Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges (Notes)

v3.19.3.a.u2
Restructuring Charges (Notes)
 3 Months Ended
Nov. 30, 2019
Restructuring and Related Activities [Abstract]  
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. Liabilities for severance will generally be paid within twelve months, while future lease payments related to facilities vacated as a result of restructuring will be paid over the underlying remaining lease terms. During fiscal 2019, the Company announced a new restructuring plan focused on i) the integration of the Enerpac and Hydratight businesses (Industrial Tools & Service ("IT&S") segment), ii) the strategic exit of certain commodity type services in our North America Services operations (IT&S segment) and iii) driving efficiencies within the overall corporate structure. Total restructuring charges associated with this restructuring plan were $1.5 million in the three months ended November 30, 2019.
The following rollforwards summarize restructuring reserve activity for the IT&S reportable segment and corporate (in thousands):
 
 
Three Months Ended November 30, 2018
 
 
Industrial Tools & Services
 
Corporate
 
Total
Balance as of August 31, 2018
 
$
1,687

 
$
46

 
$
1,733

Restructuring charges
 
(29
)
(1) 
—

 
(29
)
Cash payments
 
(922
)
 
(46
)
 
(968
)
Other non-cash uses of reserve
 
(13
)
 
—

 
(13
)
Impact of changes in foreign currency rates
 
(21
)
 
—

 
(21
)
Balance as of November 30, 2018
 
$
702

 
$
—

 
$
702

 
 
Three Months Ended November 30, 2019
 
 
Industrial Tools & Services
 
Corporate
 
Total
Balance as of August 31, 2019
 
$
2,912

 
$
—

 
$
2,912

Restructuring charges
 
1,230

 
235

 
1,465

Cash payments
 
(1,851
)
 
(1
)
 
(1,852
)
Other non-cash uses of reserve
 
(39
)
 
(226
)
 
(265
)
Impact of changes in foreign currency rates
 
2

 
—

 
2

Balance as of November 30, 2019
 
$
2,254

 
$
8

 
$
2,262

(1) Benefit relates to reversal of restructuring accrual due to the underspend of estimated restructuring costs.
The three months ended November 30, 2019 included $0.5 million of restructuring expenses related to Cortland U.S. (Other Segment). Restructuring reserves for Cortland U.S. were $1.3 million and $0.9 million as of November 30, 2019 and August 31, 2019, respectively.