NOTE C – Restructuring and Other Expense

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 expense financial statement caption, in our consolidated statement of earnings for the three months ended August 31, 2017 is summarized below:


(in thousands)	Beginning Balance		Expense		Payments			Adjustments		Ending Balance
Early retirement and severance	$	253	$	1,877	$	(182	)	$	127	$	2,075
Facility exit and other costs		536		284		(950	)		131		1

	$	789		2,161	$	(1,132	)	$	258	$	2,076

Net loss on sale of assets				143

Restructuring and other expense			$	2,304

During the three months ended August 31, 2017, the following actions were taken related to the Company’s restructuring activities:

•

In connection with the acquisition of Amtrol on June 2, 2017, the Company recognized severance expense of $1,877,000 related to corporate management positions at Amtrol that were eliminated.

•

In connection with the closure of the Company’s stainless steel business, Precision Specialty Metals, Inc. (“PSM”), the Company recognized facility exit costs of $279,000.

•

In connection with other non-significant restructuring activities, the Company recognized facility exit costs of $5,000. The Company also recognized a net loss on disposal of assets of $143,000.

The total liability associated with our restructuring activities as of August 31, 2017 is expected to be paid in the next twelve months.