Guarantor Subsidiaries

6 Months Ended

Feb. 28, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

As discussed in Note 6, “Debt” on April 16, 2012, Actuant Corporation (the “Parent”) issued $300.0 million of 5.625% Senior Notes. All material domestic wholly owned subsidiaries (the “Guarantors”) fully and unconditionally guarantee (except for certain customary limitations) such debt on a joint and several basis. There are no significant restrictions on the ability of the Guarantors to make distributions to the Parent. The following tables present the results of operations, financial position and cash flows of Actuant Corporation and its subsidiaries, the Guarantor and non-Guarantor entities, and the eliminations necessary to arrive at the information for the Company on a consolidated basis.

Certain assets, liabilities and expenses have not been allocated to the Guarantors and non-Guarantors and therefore are included in the Parent column in the accompanying consolidating financial statements. These items are of a corporate or consolidated nature and include, but are not limited to, tax provisions and related assets and liabilities, certain employee benefit obligations, prepaid and accrued insurance and corporate indebtedness. Intercompany activity in the consolidating financial statements primarily includes loan activity, purchases and sales of goods or services and dividends. Intercompany balances also reflect certain non-cash transactions including transfers of assets and liabilities between the Parent, Guarantor and non-Guarantor, allocation of non-cash expenses from the Parent to the Guarantors and non-Guarantors, the impact of foreign currency rate changes and non-cash intercompany dividends.

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME

(In thousands)



	Three Months Ended February 28, 2013
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	47,407		$	121,600		$	201,363		$	—		$	370,370
Cost of products sold	14,938			87,004			128,869			—			230,811
Gross profit	32,469			34,596			72,494			—			139,559
Selling, administrative and engineering expenses	18,527			24,376			47,074			—			89,977
Amortization of intangible assets	318			3,282			4,038			—			7,638
Operating profit	13,624			6,938			21,382			—			41,944
Financing costs, net	6,409			1			(150		)	—			6,260
Intercompany expense (income), net	(4,651		)	(876		)	5,527			—			—
Other expense (income), net	(383		)	(53		)	400			—			(36		)
Earnings before income tax expense	12,249			7,866			15,605			—			35,720
Income tax expense	2,498			1,604			3,183			—			7,285
Net earnings before equity in earnings of subsidiaries	9,751			6,262			12,422			—			28,435
Equity in earnings of subsidiaries	18,684			10,765			(589		)	(28,860		)	—
Net earnings	$	28,435		$	17,027		$	11,833		$	(28,860	)	$	28,435
Comprehensive income	$	16,464		$	4,840		$	12,009		$	(16,849	)	$	16,464



	Three Months Ended February 29, 2012
	Parent			Guarantors		Non-Guarantors			Eliminations			Consolidated
Net sales	$	49,514		$	137,431	$	191,079		$	—		$	378,024
Cost of products sold	17,114			97,651		121,967			—			236,732
Gross profit	32,400			39,780		69,112			—			141,292
Selling, administrative and engineering expenses	19,660			26,612		38,491			—			84,763
Amortization of intangible assets	335			3,411		3,327			—			7,073
Operating profit	12,405			9,757		27,294			—			49,456
Financing costs, net	8,035			5		(219		)	—			7,821
Intercompany expense (income), net	(8,682		)	1,733		6,949			—			—
Other expense (income), net	822			1,330		(2,323		)	—			(171		)
Earnings before income tax expense	12,230			6,689		22,887			—			41,806
Income tax expense	2,818			1,541		5,272			—			9,631
Net earnings before equity in earnings of subsidiaries	9,412			5,148		17,615			—			32,175
Equity in earnings of subsidiaries	22,763			17,819		1,926			(42,508		)	—
Net earnings	$	32,175		$	22,967	$	19,541		$	(42,508	)	$	32,175
Comprehensive income	$	35,937		$	24,589	$	22,041		$	(46,630	)	$	35,937

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME

(In thousands)



