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Restructuring and Other Income, Net
 6 Months Ended
Nov. 30, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Other Income, Net

Note F – Restructuring and Other Income, Net

 

We consider restructuring activities to be programs whereby we fundamentally change our operations, such as closing and consolidating manufacturing facilities or moving manufacturing of a product to another location. Restructuring activities may also involve substantial realignment of the management structure of a business unit in response to changing market conditions.

 

A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other income, net financial statement caption, in our consolidated statement of earnings for the six months ended November 30, 2022 is summarized below:

 

(in thousands)

 

Balance, as of
May 31, 2022

 

 

Expense
(Income)

 

 

Payments

 

 

Adjustments

 

 

Balance, as of
November 30, 2022

 

Early retirement and severance

 

$

541

 

 

$

85

 

 

$

(605

)

 

$

-

 

 

$

21

 

Net gain on sale of assets (1)(2)

 

 

 

 

 

(5,467

)

 

 

 

 

 

 

 

 

 

Restructuring and other income, net

 

 

$

(5,382

)

 

 

 

 

 

 

 

 

 

 

(1)
On June 14, 2022, we sold real property in Tulsa, Oklahoma, for net cash proceeds of $5,775,000, resulting in a pre-tax gain of $1,177,000. These assets had been excluded from the sale of our former oil & gas equipment business in January 2021. The assets were classified in assets held for sale on the consolidated balance sheets immediately prior to the closing of the sale.
(2)
On October 31, 2022, the Company’s consolidated steel processing joint venture, WSP, sold its remaining manufacturing facility, located in Jackson, Michigan. Net proceeds of $21,277,000 were realized in connection with the transaction, of which $2,000,000 is being held in escrow for general representations and warranties. The transaction resulted in a pre-tax gain of $3,926,000. The assets were classified in assets held for sale on the consolidated balance sheets immediately prior to the closing of the sale.

 

The total liability associated with our restructuring activities as of November 30, 2022 is expected to be paid in the next twelve months.