Annual report pursuant to Section 13 and 15(d)

Restructuring Charges (Notes)

v3.10.0.1
Restructuring Charges (Notes)
 12 Months Ended
Aug. 31, 2018
Restructuring Cost and Reserve [Line Items]  
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 $12.8 million and $7.2 million for the year-ended August 31, 2018 and 2017, respectively, and impacted all segments. Approximately $0.9 million of the restructuring charges recognized for the year-ended August 31, 2018 were reported in the Consolidated Statements of Operations in “Cost of products sold,” with the balance of the charges reported in “Restructuring charges.” 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):
 
 
Year Ended August 31, 2018
 
 
Industrial Tools & Services
 
Engineered Components & Systems
 
Corporate
 
Total
Balance as of August 31, 2017
 
$
1,499

 
$
4,108

 
$
30

 
$
5,637

Restructuring charges
 
4,286

 
3,713

 
4,845

 
12,844

Cash payments
 
(3,375
)
 
(4,652
)
 
(2,357
)
 
(10,384
)
Other non-cash uses of reserve (1)
 
(635
)
 
(1,412
)
 
(2,103
)
 
(4,150
)
Impact of changes in foreign currency rates
 
(88
)
 
(165
)
 
—

 
(253
)
Balance as of August 31, 2018
 
$
1,687

 
$
1,592

 
$
415

 
$
3,694

(1) Majority of non-cash uses of reserve represents accelerated equity vesting with employee severance agreements.

 
 
Year Ended August 31, 2017
 
 
Industrial Tools & Services
 
Engineered Components & Systems
 
Corporate
 
Total
Balance as of August 31, 2016
 
$
1,626

 
$
4,601

 
$
46

 
$
6,273

Restructuring charges
 
2,652

 
4,465

 
111

 
7,228

Cash payments
 
(2,568
)
 
(4,858
)
 
(83
)
 
(7,509
)
Other non-cash uses of reserve
 
(198
)
 
(285
)
 
(44
)
 
(527
)
Impact of changes in foreign currency rates
 
(13
)
 
185

 
—

 
172

Balance as of August 31, 2017
 
$
1,499

 
$
4,108

 
$
30

 
$
5,637