Restructuring and Related Activities

12 Months Ended

Aug. 31, 2024

Restructuring and Related Activities [Abstract]

Note 3. ASCEND Transformation Program

In March 2022, the Company announced the start of its ASCEND transformation program, initially estimating an incremental $40 to $50 million of annual operating profit once fully implemented. ASCEND’s key initiatives include accelerating organic growth strategies, improving operational excellence and production efficiency by utilizing a Lean approach, and driving greater efficiency and productivity in selling, general and administrative expense by better leveraging resources to create a more efficient and agile organization. At the time the company anticipated investing $60 to $65 million through the end of fiscal 2024 to complete these actions.

In June 2022, the Company approved a restructuring plan in connection with the initiatives identified as part of the 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. (see Note 4, “Restructuring Charges” in the notes to the consolidated financial statements). These costs were incorporated into the initial investment of $60 to $65 million.

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.

In March 2023, the investment range increased from the initial $60 to $65 million, to $70 to $75 million inclusive of the $10 to $15 million of the previously announced restructuring over the life of the program.

The following summarizes ASCEND transformation charges (in thousands):


	Year-Ended August 31,
	2024		2023		2022		Program to Date
ASCEND Expense recorded in Cost of products sold	$	1,018	$	924	$	6	$	1,948
ASCEND Expense recorded in SG&A expenses	6,029		34,495		13,610		54,134
Total ASCEND Expense	7,047		35,419		13,616		56,082
Recorded with Restructuring charges	7,843		7,719		3,050		18,612
Total ASCEND Transformation Charges	$	14,890	$	43,138	$	16,666	$	74,694