Restructuring and Related Activities |
6 Months Ended |
|---|---|
Feb. 28, 2023 | |
| Restructuring and Related Activities [Abstract] | |
| ASCEND Transformation Program |
Note 3. ASCEND Transformation Program
In March 2022, the Company announced the launch of ASCEND, a new transformation program focused on driving accelerated earnings growth and efficiency across the business with the goal of delivering an incremental $40 to $50 million of annual operating profit once fully implemented. In March 2023, the Company announced this estimate had been revised to an incremental $50 to $60 million of annual operating profit as a result of additional ASCEND initiatives and high success rate. As part of ASCEND, the Company is focusing on the following key initiatives: (i) accelerating organic growth go-to-market strategies, (ii) improving operational excellence and production efficiency by utilizing a lean approach and (iii) driving greater efficiency and productivity in SG&A by better leveraging resources to create a more efficient and agile organization.
The Company is implementing the program and originally anticipated investing approximately $60 to $65 million and in March 2023 anticipates that this investment would increase to $70 to $75 million (as disclosed in Note 4, "Restructuring Charges," approximately $10 to $15 million of these investments will be in the form of restructuring charges) over the life of the program, which is expected to be finalized as we exit fiscal 2024. Elements of these investments could include such cash costs as capital expenditures, restructuring costs, third-party support, and incentive costs. Total program expenses were approximately $14.2 million and $24.7 million for the three and six months ended February 28, 2023, respectively. Of the total ASCEND program expenses, $11.2 million and $20.6 million were recorded within SG&A expenses for the three and six months ended February 28, 2023, respectively, and $0.2 million and $0.2 million recorded within cost of goods sold for the three and six months ended February 28, 2023, respectively, and $2.9 million and $3.9 million were recorded within restructuring expenses for the three and six months ended February 28, 2023, respectively (see Note 4, "Restructuring Charges," below).
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