Restructuring and Other Expense (Income), Net

12 Months Ended

May 31, 2018

Restructuring And Related Activities [Abstract]

Restructuring and Other Expense (Income), Net

Note D – Restructuring and Other Expense (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 fiscal 2018, is summarized below:

	Beginning										Ending
(in thousands)	Balance		Expense			Payments			Adjustments		Balance
Early retirement and severance	$	253	$	2,549		$	(1,787	)	$	101	$	1,116
Facility exit and other costs		536		482			(1,018	)		-		-
	$	789		3,031		$	(2,805	)	$	101	$	1,116
Net gain on sale of assets				(10,452	)
Restructuring and other income, net			$	(7,421	)

During fiscal 2018, 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 $2,365,000 related to corporate management and other 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 $560,000 and a net gain on disposal of assets of $10,595,000 for the sale of the real estate of this business.  Net proceeds were $15,874,000.

• In connection with other non-significant restructuring activities, the Company recognized severance expense of $184,000 and a credit to facility exit costs of $78,000.  The Company also recognized a net loss on disposal of assets of $143,000.

The total liability as of May 31, 2018 is expected to be paid in the next twelve months.