Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges (Notes)

v3.7.0.1
Restructuring Charges (Notes)
 6 Months Ended
Feb. 28, 2017
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
Restructuring Charges
The Company has committed to various restructuring initiatives including workforce reductions, 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 $2.1 million and $3.6 million in the second quarter of fiscal 2017 and 2016, respectively. Year-to-date restructuring charges totaled $5.0 million and $8.0 million for fiscal 2017 and 2016, respectively, and impacted all segments. Liabilities for severance will 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):
 
 
Six Months Ended February 28, 2017
 
 
Industrial
 
Energy
 
Engineered Solutions
 
Corporate
 
Total
Balance as of August 31, 2016
 
$
1,343

 
$
3,021

 
$
1,863

 
$
46

 
$
6,273

Restructuring charges
 
1,372

 
48

 
3,546

 
82

 
5,048

Cash payments
 
(1,394
)
 
(973
)
 
(2,312
)
 
(83
)
 
(4,762
)
Other non-cash uses of reserve
 
(438
)
 
(14
)
 
(16
)
 
(36
)
 
(504
)
Impact of changes in foreign currency rates
 
(21
)
 
44

 
(8
)
 
—

 
15

Balance as of February 28, 2017
 
$
862

 
$
2,126

 
$
3,073

 
$
9

 
$
6,070

 
 
Six Months Ended February 29, 2016
 
 
Industrial
 
Energy
 
Engineered Solutions
 
Corporate
 
Total
Balance as of August 31, 2015
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Restructuring charges
 
984

 
3,308

 
3,412

 
258

 
7,962

Cash payments
 
(361
)
 
(256
)
 
(1,120
)
 
(157
)
 
(1,894
)
Other non-cash uses of reserve
 
—

 
(29
)
 
(136
)
 
(1
)
 
(166
)
Impact of changes in foreign currency rates
 
—

 
(39
)
 
11

 
—

 
(28
)
Balance as of February 29, 2016
 
$
623

 
$
2,984

 
$
2,167

 
$
100

 
$
5,874