Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges (Notes)

v3.8.0.1
Restructuring Charges (Notes)
 6 Months Ended
Feb. 28, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
Note 3. Restructuring Charges
The Company has 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 $4.3 million and $2.1 million in the three months ended February 28, 2018 and 2017, respectively. Year-to-date restructuring charges totaled $10.9 million and $5.0 million for fiscal 2018 and 2017. Approximately $0.8 million of the restructuring charges recognized in the three and six months ended February 28, 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):
 
 
Six Months Ended February 28, 2018
 
 
Industrial
 
Energy
 
Engineered Solutions
 
Corporate
 
Total
Balance as of August 31, 2017
 
$
202

 
$
3,613

 
$
1,792

 
$
30

 
$
5,637

Restructuring charges
 
2,951

 
3,205

 
486

 
4,271

 
10,913

Cash payments
 
(868
)
 
(2,666
)
 
(1,517
)
 
(1,648
)
 
(6,699
)
Other non-cash uses of reserve
 
(490
)
(1 
) 
(473
)
 
(192
)
 
(2,007
)
(1) 
(3,162
)
Impact of changes in foreign currency rates
 
(10
)
 
(83
)
 
21

 
—

 
(72
)
Balance as of February 28, 2018
 
$
1,785

 
$
3,596

 
$
590

 
$
646

 
$
6,617

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


 
 
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