Guarantor Subsidiaries

3 Months Ended

Nov. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

As discussed in Note 6, “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 EARNINGS AND COMPREHENSIVE INCOME

(In thousands)



	Three Months Ended November 30, 2013
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	45,091		$	79,636		$	214,829		$	—		$	339,556
Cost of products sold	12,072			55,255			140,449			—			207,776
Gross profit	33,019			24,381			74,380			—			131,780
Selling, administrative and engineering expenses	16,858			15,952			49,108			—			81,918
Amortization of intangible assets	318			2,575			3,322			—			6,215
Operating profit	15,843			5,854			21,950			—			43,647
Financing costs, net	6,779			3			(32		)	—			6,750
Intercompany expense (income), net	(4,997		)	(339		)	5,336			—			—
Other expense (income), net	10,417			(293		)	(8,983		)	—			1,141
Earnings from continuing operations before income tax expense (benefit)	3,644			6,483			25,629			—			35,756
Income tax expense (benefit)	1,008			1,795			(52		)	—			2,751
Net earnings before equity in earnings of subsidiaries	2,636			4,688			25,681			—			33,005
Equity in earnings of subsidiaries	34,222			13,333			3,200			(50,755		)	—
Earnings from continuing operations	36,858			18,021			28,881			(50,755		)	33,005
Earnings (loss) from discontinued operations	(821		)	3,338			515			—			3,032
Net earnings	$	36,037		$	21,359		$	29,396		$	(50,755	)	$	36,037
Comprehensive income	$	53,040		$	38,797		$	27,671		$	(66,468	)	$	53,040

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME

(In thousands)



	Three Months Ended November 30, 2012
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	45,838		$	70,191		$	191,780		$	—		$	307,809
Cost of products sold	12,408			48,304			122,729			—			183,441
Gross profit	33,430			21,887			69,051			—			124,368
Selling, administrative and engineering expenses	17,118			15,103			42,639			—			74,860
Amortization of intangible assets	321			2,657			3,056			—			6,034
Operating profit	15,991			4,127			23,356			—			43,474
Financing costs, net	6,358			5			(41		)	—			6,322
Intercompany expense (income), net	(7,270		)	1,955			5,315			—			—
Other expense (income), net	(364		)	(403		)	1,411			—			644
Earnings from continuing operations before income tax expense	17,267			2,570			16,671			—			36,508
Income tax expense	3,236			121			2,600			—			5,957
Net earnings before equity in earnings of subsidiaries	14,031			2,449			14,071			—			30,551
Equity in earnings of subsidiaries	22,551			17,899			1,024			(41,474		)	—
Earnings from continuing operations	36,582			20,348			15,095			(41,474		)	30,551
Earnings (loss) from discontinued operations	(239		)	2,533			3,498			—			5,792
Net earnings	$	36,343		$	22,881		$	18,593		$	(41,474	)	$	36,343
Comprehensive income	$	48,518		$	28,858		$	26,019		$	(54,877	)	$	48,518

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)



	November 30, 2013
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	2,669	$	—	$	106,873	$	—		$	109,542
Accounts receivable, net	16,425		42,229		162,874		—			221,528
Inventories, net	27,283		43,317		84,529		—			155,129
Deferred income taxes	12,926		—		5,659		—			18,585
Other current assets	9,386		963		22,287		—			32,636
Assets of discontinued operations	—		186,037		84,069		—			270,106
Total current assets	68,689		272,546		466,291		—			807,526
Property, plant & equipment, net	7,695		22,521		175,112		—			205,328
Goodwill	62,543		264,502		418,431		—			745,476
Other intangibles, net	12,929		138,682		223,696		—			375,307
Investment in subsidiaries	2,143,586		229,910		113,539		(2,487,035		)	—
Intercompany receivable	—		521,072		368,018		(889,090		)	—
Other long-term assets	14,635		22		15,571		—			30,228
Total assets	$	2,310,077	$	1,449,255	$	1,780,658	$	(3,376,125	)	$	2,163,865
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable	$	20,058	$	32,040	$	107,177	$	—		$	159,275
Accrued compensation and benefits	9,490		3,532		28,391		—			41,413
Current maturities of long-term debt	1,125		—		—		—			1,125
Income taxes payable	6,332		—		4,132		—			10,464
Other current liabilities	21,592		5,812		33,560		—			60,964
Liabilities of discontinued operations	—		22,774		30,459		—			53,233
Total current liabilities	58,597		64,158		203,719		—			326,474
Long-term debt, less current maturities	501,875		—		—		—			501,875
Deferred income taxes	65,576		—		52,701		—			118,277
Pension and postretirement benefit liabilities	14,563		—		4,604		—			19,167
Other long-term liabilities	53,241		339		12,793		—			66,373
Intercompany payable	484,526		—		404,564		(889,090		)	—
Shareholders’ equity	1,131,699		1,384,758		1,102,277		(2,487,035		)	1,131,699
Total liabilities and shareholders’ equity	$	2,310,077	$	1,449,255	$	1,780,658	$	(3,376,125	)	$	2,163,865

