware(asamendedfromtimetotime).

4.AControllingPersonshallbesubjecttoallfiduciaryandotherstandardsofconductandobligationsimposedbylaw.

5.TheprovisionsofthisArticleVareseverable:ifanyprovisionisheldbyacourtofcompetentjurisdictiontobeinvalid,voidorunenforceable,theremainingprovisionsshallcontinueinfullforcewithoutbeingimpairedorinvalidatedinanyway.

ARTICLEVI

ThenumberofDirectorswhichconstitutethewholeBoardofDirectorsoftheCorporationshallbeasspecifiedintheBylawsoftheCorporation.

ARTICLEVII

Infurtheranceandnotinlimitationofthepowersconferredbystatute,theBoardofDirectorsisexpresslyauthorizedtomake,amend,rescindorrepealtheBylawsoftheCorporation.

ARTICLEVIII

ElectionsneednotbebyballotunlessotherwisespecifiedintheBylawsoftheCorporation;PROVIDED,HOWEVER,thatall elections for Directors must bebyballot uponanydemandmadebya stockholder at themeetingandbefore thevotingbegins.

ARTICLEIX

MeetingsofstockholdersmaybeheldwithinorwithouttheStateofDelaware,astheBylawsoftheCorporationmayprovide.ThebooksoftheCorporationmaybekept(subjecttoanyprovisioncontainedintheGeneralCorporationLawoftheStateofDelaware) outside the State of Delaware at such place or places as may be designated from time to time by the Board ofDirectorsorintheBylawsoftheCorporation.

ARTICLEX

The Corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate ofIncorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein aregrantedsubjecttothisreservation.

ARTICLEXI

1.ADirector’sliabilitytotheCorporationforbreachofanydutytotheCorporationoritsstockholdersshallbelimitedtothefullestextentpermissiblebythelawsoftheStateofDelawareasnowineffectorhereafteramended.Inparticular,noDirectorshallbeliabletotheCorporationoranyofitsstockholdersformonetarydamagesforbreachoffiduciarydutyasaDirector,exceptforliability(a)foranybreachoftheDirector’sdutyofloyaltytotheCorporationoritsstockholders, (b)foractsoromissionsnotingoodfaithorwhichinvolveintentionalmisconductoraknowingviolationoflaw,(c)underSection174ofthe General Corporation Law of the State of Delaware, as the same exists or hereafter may be amended, or (d) for anytransactionfromwhichtheDirectorderivedanimproperpersonalbenefit.

2. Any repeal or modification of the foregoing paragraph shall not adversely affect any right or protection of a Directorexistingatthetimeofsuchrepealormodification.

3. If theGeneral CorporationLawoftheStateofDelawareis amendedtoauthorizecorporate actionfurther eliminatingorlimitingtheliabilityofdirectors,thenaDirector,inadditiontothecircumstancesinwhichheorsheisnotnowliable,shallbefreeofliabilitytothefullestextentpermittedbytheGeneralCorporationLawoftheStateofDelaware,assoamended.

ARTICLEXII

1. The Corporation shall be authorized to indemnify its officers, Directors, employees and agents to the fullest extentpermitted by the General Corporation Law of the State of Delaware, which power to indemnify shall include, withoutlimitation, the power to enter into indemnification agreements and amendments thereto upon such terms as the Board ofDirectorsshalldeemadvisable.

2. Any repeal or modification of the foregoing paragraph shall not adversely affect any right or protection of any officer,Director,employeeoragentoftheCorporationexistingatthetimeof,orincreasetheliabilityofanyDirectorwithrespecttoany acts or omissions of any officer, Director, employee or agent of the Corporation occurring prior to, such repeal ormodification.

ARTICLEXIII

ThenameandmailingaddressoftheincorporatoroftheCorporationis:

ThomasJ.TranchinaWD-40COMPANY1061CudahyPlaceSanDiego,CA92110

THEUNDERSIGNEDincorporator,forthepurposeofformingacorporationpursuanttotheGeneralCorporationLawoftheStateofDelaware,herebyacknowledgesthattheforegoingCertificateofIncorporationishisactanddeedandthatthefactsstatedthereinaretrue.

Dated:October22,1999

/s/ThomasJ.Tranchina

5

Exhibit 10 (b )

Exhibit 10 (b )

WD-40 COMPANY2007 STOCK INCENTIVE PLAN

1. Establishment, Objectives and Duration.

(a)EstablishmentofthePlan.WD-40Company(hereinafterreferredtoasthe"Company"),herebyestablishesanincentivecompensationplantobeknownasthe"WD-40Company2007StockIncentivePlan"(hereinafterreferredtoasthe"Plan").ThePlanpermitsthegrantingofNonqualifiedStockOptions,IncentiveStockOptions,StockAppreciationRights,RestrictedStock,RestrictedStockUnits,PerformanceShares,PerformanceUnitsandOtherStock-BasedAwards.ThePlaniseffectiveasofDecember11,2007(the"EffectiveDate"),subjecttotheapprovalofthePlanbythestockholdersoftheCompanyatthe2007AnnualMeeting.

(b)Definitions.DefinitionsofcapitalizedtermsusedinthePlanarecontainedintheattachedGlossary,whichisincorporatedaspartofthePlan.

(c)ObjectivesofthePlan . TheobjectivesofthePlanaretoattractandretainthebestavailablepersonnelforpositionsofsubstantial responsibility, to provide additional incentive to Participants andto optimize the profitability andgrowthof theCompanythroughincentivesthatareconsistentwiththeCompany'sgoalsandthatlinkthepersonalinterestsofParticipantstothose of the Company's stockholders. The Plan is further intended to provide flexibility to the Company in its ability tomotivate, attract, and retain the services of Participants who make or are expected to make significant contributions to theCompany'ssuccessandtoallowParticipantstoshareinthesuccessoftheCompany.

(d) Duration of the Plan . No Award may be granted under the Plan after the day immediately preceding the tenth (10 th) anniversary of the Effective Date, or such earlier date as the Board shall determine. The Plan will remain in effect withrespecttooutstandingAwardsuntilnoAwardsremainoutstanding.

2. Administration of the Plan.

(a)TheCommittee.ThePlanshallbeadministeredbytheBoardorbytheCompensationCommitteeoftheBoardorsuchothercommittee(theCompensationCommitteeorsuchothercommitteeishereinafterreferredtoasthe"Committee")astheBoardshallselectconsistingoftwoormoremembersoftheBoardeachofwhomisintendedtobea"non-employeedirector"within the meaning of Rule 16b-3 (or any successor rule) of the Exchange Act, an "outside director" under regulationspromulgated under Section 162(m) of the Code, and an "independent director" under NASDAQ listing standards. ThemembersoftheCommitteeshallbeappointedfromtimetotimeby,andshallserveatthediscretionof,theBoard.

(b)AuthorityoftheCommittee.SubjecttoApplicableLawsandtheprovisionsofthePlan(includinganyotherpowersgiventotheCommitteehereunder),andexceptasotherwiseprovidedbytheBoard,theCommitteeshallhavefullandfinalauthorityinitsdiscretiontotakeallactionsdeterminedbytheCommitteetobenecessaryintheadministrationofthePlan,including,withoutlimitation,discretionto:

(i)selecttheEmployees,DirectorsandConsultantstowhomAwardsmayfromtimetotimebegrantedhereunder;

(ii)determinewhetherandtowhatextentAwardsaregrantedhereunder;

(iii)determinethesizeandtypesofAwardsgrantedhereunder;

(iv)approveformsofAwardAgreementforuseunderthePlan;

(v)determinethetermsandconditionsofanyAwardgrantedhereunder;

(vi)establishperformancegoalsforanyPerformancePeriodanddeterminewhethersuchgoalsweresatisfied; 

  

 (vii) amend the terms of any outstanding Award granted under the Plan at any time, including following a Participant'sterminationofemploymentorintheeventofaChangeinControl,providedthat,exceptasotherwiseprovidedinSection18,nosuchamendmentshallreducetheExercisePriceofoutstandingOptionsorthegrantpriceofoutstandingSARswithouttheapproval of the stockholders of the Company, and provided further, that any amendment that would adversely affect theParticipant'srightsunderanoutstandingAwardshallnotbemadewithouttheParticipant'swrittenconsent;

(viii) construeandinterpret thetermsof thePlanandanyAwardAgreement enteredintounder thePlan, andto decideallquestionsoffactarisinginitsapplication;and

(ix)takesuchotheraction,notinconsistentwiththetermsofthePlan,astheCommitteedeemsappropriate.

Notwithstandingtheforegoing, exceptasApplicableLawsmayrequirethegrantofanAwardtobeauthorizedonlybytheCommittee or that determinations with respect to the attainment or satisfaction of Performance Measure(s) be madebytheCommittee,theBoardshallhavefullauthoritytoadministerthePlan.

(c)EffectofCommittee'sDecisions.SubjecttotheauthorityoftheBoardtoadministerthePlan,alldecisions,determinationsand interpretations of the Committee shall be final, binding and conclusive on all persons, including the Company, itsSubsidiaries,itsstockholders,Employees,Directors,Consultantsandtheirestatesandbeneficiaries.

3. Shares Subject to the Plan; Effect of Grants; Individual Limits.

(a)NumberofSharesAvailableforGrants.SubjecttoadjustmentasprovidedinSection18hereof,themaximumnumberofSharesthatmaybeissuedpursuanttoAwardsunderthePlanshallbe2,250,000Shares,plusanySharesremainingavailableforissuanceunderthePriorPlansasoftheEffectiveDate,plusthenumberofSharessubjecttooutstandingawardsunderthePriorPlansattheEffectiveDatethataredeemednotissuedunderthePriorPlanspursuanttothisSection3(a).Sharesthatarepotentially deliverable under an Award (counted as provided for in Section 3(b)) or a Prior Plan award that expires or iscanceled,forfeited,settledincashorotherwisesettledwithoutthedeliveryofSharesshallnotbetreatedashavingbeenissuedunderthePlanoraPriorPlan.TheSharestobeissuedpursuanttoAwardsmaybeauthorizedbutunissuedSharesortreasuryShares.NoAwardshallbegrantedunderthePlanprovidingfortheissuanceofSharestotheextentthat,asofthedateoftheAward,thenumberofSharesdeliverableundersuchAwardwillexceedthemaximumnumberofSharesauthorizedpursuanttothisSection3(a)reducedbythetotalnumberofSharesissuedpursuanttoAwardsunderthePlan(countedasprovidedforinSection3(b))plusthenumberofSharesthatarepotentiallydeliverableunderalloutstandingAwardspursuanttothePlan(countedasprovidedforinSection3(b)).

(b)AwardTypeShareCounting.TheissuanceofeachSharepursuanttoAwardsofRestrictedStock,RestrictedStockUnits,PerformanceShares,PerformanceUnitsandOtherStock-BasedAwardsshallbecountedasthree(3)SharesforpurposesofcomputingthenumberofSharesauthorizedforissuanceunderthePlanpursuanttoSection3(a).EachShareissuedpursuantto an Award of an Option or an SARshall be counted as one Share for purposes of the number of Shares authorized forissuanceunderthePlanpursuanttoSection3(a).

(c)Individual AwardLimits . Subject to adjustment as provided in Section 18 hereof, the following limitations shall applywithrespecttoAwardsunderthePlan:

(i) Options andSARs—Individual Limits: The maximumaggregate number of Shares with respect to which Options andSARsmaybegrantedinanycalendaryeartoanyoneParticipantshallbe250,000Shares,providedthatsuchlimitshallbeincreasedto500,000SharesduringthefirstyearfollowingthedateofhireforanEmployeewhohasnotpreviouslybeeninContinuousServicewiththeCompanyoraSubsidiaryforaperiodofatleastoneyear.

(ii) Full-Value Awards of Restricted Stock, Restricted StockUnits, Performance Shares andOther Stock-BasedAwards —IndividualLimits:ThemaximumaggregatenumberofSharesofRestrictedStockandShareswithrespecttowhichRestrictedStockUnits,PerformanceSharesandOtherStock-BasedAwardsmaybegrantedinanycalendaryeartoanyoneParticipantshallbe125,000Shares,providedthatsuchlimitshallbeincreasedto250,000SharesduringthefirstyearfollowingthedateofhireforanEmployeewhohasnotpreviouslybeeninContinuousServicewiththeCompanyoraSubsidiaryforaperiodofatleastoneyear.

  

 (iii)PerformanceUnits—IndividualLimits:ThemaximumaggregatecompensationthatcanbepaidpursuanttoPerformanceUnitsawardedinanyonefiscalyeartoanyoneParticipantshallbe$2,500,000oranumberofShareshavinganaggregateFairMarketValuenotinexcessofsuchamount.

4. Eligibility and Participation.

(a)Eligibility.PersonseligibletoparticipateinthePlanincludeallEmployees,DirectorsandConsultants.

(b)ActualParticipation.SubjecttotheprovisionsofthePlan,theCommitteemay,fromtimetotime,selectfromalleligibleEmployees,DirectorsandConsultants,thosetowhomAwardsshallbegrantedandshalldeterminethenatureandamountofeachAward.TheCommitteemayestablishadditionalterms,conditions,rulesorprocedurestoaccommodatetherulesorlawsofapplicableforeignjurisdictionsandtoaffordParticipantsfavorabletreatmentundersuchlaws;provided,however,thatnoAwardshallbegrantedunderanysuchadditionalterms,conditions,rulesorprocedureswithtermsorconditionswhichareinconsistentwiththeprovisionsofthePlan.

