Restructuring Charges

3 Months Ended

Nov. 30, 2013

In the fourth quarter of fiscal 2012, the Company announced and undertook a number of restructuring initiatives designed to extract greater synergies from the significant acquisitions and technology investments made in recent years, achieve further integration between MRB and APB, realign the Company’s organization to support its future growth and decrease operating expenses by streamlining functions and reducing organizational layers. These initiatives were substantially completed by the end of fiscal 2013.

In the first quarter of fiscal 2014, the Company announced and began implementing additional restructuring initiatives to further reduce its annual operating expenses through headcount reductions, productivity improvements, procurement savings and other operational efficiencies. The Company expects to incur restructuring charges of $3 million in connection with these initiatives, with substantially all of the charges expected to be incurred by the end of fiscal 2014. The vast majority of the restructuring charges will require the Company to make cash payments.

Restructuring charges were comprised of the following (in thousands):



	Three Months Ended November 30, 2012
	Q4’12 Plan		Q1’14 Plan		Total Charges
Severance costs	$	939	$	—	$	939
Contract termination costs	5		—		5
Other exit costs	649		—		649
Total charges	$	1,593	$	—	$	1,593



	Three Months Ended November 30, 2013
	Q4’12 Plan		Q1’14 Plan		Total Charges
Severance costs	$	26	$	1,076	$	1,102
Contract termination costs	462		38		500
Other exit costs	—		210		210
Total charges	$	488	$	1,324	$	1,812

	Total Charges
	Q4’12 Plan		Q1’14 Plan		Total
Total charges to date	$	13,406	$	1,324	$	14,730
Total expected charges	$	13,500	$	3,000	$	16,500

The following illustrates the reconciliation of the restructuring liability by major type of costs for the three months ended November 30, 2013 (in thousands):



	Q4’12 Plan									Q1’14 Plan									Total Charges to Date		Total Expected Charges
	Balance 8/31/2013		Charges		Payments and Other			Balance 11/30/2013		Balance 8/31/2013		Charges		Payments and Other			Balance 11/30/2013		Total Charges to Date		Total Expected Charges
Severance costs	$	278	$	26	$	(227	)	$	77	$	—	$	1,076	$	(115	)	$	961	$	6,286	$	6,900
Contract termination costs	3,027		462		(1,425		)	2,064		—		38		—			38		4,169		4,700
Other exit costs	—		—		—			—		—		210		(210		)	—		4,275		4,900
Total	$	3,305	$	488	$	(1,652	)	$	2,141	$	—	$	1,324	$	(325	)	$	999	$	14,730	$	16,500

The amounts of restructuring charges relating to each segment were as follows (in thousands):



	Three Months Ended November 30,				Total Charges to Date		Total Expected Charges
	2013		2012		Total Charges to Date		Total Expected Charges
Metals Recycling Business	$	1,291	$	550	$	5,699	$	7,300
Auto Parts Business	61		187		533		600
Unallocated (Corporate)	460		856		8,498		8,600
Total	$	1,812	$	1,593	$	14,730	$	16,500

The Company does not allocate restructuring charges to the segments’ operating results because management does not include this information in its measurement of the performance of the operating segments.

- 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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