Guarantor Subsidiaries

9 Months Ended

May 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

As discussed in Note 7, “Debt” on April 16, 2012, Actuant Corporation (the “Parent”) issued $300.0 million of 5.625% Senior Notes. All material domestic wholly owned subsidiaries (the “Guarantors”) fully and unconditionally guarantee (except for certain customary limitations) such debt on a joint and several basis. There are no significant restrictions on the ability of the Guarantors to make distributions to the Parent. The following tables present the results of operations, financial position and cash flows of Actuant Corporation and its subsidiaries, the Guarantor and non-Guarantor entities, and the eliminations necessary to arrive at the information for the Company on a consolidated basis.

Certain assets, liabilities and expenses have not been allocated to the Guarantors and non-Guarantors and therefore are included in the Parent column in the accompanying condensed consolidating financial statements. These items are of a corporate or consolidated nature and include, but are not limited to, tax provisions and related assets and liabilities, certain employee benefit obligations, prepaid and accrued insurance and corporate indebtedness. Intercompany activity in the condensed consolidating financial statements primarily includes loan activity, purchases and sales of goods or services and dividends. Intercompany balances also reflect certain non-cash transactions including transfers of assets and liabilities between the Parent, Guarantor and non-Guarantor, allocation of non-cash expenses from the Parent to the Guarantors and non-Guarantors, the impact of foreign currency rate changes and non-cash intercompany dividends.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands)



	Three Months Ended May 31, 2013
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net sales	$	52,126		$	83,279		$	208,800		$	—	$	344,205
Cost of products sold	14,938			55,610			136,753			—		207,301
Gross profit	37,188			27,669			72,047			—		136,904
Selling, administrative and engineering expenses	18,389			14,622			41,312			—		74,323
Amortization of intangible assets	318			2,592			2,629			—		5,539
Operating profit	18,481			10,455			28,106			—		57,042
Financing costs, net	6,279			3			(53		)	—		6,229
Intercompany expense (income), net	(6,487		)	637			5,850			—		—
Other expense (income), net	267			(115		)	759			—		911
Earnings from continuing operations before income tax expense	18,422			9,930			21,550			—		49,902
Income tax expense	1,412			761			1,652			—		3,825
Net earnings before equity in loss of subsidiaries	17,010			9,169			19,898			—		46,077
Equity in loss of subsidiaries	(109,558		)	(38,891		)	(1,827		)	150,276		—
Earnings (loss) from continuing operations	(92,548		)	(29,722		)	18,071			150,276		46,077
Loss from discontinued operations	(435		)	(94,888		)	(43,737		)	—		(139,060		)
Net loss	$	(92,983	)	$	(124,610	)	$	(25,666	)	$	150,276	$	(92,983	)
Comprehensive loss	$	(97,951	)	$	(124,714	)	$	(30,396	)	$	155,110	$	(97,951	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands)



	Three Months Ended May 31, 2012
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	53,206		$	89,914		$	200,148		$	—		$	343,268
Cost of products sold	17,111			58,686			128,717			—			204,514
Gross profit	36,095			31,228			71,431			—			138,754
Selling, administrative and engineering expenses	20,968			15,749			37,624			—			74,341
Amortization of intangible assets	335			2,620			2,608			—			5,563
Operating profit	14,792			12,859			31,199			—			58,850
Financing costs, net	7,255			(22		)	3			—			7,236
Intercompany expense (income), net	(8,412		)	1,432			6,980			—			—
Debt refinancing costs	16,830			—			—			—			16,830
Other expense (income), net	(111		)	944			1,758			—			2,591
Earnings (loss) from continuing operations before income tax expense (benefit)	(770		)	10,505			22,458			—			32,193
Income tax expense (benefit)	(2,742		)	2,233			4,965			—			4,456
Net earnings before equity in earnings (loss) of subsidiaries	1,972			8,272			17,493			—			27,737
Equity in earnings (loss) of subsidiaries	32,915			16,521			(450		)	(48,986		)	—
Earnings from continuing operations	34,887			24,793			17,043			(48,986		)	27,737
Earnings (loss) from discontinued operations	(486		)	4,618			2,532			—			6,664
Net earnings	$	34,401		$	29,411		$	19,575		$	(48,986	)	$	34,401
Comprehensive income	$	893		$	12,418		$	1,779		$	(14,197	)	$	893

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands)