(c)TerminationofService.AneligibleEmployee,DirectororConsultanttowhomanAwardisgrantedunderthePlanshallberemaineligibleforsuchAwardsolongasheorsheremainsinContinuousServicewiththeCompanyoraSubsidiaryandthereafteronlyonsuchtermsandconditionsasmaybespecifiedintheapplicableAwardAgreement.

5. Types of Awards.

(a)TypeofAwards.AwardsunderthePlanmaybeintheformofOptions(bothNonqualifiedStockOptionsand/orIncentiveStock Options), SARs, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units and Other Stock-BasedAwards.

(b)DesignationofAward.EachAwardshallbedesignatedintheAwardAgreement.

6. Options.

(a)GrantofOptions.SubjecttothetermsandprovisionsofthePlan,OptionsmaybegrantedtoParticipantsinsuchnumberanduponsuchterms,andatanytimeandfromtimetotime,asshallbedeterminedbytheCommittee.

(b)AwardAgreement.EachOptiongrantshallbeevidencedbyanAwardAgreementthatshallspecifytheExercisePrice,thedurationoftheOption,thenumberofSharestowhichtheOptionpertains, andsuchotherprovisionsastheCommitteeshall determine including, but not limited to, the Option vesting schedule, repurchase provisions, rights of first refusal,forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, and paymentcontingencies.TheAwardAgreementalsoshallspecifywhethertheOptionisintendedtobeanIncentiveStockOptionoraNonqualifiedStockOption.OptionsthatareintendedtobeIncentiveStockOptionsshallbesubjecttothelimitationssetforthinSection422oftheCode.

(c)ExercisePrice.ExceptforOptionsadjustedpursuanttoSection18herein,andreplacementOptionsgrantedinconnectionwithamerger, acquisition, reorganizationorsimilartransaction, theExercisePriceforeachgrantofanOptionshall notbelessthanonehundredpercent(100%)oftheFairMarketValueofaShareonthedatetheOptionisgranted.However,inthecase of an Incentive Stock Option granted to a Participant who, at the time the Option is granted, owns stock representingmorethantenpercent(10%)ofthevotingpowerofallclassesofstockoftheCompanyoranySubsidiary,theExercisePriceforeachgrantofanOptionshallnotbelessthanonehundredtenpercent(110%)oftheFairMarketValueofaShareonthedatetheOptionisgranted.

(d) Term of Options . The term of an Option granted under the Plan shall be determined by the Committee, in its solediscretion; provided, however, that such term shall not exceed ten (10) years. However, in the case of an Incentive StockOptiongrantedtoaParticipantwho,atthetimetheOptionisgranted,ownsstockrepresentingmorethantenpercent(10%)ofthevotingpowerofallclassesofstockoftheCompanyoranySubsidiary,thetermoftheIncentiveStockOptionshallbefive(5)yearsfromthedateofgrantthereoforsuchshortertermasmaybeprovidedintheAwardAgreement.

(e) Exercise of Options . Options granted under this Section 6 shall be exercisable at such times and be subject to suchrestrictionsandconditionsassetforthintheAwardAgreementandastheCommitteeshallineachinstanceapprove,whichneednotbethesameforeachgrantorforeachParticipant;provided,however,thatexceptforOptionsgranted

  

toaDirectororaConsultant,orasotherwiseprovidedinaParticipant'sAwardAgreementuponaterminationofemploymentorserviceasaDirectororConsultantorpursuanttoSection19intheeventofaChangeinControlorSubsidiaryDisposition,noOptionmaybeexercisablepriortoone(1)yearfromthedateofgrant.

(f)Payments . OptionsgrantedunderthisSection6shall beexercisedbythedeliveryofawrittennoticetotheCompany,settingforththenumberofShareswithrespecttowhichtheOptionistobeexercisedandspecifyingthemethodofpaymentoftheExercisePrice.TheExercisePriceofanOptionshallbepayabletotheCompany:(i)incashoritsequivalent,(ii)bytendering (either actually or constructively by attestation) Shares having an aggregate Fair Market Value at the time ofexerciseequaltotheExercisePrice,(iii)inanyothermannerthenpermittedbytheCommittee,or(iv)byacombinationofanyofthepermittedmethodsofpayment.TheCommitteemaylimitanymethodofpayment,otherthanthatspecifiedunder(i),foradministrativeconvenience,tocomplywithApplicableLawsorotherwise.

(g)RestrictionsonShareTransferability.TheCommitteemayimposesuchrestrictionsonanySharesacquiredpursuanttothe exercise of an Option granted under this Section 6 as it may deemadvisable, including, without limitation, restrictionsunderapplicablefederalsecuritieslaws,undertherequirementsofanystockexchangeormarketuponwhichsuchSharesarethenlistedand/ortraded,andunderanyblueskyorstatesecuritieslawsapplicabletosuchShares.

(h)TerminationofEmploymentorService.EachParticipant'sOptionAwardAgreementshallsetforththeextenttowhichthe Participant shall have the right to exercise the Option following termination of the Participant's employment or, if theParticipantisaDirectororConsultant,servicewiththeCompanyanditsSubsidiaries.Suchprovisionsshallbedeterminedinthe sole discretion of the Committee, need not be uniform among all Options, and may reflect distinctions based on thereasonsforterminationofemploymentorservice.

7. Stock Appreciation Rights.

(a)GrantofSARs.SubjecttothetermsandprovisionsofthePlan,SARsmaybegrantedtoParticipantsinsuchamountsanduponsuchterms,andatanytimeandfromtimetotime,asshallbedeterminedbytheCommittee.TheCommitteemaygrantFreestandingSARs,TandemSARs,oranycombinationoftheseformsofSAR.

(b)AwardAgreement.EachSARgrantshallbeevidencedbyanAwardAgreementthatshallspecifythegrantprice,thetermoftheSAR,andsuchotherprovisionsastheCommitteeshalldetermine.

(c)GrantPrice.ThegrantpriceofaFreestandingSARshallnotbelessthanonehundredpercent(100%)oftheFairMarketValueofaShareonthedateofgrantoftheSAR,andthegrantpriceofaTandemSARshallequaltheExercisePriceoftherelatedOption; provided,however, that theselimitationsshall notapplytoAwardsthat areadjustedpursuanttoSection18herein.

(d)TermofSARs.ThetermofanSARgrantedunderthePlanshallbedeterminedbytheCommittee,initssolediscretion;provided,however,thatsuchtermshallnotexceedten(10)years.

(e)ExerciseofTandemSARs.ATandemSARmaybeexercisedonlywithrespecttotheSharesforwhichitsrelatedOptionis then exercisable. To the extent exercisable, Tandem SARs may be exercised for all or part of the Shares subject to therelatedOption.TheexerciseofallorpartofaTandemSARshallresultintheforfeitureoftherighttopurchaseanumberofSharesundertherelatedOptionequaltothenumberofShareswithrespecttowhichtheSARisexercised.Conversely,uponexercise of all or part of an Option with respect to which a Tandem SAR has been granted, an equivalent portion of theTandemSARshallsimilarlybeforfeited.

NotwithstandinganyotherprovisionofthePlantothecontrary,withrespecttoaTandemSARgrantedinconnectionwithanISO: (i) the TandemSARwill expire no later than the expiration of the underlying ISO; (ii) the value of the payout withrespecttotheTandemSARmaybefornomorethanonehundredpercent(100%)ofthedifferencebetweentheExercisePriceoftheunderlyingISOandtheFairMarketValueoftheSharessubjecttotheunderlyingISOatthetimetheTandemSARisexercised; and (iii) the TandemSARmay be exercised only when the Fair Market Value of the Shares subject to the ISOexceedstheExercisePriceoftheISO.

  

(f)ExerciseofFreestandingSARs.FreestandingSARsmaybeexerciseduponwhatevertermsandconditionstheCommittee,initssolediscretion,imposesuponthemandsetsforthintheAwardAgreement;provided,however,thatexceptasotherwiseprovided in a Participant's Award Agreement upon a termination of employment or, if the Participant is a Director orConsultant,servicewiththeCompanyanditsSubsidiaries,orpursuanttoSection19intheeventofaChangeinControlorSubsidiaryDisposition,noFreestandingSARsmaybeexercisablepriortoone(1)yearfromthedateofgrant.

(g)PaymentofSARAmount.UponexerciseofanSAR,aParticipantshallbeentitledtoreceivepaymentfromtheCompanyinanamountdeterminedbymultiplying:

i)thedifferencebetweentheFairMarketValueofaShareonthedateofexerciseoverthegrantprice;times

ii)thenumberofShareswithrespecttowhichtheSARisexercised.

AtthediscretionoftheCommittee,thepaymentuponSARexercisemaybeincash,inSharesofequivalentvalueorinsomecombinationthereofasspecifiedintheSARAwardAgreement.

(h)TerminationofEmploymentorService.EachSARAwardAgreementshallsetforththeextenttowhichtheParticipantshall have the right to exercise the SAR following termination of the Participant's employment or, if the Participant is aDirector or Consultant, service with the Company and its Subsidiaries. Such provisions shall be determined in the solediscretion of the Committee, need not be uniform among all SARs, and may reflect distinctions based on the reasons forterminationofemploymentorservice.

8. Restricted Stock.

(a)GrantofRestrictedStock.SubjecttothetermsandprovisionsofthePlan,RestrictedStockmaybegrantedtoParticipantsinsuchamountsanduponsuchterms,andatanytimeandfromtimetotime,asshallbedeterminedbytheCommittee.

(b) Award Agreement . Each Restricted Stock grant shall be evidenced by an Award Agreement that shall specify thePeriod(s)ofRestriction,thenumberofSharesofRestrictedStockgranted,thenatureofapplicablevestingconditionsand/orrestrictionsontransferability,andsuchotherprovisionsastheCommitteeshalldetermine.

(c)PeriodofRestrictionandOtherRestrictions.ExceptasotherwiseprovidedinaParticipant'sAwardAgreementuponaterminationofemploymentor,iftheParticipantisaDirectororConsultant,servicewiththeCompanyanditsSubsidiaries,orpursuanttoSection19intheeventofaChangeinControlorSubsidiaryDisposition,anAwardofRestrictedStockshallhaveaminimumPeriodofRestrictionofone(1)year,whichperiodmay,atthediscretionoftheCommittee,lapseinstagesoversuchperiodona pro-rated, graded, or cliff basis (as specified in anAwardAgreement.) TheCommittee shall imposesuchotherconditionsand/orrestrictionsonanySharesofRestrictedStockgrantedpursuanttothePlanasitmaydeemadvisableincluding, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of RestrictedStock,arequirementthattheissuanceofSharesofRestrictedStockbedelayed,restrictionsbasedupontheachievementofspecific performance goals, additional time-based restrictions, and/or restrictions under Applicable Laws or under therequirementsofanystockexchangeormarketuponwhichsuchSharesarelistedortraded,orholdingrequirementsorsalerestrictions placed on the Shares by the Company upon vesting of such Restricted Stock. The Company may retain in itscustodyanycertificateevidencingtheSharesofRestrictedStockandplacethereonalegendandinstitutestop-transferordersonsuchShares,andtheParticipantshallbeobligatedtosignanystockpowerrequestedbytheCompanyrelatingtotheSharestogiveeffecttotheforfeitureprovisionsoftheRestrictedStock.

(d)RemovalofRestrictions.SubjecttoApplicableLaws,RestrictedStockshallbecomefreelytransferablebytheParticipantafterthelastdayofthePeriodofRestrictionapplicablethereto. OnceRestrictedStockisreleasedfromtherestrictions, theParticipantshallbeentitledtoreceiveacertificateevidencingtheSharesfreeofallrestrictions.

(e)VotingRights.UnlessotherwisedeterminedbytheCommitteeandsetforthinaParticipant'sAwardAgreement,totheextentpermittedorrequiredbyApplicableLaws,asdeterminedbytheCommittee,ParticipantsholdingSharesofRestrictedStockgrantedhereundermayexercisefullvotingrightswithrespecttothoseSharesduringthePeriodofRestriction. 

  

 (f)DividendsandOtherDistributions.ExceptasotherwiseprovidedinaParticipant'sAwardAgreement,duringthePeriodofRestriction,ParticipantsholdingSharesofRestrictedStockshallreceiveallregularcashDividendspaidwithrespecttoallShareswhiletheyaresoheld,and,exceptasotherwisedeterminedbytheCommittee,allotherdistributionspaidwithrespecttosuchRestrictedStockshallbecreditedtoParticipantssubjecttothesamerestrictionsontransferabilityandforfeitabilityastheRestrictedStockwithrespecttowhichtheywerepaidandpaidatsuchtimefollowingfullvestingasarepaidtheSharesofRestrictedStockwithrespecttowhichsuchdistributionsweremade.

(g)TerminationofEmploymentorService . EachRestrictedStockAwardAgreementshallsetforththeextenttowhichtheParticipantshallhavetherighttoretainunvestedRestrictedStockfollowingterminationoftheParticipant'semploymentor,iftheParticipantisaDirectororConsultant,servicewiththeCompanyanditsSubsidiaries.Suchprovisionsshallbedeterminedin the sole discretion of the Committee, need not be uniform among all Awards of Restricted Stock, and may reflectdistinctionsbasedonthereasonsforterminationofemploymentorservice.

