Restructuring Charges

6 Months Ended

Jan. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

2016 Actions

In the first quarter of Fiscal 2016, the Company took actions to further align its operating and manufacturing cost structure with current and projected Customer and end-market demand. These actions consisted of one-time termination benefits from restructuring the salaried and production workforce in all geographic regions and in both reportable segments. Total charges related to this action were expected to be $7.2 million. These actions have been completed and resulted in a total pre-tax charge of $6.2 million with $5.8 million recorded during the first quarter of Fiscal 2016 and $0.4 million recorded during the second quarter of Fiscal 2016. The Engine Products segment incurred $0.4 million of restructuring charges during the three months ended January 31, 2016. For the six months ended January 31, 2016, restructuring charges of $3.8 million and $2.4 million were incurred in the Engine Products and Industrial Products segments, respectively. As the charges were incurred and paid in the same period there was no liability balance as of either October 31, 2015 or January 31, 2016.

2015 Actions

In the second quarter of Fiscal 2015, the Company took actions to align its operating and manufacturing cost structure with current and projected Customer and end-market demand. These actions consisted of one-time termination benefits, project management fees, warehousing costs, moving expenses, and supplies and equipment related to the closing of the Company's Grinnell, Iowa facility. Total charges related to this action were expected to be $5.8 million. This action was completed in the second quarter of Fiscal 2016. Total charges related to this action since the second quarter of Fiscal 2015 were $5.8 million and have been recorded in the Engine Products segment.

Restructuring charges are summarized in the table below (millions of dollars):

	Three Months Ended January 31,				Six Months Ended January 31,
	2016		2015		2016		2015
2016 Actions	$	0.4	$	—	$	6.2	$	—
2015 Actions	0.6		0.7		2.3		0.7
Total	$	1.0	$	0.7	$	8.5	$	0.7

Restructuring charges are summarized in the table below by statement of earnings line item (millions of dollars):

	Three Months Ended January 31,				Six Months Ended January 31,
	2016		2015		2016		2015
Cost of sales	$	0.9	$	0.7	$	4.1	$	0.7
Operating expenses	0.1		—		4.4		—
Total	$	1.0	$	0.7	$	8.5	$	0.7