Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges (Notes)

v3.10.0.1
Restructuring Charges (Notes)
 3 Months Ended
Nov. 30, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
Note 3. Restructuring Charges
The Company has undertaken or committed to various restructuring initiatives including workforce reductions, leadership changes, plant consolidations to reduce manufacturing overhead, satellite office closures, the continued movement of production and product sourcing to low cost alternatives and the centralization and standardization of certain administrative functions. Total restructuring charges for these activities were $0.4 million and $6.6 million in the three months ended November 30, 2018 and 2017, respectively. Liabilities for severance will generally be paid during the next twelve months, while future lease payments related to facilities vacated as a result of restructuring will be paid over the underlying remaining lease terms.
The following rollforwards summarize restructuring reserve activity by segment (in thousands):
 
 
Three Months Ended November 30, 2018
 
 
Industrial Tools & Services
 
Engineered Components & Systems
 
Corporate
 
Total
Balance as of August 31, 2018
 
$
1,687

 
$
1,592

 
$
415

 
$
3,694

Restructuring charges
 
(29
)
(1) 
432

 
—

 
403

Cash payments
 
(922
)
 
(151
)
 
(46
)
 
(1,119
)
Other non-cash uses/reclasses of reserve
 
(79
)
 
209

 
(369
)
 
(239
)
Impact of changes in foreign currency rates
 
(21
)
 
(13
)
 
—

 
(34
)
Balance as of November 30, 2018
 
$
636

 
$
2,069

 
$
—

 
$
2,705

 
 
Three Months Ended November 30, 2017
 
 
Industrial Tools & Services
 
Engineered Components & Systems
 
Corporate
 
Total
Balance as of August 31, 2017
 
$
1,499

 
$
4,108

 
$
30

 
$
5,637

Restructuring charges
 
1,405

 
1,050

 
4,174

 
6,629

Cash payments
 
(910
)
 
(1,509
)
 
(345
)
 
(2,764
)
Other non-cash uses of reserve
 
(427
)
 
(51
)
 
(2,019
)
(2) 
(2,497
)
Impact of changes in foreign currency rates
 
—

 
(163
)
 
—

 
(163
)
Balance as of November 30, 2017
 
$
1,567

 
$
3,435

 
$
1,840

 
$
6,842

(1) Credit balance in restructuring charges relates to reversal of restructuring accrual due to underspend of estimated expenses.
(2) Majority of non-cash uses of reserve represents accelerated equity vesting in connection with employee severance agreements.