9. Restricted Stock Units.

(a)GrantofRestrictedStockUnits.SubjecttothetermsandprovisionsofthePlan,RestrictedStockUnitsmaybegrantedtoParticipants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by theCommittee.

(b)AwardAgreement.EachgrantofRestrictedStockUnitsshallbeevidencedbyanAwardAgreementthatshallspecifytheapplicable Period of Restriction, the number of Restricted Stock Units granted, the nature of applicable vesting conditionsand/orrestrictionsontransferability,andsuchotherprovisionsastheCommitteeshalldetermine.

(c)ValueofRestrictedStockUnits.TheinitialvalueofaRestrictedStockUnitshallequaltheFairMarketValueofaShareonthedateofgrant;provided,however,thatthisrestrictionshallnotapplytoAwardsthatareadjustedpursuanttoSection18herein.

(d) Period of Restriction . Except as otherwise provided in a Participant's Award Agreement upon a termination ofemploymentor, if theParticipantisaDirectororConsultant, servicewiththeCompanyanditsSubsidiaries, orpursuanttoSection19intheevent of aChangeinControl or SubsidiaryDisposition, anAwardof RestrictedStockUnits shall haveaminimumPeriodof Restrictionof one(1) year, whichperiodmay, at thediscretionof theCommittee, lapseinstagesoversuchperiodonapro-rated,graded,orcliffbasis(asspecifiedinanAwardAgreement.)

(e)FormandTimingofPayment . ExceptasotherwiseprovidedinSection19hereinoraParticipant's AwardAgreement,paymentofRestrictedStockUnitsshallbemadeataspecifiedsettlementdatethatshallnotbeearlierthanthelastdayofthePeriodofRestriction.TheCommittee,initssolediscretion,maypayearnedRestrictedStockUnitsbydeliveryofShares,bypaymentincashofanamountequaltotheFairMarketValueofsuchSharesorinsomecombinationthereofasspecifiedintheRestrictedStockUnitAwardAgreement.TheCommitteemayprovidethatsettlementofRestrictedStockUnitsshallbedeferred,onamandatorybasisorattheelectionoftheParticipant.

(f)VotingRights.AParticipantshallhavenovotingrightswithrespecttoanyRestrictedStockUnitsgrantedhereunder.

(g)TerminationofEmploymentorService.EachRestrictedStockUnitAwardAgreementshallsetforththeextenttowhichthe Participant shall have the right to receive a payout with respect to an Award of Restricted Stock Units followingterminationoftheParticipant'semploymentor,iftheParticipantisaDirectororConsultant,servicewiththeCompanyanditsSubsidiaries. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among allRestrictedStockUnits,andmayreflectdistinctionsbasedonthereasonsforterminationofemploymentorservice.

10. Performance Shares.

(a)GrantofPerformanceShares . Subject tothetermsandprovisionsofthePlan, PerformanceSharesmaybegrantedtoParticipantsinsuchamountsanduponsuchterms,andatanytimeandfromtimetotime,asshallbedetermined

  

bytheCommittee.

(b)AwardAgreement.EachgrantofPerformanceSharesshallbeevidencedbyanAwardAgreementthatshallspecifytheapplicablePerformancePeriod(s)andPerformanceMeasure(s),thenumberofPerformanceSharesgranted,andsuchotherprovisionsastheCommitteeshalldetermine;provided,however,thatexceptasotherwiseprovidedinaParticipant'sAwardAgreementuponaterminationofemploymentor,iftheParticipantisaDirectororConsultant,servicewiththeCompanyandits Subsidiaries, orpursuant toSection19intheevent ofaChangeinControl orSubsidiaryDisposition, innocaseshall aPerformancePeriodbeforaperiodoflessthanone(1)year.

(c)ValueofPerformanceShares.TheinitialvalueofaPerformanceShareshallequaltheFairMarketValueofaShareonthedateofgrant; provided,however,thatthisrestrictionshall notapplytoAwardsthatareadjustedpursuanttoSection18herein.

(d)FormandTimingofPayment . SubjecttoApplicableLawsandexceptasotherwiseprovidedinSection19hereinoraParticipant'sAwardAgreement,paymentofPerformanceSharesshallbemadeafterfinaldeterminationbytheCommitteeastothenumberof suchPerformanceSharesthat havevesteduponattainment of theapplicable PerformanceMeasure(s) at aspecified settlement date that shall not be earlier than the last day of the Performance Period. The Committee, in its solediscretion, may pay earned Performance Shares by delivery of Shares, by payment in cash of an amount equal to the FairMarket Value of suchShares or in somecombination thereof. TheCommittee mayprovide that settlement of PerformanceSharesshallbedeferred,onamandatorybasisorattheelectionoftheParticipant.

(e)VotingRights.AParticipantshallhavenovotingrightswithrespecttoanyPerformanceSharesgrantedhereunder.

(f)TerminationofEmploymentorService.EachPerformanceShareAwardAgreementshallsetforththeextenttowhichtheParticipantshallhavetherighttoreceiveapayoutrespectinganAwardofPerformanceSharesfollowingterminationoftheParticipant'semploymentor,iftheParticipantisaDirectororConsultant,servicewiththeCompanyanditsSubsidiaries.SuchprovisionsshallbedeterminedinthesolediscretionoftheCommittee,neednotbeuniformamongallParticipants,andmayreflectdistinctionsbasedonthereasonsforterminationofemploymentorservice

11. Performance Units.

(a) Grant of Performance Units . Subject to the terms and conditions of the Plan, Performance Units may be granted toParticipants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by theCommittee.

(b)AwardAgreement . EachgrantofPerformanceUnitsshall beevidencedbyanAwardAgreementthatshall specifythenumberofPerformanceUnitsgranted,thePerformancePeriod(s)andPerformanceMeasure(s)andsuchotherprovisionsasthe Committee shall determine; provided, however, that except as otherwise provided in a Participant's Award Agreementupon a termination of employment or, if the Participant is a Director or Consultant, service with the Company and itsSubsidiaries, or pursuant to Section 19 in the event of a Change in Control or Subsidiary Disposition, in no case shall aPerformancePeriodbeforaperiodoflessthanone(1)year.

(c)ValueofPerformanceUnits . TheCommitteeshall set PerformanceMeasure(s) inits discretionthat, dependingontheextent to which they are met, will determine the number and/or value of Performance Units that will be paid out to theParticipant.

(d)FormandTimingofPayment . ExceptasotherwiseprovidedinSection19hereinoraParticipant'sAwardAgreement,payment of earned Performance Units shall be made after final determination by the Committee as to the number of suchPerformanceUnitsthathavevesteduponattainmentoftheapplicablePerformanceMeasure(s)ataspecifiedsettlementdatethat shall not beearlier thanthelast dayofthePerformancePeriod. TheCommittee, inits solediscretion, maypayearnedPerformanceUnitsincash,inSharesthathaveanaggregateFairMarketValueequaltothevalueoftheearnedPerformanceUnitsorinsomecombinationthereofasspecifiedinthePerformanceUnitAwardAgreement.TheCommitteemayprovidethatsettlementofPerformanceUnitsshallbedeferred,onamandatorybasisorattheelectionoftheParticipant.

(e)TerminationofEmploymentorService.EachPerformanceUnitAwardAgreementshallsetforththeextenttowhichtheParticipantshallhavetherighttoreceiveapayoutrespectinganAwardofPerformanceUnitsfollowing

  

terminationoftheParticipant'semploymentor,iftheParticipantisaDirectororConsultant,servicewiththeCompanyanditsSubsidiaries. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among allPerformanceUnitsandmayreflectdistinctionsbasedonreasonsforterminationofemploymentorservice.

 12. Other Stock-Based Awards.

(a)Grant.TheCommitteeshallhavetherighttograntotherAwardsthatmayinclude,withoutlimitation,thegrantofSharesbasedonattainmentofPerformanceMeasure(s)establishedbytheCommittee,thepaymentofSharesasabonusorinlieuofcashbasedonattainmentofPerformanceMeasure(s)establishedbytheCommittee,andthepaymentofSharesinlieuofcashunderanyCompanyincentive,bonusorothercompensationprogram.

(b)Award Agreement . Other Stock-Based Awards may be evidenced by an Award Agreement that specifies Period(s) ofRestriction, if any, the number of Shares to be awarded, applicable Performance Period(s) and Performance Measure(s), ifany, thenature of other applicable vestingconditionsand/or restrictions ontransferability, andsuchother provisionsas theCommitteeshalldetermine.

(c) Period of Restriction . Except as otherwise provided hereinafter, or in a Participant's Award Agreement upon aterminationofemploymentor,iftheParticipantisaDirectororConsultant,servicewiththeCompanyanditsSubsidiaries,orpursuant to Section 19 in the event of a Change in Control or Subsidiary Disposition, Awards granted pursuant to thisSection12shallhaveaminimumPeriodofRestrictionofone(1)year,whichperiodmay,atthediscretionoftheCommittee,lapseinstagesoversuchperiodonapro-rated,graded,orcliffbasis(asspecifiedinanAwardAgreement.)Notwithstandingtheabove,anAwardofpaymentofSharesinlieuofcashunderaCompanyincentive,bonusorothercompensationprogramshallnotbesubjecttotheminimumPeriodofRestrictionlimitationsdescribedabove.

(d)PaymentofOtherStock-BasedAwards.SubjecttoSection12(c)hereof,paymentunderorsettlementofanysuchOtherStock-BasedAwardshallbemadeinsuchmannerandatsuchtimesastheCommitteemayspecifyintheAwardAgreementfor such Other Stock-Based Award. The Committee may provide that settlement of Other Stock-Based Awards shall bedeferred,onamandatorybasisorattheelectionoftheParticipant.

(e)TerminationofEmploymentorService.TheCommitteeshalldeterminetheextenttowhichtheParticipantshallhavetheright to receive Other Stock-BasedAwardsfollowingtermination of theParticipant's employment or, if the Participant is aDirector or Consultant, service with the Company and its Subsidiaries. Such provisions shall be determined in the solediscretionoftheCommittee,suchprovisionsmaybeincludedinanagreemententeredintowitheachParticipant,butneednotbe uniform among all Other Stock-Based Awards, and may reflect distinctions based on the reasons for termination ofemploymentorservice.

13. Dividend Equivalents. Only Award Agreements for Full Value Awards granted pursuant to the Plan may, at thediscretionoftheCommittee,provideParticipantswiththerighttoreceiveDividendEquivalents,whichmaybepaidcurrentlyorcreditedtoanaccountfortheParticipants,andmaybesettledincashand/orShares,asdeterminedbytheCommitteeinitssolediscretion,subjectineachcasetosuchtermsandconditionsastheCommitteeshallestablish.

14. Performance-Based Exception.

(a)PerformanceMeasures.TheCommitteemayspecifythattheattainmentofoneormoreofthePerformanceMeasuressetforth in this Section 14 shall determine the degree of granting, vesting and/or payout with respect to Awards that theCommittee intends will qualify for the Performance-Based Exception. The performance goals to be used for such Awardsshall be chosen from among the following performance measures (the "Performance Measures"): total shareholder return,stock price, net customer sales, volume, gross profit, gross margin, operating profit, operating margin, management profit,earnings fromcontinuing operations (including derivatives thereof before interest, taxes, depreciation and/or amortization),earnings per share from continuing operations, net operating profit after tax, net earnings, net earnings per share, brandcontribution to earnings, return onassets, return oninvestment, return onequity, return oninvested capital, cost of capital,averagecapital employed, cashvalueadded, economicvalueadded, cashflow,cashflowfromoperations, workingcapital,workingcapitalasapercentageofnetcustomersales,assetgrowth,assetturnover,marketshare,customersatisfaction,andemployee satisfaction. The targeted level or levels of performance with respect to such Performance Measures may beestablishedatsuchlevelsandonsuchtermsastheCommitteemaydetermine,initsdiscretion,onacorporate-widebasisorwithrespecttoone

  

ormorebusinessunits,divisions,subsidiaries,businesssegmentsorfunctions,andineitherabsolutetermsorrelativetotheperformanceofoneormorecomparablecompaniesoranindexcoveringmultiplecompanies.AwardsthatarenotintendedtoqualifyforthePerformance-BasedExceptionmaybebasedontheseorsuchotherperformancemeasuresastheCommitteemaydetermine. (b) Excluded Financial Items . Unless otherwise determined by the Committee, measurement of performance goals withrespect to the Performance Measures aboveshall excludethe impact of charges for restructurings, discontinuedoperations,extraordinaryitems,andotherunusualornon-recurringitems,aswellasthecumulativeeffectsoftaxoraccountingchanges,each as determined in accordance with generally accepted accounting principles or identified in the Company's financialstatements,notestothefinancialstatements,management'sdiscussionandanalysisorotherfilingswiththeSEC.

(c)AlternativePerformanceMeasures . PerformanceMeasuresmaydiffer forAwardsgrantedtoanyoneParticipant ortodifferentParticipants.

