Enerpac Tool Group Corp. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Restructuring

Restructuring

12 Months Ended

Aug. 31, 2011

Note 4. Restructuring

In fiscal 2009, in response to the dramatic downturn in the worldwide economy, the Company committed to various restructuring initiatives including workforce reductions, plant consolidations, the transfer of production and product sourcing to lower cost plants or regions and the centralization of certain selling and administrative functions. These actions were substantially completed by August 31, 2010, with limited restructuring activity and expense in fiscal 2011, which primarily related to facility exit lease charges. Total restructuring costs recognized, which impact all segments are as follows (in thousands):


	Year Ended August 31,
	2011		2010		2009
Severance and facility consolidation	$	1,459	$	9,726	$	15,733
Product line rationalization		87		1,096		1,313
Other restructuring costs		764		5,872		3,797

Total restructuring costs	$	2,310	$	16,694	$	20,843

Approximately $0.1 million, $1.1 million and $1.3 million of the total restructuring cost recognized in fiscal 2011, 2010 and 2009, respectively, were reported in the Consolidated Statements of Earnings in "Cost of products sold" with the balance reported in "Restructuring charges."

A rollforward of the restructuring reserve (included in Other Current Liabilities and Other Long-term Liabilities in the consolidated balance sheets) is as follows (in thousands):


	2011			2010
Beginning balance	$	6,517		$	9,282
Restructuring charges		2,310			16,694
Cash payments		(5,251	)		(14,914	)
Product line rationalization		(87	)		(1,096	)
Other non-cash uses of reserve		—			(4,571	)
Impact of changes in foreign currency rates		146			1,122

Ending balance	$	3,635		$	6,517

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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