diff --git a/backup/moodle2/restore_stepslib.php b/backup/moodle2/restore_stepslib.php
index 14d130afa3b..2aebdcfbc1c 100644
--- a/backup/moodle2/restore_stepslib.php
+++ b/backup/moodle2/restore_stepslib.php
@@ -371,40 +371,35 @@ class restore_gradebook_structure_step extends restore_structure_step {
         }
         $rs->close();
 
-        //need to correct the grade category path and parent
+        // Need to correct the grade category path and parent
         $conditions = array(
             'courseid' => $this->get_courseid()
         );
-        $grade_category = new stdclass();
 
         $rs = $DB->get_recordset('grade_categories', $conditions);
-        if (!empty($rs)) {
-            //get all the parents correct first as grade_category::build_path() loads category parents from the DB
-            foreach($rs as $gc) {
-                if (!empty($gc->parent)) {
-                    $grade_category->id = $gc->id;
-                    $grade_category->parent = $this->get_mappingid('grade_category', $gc->parent);
-                    $DB->update_record('grade_categories', $grade_category);
-                }
-            }
-        }
-        if (isset($grade_category->parent)) {
-            unset($grade_category->parent);
-        }
-        $rs->close();
-
-        $rs = $DB->get_recordset('grade_categories', $conditions);
-        if (!empty($rs)) {
-            //now we can rebuild all the paths
-            foreach($rs as $gc) {
+        // Get all the parents correct first as grade_category::build_path() loads category parents from the DB
+        foreach ($rs as $gc) {
+            if (!empty($gc->parent)) {
+                $grade_category = new stdClass();
                 $grade_category->id = $gc->id;
-                $grade_category->path = grade_category::build_path($gc);
+                $grade_category->parent = $this->get_mappingid('grade_category', $gc->parent);
                 $DB->update_record('grade_categories', $grade_category);
             }
         }
         $rs->close();
 
-        //Restore marks items as needing update. Update everything now.
+        // Now we can rebuild all the paths
+        $rs = $DB->get_recordset('grade_categories', $conditions);
+        foreach ($rs as $gc) {
+            $grade_category = new stdClass();
+            $grade_category->id = $gc->id;
+            $grade_category->path = grade_category::build_path($gc);
+            $grade_category->depth = substr_count($grade_category->path, '/') - 1;
+            $DB->update_record('grade_categories', $grade_category);
+        }
+        $rs->close();
+
+        // Restore marks items as needing update. Update everything now.
         grade_regrade_final_grades($this->get_courseid());
     }
 }