(d)PerformancePeriodandTimingofEstablishmentofPerformanceMeasures.AchievementofPerformanceMeasuresinrespectofAwardsintendedtoqualifyunderthePerformance-BasedExceptionshallbemeasuredoveraPerformancePeriodspecified in the Award Agreement, and the goals shall be established not later than 90 days after the beginning of thePerformancePeriod.

(e)AdjustmentofAwards.TheCommitteeshallhavethediscretiontoadjustthedeterminationsofthedegreeofattainmentofthepre-establishedPerformanceMeasure(s);provided,however,thatsuchdeterminationsforAwardsthataredesignedtoqualify for the Performance-Based Exception may not be adjusted to increase the prospective Award for attainment of thePerformanceMeasure(s)(buttheCommitteemay,initsdiscretion,adjustsuchdeterminationsinamannerresultinginalesserAward.)

15. Transferability of Awards. Incentive Stock Options may not be sold, transferred, pledged, assigned, or otherwisealienated or hypothecated, other than by will or by the laws of descent and distribution, and shall be exercisable during aParticipant's lifetime only by such Participant. Other Awards shall be transferable to the extent provided in the AwardAgreement,exceptthatnoAwardmaybetransferredforconsideration.

16. Taxes. TheCompanyshallhavethepowerandright,priortothedeliveryofSharespursuanttoanAward,todeductorwithhold,orrequireaparticipanttoremittotheCompany(oraSubsidiary),anamount(incashorShares)sufficienttosatisfyanyapplicabletaxwithholdingrequirementsapplicabletoanAward.WheneverpaymentsaretobemadeincashunderthePlan, suchpayments shall benet of anamountsufficient tosatisfyanyapplicable taxwithholdingrequirements. Subject tosuch restrictions as the Committee may prescribe, a Participant may satisfy all or a portion of any tax withholdingrequirements by electing to have the Company withhold Shares having a Fair Market Value equal to the amount to bewithheld up to the minimumstatutory tax withholding rate (or such other rate that will not result in a negative accountingimpact).

17. Conditions Upon Issuance of Shares.

(a)CompliancewithApplicableLaws.SharesshallnotbeissuedpursuanttotheexerciseorpaymentofanAwardunlesstheexercise of such Award and/or the issuance and delivery of such Shares pursuant thereto shall comply with all ApplicableLaws,andshallbefurthersubjecttotheapprovalofcounselfortheCompanywithrespecttosuchcompliance.

(b)RequiredInvestmentIntent.AsaconditiontotheexerciseofanAward,theCompanymayrequirethepersonexercisingsuchAwardtorepresentandwarrantatthetimeofanysuchexercisethattheSharesarebeingpurchasedonlyforinvestmentand without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such arepresentationisrequiredbyanyApplicableLaws.

18. Adjustments Upon Changes in Capitalization. In the event of any merger, reorganization, consolidation,recapitalization,liquidation,stockdividend,split-up,spin-off,stocksplit,reversestocksplit,sharecombination,share

  

exchange,extraordinarydividend,oranychangeinthecorporatestructureaffectingtheShares,suchadjustmentshallbemadeinthenumberandkindofSharesthatmaybedeliveredunderthePlan,inthelimitssetforthinSection3(b),and,withrespectto outstandingAwards, in the number andkindof Shares subject to outstandingAwards, the Exercise Price, grant price orother price of Shares subject to outstanding Awards, any performance conditions relating to Shares, the market price ofShares,orperShareresults,andothertermsandconditionsofoutstandingAwards,asmaybedeterminedtobeappropriateandequitablebytheCommittee,initssolediscretion,topreventdilutionorenlargementofrights;provided,however,that,unlessotherwisedeterminedbytheCommittee,thenumberofSharessubjecttoanyAwardshallalwaysberoundeddowntoawholenumber.AdjustmentsmadebytheCommitteepursuanttothisSection18shallbefinal,binding,andconclusive.19. Change in Control, Cash-Out and Termination of Underwater Options/SARs, and Subsidiary Disposition.

(a)ChangeinControl.ExceptasotherwiseprovidedinaParticipant'sAwardAgreementorpursuanttoSection19(b)hereof,upontheoccurrenceofaChangeinControl,unlessotherwisespecificallyprohibitedunderApplicableLaws,orbytherulesandregulationsofanygoverninggovernmentalagenciesornationalsecuritiesexchanges:

(i) anyandall outstandingOptionsandSARsgrantedhereundershall becomeimmediatelyexercisableunlesssuchAwardsareassumed,convertedorreplacedbythecontinuingentity;provided,however,thatintheeventofaParticipant'sterminationofemploymentwithoutCausewithintwenty-four(24)monthsfollowingconsummationofaChangeinControl,anyassumed,convertedorreplacedAwardswillbecomeimmediatelyexercisable;

(ii)anyPeriodofRestrictionorotherrestrictionimposedonRestrictedStock,RestrictedStockUnits,andOtherStock-BasedAwardsshalllapseunlesssuchAwardsareassumed,convertedorreplacedbythecontinuingentity;provided,however,thatin the event of a Participant's termination of employment without Cause within twenty-four (24) months followingconsummationofaChangeinControl,thePeriodofRestrictiononanyassumed,convertedorreplacedAwardsshalllapse;and

(iii) any and all Performance Shares, Performance Units and other Awards (if performance-based) shall vest on a pro ratamonthly basis, including full credit for partial months elapsed, and will be paid based on (A) the level of performanceachievedasofthedateoftheChangeinControl,ifdeterminable,or(B)atthetargetlevel,ifnotdeterminable.TheamountofthevestedAwardmaybecomputedunderthefollowingformula:totalAwardnumberofSharestimes(numberoffullmonthselapsedinshortestpossiblevestingperioddividedbynumberoffullmonthsinshortestpossiblevestingperiod)timespercentperformancelevelachievedimmediatelypriortothespecifiedeffectivedateoftheChangeinControl.

Withrespecttoparagraphs(i)and(ii)ofSection19(a)above,theAwardAgreementmayprovidethatanyassumed,convertedorreplacedawardswillbecomeimmediatelyexercisableoranyPeriodofRestrictionshalllapseintheeventofaterminationof employment by the Participant for "good reason" as such term is defined in any employment agreement or severanceagreementorpolicyapplicabletosuchParticipant.

(b)Cash-OutandTerminationofUnderwaterOptions/SARs.TheCommitteemay,initssolediscretion,providethat(i)alloutstandingOptionsandSARsshallbeterminatedupontheoccurrenceofaChangeinControlandthateachParticipantshallreceive,withrespecttoeachSharesubjecttosuchOptionsorSARs,anamountincashequaltotheexcessoftheFairMarketValueofa Shareimmediately prior totheoccurrenceoftheChangeinControl overtheOptionExercisePriceor theSARgrantprice;and(ii)OptionsandSARsoutstandingasofthedateoftheChangeinControlmaybecancelledandterminatedwithoutpaymentthereforeiftheFairMarketValueofaShareasofthedateoftheChangeinControlislessthantheOptionExercisePriceortheSARgrantprice.

(c)SubsidiaryDisposition.TheCommitteeshallhavetheauthority,exercisableeitherinadvanceofanyactualoranticipatedSubsidiaryDispositionoratthetimeofanactualSubsidiaryDispositionandeitheratthetimeofthegrantofanAwardoratany time while an Award remains outstanding, to provide for the automatic full vesting and exercisability of one or moreoutstandingunvestedAwardsunderthePlanandtheterminationofrestrictionsontransferandrepurchaseorforfeiturerightsonsuchAwards,inconnectionwithaSubsidiaryDisposition,butonlywithrespecttothoseParticipantswhoareatthetimeengagedprimarily in ContinuousService withtheSubsidiaryinvolvedinsuchSubsidiaryDisposition. TheCommittee alsoshall have the authority to condition any such Award vesting and exercisability or release from such limitations upon thesubsequentterminationoftheaffectedParticipant's

  

ContinuousServicewiththatSubsidiarywithinaspecifiedperiodfollowingtheeffectivedateoftheSubsidiaryDisposition.The Committee may provide that any Awards so vested or released fromsuch limitations in connection with a SubsidiaryDisposition,shallremainfullyexercisableuntiltheexpirationorsoonerterminationoftheAward.

20. Amendment, Suspension or Termination of the Plan.

(a)Amendment,ModificationandTermination.TheBoardmayatanytimeandfromtimetotime,alter,amend,suspendorterminatethePlaninwholeorinpart;provided,however,thatnoamendmentthatrequiresstockholderapprovalinorderforthe Plan to continue to comply with the NASDAQlisting standards or any rule promulgated by the SECor any securitiesexchange on which Shares are listed or any other Applicable Laws shall be effective unless such amendment shall beapprovedbytherequisitevoteofstockholdersoftheCompanyentitledtovotethereonwithinthetimeperiodrequiredundersuchapplicablelistingstandard,ruleorApplicableLaw.

(b) Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events . The Committee may makeadjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurringevents (including, without limitation, the events described in Section 18 hereof) affecting the Company or the financialstatementsoftheCompanyorofchangesinApplicableLaws,regulations,oraccountingprinciples,whenevertheCommitteedetermines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potentialbenefitsintendedtobemadeavailableunderthePlan.WithrespecttoanyAwardsintendedtocomplywiththePerformance-BasedException,unlessotherwisedeterminedbytheCommittee,anysuchadjustmentsshallbespecifiedatsuchtimesandinsuchmanneraswillnotcausesuchAwardstofailtoqualifyunderthePerformance-BasedException.

(c)AwardsPreviously Granted . Notermination, amendment or modification of thePlanor of anyAwardshall adverselyaffectinanymaterialwayanyAwardpreviouslygrantedunderthePlanwithoutthewrittenconsentoftheparticipantholdingsuch Award, unless such termination, modification or amendment is required by Applicable Laws and except as otherwiseprovidedherein.

(d)NoRepricing . Except for adjustments madepursuant to Section 18, noamendment shall reduce the Exercise Price ofoutstanding Options or the grant price of outstanding SARs, nor may any outstanding Options or outstanding SARs besurrenderedtotheCompanyforcashorasconsiderationforthegrantofnewOptionsorSARswithalowerExercisePriceorforthegrantofaFull-ValueAwardwithouttheapprovalofthestockholdersoftheCompany.

(e)CompliancewiththePerformance-BasedException.IfitisintendedthatanAwardcomplywiththerequirementsofthePerformance-BasedException,theCommitteemayapplyanyrestrictionsitdeemsappropriatesuchthattheAwardsmaintaineligibility for the Performance-Based Exception. If changes are made to Code Section 162(m) or regulations promulgatedthereundertopermit greater flexibility withrespect toanyAwardorAwardsavailableunderthePlan,theCommitteemay,subjecttothisSection20,makeanyadjustmentstothePlanand/orAwardAgreementsitdeemsappropriate.

21. Reservation of Shares.

(a)MaintenanceofAuthorizedShares.TheCompany,duringthetermofthePlan,willatalltimesreserveandkeepavailablesuchnumberofSharesasshallbesufficienttosatisfytherequirementsofthePlan.

(b) Inability to Obtain Regulatory Authority . The inability of the Company to obtain authority fromany regulatory bodyhavingjurisdiction,whichauthorityisdeemedbytheCompany'scounseltobenecessarytothelawfulissuanceandsaleofanyShares hereunder, shall relieve the Companyof any liability in respect of the failure to issue or sell such Shares as towhichsuchrequisiteauthorityshallnothavebeenobtained.

22. Rights of Participants.

(a)ContinuedService.ThePlanshallnotconferuponanyParticipantanyrightwithrespecttocontinuationofemployment,serviceasadirectororconsultingrelationshipwiththeCompany,norshallitinterfereinanywaywithhisorherrightortheCompany'srighttoterminatehisorheremployment,serviceasadirectororconsulting

  

relationshipatanytime,withorwithoutcause.

(b)Participant.NoEmployee,DirectororConsultantshallhavetherighttobeselectedtoreceiveanAwardunderthePlan,or,havingbeensoselected,tobeselectedtoreceivefutureAwards.

23. Successors. AllobligationsoftheCompanyunderthePlanandwithrespecttoAwardsshallbebindingonanysuccessortotheCompany,whethertheexistenceofsuchsuccessoristheresultofadirectorindirectpurchase,merger,consolidation,orotherevent,orasaleordispositionofallorsubstantiallyallofthebusinessand/orassetsoftheCompanyandreferencestothe"Company"hereinandinanyAwardagreementsshallbedeemedtorefertosuchsuccessors.24. Legal Construction.

(a)Gender,NumberandReferences.Exceptwhereotherwiseindicatedbythecontext,anymasculinetermusedhereinalsoshallincludethefeminine,thepluralshallincludethesingularandthesingularshallincludetheplural.AnyreferenceinthePlantoaSectionofthePlaneitherinthePlanoranyAwardagreementortoanactorcodeortoanysectionthereoforruleorregulationthereunder shall be deemedtorefer to suchSectionof thePlan, act, code, section, rule or regulation, as maybeamendedfromtimetotime,ortoanysuccessorSectionofthePlan,act,code,section,ruleorregulation.

(b) Severability . In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality orinvalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal orinvalidprovisionhadnotbeenincluded.

(c)RequirementsofLaw.ThegrantingofAwardsandtheissuanceofSharesorcashunderthePlanshallbesubjecttoallApplicableLawsandtosuchapprovalsbyanygovernmentalagenciesornationalsecuritiesexchangesasmayberequired.

