Restructuring Charges

12 Months Ended

Aug. 31, 2012

Note 12 - Restructuring Charges

In the fourth quarter of fiscal 2012, the Company announced and initiated a number of restructuring initiatives designed to extract greater synergies from the significant acquisitions and technology investments made in fiscal 2011, realign the Company’s organization to support its future growth and decrease operating expenses by streamlining functions and reducing organizational layers, including achieving greater synergies between MRB and APB. These initiatives are expected to be substantially complete by the end of fiscal 2013.

The Company expects that total pre-tax charges pursuant to these restructuring initiatives will be approximately $12 million. Of this amount, $5 million were incurred in the fourth quarter of fiscal 2012 and approximately half of the remainder is expected to be incurred in the first quarter of fiscal 2013, with the balance expected to be incurred by the end of fiscal 2013. The Company expects that the vast majority of the restructuring charges of $12 million will require the Company to make cash payments.

The following illustrates the reconciliation of the restructuring liability by major type of costs for the year ended August 31, 2012 (in thousands):



	Balance 8/31/2011		Charges		Payments and Other			Balance 8/31/2012		Total expected charges
Severance costs	$	—	$	2,741	$	(264	)	$	2,477	$	4,000
Contract termination costs	—		440		(26		)	414		4,700
Other exit costs	—		1,831		(1,767		)	64		3,100
Total	$	—	$	5,012	$	(2,057	)	$	2,955	$	11,800

Restructuring charges by operating segment were as follows (in thousands):



	As of August 31, 2012
		Total charges to date		Total expected charges
Metals Recycling Business		$	1,660	$	2,400
Auto Parts Business		233		500
Unallocated (Corporate)		3,119		8,900
Total		$	5,012	$	11,800

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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