Enerpac Tool Group Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

9 Months Ended

May 31, 2011

Note 4. Restructuring

During fiscal 2010 and 2009, the Company committed to various restructuring initiatives (due to the global economic downturn) including workforce reductions, plant consolidations, the transfer of production and product sourcing to lower cost plants or regions and the centralization of certain administrative functions. These restructuring actions were substantially completed by August 31, 2010. Total restructuring costs recognized, which impact all reportable segments, are as follows (in thousands):


	Three Months Ended May 31,				Nine Months Ended May 31,
	2011		2010		2011		2010
Severance and facility consolidation	$	764	$	636	$	851	$	7,914
Product line rationalization		—		92		87		839
Other restructuring costs		98		720		744		5,495

	$	862	$	1,448	$	1,682	$	14,248

A rollforward of the restructuring reserve (included in Other current liabilities and Other Long-term Liabilities in the condensed consolidated balance sheets) is as follows (in thousands):


	Nine months ended May 31,
	2011			2010
Beginning balance	$	6,517		$	9,282
Restructuring charges		1,682			14,248
Cash payments		(4,702	)		(11,463	)
Product line rationalization		(79	)		(836	)
Other non-cash uses of reserve		—			(4,287	)
Impact of changes in foreign currency rates		138			241

Ending balance	$	3,556		$	7,185

The remaining restructuring related severance will be paid during the next twelve months, while facility consolidation costs (primarily reserves for future lease payments for vacated facilities) will be paid over the underlying lease terms.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details