(d)GoverningLaw.Totheextentnotpreemptedbyfederallaw,thePlan,andallagreementshereunder,shallbeconstruedinaccordancewithandgovernedbythelawsoftheStateofDelaware,excludinganyconflictsorchoiceoflawruleorprinciplethatmightotherwisereferconstructionorinterpretationofthisPlantothesubstantivelawofanotherjurisdiction.

(e)Non-ExclusivePlan.NeithertheadoptionofthePlanbytheBoardnoritssubmissiontothestockholdersoftheCompanyfor approval shall beconstruedas creatinganylimitations onthepowerof theBoardor a committee thereof toadopt suchotherincentivearrangementsasitmaydeemdesirable.

(f)CodeSection409ACompliance.Totheextentapplicable,itisintendedthatthisPlanandanyAwardsgrantedhereundercomplywiththerequirementsofSection409AoftheCodeandanyrelatedregulationsorotherguidancepromulgatedwithrespect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service ("Section 409A"). Anyprovisionthat wouldcause the Planor anyAwardgranted hereunder to fail to satisfy Section 409Ashall havenoforce oreffect until amended to comply with Section 409A, which amendment may be retroactive to the extent permitted bySection409A. 

  

 WD-40 COMPANY

2007 STOCK INCENTIVE PLAN

GLOSSARY

AsusedinthePlan,thefollowingdefinitionsshallapply:

1) "Applicable Laws" means the legal requirements relating to the administration of stock incentive plans, if any, underapplicableprovisionsoffederalsecuritieslaws,statecorporateandsecuritieslaws,theCode,andtherulesofanyapplicablestockexchangeornationalmarketsystem.

2)"Award"means, individually or collectively, NonqualifiedStockOptions, Incentive StockOptions, StockAppreciationRights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units and Other Stock-Based AwardsgrantedunderthePlan.

3) "Award Agreement " means an agreement entered into by the Company and a Participant setting forth the terms andprovisionsapplicabletoanAward.

4)"Board"meanstheBoardofDirectorsoftheCompany.

5) "Cause" means (i) the Participant's commission of acts subject to prosecution as a felony involving moral turpitude;(ii)theParticipant'smaterialbreachoffiduciarydutyasanexecutiveofficerordirectoroftheCompanywhichhasresulted,orislikelytoresult,inmaterialeconomicdamagetotheCompany;or(iii)theParticipant'swillfulgrossmisconductorwillfulgross neglect of duties (other than any such neglect resulting from the Participant's incapacity due to physical or mentalillness); provided that no act or failure to act by the Participant will constitute "Cause" under clause (ii) if the ExecutivebelievedingoodfaiththatsuchactorfailuretoactwasinthebestinterestoftheCompany.

Any act or failure to act based upon authority given pursuant to a resolution duly adopted by the Board or upon theinstructionsoftheChiefExecutiveOfficeroftheCompanyoramemberoftheCommitteeoranotherauthorizedofficeroftheCompanyorbasedupontheadviceofcounselfortheCompanyshallbeconclusivelypresumedtobedoneoromittedtobedonebytheParticipantingoodfaithandinthebestinterestsoftheCompany.ThecessationofemploymentoftheParticipantshallnotbedeemedtobeforCauseunlessanduntiltheChiefExecutiveOfficer,theVicePresident,HumanResourcesandthe Company's general legal counsel unanimously agree that, in their good faith opinion, the Participant is guilty of theconductdescribedinsubsections(i),(ii)or(iii)above,andsonotifytheParticipantspecifyingtheparticularsthereofindetail.

6)"ChangeinControl"means

a)Theacquisitionbyanyindividual,entityorgroup(withinthemeaningofSection13(d)(3)or14(d)(2)oftheExchangeAct)(a"Person")ofbeneficial ownership(withinthemeaningofRule13d-3promulgatedundertheExchangeAct)of30%ofeither (i) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or(ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in theelectionofdirectors(the"OutstandingCompanyVotingSecurities");provided,however,thatforpurposesofthissubsection,thefollowingacquisitionsshallnotconstituteaChangeinControl:1)anyacquisitiondirectlyfromtheCompany(excludingan acquisition by virtue of the exercise of a conversion privilege), 2) any acquisition by the Company, including anyacquisition which, by reducing the number of shares outstanding, is the sole cause for increasing the percentage of sharesbeneficially owned by any such Person to more than the applicable percentage set forth above, 3) any acquisition by anyemployee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by theCompanyor4)anyacquisitionbyanycorporationpursuanttoatransactionwhichcomplieswithclauses(i),(ii)and(iii)ofsubsection(c)ofthisdefinition;or

b)Individualswho,asofthedatehereof,constitutetheBoard(the"IncumbentBoard")ceaseforanyreasontoconstituteatleastamajorityoftheBoard;provided,however,thatanyindividualbecomingadirectorsubsequenttothedatehereofwhoseelection, or nomination for election by the Company's stockholders, was approved by a vote of at least two-thirds of thedirectorsthencomprisingtheIncumbentBoard,shallbeconsideredasthoughsuch

  

 individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initialassumptionofofficeoccursasaresult ofanactualorthreatenedelectioncontestwithrespecttotheelectionorremovalofdirectorsorotheractualorthreatenedsolicitationofproxiesorconsentsbyoronbehalfofaPersonotherthantheBoard;or

c) Consummation by the Company of a reorganization, merger or consolidation or sale or other disposition of all orsubstantiallyalloftheassetsoftheCompanyortheacquisitionofassetsofanothercorporation(a"BusinessCombination"),ineachcase,unless,followingsuchBusinessCombination,(i)morethan60%of,respectively,thethenoutstandingsharesofcommon stock and the combined voting power of the then outstanding voting securities entitled to vote generally in theelection of directors, as the case may be, of the corporation resulting from such Business Combination (including withoutlimitation,acorporationwhichasaresultofsuchtransactionownstheCompanyorallorsubstantiallyalloftheCompany'sassets either directly or through one or more subsidiaries) is represented by Outstanding Company Common Stock andOutstandingCompanyVotingSecurities,respectively,thatwereoutstandingimmediatelypriortosuchBusinessCombination(or,ifapplicable,isrepresentedbysharesintowhichsuchOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritieswereconvertedpursuanttosuchBusinessCombination)andsuchownershipofcommonstockandvotingpower among the holders thereof is in substantially the same proportions as their ownership, immediately prior to suchBusinessCombination,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecurities,asthecasemaybe,(ii)noPerson(excludinganyemployeebenefitplan(orrelatedtrust)oftheCompanyorsuchcorporationresultingfromsuchBusinessCombination)beneficiallyowns,directlyorindirectly,30%ormoreof,respectively,thethenoutstandingshares of the corporation resulting fromsuchBusiness Combination or the combined votingpower of the thenoutstandingvotingsecuritiesofsuchcorporationexcepttotheextentthatsuchownershipexistedpriortotheBusinessCombinationand(iii)atleastamajorityofthemembersoftheboardofdirectorsofthecorporationresultingfromsuchBusinessCombinationwere members of the Incumbent Board at the timeof the execution of the initial agreement, or of the action of the Board,providingforsuchBusinessCombination;or

d)ApprovalbythestockholdersoftheCompanyofacompleteliquidationordissolutionoftheCompany.

7)"Code"meanstheInternalRevenueCodeof1986,asamended.

8)"Committee"meanstheCommittee,asspecifiedinSection2(a)ofthePlan,appointedbytheBoardtoadministerthePlan.

9)"Company"meansWD-40CompanyandanysuccessortheretoasprovidedinSection23ofthePlan.

10)"Consultant"meansanyconsultantoradvisortotheCompanyoraSubsidiary.

11) "Continuous Service " means that the provision of services to the Company or any Subsidiary in any capacity ofEmployee,DirectororConsultantisnotinterruptedorterminated.ContinuousServiceshallnotbeconsideredinterruptedinthecaseof(i)anyleaveofabsenceapprovedbytheCompanyor(ii)transfersbetweenlocationsoftheCompanyorbetweenthe Company, any Subsidiary, or any successor. A leave of absence approved by the Company shall include sick leave,military leave, or any other personal leave approved by an authorized representative of the Company. For purposes ofIncentiveStockOptions,nosuchleavemayexceedninety(90)days,unlessreemploymentuponexpirationofsuchleaveisguaranteedbystatuteorcontract.

12)"Director"meansanyindividualwhoisamemberoftheBoardofDirectorsoftheCompanyoraSubsidiarywhoisnotanEmployee.

13)"Dividend"meansthedividendsdeclaredandpaidonSharessubjecttoanAward.

14)"DividendEquivalent" means, with respect to Shares subject to an Award, a right to be paid an amount equal to theDividendsdeclaredandpaidonanequalnumberofoutstandingShares.

15)"Employee"meansanyemployeeoftheCompanyoraSubsidiary.

16)"ExchangeAct"meanstheSecuritiesExchangeActof1934,asamended. 

  

17)"ExercisePrice"meansthepriceatwhichaSharemaybepurchasedbyaParticipantpursuanttoanOption.

18)"FairMarketValue"means,asofanydate,thevalueofaSharedeterminedasfollows:

a)WherethereexistsapublicmarketfortheShare,theFairMarketValueshallbe(A)theclosingsalespriceforaShareonthe date of the determination (or, if no sales were reported on that date, on the last trading date on which such sales werereported)ontheNewYorkStockExchange,theNASDAQNationalMarketortheprincipalsecuritiesexchangeonwhichtheShareislistedfortrading,whicheverisapplicable,or(B)iftheShareisnottradedonanysuchexchangeornationalmarketsystem, the average of the closing bid and asked prices of a Share on the NASDAQSmall Cap Market, in each case, asreportedinTheWallStreetJournalorsuchothersourceastheCommitteedeemsreliable;or

b)Intheabsenceofanestablishedmarketofthetypedescribedabove,fortheShare,theFairMarketValuethereofshallbedeterminedbytheCommitteeingoodfaith,andsuchdeterminationshallbeconclusiveandbindingonallpersons.

19)"FreestandingSAR"meansanSARthatisgrantedindependentlyofanyOptions,asdescribedinSection7ofthePlan.

20) "Full-Value Award" means Awards other than Options, SARs, or other Awards for which the Participant pays, uponexercise,thegrantdateintrinsicvaluedirectlyorbyforgoingarighttoreceiveacashpaymentfromtheCompany.

21)"IncentiveStockOption"or"ISO"meansanOptionintendedtoqualifyasanincentivestockoptionwithinthemeaningofSection422oftheCode.

22)"NonqualifiedStockOption"meansanOptionthatisnotintendedtomeettherequirementofSection422oftheCode.

23) "Option" means an Incentive Stock Option or a Nonqualified Stock Option granted under the Plan, as described inSection6ofthePlan.

24)"OtherStock-BasedAward"meansaShare-basedorShare-relatedAwardgrantedpursuanttoSection12ofthePlan.

25) "Participant" means a current or former Employee, Director or Consultant who has rights relating to an outstandingAward.

26)"Performance-BasedException"meanstheperformance-basedexceptionfromthetaxdeductibilitylimitationsofCodeSection162(m).

27)"PerformanceMeasures"shallhavethemeaningsetforthinSection14(a)ofthePlan.

28)"PerformancePeriod" means the period during which a Performance Measure must be attained andduring which anAwardissubjecttoasubstantialriskofforfeitureandnottransferable,asprovidedinSections10and11ofthePlan.

29)"PerformanceShare"meansanAwardgrantedtoaParticipant,asdescribedinSection10ofthePlan.

30)"PerformanceUnit"meansanAwardgrantedtoaParticipant,asdescribedinSection11ofthePlan.

31) "Period of Restriction " means the period Restricted Stock, Restricted Stock Units or Other Stock-Based Awards aresubjecttoasubstantialriskofforfeitureand/orarenottransferable,asprovidedinSections8,9and12ofthePlan.

32)"Plan"meanstheWD-40Company2007StockIncentivePlan.

33)"PriorPlans"meanstheCompany'sFourthAmendedandRestatedWD-40Company1990IncentiveStockOptionPlanandtheCompany'sThirdAmendedandRestatedNon-EmployeeDirectorRestrictedStockPlan. 34)"RestrictedStock"meansanAwardgrantedtoaParticipant,asdescribedinSection8ofthePlan.

  

35)"RestrictedStockUnits"meansanAwardgrantedtoaParticipant,asdescribedinSection9ofthePlan.

36)"SEC"meanstheUnitedStatesSecuritiesandExchangeCommission.

37)"Share"meansashareofcommonstockoftheCompany,parvalue$.001pershare,subjecttoadjustmentpursuanttoSection18herein.

38)"StockAppreciationRight"or"SAR"meansanAwardgrantedto a Participant, either aloneor in connectionwitharelatedOption,asdescribedinSection7ofthePlan.

39)"Subsidiary"meansanycorporationinwhichtheCompanyowns,directlyorindirectly,atleastfiftypercent(50%)ofthetotalcombinedvotingpowerofall classesofstock,oranyotherentity(including,butnotlimitedto,partnershipsandjointventures) in which the Company owns, directly or indirectly, at least fifty percent (50%) of the combined equity thereof.Notwithstandingtheforegoing,forpurposesofdeterminingwhetheranyindividualmaybeaParticipantforpurposesofanygrantofIncentiveStockOptions,theterm"Subsidiary"shallhavethemeaningascribedtosuchterminCodeSection424(f).

