On January 29, 2024, the Company announced that it would discontinue manufacturing operations at the Company’s ENC facility in Riverside, California. Management believes the discontinuation of manufacturing at ENC will create a more focused portfolio that provides opportunities for growth, consistent cash generation and improved margin performance. ENC is included within the Specialty Vehicles segment.

The Company has and will incur certain restructuring and other related charges in connection with the decision to discontinue manufacturing at the ENC facility. For the three and nine months ended July 31, 2024, the Company recorded restructuring charges of $4.7 million and $9.2 million, respectively, primarily related to severance and retention costs, and contract cancelation costs. The Company expects to incur additional restructuring charges of $0.5 to $1.5 million associated with employee severance and other termination benefits. For the three months ended July 31, 2024 the Company incurred restructuring related charges from this activity of $1.7 million consisting of inventory charges. For the nine months ended July 31, 2024 the Company incurred restructuring related charges from this activity consisting of $11.6 million of impairment charges related to intangible assets and property, plant, and equipment, $7.5 million of inventory charges, and $0.3 million of other costs. The Company currently expects to incur additional restructuring and related charges associated with contract terminations, inventory liquidation, and other costs; however, such costs are not known at this time. The Company currently expects the charges resulting from this restructuring will be incurred during fiscal year 2024.

Changes in the Company’s restructuring reserves related to the discontinuation of manufacturing at ENC during fiscal year 2024 were as follows:


	Employee Severance and Termination Benefits			Contract Termination and Other Costs			Total
Balance at beginning of the period	$	—		$	—		$	—
Restructuring provision		6.6			2.6			9.2
Utilized - cash		(1.6	)		(1.0	)		(2.6	)
Balance at end of the period	$	5.0		$	1.6		$	6.6