Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges (Tables)

v3.19.1
Restructuring Charges (Tables)
 6 Months Ended
Feb. 28, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs [Table Text Block]
The following rollforwards summarize restructuring reserve activity by segment (in thousands):
 
 
Six Months Ended February 28, 2019
 
 
Industrial Tools & Services
 
Engineered Components & Systems
 
Corporate
 
Total
Balance as of August 31, 2018
 
$
1,687

 
$
1,592

 
$
415

 
$
3,694

Restructuring charges
 
21

 
442

 
—

 
463

Cash payments
 
(1,052
)
 
(314
)
 
(97
)
 
(1,463
)
Other non-cash uses/reclasses of reserve
 
(79
)
 
53

 
(370
)
 
(396
)
Impact of changes in foreign currency rates
 
(18
)
 
(28
)
 
—

 
(46
)
Balance as of February 28, 2019
 
$
559

 
$
1,745

 
$
(52
)
 
$
2,252

 
 
Six Months Ended February 28, 2018
 
 
Industrial Tools & Services
 
Engineered Components & Systems
 
Corporate
 
Total
Balance as of August 31, 2017
 
$
1,499

 
$
4,108

 
$
30

 
$
5,637

Restructuring charges
 
2,929

 
3,710

 
4,274

 
10,913

Cash payments
 
(1,750
)
 
(3,301
)
 
(1,648
)
 
(6,699
)
Other non-cash uses of reserve
 
(354
)
 
(801
)
 
(2,007
)
(1) 
(3,162
)
Impact of changes in foreign currency rates
 
(6
)
 
(66
)
 
—

 
(72
)
Balance as of February 28, 2018
 
$
2,318

 
$
3,650

 
$
649

 
$
6,617

(1) Majority of non-cash uses of reserve represents accelerated equity vesting in connection with employee severance agreements.
On March 21, 2019, the Company announced a new restructuring plan focused on the integration of the Enerpac and Hydratight businesses (IT&S segment) as well as driving efficiencies within the overall corporate structure. We expect to achieve $12-$15 million of annual savings with estimated restructuring costs of $15-$20 million and anticipate completing these actions within 18-24 months. The annual benefit of these gross cost savings may be impacted by a number of factors, including sales and production volume variances and annual bonus expense differentials.