40)"SubsidiaryDisposition"meansthedispositionbytheCompanyofitsequityholdingsinanySubsidiaryeffectedbyamerger or consolidation involving that Subsidiary, the sale of all or substantially all of the assets of that Subsidiary or theCompany'ssaleordistributionofsubstantiallyalloftheoutstandingcapitalstockofsuchSubsidiary.

41)"TandemSAR"meansaSARthatisgrantedinconnectionwitharelatedOption,asdescribedinSection7ofthePlan. 

  

Exhibit 10 (d )

WD-40 Directors’ Compensation Policya nd Election PlanOctober 8 , 2018

TheWD-40CorporateGovernanceCommitteehasproposed,andtheBoardofDirectorshasadopted,thefollowingCompensationPolicyandElectionPlanfordirectors(the“ElectionPlan”),effectiveasofOctober8,2018.

RESTRICTED STOCK UNITS

Each newnon-employeedirector joining the Board after the adoption o f thisElection Planwill receive restrictedstockunits(“RSUs”)withafairmarketvalueonthedateofgrantof$70,000assoonaspracticableuponjoiningtheBoard.RSUsshallbegranted by affirmative action of the full Board under theWD-40 Company2016Stock Incentive Plan (the “ IncentivePlan”).VestingwillbeimmediateandtheunitswillbesettledinCompanystockuponterminationofthedirector’sserviceontheBoardfor any reason, including upon death, resignation, retirement or removal from office (“Termination” .)The RSUs will carrydividendequivalentspayableincashasandwhendeclaredontheCompany’sstockinaccordancewiththeIncentivePlan. TheAwardAgreementsissuedwithrespecttotheRSUsshallnotpermitthedirectortoaccelerateorotherwiseobtainbenefits(otherthanthedividendequivalentpayments)withrespecttotheRSUsuntilTermination.AllRSUsawardedpursuanttothisElectionPlan shall be subject to Award Agreements having the same terms and conditions for vesting, time of payment, dividendequivalentsandaccelerationprohibitionasprovidedforhereinaboveandallreferencestoRSUsinthisElectionPlanshallrefertoRSUssubjecttosuchAwardAgreements.

Eachcontinuingnon-employeedirectorwillreceiveannuallyanawardofRSUswithafairmarketvalueof$70,000onthedateofgrant.TheRSUswillbegrantedbyaffirmativeactionofthefullBoardundertheIncentivePlanattheorganizationalmeetingoftheBoardimmediatelyfollowingtheannualmeetingofstockholdersinDecemberofeachyear.

TheawardofRSUstodirectorsattheDecembermeetingshallrepresent,inpart, thefullmeasureofcompensationearnedbyeachdirectorforservicesrenderedinthemonthofDecemberfromandaftersuchmeeting.

ELECTION PLAN FOR PAYMENT OF ANNUAL BASE COMPENSATION IN CASH AND /OR BY AWARD OFRESTRICTED STOCK UNITS

Annual base compensation fordirectors for services rendered during the calendar year beginning on January 1 stfollowingtheCompany’sannualmeetingofstockholdersthroughthedateofthenextannualmeetingshallbe$54,000.Suchamountdoesnotinclude board committee fees, director contribution fund donation or reimbursement for travel expenses. No separatecompensationshallbepayableforspecialmeetingsofthedirectors.

CompensationforDirectorstobeElectedattheAnnualMeeting

Annualbasecompensationforeachnon-employeedirectorwillbepaidinacombinationofcashand/orRSUs.Eachdirectormayelecttoreceivealloraportionoftheannualbasecompensationincashinincrementsof$1,000andshallmakethiselectionbythedateoftheannual meeting .Thecashcompensationtobepaid, if any, shall bepaid onMarch1ofthefollowingyear.RSUs havingafair market valueas of the date of g rantequalto theamount of annual base compensationnot electedto bereceivedincashwillbegrantedbyaffirmativeactionofthefullBoardundertheIncentivePlanimmediatelyfollowingtheannualshareholdersmeetinginDecember,atwhichtime,thedirector’selectionshallbecomeirrevocable.

CompensationforDirectorsAppointedDuringYear

Directors appointed during the year to fill a vacancy on the Board will receive annual base compensation according to thefollowingschedule:

Appointmentatorpriortothesecondquartermeeting: $54,000Appointmentatorpriortothethirdquartermeeting: $40,500Appointmentatorpriortothefourthquartermeeting: $27,000

PaymentofsuchcompensationshallbemadeonoraboutthefirstdayofthesecondmonthfollowingappointmenttotheBoard. Prior to the effective date of the new director’s election to the Board, t hedirector may elect to receive all or part of suchcompensationincashinincrementsof$1,000andRSUsshallbeawardedinthemannerprovidedforelectionswithrespecttothereceiptofannualbasecompensationassetforthabove.TheRSUsaretobegrantedbythefullBoardundertheIncentivePlanatthenextmeetingoftheBoardfollowingreceiptofthedirector’selectioninthesamemannerinwhichRSUsareawardedtodirectorspursuanttotheirannualcompensationelections.Thenewdirector’selectionshallbeirrevocableupontheeffectivedateofhisorherserviceasadirector.

CompensationforDirectorsLeavingDuringYear

IfdeemedpracticalbytheCorporateGovernanceCommittee,adepartingdirectorwillbepaidforthepro-rataportionoftimeactuallyservedandmayberequiredtoreturnaprorataportionofcompensationreceivedortoforfeitaprorataportionofRSUsawardedpursuanttotheforegoingelectionprovisions,assuchrequiredreturnofcompensationorforfeituremaybedeterminedbytheCorporateGovernanceCommitteeinitsreasonablediscretion.

IRC SECTION 409A PLAN

TheforegoingprovisionsrelatingtothegrantofRSUsundertheIncentivePlanandadirector’selectiontoreceiveallorpartoftheannualbasecompensationincashareintendedtoconstituteabindingplanforpurposesofSection409AoftheInternalRevenueCode.

BOARD CHAIRMAN COMPENSATION

TheChairmanoftheBoardwillreceive$22,000asadditionalcashcompensationannually.Thisamountwillbepro-ratedforpartialyearserviceasChairman.COMMITTEE COMPENSATION

AnnualCommitteeservicefeesareasstatedbelow:

AuditCommittee$8,000permemberChairman$16,000

CompensationCommittee$4,000permemberChairman$10,000

CorporateGovernanceCommittee$4,000permemberChairman$8,000FinanceCommittee$4,000permemberChairman$8,000

Payment of annual committeeservice fees shall be made in lumpsumon or about March 1 of each year covering committeeservicesprovidedfromthebeginningofthecalendaryearfollowingeachannualmeetingtothenextannualmeeting.Amountswillbepro-ratedforpartialyearservice.

ADDITIONAL BENEFITS

CharitableDonations

Eachdirectorisallowedtodesignate$6,000annuallyfromWD-40CompanyDirectorContributionsFundtoaqualified(501(c)(3))charitable organization. Newlyelecteddirectorswill beeligibletomakecharitablefundingdesignationsforthefiscal yearfollowingthefiscalyearinwhichtheyareelected.Anycontinuingdirectorwhoservesanypartofafiscalyearshallbeentitledtodesignate$6,000forthatyear.

ContinuingEducation

Eachdirectorwillbereimburseduptoatotalof$3,000peryearforeducationexpenses,includingappropriatetravelcosts.Therewillbeno“carry-forward”iftheamountisnotutilizedduringtheyear.Reimbursementshallbeuptoatotalof$10,000inanyyear if a director engages in international travel to visit company worksites or travel with company personnel. DirectorsareencouragedtosharetheirlearningfromeducationalprogramswiththeBoard.

AdoptedbytheBoardofDirectors,October8,2018

/s/RICHARDT.CLAMPITTRichardT.ClampittWD-40CompanyCorporateSecretary

Exhibit 10( h )WD-40 COMPANY

MARKET SHARE UNIT AWARD AGREEMENT

MARKET SHARE UNIT AWARD GRANT NOTICE AND ACCEPTANCE

Participant Name: Grant Date: Target Number of MSU Shares: Performance Measurement Year End: August 31, Vesting Date: Compensation Committee Certification of Performance AchievementSettlement Date: Not Later Than November 15, (See Award Agreement)

MARKET SHARE UNIT AWARD AGREEMENT

PursuanttoyourMarketShareUnitAwardGrantNoticeandAcceptance(“GrantNotice”)andthisMarketShareUnitAward Agreement (“Agreement”), WD-40 Company, a Delaware corporation, (the “Company”) has awarded to youPerformanceShares(referredtohereinasMarketShareUnitsor“MSUs”)undertheWD-40Company2007StockIncentivePlan(the“Plan”) withrespect tothe“Target Number”ofsharesof theCompany’sCommonStockindicatedinyourGrantNotice.DefinedtermsnotexplicitlydefinedinthisAgreementbutdefinedinthePlanshallhavethesamedefinitionsasinthePlan.

ThedetailsofyourMSUsareasfollows:

1. Number of Shares. ThenumberofSharestobeissuedtoyouuponpaymentofyourMSUs(your“MSUShares”)asreferenced in your Grant Notice will be determined under the performance vesting provisions in Paragraph 3 of thisAgreementequaltoapercentage(the“ApplicablePercentage”)oftheTargetNumberofMSUSharessetforthinyourGrantNotice.TheTargetNumberofMSUSharesmaybeadjustedfromtimetotimeuponchangesincapitalizationoftheCompanypursuanttoSection18ofthePlan.

2. No Payment of Dividend Equivalents. Dividend Equivalents are not payable with respect to your MSUs. UponissuanceofyourMSUSharesatthetimeofvestingorotherwiseasprovidedforherein,youwillthenbeentitledtoreceivedividendsasandwhendeclaredupontheSharesbytheCompany.

3. Performance Vesting. YourMSUsvestfollowingaperformancemeasurementperiodofthreefullfiscalyears(the“MeasurementPeriod”)endingasoftheCompany’sfiscalyearendforthesecondfullfiscalyearfollowingtheDateofGrant(the “Measurement Year”). Following the conclusion of the Measurement Year, the Committee shall meet, either at itsregularly scheduled quarterly meeting or at a special meeting of the Committee, but in all events within sixty (60) daysfollowing the end of the Measurement Year, to certify achievement of the performance measure set forth on Exhibit Aattachedhereto andthe vesting of your MSUsandthe Applicable Percentage of the Target Number of MSUShares to beissued to you. Except as otherwise provided for herein, unless, prior to the effective date of the termination of youremploymentwiththeCompanyoraSubsidiaryforanyreason,includingdeath,resignationorterminationbytheCompanyorSubsidiary(“TerminationofEmployment”),theCommitteehascertifiedtheperformancevestingofyourMSUs,allofyourMSUsshallbeforfeited.

4. Delivery of Shares upon Performance Vesting. Thesettlement datefordeliveryofyourMSUSharesfollowingcertificationofvestingbytheCommitteeasprovidedforinParagraph3abovewill betheearlier ofthedatethatisthe3 rdbusinessdayfollowingtheCompany’spublicreleaseofitsannualearningsfortheMeasurementYearorNovember15ofthefiscal year immediately following the Measurement Year (the “Settlement Date”). Upon settlement of your MSUs, theApplicablePercentageoftheTargetNumberofMSUSharesshallbepaidinShares.SubjecttotheprovisionsofParagraphs6and 9 of this Agreement, the MSU Shares shall be issued and delivered to you or to your designated Beneficiary (ashereinafterdefined)ontheSettlementDate.IssuanceoftheMSUShares

maynotbeaccelerated, deferredorotherwiseclaimedbyyouforanyreasonorat anytimeotherthanupontheSettlementDateorotherwiseasprovidedforherein.

5. Change in Control Vesting. Exceptasprovidedforherein,theprovisionsofSection19ofthePlanshallapplytoyourMSUsintheeventofaChangeinControloftheCompany(asdefinedinthePlan).IntheeventofaChangeinControlpriortotheendoftheMeasurementYear,forpurposesofdeterminingthelevelofperformanceachievedasofthedateoftheChange in Control, the Measurement Year shall be deemed to have ended immediately prior to the effective date of theChangeinControl.Insuchevent,theMeasurementShareValueandtheMeasurementIndexValue(asdefinedinExhibit A )shall be determined based on the closing price for the Shares and the closing Index value as of the date of the Change inControl(notbasedonaverageamountsasprovidedforinExhibit A ).Inaddition,intheeventofaChangeinControl,theproportionatenumberoftheTargetNumberofMSUsnotsubjecttovestingbasedonthelevelofperformanceachievedasofthedateoftheChangeinControlshallbetreatedasequivalentRestrictedStockUnitshavingaPeriodofRestrictionendingontheSettlementDate,subjecttoSection5ofyourChangeofControlSeveranceAgreementwiththeCompany.Youwillbeentitled to receive your vested MSU Shares thirty (30) days following the date of the Change in Control. If a Change inControloccursaftertheendoftheMeasurementYear,butbeforetheCommitteehascertifiedachievementoftheperformancemeasure, and you were employed by the Company on the date of the Change in Control, you will have the right, on theSettlement Date, to receive your vested MSU Shares or the dollar value equivalent thereof, at the Company’s option,determinedinaccordancewiththevestingprovisionsofSection3ofthisAgreement.Forpurposesoftheprecedingsentence,the Settlement Date shall be deemed to be the date three (3) business days following the date on which the company thatsurvivestheChangeinControlpubliclyorprivatelyissuesauditedfinancialstatementsthatincluderesultsoftheCompany’sMeasurement Year, but in no event shall the Settlement Date be later than ninety (90) days following the end of theMeasurementYear.

