RESTRUCTURING

Fiscal 2016 Restructuring Plans

Global Headcount Reduction Plan

In the third quarter of fiscal 2016, the Company approved a plan for a global headcount reduction to drive further efficiency and cost savings in the organization primarily in the USCAN segment and Corporate location. The Company plans to reduce headcount by approximately 50, primarily in the U.S with the majority of the reductions occurring in third quarter of fiscal 2016. The Company recorded $2.3 million of pre-tax employee-related restructuring expense during the three and nine months ended May 31, 2016, of which the total amount remains accrued as of May 31, 2016. The Company expects additional charges of less than $1.0 million to be recognized during the fourth quarter of fiscal 2016. Cash payments associated with this plan are expected to occur through the end of fiscal 2016 as the plan is completed.

U.S. and Canada Shared Services Plan

In May 2016, the Company announced plans to create an Accounting and Shared Service Center of Excellence ("U.S. SSC") in Akron, Ohio that will be responsible for back office processes for all U.S. and Canada operations (USCAN segment and EC segment). The Company plans to reduce headcount by approximately 25 throughout the U.S. through fiscal 2017, partially offset by the addition of approximately 15 associates in U.S. SSC. The Company recorded minimal pre-tax employee-related costs during the three and nine months ended May 31, 2016. As of May 31, 2016, the Company has a minimal balance accrued for the employee-related costs related to this plan. The Company anticipates recording approximately $1.5 million of additional pre-tax employee-related charges through the remainder of fiscal 2016 and 2017. Cash payments associated with this plan are expected to occur through fiscal 2017 as the plan is completed.

USCAN Plan

In October 2015, as part of the Company’s previously announced Citadel acquisition integration strategy and a careful evaluation of capacity utilization and manufacturing capabilities, the Company approved plans to close three manufacturing facilities in Evansville, Indiana and consolidate production into other existing facilities in the area. Overall, the Company expects to reduce headcount by approximately 25 as a result of these actions through natural attrition. The Company recorded minimal and $0.3 million pretax employee-related costs, and $1.1 million and $4.2 million of accelerated depreciation costs during the three and nine months ended May 31, 2016, respectively. The Company anticipates recognizing $1.0 million of additional pretax machinery and equipment accelerated depreciation through fiscal 2017. As of May 31, 2016, the Company has a minimal balance accrued for this plan.

EC Plan

In the second quarter of fiscal 2016, the Company approved plans to optimize the Engineered Composites segment administrative functions and reduced headcount by approximately 10 in fiscal 2016. The Company recorded $0.3 million and $1.2 million of pre-tax employee-related restructuring expense during the three and nine months ended May 31, 2016, respectively. As of May 31, 2016, the Company has a balance of $0.2 million accrued for the employee-related costs related to this plan. The Company does not expect any additional charges related to this plan to be recognized during the remainder of fiscal 2016. Cash payments associated with this plan are expected to occur through fiscal 2016 as the plan is completed.

Fiscal 2015 Restructuring Plans

EMEA Plans

In August 2015, the Company approved plans to integrate the existing Paris, Montereau, and Beaucaire, France facilities into one new facility in St. Germain-Laval, France. As a result of this consolidation, the Company reduced headcount in France by approximately 20 in fiscal 2016, partially offset by the addition of approximately 15 associates at the Company's new facility. The Company has recognized pre-tax employee-related costs and other charges of $0.4 million and $1.4 million , as well as minimal and $0.6 million of accelerated depreciation costs during the three and nine months ended May 31, 2016, respectively. The Company expects to incur minimal pretax employee-related costs and accelerated depreciation throughout the remainder of fiscal 2016. As of May 31, 2016, the Company has a balance of $1.3 million accrued for this plan. Cash payments associated with this plan are expected to occur through fiscal 2017 as the plan is completed.

In May 2015, the Company announced plans to relocate its EMEA Shared Service Center from Londerzeel, Belgium to Poznan, Poland as part of the Company’s ongoing cost control initiatives. The Company reduced headcount by approximately 40 associates in Londerzeel, Belgium during fiscal 2016 and added a similar amount of headcount in Poznan, Poland. The Company recorded $0.4 million and $0.9 million of pre-tax employee-related costs and other charges during the three and nine months ended May 31, 2016, respectively, and expects to recognize minimal additional pre-tax employee-related costs through the remainder of fiscal 2016. As of May 31, 2016, the Company has a balance of $1.1 million accrued for this plan. Cash payments associated with this plan are expected to occur through fiscal 2017 as the plan is completed.

For discussion of the Company's previous restructuring plans, refer to Note 16 in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2015.

The following table summarizes the activity related to the Company’s restructuring plans:



	Employee-related Costs			Other Costs			Translation Effect			Total Restructuring Costs
	(In thousands)
Accrual balance as of August 31, 2015	$	5,786		$	461		$	(864	)	$	5,383
Fiscal 2016 charges	6,156			1,849			—			8,005
Fiscal 2016 payments	(5,982		)	(1,834		)	—			(7,816		)
Translation	—			—			(68		)	(68		)
Accrual balance as of May 31, 2016	$	5,960		$	476		$	(932	)	$	5,504

Restructuring expenses are excluded from segment operating income but are attributable to the reportable segments as follows:



	Three months ended May 31,				Nine months ended May 31,
	2016		2015		2016		2015
	(In thousands)
EMEA	$	1,383	$	2,091	$	3,353	$	7,710
USCAN	1,699		254		2,423		1,910
LATAM	49		304		213		910
APAC	79		—		110		—
EC	401		—		1,272		—
Corporate	634		—		634		—
Total restructuring expense	$	4,245	$	2,649	$	8,005	$	10,530