	Nine Months Ended May 31, 2013
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Net sales	$	145,371		$	220,178		$	586,933		$	—	$	952,482
Cost of products sold	42,285			151,308			381,439			—		575,032
Gross profit	103,086			68,870			205,494			—		377,450
Selling, administrative and engineering expenses	53,347			44,348			124,826			—		222,521
Amortization of intangible assets	958			7,906			8,678			—		17,542
Operating profit	48,781			16,616			71,990			—		137,387
Financing costs, net	19,046			9			(244		)	—		18,811
Intercompany expense (income), net	(18,408		)	1,716			16,692			—		—
Other expense (income), net	(480		)	(579		)	2,577			—		1,518
Earnings from continuing operations before income tax expense	48,623			15,470			52,965			—		117,058
Income tax expense	7,420			435			6,741			—		14,596
Net earnings before equity in loss of subsidiaries	41,203			15,035			46,224			—		102,462
Equity in loss of subsidiaries	(68,323		)	(10,227		)	(1,392		)	79,942		—
Earnings (loss) from continuing operations	(27,120		)	4,808			44,832			79,942		102,462
Loss from discontinued operations	(1,085		)	(89,510		)	(40,072		)	—		(130,667		)
Net earnings (loss)	$	(28,205	)	$	(84,702	)	$	4,760		$	79,942	$	(28,205	)
Comprehensive income (loss)	$	(32,969	)	$	(91,016	)	$	7,632		$	83,384	$	(32,969	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands)



	Nine Months Ended May 31, 2012
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	151,240		$	248,836		$	554,077		$	—		$	954,153
Cost of products sold	49,502			166,150			356,649			—			572,301
Gross profit	101,738			82,686			197,428			—			381,852
Selling, administrative and engineering expenses	59,555			45,942			105,309			—			210,806
Amortization of intangible assets	1,005			7,870			7,362			—			16,237
Operating profit	41,178			28,874			84,757			—			154,809
Financing costs, net	23,527			(14		)	(233		)	—			23,280
Intercompany expense (income), net	(24,585		)	3,731			20,854			—			—
Debt refinancing costs	16,830			—			—			—			16,830
Other expense (income), net	904			2,633			(240		)	—			3,297
Earnings from continuing operations before income tax expense	24,502			22,524			64,376			—			111,402
Income tax expense	3,193			4,587			14,262			—			22,042
Net earnings before equity in earnings of subsidiaries	21,309			17,937			50,114			—			89,360
Equity in earnings of subsidiaries	84,173			51,134			988			(136,295		)	—
Earnings from continuing operations	105,482			69,071			51,102			(136,295		)	89,360
Earnings (loss) from discontinued operations	(1,732		)	8,714			7,408			—			14,390
Net earnings	$	103,750		$	77,785		$	58,510		$	(136,295	)	$	103,750
Comprehensive income	$	41,618		$	45,346		$	35,141		$	(80,487	)	$	41,618

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)



	May 31, 2013
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	26,338	$	—	$	135,080	$	—		$	161,418
Accounts receivable, net	19,860		47,019		147,804		—			214,683
Inventories, net	27,963		34,683		82,580		—			145,226
Deferred income taxes	20,504		—		1,999		—			22,503
Other current assets	7,681		901		17,814		—			26,396
Current assets of discontinued operations	—		183,619		80,439		—			264,058
Total current assets	102,346		266,222		465,716		—			834,284
Property, plant & equipment, net	6,958		23,811		73,834		—			104,603
Goodwill	62,543		264,502		320,105		—			647,150
Other intangibles, net	13,565		143,833		159,588		—			316,986
Investment in subsidiaries	1,786,263		201,779		96,333		(2,084,375		)	—
Intercompany receivable	—		448,334		261,163		(709,497		)	—
Other long-term assets	10,957		22		5,472		—			16,451
Total assets	$	1,982,632	$	1,348,503	$	1,382,211	$	(2,793,872	)	$	1,919,474
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable	$	20,155	$	27,284	$	100,459	$	—		$	147,898
Accrued compensation and benefits	14,076		3,036		24,943		—			42,055
Current maturities of long-term debt	10,000		—		—		—			10,000
Income taxes payable	8,811		—		539		—			9,350
Other current liabilities	20,083		4,484		27,390		—			51,957
Current liabilities of discontinued operations	—		23,780		28,503		—			52,283
Total current liabilities	73,125		58,584		181,834		—			313,543
Long-term debt	382,500		—		—		—			382,500
Deferred income taxes	70,371		—		27,374		—			97,745
Pension and postretirement benefit liabilities	21,728		—		3,839		—			25,567
Other long-term liabilities	53,325		428		14,528		—			68,281
Intercompany payable	349,745		—		359,752		(709,497		)	—
Shareholders’ equity	1,031,838		1,289,491		794,884		(2,084,375		)	1,031,838
Total liabilities and shareholders’ equity	$	1,982,632	$	1,348,503	$	1,382,211	$	(2,793,872	)	$	1,919,474

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)