6. Securities Law Compliance. Notwithstandinganythingtothecontrarycontainedherein,yourMSUSharesmaynotbeissuedunlesstheMSUSharesarethenregisteredundertheSecuritiesActof1933,asamended(the“SecuritiesAct”)or,ifsuchSharesarenotthensoregistered,theCommitteeortheBoardhasdeterminedthatsuchissuancewouldbeexemptfromtheregistrationrequirementsoftheSecuritiesAct.TheissuanceofyourMSUSharesmustalsocomplywithotherapplicablelawsandregulationsgoverningyourMSUShares,andtheissuanceofyourMSUSharesmaybedelayediftheCommitteeortheBoarddeterminesthatsuchissuancewouldnotbeinmaterialcompliancewithsuchlawsandregulations.

7. Transferability. Your MSUs are not transferable, except by will or by the laws of descent and distribution.Notwithstandingtheforegoing,bydeliveringwrittennoticetotheCompany,inaformsatisfactorytotheCompany,youmaydesignateathirdparty(your“Beneficiary”)who,intheeventofyourdeath,shallthenbeentitledtoreceivetheMSUSharespayableasofthedateofyourdeath,ifany.

8. Agreement Not a Service Contract or Obligation to Continue Service .ThisAgreementisnotanemploymentorservicecontract,andnothinginthisAgreementshallbedeemedtocreateinanywaywhatsoeveranyobligationonyourparttocontinueintheserviceoftheCompanyorSubsidiaryasanemployeeforanyperiodoftime.Inaddition,nothinginthisAgreementshallobligatetheCompanyoraSubsidiarytocontinueyouremploymentforanyperiodoftime.

9. Withholding of MSU Shares to Cover Tax Withholding Obligations .

(a) At the time of issuance of your MSU Shares, to the extent required by law or applicable regulation, theCompany shall withhold fromthe MSUShares otherwise issuable to you a number of whole Shares having a Fair MarketValueasoftheSettlementDateequaltotheminimumamountoftaxesrequiredtobewithheldbylaw.TheFairMarketValueofthewithheldwholenumberofMSUSharesthatisinexcessoftheminimumamountoftaxesrequiredtobewithheldshallbe addedto the deposit for your U.S. federal incometax withholdingor, if youare an international taxpayer, suchamountshallbeaddedtothelargestdepositofwithheldtaxrequiredtobemadebytheCompanyonyourbehalf.

(b) Your MSUShares may not be issued unless the tax withholding obligations of the Company, if any, aresatisfied. Accordingly, the MSUShares may not be issued within the time specified in Paragraphs 4 and 5 above and theCompanyshallhavenoobligationtoissueacertificateforsuchSharesuntilsuchtaxwithholdingobligationsaresatisfiedorotherwiseprovidedfor.

10. Notices .AnynoticesprovidedforinthePlanorthisAgreementshallbegiveninwritingandshallbedeemedeffectivelygivenuponreceiptor,inthecaseofnoticesdeliveredbymailbytheCompanytoyou,five(5)daysafterdepositintheUnitedStatesmail,postageprepaid,addressedtoyouatthelastaddressyouprovidedtotheCompany.

11. Governing Plan Document .ThisAgreementissubjecttoalltheprovisionsofthePlan,theprovisionsofwhichareincorporatedbyreferenceinthisAgreement.ThisAgreementisfurthersubjecttoallinterpretations,amendments,rulesandregulationswhichmayfromtimetotimebepromulgatedandadoptedpursuanttothePlan.Exceptasspecificallyprovidedforherein,intheeventofanyconflictbetweentheprovisionsofthisAgreementandthoseofthePlan,theprovisionsofthePlanshallcontrol.

END OF MARKET SHARE UNIT AGREEMENT

(Refer to MSU Award Grant Notice and Acceptance for Specific Grant Information)

EXHIBITA

PERFORMANCEVESTING

SubjecttoSection5oftheMarketShareUnitAwardAgreement, theMSUsshall vestwithrespecttotheApplicablePercentage of the Target Number of MSUShares set forth in the followingtable based onrelative total stockholder return(“TSR”)fortheCompanyovertheMeasurementPeriodascomparedtothetotalreturn(“Return”)fortheRussell2000Index(the“Index”)asreportedfortotalreturn(withdividendsreinvested)byRussellInvestments.Forpurposesofcomputingtherelative TSRfor the Companyas compared to the Return for the Index, dividends paid with respect to the Shares shall betreatedashavingbeenreinvestedasoftheex-dividenddateforeachdeclareddividend,asfurtherdescribedbelow.TSRfortheCompanyshallequalthepercentagechange(positiveornegative)ofthe“MeasurementShareValue”(asdefinedbelow)as compared to the “Base Share Value” (as defined below). The Return for the Index shall equal the percentage change(positive or negative) of the “Measurement Index Value” (as defined below) as compared to the “Base Index Value” (asdefinedbelow).TherelativeTSR(“RelativeTSR”)representstheabsolutepercentagepointdifferencebetweentheTSRfortheCompanyandtheReturnfortheIndex.

RelativeTSR

(absolutepercentagepointdifference) ApplicablePercentage

>20% 200%

20% 200%

15% 175%

10% 150%

5% 125%

Equal 100%

-5% 75%

-10% 50%

>-10% 0%

The Applicable Percentage will be determined on a straight line sliding scale from the minimum 50% ApplicablePercentageachievementleveltothemaximum200%ApplicablePercentageachievementlevel.Forpurposesofdeterminingrelative achievement, actual results are to be rounded to the nearest tenth of one percent and rounded upward from themidpoint,inalleventsinapositivedirection.Forexample,iftheRelativeTSRis4.94%(theabsolutedifferencebetweentheTSRfortheCompanyandtheReturnfortheIndexovertheMeasurementPeriodbeing4.94percentagepoints),RelativeTSRwillbe4.9%andtheApplicablePercentagewillbe124.5%.ThenumberofMSUSharestobeissuedontheSettlementDateistoberoundedtothenearestwholeshareandroundedupwardfromthemidpoint.

“BaseShareValue”shallrepresenttheaveragecomputedvalueofone(1)shareoftheCompany’scommonstock(asincreased, if applicable, by additional shares theoretically acquired with reinvested dividends, as further described below),determinedwithreferencetothedailyclosingpricefortheCompany’sSharesoveraperiodofallmarkettradingdayswithintheninety(90)calendardaysendingonthelastdayoftheCompany’sfiscalyearendedimmediatelypriortotheDateofGrant(the“BaseValueAveragingPeriod”).

For purposes of determining the Base Share Value, the daily value of one (1) share shall be computed based on theclosingpricefortheCompany’sSharesforeachmarkettradingdayuntilthenextfollowingex-dividenddate,ifany.Ontheex-dividenddate,ifany,andthereafterthroughtheendofthe

BaseValueAveragingPeriod,thedailyvalueshallbebasedonone(1)shareplusanumberofsharesthatwouldtheoreticallybeacquiredontheex-dividenddate,attheclosingpricefortheCompany’sSharesontheex-dividenddate,withthedividenddeclaredwithrespecttotheshare.Inthesamemanner,thenumberofsharesshallbeincreasedforcomputingthedailyvalueonacompoundedbasisforeachsuccessivedividend,ifany,declaredpriortotheendoftheBaseValueAveragingPeriod.AsimpleaverageofallofthedailyvaluessocomputedshallrepresenttheBaseShareValue.

“Base Index Value” shall represent the average closing value of the Index over a period of all market trading dayswithintheBaseValueAveragingPeriod.

“Measurement Share Value”shall represent the averagecomputedvalue of one(1) share of the Company’s commonstock(asincreased,ifapplicable,byadditionalsharestheoreticallyacquiredwithreinvesteddividendsovertheMeasurementPeriod, including dividends reinvested for purposes of computing the Base Share Value, as further described below),determinedwithreferencetothedailyclosingpricefortheCompany’sSharesoveraperiodofallmarkettradingdayswithinninety(90)calendardaysendingonthelastdayoftheMeasurementYear(the“MeasurementValueAveragingPeriod”).

ForpurposesofdeterminingtheMeasurementShareValue,thenumberofsharesasofthefirstdayoftheMeasurementValue Averaging Period shall first be determined by adding theoretically reinvested dividend shares over the entireMeasurementPeriodtothenumberofsharesusedincomputationoftheBaseShareValueasoftheendoftheBaseValueAveragingPeriod.Suchreinvesteddividendsharesshallbeaddedonacompoundedbasisasofeachsuccessiveex-dividenddate for dividends declared with respect to the Company’s Shares in the samemanner as described for computation of theBaseShareValue.BeginningonthefirstdayoftheMeasurementShareAveragingPeriod,thedailyvalueofthesharesthusaccumulatedthroughdividendreinvestmentshallbecomputedbasedontheclosingpricefortheCompany’sSharesforeachmarkettradingdayuntilthenextfollowingex-dividenddate.Onsuccessiveex-dividenddates,ifany,andthereafterthroughthe end of the Measurement Share Averaging Period, the daily value shall be based on the increased number of sharesaccumulated as of each such ex-dividend date. Asimple average of all of the daily values so computed shall represent theMeasurementShareValue.

“MeasurementIndexValue”shallrepresenttheaverageclosingvalueoftheIndexoveraperiodofallmarkettradingdaysw

Exhibit 10(j)

WD-40 COMPANY2016 STOCK INCENTIVE PLAN

FY 2017 DEFERRED PERFORMANCE UNIT AWARD GRANT NOTICE AND ACCEPTANCE

Maximum Number of DPU Shares: The “Vest Quantity” Shown AbovePerformance Measurement Year End: August 31, 20__Vesting Date: August 31, 20__ , Subject To Compensation Committee Certification of Performance

AchievementSettlement Date: As Determined By the Compensation Committee at the Time of Certification of

Performance Achievement, Pursuant To Paragraphs 3 and 5 of the FY 20__ DeferredPerformance Unit Award Agreement Below

FY 2017 DEFERRED PERFORMANCE UNIT AWARD AGREEMENT

PursuanttoyourDeferredPerformanceUnitAwardGrantNoticeandAcceptance(“GrantNotice”)andthisDeferred Performance Unit Award Agreement (“Agreement”), WD-40 Company, a Delaware corporation, (the “Company”) hasawardedtoyouDeferredPerformanceUnits(“DPUs”)undertheWD-40Company2016StockIncentivePlan(the“Plan”)with respect to the “Maximum N umber ” of shares of the Company’s Common Stock indicated in your GrantNotice.DefinedtermsnotexplicitlydefinedinthisAgreementbutdefinedinthePlanshallhavethesamedefinitionsasinthePlan.

ThedetailsofyourDPUsareasfollows:

1. Number of Shares. SubjecttothealternativevestingpaymentprovisionsofParagraph3ofthisAgreement,thenumberofSharestobeissuedtoyouuponsettlementofyourDPUs(your“DPUShares”)asreferencedinyourGrantNoticewillbedeterminedundertheperformancevestingprovisionsinParagraph2ofthisAgreementequaltoapercentage(the “Applicable Percentage”) of the MaximumNumber ofDPUShares set forth in your Grant Notice. TheMaximumNumber ofDPUs prior to performance vesting ,or the resulting number ofDPUSharesdetermined upon performancevesting,maybeadjustedfromtimetotimeuponchangesincapitalizationoftheCompanypursuanttoSection18ofthePlan.

2. Performance Vesting. Your DPUsvest followinga performancemeasurement periodofoneyearthat is thecurrent fiscal year of the Company (the “Measurement Year”). Following the conclusion of the Measurement Year, theCommitteeshallmeet,eitheratitsregularlyscheduledquarterlymeetingorataspecialmeetingoftheCommitteecalledpriortotheCompany’sreleaseofitsannualearningsfortheMeasurementYear,tocertifyachievementoftheperformancemeasuresetforthonExhibitAattachedheretoanddeterminationoftheApplicablePercentageoftheMaximumNumberofDPUsthatwillbecomevested(your“VestedDPUs”).Exceptasotherwiseprovidedforherein,yourDPUswillbeforfeitedifyouremploymentwiththeCompanyoraSubsidiaryisterminatedforanyreason,includingdeath,resignationorterminationbytheCompanyoraSubsidiary(“TerminationofEmployment”)priortoAugust31oftheMeasurementYear .IntheeventofyourTerminationofEmploymentbyreasonofyourdeath,disabilityorRetirement(ashereinafterdefined),youmay,asprovidedfor herein, be eligible to receiveVestedDPUsdeterminedona pro- rata monthly basis, includingfull creditforpartialmonthselapsedthroughtheeffectivedateofyourTerminationofEmployment,effectiveasofthelastdayoftheMeasurementYearandsubjecttotheCommittee’scertificationofachievementoftheperformancemeasureanddeterminationoftheApplicablePercentage.Ifapplicableforsuchpro-ratavesting,theMaximumNumberofDPUShareswillbeadjustedaccordingtothepro-rataportionoftheMeasurementYearforwhichyouwereemployed.Inthecaseofyour

TerminationofEmploymentduetodeathordisability,pro-ratavestingwilloccuratthediscretionoftheCommittee.Inthecase of your Retirement (as here in after defined) , you will receive the applicable pro-rata amount of Vested DPUs.“Retirement”,forpurposesofthisAgreement,meansTerminationofEmployment(foranyreasonotherthanterminationbytheCompanyoraSubsidiaryforCause):(i)afterattainmentofagesixty-five(65),or(ii)afterattainmentofagefifty-five(55)providedthatyouhavebeeninContinuousServicewiththeCompanyoraSubsidiaryfornotlessthanten(10)years.