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)



	August 31, 2013
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	16,122	$	—	$	87,864	$	—		$	103,986
Accounts receivable, net	20,471		40,343		158,261		—			219,075
Inventories, net	27,343		38,948		76,258		—			142,549
Deferred income taxes	13,002		—		5,794		—			18,796
Other current assets	7,454		963		19,811		—			28,228
Assets of discontinued operations	—		192,129		80,477		—			272,606
Total current assets	84,392		272,383		428,465		—			785,240
Property, plant & equipment, net	7,050		22,801		171,645		—			201,496
Goodwill	62,543		264,502		407,907		—			734,952
Other intangibles, net	13,247		141,258		222,187		—			376,692
Investment in subsidiaries	2,086,534		201,779		96,333		(2,384,646		)	—
Intercompany receivable	—		480,633		360,620		(841,253		)	—
Other long-term assets	12,654		22		8,276		—			20,952
Total assets	$	2,266,420	$	1,383,378	$	1,695,433	$	(3,225,899	)	$	2,119,332
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable	$	22,194	$	30,637	$	101,218	$	—		$	154,049
Accrued compensation and benefits	13,835		2,716		27,249		—			43,800
Income taxes payable	8,135		—		5,879		—			14,014
Other current liabilities	21,268		4,630		31,001		—			56,899
Liabilities of discontinued operations	—		23,466		29,614					53,080
Total current liabilities	65,432		61,449		194,961		—			321,842
Long-term debt	515,000		—		—		—			515,000
Deferred income taxes	64,358		—		51,507		—			115,865
Pension and postretirement benefit liabilities	16,267		—		4,431		—			20,698
Other long-term liabilities	51,479		390		13,791		—			65,660
Intercompany payable	473,617		—		367,636		(841,253		)	—
Shareholders’ equity	1,080,267		1,321,539		1,063,107		(2,384,646		)	1,080,267
Total liabilities and shareholders’ equity	$	2,266,420	$	1,383,378	$	1,695,433	$	(3,225,899	)	$	2,119,332

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)



	Three Months Ended, November 30, 2013
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Operating Activities
Net cash provided by operating activities	$	17,415		$	3,461		$	12,070		$	—	$	32,946
Investing Activities
Proceeds from sale of property, plant and equipment	—			36			1,877			—		1,913
Capital expenditures	(1,208		)	(1,270		)	(8,779		)	—		(11,257		)
Cash used in investing activities	(1,208		)	(1,234		)	(6,902		)	—		(9,344		)
Financing Activities
Net repayments on revolver	(12,000		)	—			—			—		(12,000		)
Intercompany loan activity	(9,951		)	(2,227		)	12,178			—		—
Purchase of treasury shares	(15,352		)	—			—			—		(15,352		)
Stock option exercises and related tax benefits	10,562			—			—			—		10,562
Payment of contingent acquisition consideration	—			—			(414		)	—		(414		)
Cash dividend	(2,919		)	—			—			—		(2,919		)
Cash provided by (used in) financing activities	(29,660		)	(2,227		)	11,764			—		(20,123		)
Effect of exchange rate changes on cash	—			—			2,077			—		2,077
Net increase (decrease) in cash and cash equivalents	(13,453		)	—			19,009			—		5,556
Cash and cash equivalents—beginning of period	16,122			—			87,864			—		103,986
Cash and cash equivalents—end of period	$	2,669		$	—		$	106,873		$	—	$	109,542

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)



	Three Months Ended, November 30, 2012
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Operating Activities
Net cash (used in) provided by operating activities	$	(658	)	$	4,779		$	8,154		$	—	$	12,275
Investing Activities
Proceeds from sale of property, plant and equipment	571			14			392			—		977
Capital expenditures	(399		)	(1,291		)	(5,999		)	—		(7,689		)
Business acquisitions, net of cash acquired	—			—			(83		)	—		(83		)
Cash provided by (used in) investing activities	172			(1,277		)	(5,690		)	—		(6,795		)
Financing Activities
Principal repayments of term loans	(1,250		)	—			—			—		(1,250		)
Intercompany loan activity	(4,991		)	(3,593		)	8,584			—		—
Purchase of treasury shares	(7,142		)	—			—			—		(7,142		)
Stock option exercises and related tax benefits	5,473			—			—			—		5,473
Cash dividend	(2,911		)	—			—			—		(2,911		)
Cash provided by (used in) financing activities	(10,821		)	(3,593		)	8,584			—		(5,830		)
Effect of exchange rate changes on cash	—			—			477			—		477
Net (decrease) increase in cash and cash equivalents	(11,307		)	(91		)	11,525			—		127
Cash and cash equivalents—beginning of period	12,401			91			55,692			—		68,184
Cash and cash equivalents—end of period	$	1,094		$	—		$	67,217		$	—	$	68,311