	Six Months Ended February 28, 2013
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	93,245		$	245,717		$	408,656		$	—		$	747,618
Cost of products sold	27,346			174,872			258,855			—			461,073
Gross profit	65,899			70,845			149,801			—			286,545
Selling, administrative and engineering expenses	35,980			49,416			92,411			—			177,807
Amortization of intangible assets	639			6,731			8,122			—			15,492
Operating profit	29,280			14,698			49,268			—			93,246
Financing costs, net	12,767			6			(191		)	—			12,582
Intercompany expense (income), net	(11,921		)	1,079			10,842			—			—
Other expense, net	(747		)	(369		)	1,444			—			328
Earnings before income tax expense	29,181			13,982			37,173			—			80,336
Income tax expense	5,638			2,738			7,182			—			15,558
Net earnings before equity in earnings of subsidiaries	23,543			11,244			29,991			—			64,778
Equity in earnings of subsidiaries	41,235			28,664			435			(70,334		)	—
Net earnings	$	64,778		$	39,908		$	30,426		$	(70,334	)	$	64,778
Comprehensive income	$	64,982		$	33,698		$	38,028		$	(71,726	)	$	64,982



	Six Months Ended February 29, 2012
	Parent			Guarantors		Non-Guarantors			Eliminations			Consolidated
Net sales	$	98,034		$	273,872	$	398,917		$	—		$	770,823
Cost of products sold	32,393			192,283		252,247			—			476,923
Gross profit	65,641			81,589		146,670			—			293,900
Selling, administrative and engineering expenses	40,326			52,874		79,672			—			172,872
Amortization of intangible assets	670			6,831		6,790			—			14,291
Operating profit	24,645			21,884		60,208			—			106,737
Financing costs, net	16,272			8		(237		)	—			16,043
Intercompany expense (income), net	(16,173		)	2,299		13,874			—			—
Other expense (income), net	1,015			1,674		(2,203		)	—			486
Earnings before income tax expense	23,531			17,903		48,774			—			90,208
Income tax expense	5,440			4,142		11,277			—			20,859
Net earnings before equity in earnings of subsidiaries	18,091			13,761		37,497			—			69,349
Equity in earnings of subsidiaries	51,258			34,613		1,438			(87,309		)	—
Net earnings	$	69,349		$	48,374	$	38,935		$	(87,309	)	$	69,349
Comprehensive income	$	40,725		$	32,928	$	33,362		$	(66,290	)	$	40,725

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)



	February 28, 2013
	Parent		Guarantors		Non-Guarantors			Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	5,721	$	—	$	85,102		$	—		$	90,823
Accounts receivable, net	19,233		71,033		148,335			—			238,601
Inventories, net	29,981		78,581		108,978			—			217,540
Deferred income taxes	18,827		—		4,777			—			23,604
Other current assets	7,616		1,585		15,661			—			24,862
Total current assets	81,378		151,199		362,853			—			595,430
Property, plant & equipment, net	6,659		29,709		77,756			—			114,124
Goodwill	62,543		432,751		371,391			—			866,685
Other intangibles, net	13,883		199,463		217,481			—			430,827
Investment in subsidiaries	1,927,053		268,708		91,270			(2,287,031		)	—
Intercompany receivable	—		425,574		295,365			(720,939		)	—
Other long-term assets	11,460		22		5,283			—			16,765
Total assets	$	2,102,976	$	1,507,426	$	1,421,399		$	(3,007,970	)	$	2,023,831
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable	$	16,738	$	37,731	$	99,345		$	—		$	153,814
Accrued compensation and benefits	13,161		5,288		26,848			—			45,297
Current maturities of debt	10,000		—		—			—			10,000
Income taxes payable	3,688		—		(836		)	—			2,852
Other current liabilities	13,910		10,325		34,331			—			58,566
Total current liabilities	57,497		53,344		159,688			—			270,529
Long-term debt	385,000		—		—			—			385,000
Deferred income taxes	88,773		—		40,307			—			129,080
Pension and postretirement benefit liabilities	22,195		—		3,942			—			26,137
Other long-term liabilities	61,590		475		26,752			—			88,817
Intercompany payable	363,653		—		357,286			(720,939		)	—
Shareholders’ equity	1,124,268		1,453,607		833,424			(2,287,031		)	1,124,268
Total liabilities and shareholders’ equity	$	2,102,976	$	1,507,426	$	1,421,399		$	(3,007,970	)	$	2,023,831

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)



