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Restructuring and Other Expense, Net
6 Months Ended
Nov. 30, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Other Expense, Net

NOTE F – Restructuring and Other Expense, 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.

 

In October 2020, the Pressure Cylinders business completed the sale of its cryogenic and hydrogen trailer business, including the Theodore, Alabama manufacturing site, and the cryo-science and microbulk storage unit business.  In connection with these transactions, the Company realized net cash proceeds of $21,223,000 after working capital adjustments, which generated a pre-tax loss of $7,072,000, primarily related to allocated goodwill.

A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other expense, net financial statement caption, in our consolidated statement of earnings is summarized below for the six-month period ended November 30, 2020:

 

 

 

Balance, as of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, as of

 

(in thousands)

 

May 31, 2020

 

 

Expense

 

 

Payments

 

 

Adjustments

 

 

November 30, 2020

 

Early retirement and severance

 

$

6,536

 

 

$

1,227

 

 

$

(5,637

)

 

$

(99

)

 

$

2,027

 

Facility exit and other costs

 

 

156

 

 

 

1,145

 

 

 

(1,222

)

 

 

74

 

 

 

153

 

 

 

$

6,692

 

 

$

2,372

 

 

$

(6,859

)

 

$

(25

)

 

$

2,180

 

Net loss on sale of assets

 

 

 

 

 

 

7,072

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other expense, net

 

 

 

 

 

$

9,444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The total liability associated with our restructuring activities as of November 30, 2020 is expected to be paid in the next twelve months.