3. Alternative Vesting Payment in Cash for International Participants. If youare a resident of a jurisdictionotherthantheUnitedStates,theCommitteemay,asauthorizedunderSections4(b)and11(d)ofthePlan,determine,atthetime that the Committee certifies the performance vesting of your DPUsas provided for in Paragraph 2above, that yourVestedDPUswillbesettledincashinanamountequaltothenumberofVestedDPUSharesmultipliedbytheclosingpriceof the Shares as of the date of such certification. In the event your Vested DPUs are settled in cash , the provisions ofParagraphs4,5,6and9ofthisAgreementshallnotapplytoyourVestedDPUs.

4. Payment of Dividend Equivalents. Until issuance of your DPU Shares , you shall be entitled to receiveDividendEquivalentswithrespecttoyourVestedDPUs,payableincashasandwhendividendsaredeclaredupontheSharesbytheCompany.DividendEquivalentsmaybeaccumulatedbytheCompanybutshallbepaidnolessoftenthanannually.Such Dividend Equivalents shall constitute additional ordinary compensation income for the year in which the DividendEquivalentsarepaid.DividendEquivalentsshallbepaidwithrespecttoyourVestedDPUsheldasoftherecorddateforthedividenddeclaredupontheSharesbytheCompany,providedthatyouwillnotbedeemedtoholdVestedDPUspriortotheCommittee’scertificationofperformancevestingasprovidedforinParagraph2above.

5. Delivery of Shares upon Termination of Employment – 6 Month Delay . YourVestedDPUsshallbesettledsolelyinSharesuponTerminationofEmployment.SubjecttotheprovisionsofParagraphs6and9ofthisAgreement,DPUShares shall be issued and delivered to you or to your designated Beneficiary (as hereinafter defined) six(6)monthsfollowingthedayaftertheeffectivedateofyourTerminationofEmployment(the“SettlementDate”).IssuanceoftheDPUSharesmaynotbeacceleratedorotherwiseclaimedbyyouforanyreasonotherthanfollowingTerminationofEmployment.

6. Securities Law Compliance. Notwithstandinganythingtothecontrarycontainedherein,yourDPUSharesmaynotbeissuedunlesstheDPUSharesarethenregisteredundertheSecuritiesActof1933,asamended(the“SecuritiesAct”)or,ifsuchSharesarenotthensoregistered,theCommitteeortheBoardhasdeterminedthatsuchissuancewouldbeexemptfrom the registration requirements of the Securities Act. The issuance of yourDPUShares must also comply with otherapplicable laws and regulations governing yourDPUShares, and the issuance of yourDPUShares may be delayed if theCommitteeortheBoarddeterminesthatsuchissuancewouldnotbeinmaterialcompliancewithsuchlawsandregulations.

7. Transferability. Your DPU s are not transferable, except by will or by the laws of descent anddistribution. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to theCompany, you may designate a third party (your “Beneficiary”) who, in the event of your death, shall then be entitled toreceivetheDPUShares,ifany,payableasofthedateofyourdeath.

8. Agreement Not a Service Contract or Obligation to Continue Service .ThisAgreementisnotanemploymentorservicecontract, andnothinginthisAgreementshallbedeemedtocreateinanywaywhatsoeveranyobligationonyourparttocontinueintheserviceoftheCompanyorSubsidiaryasanemployeeforanyperiodoftime.Inaddition,nothinginthisAgreementshallobligatetheCompanyoraSubsidiarytocontinueyouremploymentforanyperiodoftime.

9. Satisfaction of Tax Withholding Obligations .

(a) At the time of the vesting of your DPUs as provided for in Paragraph 2 above, to the extent theCompany or Subsidiary is required by lawor applicable regulation to withhold and remit any tax on your behalf, whetherrepresentingpayrolltax,incometaxorotherpersonaltaxobligation,theCompanyorSubsidiaryshallhavetherighttocollect,directlyfromyouorfromothercompensationamountsduetoyoufromtheCompanyorSubsidiary,

amounts required to satisfy such tax withholding obligations. To the extent permitted by lawor applicable regulation, theCompany or Subsidiary may satisfy such withholding obligations at such time after the end of the Measurement Year andwithin the same calendar year as may be administratively convenient, such as the date you receive other incentive cashcompensationundertheCompany’sperformanceincentivecompensationprograms.

(b) AtthetimeofissuanceofyourDPUShares,totheextentrequiredbylaworapplicableregulation,theCompanyshallwithholdfromtheDPUSharesotherwiseissuable toyou,anumberof wholeShares havingaFair MarketValue as of theSettlement Dateequal to the minimumamount of taxes required to be withheld by law. The Fair MarketValueofthewithheldwholenumberofDPUSharesthatisinexcessoftheminimumamountoftaxesrequiredtobewithheldshall be added to the deposit for your U.S. federal income tax withholding or, if you are an international taxpayer, suchamountshallbeaddedtothelargestdepositofwithheldtaxrequiredtobemadebytheCompanyonyourbehalf.

(c) You r DPU Shares may not be issued unless the tax withholding obligations of the Company orSubsidiary,ifany,aresatisfied.Accordingly,theDPUSharesmaynotbeissuedwithinthetimespecifiedinParagraph5aboveandtheCompanyshallhavenoobligationtoissueacertificateforsuchSharesuntilsuchtaxwithholdingobligationsaresatisfiedorotherwiseprovidedfor. Uponnotice of therequirement for recoveryfromyouof anyamount dueas a taxwithholdingobligation,youagreetopromptlyremittotheCompanyorSubsidiarythefullamountdue.

10. Notices .AnynoticesprovidedforinthePlanorthisAgreementshallbegiveninwritingandshallbedeemedeffectivelygivenuponreceiptor,inthecaseofnoticesdeliveredbymailbytheCompanytoyou,five(5)daysafterdepositintheUnitedStatesmail,postageprepaid,addressedtoyouatthelastaddressyouprovidedtotheCompany.

11. Governing Plan Document . This Agreement is subject to all the provisions of the Plan, the provisions ofwhichareincorporatedbyreferenceinthisAgreement.ThisAgreementisfurthersubjecttoallinterpretations,amendments,rulesandregulationswhichmayfromtimetotimebepromulgatedandadoptedpursuanttothePlan.Exceptasspecificallyprovided for herein, i n the event of any conflict between the provisions of this Agreement and those of the Plan, theprovisionsofthePlanshallcontrol.

END OF DEFERRED PERFORMANCE UNIT AGREEMENT

(Refer to DPU Award Grant Notice and Acceptance for Specific Grant Information)

EXHIBITA

PERFORMANCEVESTING

InaccordancewithParagraph2oftheDeferredPerformanceUnitAwardAgreement,theDPUsshallvestwithrespecttotheApplicablePercentageoftheMaximumNumberofDPUSharessetforthinthefollowingtable,basedonrelativeachievementwithinanestablishedperformancemeasurerangeoftheCompany’sreportedearningsbeforeinterest, incometaxes,d epreciation (in operatingdepartments)and amortization computed on a consolidated basis (“GlobalEBITDA”)fortheMeasurementYear,beforedeductionofthestock-basedcompensationexpensefortheVestedDPUsandexcludingothernon-operatingincomeandexpenseamounts(“AdjustedGlobalEBITDA”).

AdjustedGlobalEBITDA ApplicablePercentage>$_________ 100%$_________ 100%$_________ 5%<$_________ 0%

$_________* 0%

*Impliedzeropercentageachievementlevel.

The Applicable Percentage will bedetermined on a straight line sliding scale fromthe implied zeropercentage achievementleveltothemaximum100%ApplicablePercentageachievementlevelbuttheApplicablePercentageshallnotbelessthan5%.Forpurposesofdetermining theApplicablePercentage,thecalculatedpercentageistoberoundedtothenearesttenthofonepercentandroundedupwardfromthemidpoint.ThenumberofVestedDPUsistoberoundedtothenearestwholeunitandroundedupwardfromthemidpoint.

ForpurposesofcomputingGlobalEBITDAtheCompany’searningsaretobedeterminedinaccordancewiththeCompany’sthenapplicableGenerallyAcceptedAccountingPrinciples(currentlyU.S.GAAP).

Exhibit 21

SUBSIDIARIES OF THE REGISTRANT

TheRegistranthasthefollowingwholly-ownedsubsidiarieswhich,exceptasindicated,dobusinessundertheirrespectivelegalnames:

Name Place of Incorporation

WD-40ManufacturingCompany California,USA

WD-40Company(Canada)Ltd. Ontario,Canada

WD-40HoldingsLimited London,England

WD-40CompanyLimited London,England

WD-40Company(Australia)Pty.Limited NewSouthWales,Australia

HPDLaboratoriesInc. Delaware,USA

HeartlandCorporation Kansas,USA

WuDi(Shanghai)IndustrialCo.,Ltd. Shanghai,China

WD-40Company(Malaysia)Sdn.Bhd. KualaLumpur,Malaysia

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

WeherebyconsenttotheincorporationbyreferenceintheRegistrationStatementsonFormS‑8(No.333-151149,333-117395, 333-64256, 333-41247, 0 33-90972,and033-43174) and Form S-3 (No. 333-98041 and 333-63890) of WD-40Companyofourreport datedOctober22,2018relatingtothefinancialstatementsandtheeffectivenessofinternalcontroloverfinancialreporting,whichappearsinthisForm10‑K.

/s/PricewaterhouseCoopersLLP

SanDiego,CaliforniaOctober22,2018

/s/GARRYO.RIDGE

GarryO.RidgePresidentandChiefExecutiveOfficer

Exhibit 31(a)

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,GarryO.Ridge,certifythat:

1. IhavereviewedthisAnnualReportonForm10-KofWD-40Company;

2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperations,andcashflowsoftheRegistrantasof,andfor,theperiodspresentedinthisreport;

4. TheRegistrant’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheRegistrantandhave:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheRegistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) EvaluatedtheeffectivenessoftheRegistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) DisclosedinthisreportanychangeintheRegistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheRegistrant’smostrecentfiscalquarter(theRegistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theRegistrant’sinternalcontroloverfinancialreporting;and

5. TheRegistrant’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheRegistrant’sauditorsandtheauditcommitteeoftheRegistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

a) AllsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheRegistrant’sabilitytorecord,process,summarize,andreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheRegistrant’sinternalcontroloverfinancialreporting.

Date:October22,2018

/s/JAYW.REMBOLT

JayW.RemboltVicePresident,Finance,TreasurerandChiefFinancialOfficer

Exhibit 31(b )

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,JayW.Rembolt,certifythat:

1. IhavereviewedthisAnnualReportonForm10-KofWD-40Company;2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostatea

materialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperations,andcashflowsoftheRegistrantasof,andfor,theperiodspresentedinthisreport;

4. TheRegistrant’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheRegistrantandhave:a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobe

designedunderoursupervision,toensurethatmaterialinformationrelatingtotheRegistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) EvaluatedtheeffectivenessoftheRegistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) DisclosedinthisreportanychangeintheRegistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheRegistrant’smostrecentfiscalquarter(theRegistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theRegistrant’sinternalcontroloverfinancialreporting;and

5. TheRegistrant’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheRegistrant’sauditorsandtheauditcommitteeoftheRegistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancial

reportingwhicharereasonablylikelytoadverselyaffecttheRegistrant’sabilitytorecord,process,summarize,andreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheRegistrant’sinternalcontroloverfinancialreporting.

Date:October22,2018

/s/GARRYO.RIDGEGarryO.RidgePresidentandChiefExecutiveOfficer

Exhibit 32(a)

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I,GarryO.Ridge,ChiefExecutiveOfficerofWD-40Company(the“Company”),havereviewedtheAnnualReportonForm10-KoftheCompanyforthefiscalyearendedAugust31,2018(the“Report”).ForpurposesofSection1350ofTitle18,UnitedStatesCode,Icertifythattothebestofmyknowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, asamended;and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results ofoperationsoftheCompany.

Date:October22,2018 

/s/JAYW.REMBOLTJayW.RemboltVicePresident,Finance,TreasurerandChiefFinancialOfficer

Exhibit 32(b )

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I,JayW.Rembolt,ChiefFinancialOfficerofWD-40Company(the“Company”),havereviewedtheAnnualReportonForm10-KoftheCompanyforthefiscalyearendedAugust31,2018(the“Report”).ForpurposesofSection1350ofTitle18,UnitedStatesCode,Icertifythattothebestofmyknowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, asamended;and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results ofoperationsoftheCompany.

Date:October22,2018