Restructuring charges

3 Months Ended

Nov. 30, 2012

In the fourth quarter of fiscal 2012, the Company undertook 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 $11 million. Of this amount, $7 million were incurred through 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 will require cash payments.

The following illustrates the reconciliation of the restructuring liability by major type of costs for the three months ended November 30, 2012 (in thousands):



	Balance as of August 31, 2012		Charges		Payments and Other			Balance as of November 30, 2012		Total Charges to Date		Total Expected Charges
Severance costs	$	2,477	$	939	$	(2,548	)	$	868	$	3,680	$	4,000
Contract termination costs	414		5		(59		)	360		445		4,100
Other exit costs	64		649		(693		)	20		2,480		2,600
Total	$	2,955	$	1,593	$	(3,300	)	$	1,248	$	6,605	$	10,700

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



	As of November 30, 2012
		Current Period Charges		Total Charges to Date		Total Expected Charges
Metals Recycling Business		$	550	$	2,209	$	2,400
Auto Parts Business		187		420		600
Unallocated (Corporate)		856		3,976		7,700
Total		$	1,593	$	6,605	$	10,700

- 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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