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Restructuring Charges Restructuring Charges(Notes)
 12 Months Ended
Aug. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
Note 4. Restructuring Charges
The Company has undertaken or committed to various restructuring initiatives, including workforce reductions, leadership changes, plant consolidations to reduce manufacturing overhead, satellite office closures, the continued movement of production and product sourcing to low-cost alternatives and the centralization and standardization of certain administrative functions. Liabilities for severance are generally to be paid within twelve months, while future lease payments related to facilities vacated as a result of restructuring are to be paid over the underlying remaining lease terms.
During fiscal 2019, the Company announced a restructuring plan focused on (i) the integration of the Enerpac and Hydratight businesses (IT&S segment), (ii) the strategic exit of certain commodity-type services in our North America Services operations (IT&S segment) and (iii) driving efficiencies within the overall corporate structure, with further expansion in fiscal 2020 and fiscal 2022. The Company recorded $5.2 million of charges for the year ended August 31, 2022 in order to further simplify and streamline the organizational structure. The total cumulative charges for the 2019 plan, which ended in the third quarter of fiscal 2022, were $18.0 million.
On June 27, 2022, the Company approved a restructuring plan in connection with the initiatives identified as part of the ASCEND transformation program (see Note 3, “ASCEND Transformation Program”) to drive greater efficiency and productivity in global selling, general and administrative resources. The total costs of this plan were then estimated at $6 to $10 million, constituting predominately severance and other employee-related costs to be incurred as cash expenditures and impacting both IT&S and Corporate.
In September 2022, the Company approved an update to the restructuring plan to a range of $10 to $15 million; these costs were still incorporated into the initial investment value and the range did not change at that time.
For the year ended August 31, 2024, 2023 and 2022, the Company recorded $7.8 million, $7.7 million and $3.1 million, respectively, of restructuring charges associated with the ASCEND transformation program. The total cumulative charges for the ASCEND transformation program, which ended in the fourth quarter of fiscal 2024, that related to restructuring were $18.6 million.
The following summarizes restructuring reserve activity (which for the year ended August 31, 2023 excludes $0.6 million of charges associated with ASCEND transformation plan for Corporate associated with the accelerated vesting of equity awards which has no impact on the restructuring reserve) (in thousands):
Year Ended August 31, 2024
IT&SCorporate
Balance as of August 31, 2023$2,238 $74 
Restructuring charges7,244 552 
Cash payments(5,352)(429)
Other non-cash uses of reserve(635)— 
Impact of changes in foreign currency rates32 — 
Balance as of August 31, 2024$3,527 $197 
Year Ended August 31, 2023
2019 PlanASCEND Plan
IT&SCorporateIT&SCorporate
Balance as of August 31, 2022$212 $6 $2,008 $797 
Restructuring charges(32)(6)6,035 1,054 
Cash payments(99)— (5,453)(1,779)
Other non-cash uses of reserve(84)— (498)— 
Impact of changes in foreign currency rates3 — 146 2 
Balance as of August 31, 2023$— $— $2,238 $74 
Total restructuring charges (inclusive of the Other operating segment) for the years ended August 31, 2024 and 2023 were $7.8 million and $7.7 million, respectively, which included approximately $0.4 million and $0.6 million of charges being reported in the Consolidated Statements of Operations in "Cost of products sold," with the balance of the charges reported on "Restructuring charges." Total restructuring charges (inclusive of the Other operating segment) being reported in "Restructuring charges" were $8.1 million for the year ended August 31, 2022.
Restructuring and Related Costs
Year Ended August 31, 2024
IT&SCorporate
Balance as of August 31, 2023$2,238 $74 
Restructuring charges7,244 552 
Cash payments(5,352)(429)
Other non-cash uses of reserve(635)— 
Impact of changes in foreign currency rates32 — 
Balance as of August 31, 2024$3,527 $197 
Year Ended August 31, 2023
2019 PlanASCEND Plan
IT&SCorporateIT&SCorporate
Balance as of August 31, 2022$212 $6 $2,008 $797 
Restructuring charges(32)(6)6,035 1,054 
Cash payments(99)— (5,453)(1,779)
Other non-cash uses of reserve(84)— (498)— 
Impact of changes in foreign currency rates3 — 146 2 
Balance as of August 31, 2023$— $— $2,238 $74