	August 31, 2012
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	12,401	$	91	$	55,692	$	—		$	68,184
Accounts receivable, net	20,401		74,006		140,349		—			234,756
Inventories, net	29,658		75,905		106,127		—			211,690
Deferred income taxes	17,942		—		4,641		—			22,583
Other current assets	8,157		1,166		14,745		—			24,068
Total current assets	88,559		151,168		321,554		—			561,281
Property, plant & equipment, net	6,944		31,818		77,122		—			115,884
Goodwill	62,543		433,193		370,676		—			866,412
Other intangibles, net	14,522		206,194		225,168		—			445,884
Investment in subsidiaries	1,886,478		250,738		90,770		(2,227,986		)	—
Intercompany receivable	—		418,253		307,282		(725,535		)	—
Other long-term assets	12,297		22		5,339		—			17,658
Total assets	$	2,071,343	$	1,491,386	$	1,397,911	$	(2,953,521	)	$	2,007,119
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable	$	21,722	$	44,893	$	108,131	$	—		$	174,746
Accrued compensation and benefits	23,459		6,646		28,712		—			58,817
Current maturities of long-term debt	7,500		—		—		—			7,500
Income taxes payable	3,129		—		2,649		—			5,778
Other current liabilities	20,876		11,566		39,723		—			72,165
Total current liabilities	76,686		63,105		179,215		—			319,006
Long-term debt	390,000		—		—		—			390,000
Deferred income taxes	91,604		—		41,049		—			132,653
Pension and postretirement benefit liabilities	22,500		—		3,942		—			26,442
Other long-term liabilities	59,929		620		26,633		—			87,182
Intercompany payable	378,788		—		346,747		(725,535		)	—
Shareholders’ equity	1,051,836		1,427,661		800,325		(2,227,986		)	1,051,836
Total liabilities and shareholders’ equity	$	2,071,343	$	1,491,386	$	1,397,911	$	(2,953,521	)	$	2,007,119

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)



	Nine Months Ended May 31, 2013
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Operating Activities
Net cash provided by operating activities	$	61,900		$	28,192		$	26,178		$	—	$	116,270
Investing Activities
Proceeds from sale of property, plant and equipment	554			75			688			—		1,317
Proceeds from sale of business	—			—			4,854			—		4,854
Capital expenditures	(1,387		)	(3,461		)	(14,047		)	—		(18,895		)
Cash used in investing activities	(833		)	(3,386		)	(8,505		)	—		(12,724		)
Financing Activities
Principal repayments on term loan	(5,000		)	—			—			—		(5,000		)
Intercompany loan activity	(42,904		)	(24,897		)	67,801			—		—
Purchase of treasury shares	(13,670		)	—			—			—		(13,670		)
Stock option exercises and related tax benefits	18,705			—			—			—		18,705
Payment of contingent consideration	(1,350		)	—			(2,285		)	—		(3,635		)
Cash dividend	(2,911		)	—			—			—		(2,911		)
Cash provided by (used in) financing activities	(47,130		)	(24,897		)	65,516			—		(6,511		)
Effect of exchange rate changes on cash	—			—			(3,801		)	—		(3,801		)
Net increase (decrease) in cash and cash equivalents	13,937			(91		)	79,388			—		93,234
Cash and cash equivalents—beginning of period	12,401			91			55,692			—		68,184
Cash and cash equivalents—end of period	$	26,338		$	—		$	135,080		$	—	$	161,418

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)



	Nine Months Ended May 31, 2012
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Operating Activities
Net cash provided by operating activities	$	56,851		$	13,659		$	58,804		$	—	$	129,314
Investing Activities
Proceeds from sale of property, plant and equipment	2,100			137			6,249			—		8,486
Capital expenditures	(4,367		)	(2,797		)	(10,327		)	—		(17,491		)
Business acquisitions, net of cash acquired	—			—			(28,776		)	—		(28,776		)
Cash used in investing activities	(2,267		)	(2,660		)	(32,854		)	—		(37,781		)
Financing Activities
Net changes in borrowings on revolver and other debt	(57,990		)	—			(177		)	—		(58,167		)
Principal repayments of term loans	(1,250		)	—			—			—		(1,250		)
Intercompany loan activity	(2,947		)	(10,999		)	13,946			—		—
Repurchases of 2% Convertible Notes	(102		)	—			—			—		(102		)
Proceeds on 5.625% Senior Note issuance	300,000			—			—			—		300,000
Redemption of 6.875% Senior Notes	(250,000		)	—			—			—		(250,000		)
Debt issuance costs	(5,340		)	—			—			—		(5,340		)
Purchase of treasury shares	(39,282		)	—			—			—		(39,282		)
Stock option exercises and related tax benefits	6,392			—			—			—		6,392
Payment of contingent consideration	(290		)	—			(668		)	—		(958		)
Cash dividend	(2,748		)	—			—			—		(2,748		)
Cash provided by (used in) financing activities	(53,557		)	(10,999		)	13,101			—		(51,455		)
Effect of exchange rate changes on cash	—			—			(4,150		)	—		(4,150		)
Net increase in cash and cash equivalents	1,027			—			34,901			—		35,928
Cash and cash equivalents—beginning of period	872			—			43,349			—		44,221
Cash and cash equivalents—end of period	$	1,899		$	—		$	78,250		$	—	$	80,149