	August 31, 2012
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	12,401	$	91	$	55,692	$	—		$	68,184
Accounts receivable, net	20,401		74,006		140,349		—			234,756
Inventories, net	29,658		75,905		106,127		—			211,690
Deferred income taxes	17,942		—		4,641		—			22,583
Other current assets	8,157		1,166		14,745		—			24,068
Total current assets	88,559		151,168		321,554		—			561,281
Property, plant & equipment, net	6,944		31,818		77,122		—			115,884
Goodwill	62,543		433,193		370,676		—			866,412
Other intangibles, net	14,522		206,194		225,168		—			445,884
Investment in subsidiaries	1,886,478		250,738		90,770		(2,227,986		)	—
Intercompany receivable	—		418,253		307,282		(725,535		)	—
Other long-term assets	12,297		22		5,339		—			17,658
Total assets	$	2,071,343	$	1,491,386	$	1,397,911	$	(2,953,521	)	$	2,007,119
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable	$	21,722	$	44,893	$	108,131	$	—		$	174,746
Accrued compensation and benefits	23,459		6,646		28,712		—			58,817
Current maturities of debt	7,500		—		—		—			7,500
Income taxes payable	3,129		—		2,649		—			5,778
Other current liabilities	20,876		11,566		39,723		—			72,165
Total current liabilities	76,686		63,105		179,215		—			319,006
Long-term debt	390,000		—		—		—			390,000
Deferred income taxes	91,604		—		41,049		—			132,653
Pension and postretirement benefit liabilities	22,500		—		3,942		—			26,442
Other long-term liabilities	59,929		620		26,633		—			87,182
Intercompany payable	378,788		—		346,747		(725,535		)	—
Shareholders’ equity	1,051,836		1,427,661		800,325		(2,227,986		)	1,051,836
Total liabilities and shareholders’ equity	$	2,071,343	$	1,491,386	$	1,397,911	$	(2,953,521	)	$	2,007,119

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)



	Six Months Ended February 28, 2013
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Operating Activities
Net cash provided by operating activities	$	5,606		$	8,913		$	25,804		$	—	$	40,323
Investing Activities
Proceeds from sale of property, plant and equipment	562			74			541			—		1,177
Capital expenditures	(668		)	(2,014		)	(9,044		)	—		(11,726		)
Business acquisitions, net of cash acquired	(1,350		)	—			(83		)	—		(1,433		)
Cash used in investing activities	(1,456		)	(1,940		)	(8,586		)	—		(11,982		)
Financing Activities
Principal repayments on term loan	(2,500		)	—			—			—		(2,500		)
Intercompany loan activity	(7,370		)	(7,064		)	14,434			—		—
Purchase of treasury shares	(8,821		)	—			—			—		(8,821		)
Stock option exercises, related tax benefits and other	10,772			—			—			—		10,772
Cash dividend	(2,911		)	—			—			—		(2,911		)
Cash provided by (used in) financing activities	(10,830		)	(7,064		)	14,434			—		(3,460		)
Effect of exchange rate changes on cash	—			—			(2,242		)	—		(2,242		)
Net increase (decrease) in cash and cash equivalents	(6,680		)	(91		)	29,410			—		22,639
Cash and cash equivalents—beginning of period	12,401			91			55,692			—		68,184
Cash and cash equivalents—end of period	$	5,721		$	—		$	85,102		$	—	$	90,823

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)



	Six Months Ended February 29, 2012
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(495	)	$	12,656		$	39,840		$	—	$	52,001
Investing Activities
Proceeds from sale of property, plant and equipment	1,541			113			6,121			—		7,775
Capital expenditures	(3,142		)	(1,699		)	(5,611		)	—		(10,452		)
Business acquisitions, net of cash acquired	(290		)	—			(18,617		)	—		(18,907		)
Cash (used in) provided by investing activities	(1,891		)	(1,586		)	(18,107		)	—		(21,584		)
Financing Activities
Net borrowings on revolving credit facilities	10			—			(177		)	—		(167		)
Intercompany loan activity	24,565			(11,070		)	(13,495		)	—		—
Purchase of treasury shares	(20,410		)	—			—			—		(20,410		)
Stock option exercises and related tax benefits	5,507			—			—			—		5,507
Cash dividend	(2,748		)	—			—			—		(2,748		)
Cash (used in) provided by financing activities	6,924			(11,070		)	(13,672		)	—		(17,818		)
Effect of exchange rate changes on cash	—			—			1,625			—		1,625
Net (decrease) increase in cash and cash equivalents	4,538			—			9,686			—		14,224
Cash and cash equivalents—beginning of period	872			—			43,349			—		44,221
Cash and cash equivalents—end of period	$	5,410		$	—		$	53,035		$	—	$	58,445