Restructuring and Related Activities

3 Months Ended

Nov. 30, 2024

Restructuring and Related Activities [Abstract]

ASCEND Transformation Program

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 included 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 ("SG&A") expense by better leveraging resources to create a more efficient and agile organization.

At that 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 SG&A 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,"). 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 cost 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.

Total program expenses were approximately $3.6 million in the three months ended November 30, 2023, with no expenses in the three months ended November 30, 2024, as the ASCEND program ended at August 31, 2024. Of the total ASCEND program expenses for the three months ended November 30, 2023, $1.1 million were recorded within SG&A expenses and approximately $0.1 million were recorded within cost of goods sold. Additionally, for the three months ended November 30, 2023, $2.4 million of ASCEND expenses were recorded within restructuring expenses (see Note 4, “Restructuring Charges”).