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Restructuring
3 Months Ended
Jul. 31, 2021
Restructuring And Related Activities [Abstract]  
Restructuring

Note 3. Restructuring

The Company continually monitors market factors and industry trends and takes necessary actions to reduce overall costs and improve operational profitability. In fiscal 2021, the Company initiated certain restructuring actions in response to the adverse impacts from the COVID-19 pandemic. These actions included plant consolidations and workforce reductions in the Automotive, Industrial and Interface segments. In the three months ended August 1, 2020, the Company recognized $3.4 million of restructuring costs, of which $1.9 million was recorded in cost of products sold and $1.5 million was recorded in selling and administrative expenses.

Employee termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable. Asset impairment charges relate to the impairment of right-of-use lease assets and equipment. Contract termination costs are recorded when notification of termination is given to the other party. The table below presents restructuring costs by reportable segment:

 

Three Months Ended August 1, 2020

 

(in millions)

Auto

 

 

Industrial

 

 

Interface

 

 

Medical

 

 

Corporate

 

 

Total

 

Employee termination benefits

$

1.4

 

 

$

0.6

 

 

$

0.4

 

 

$

 

 

$

0.1

 

 

$

2.5

 

Asset impairment charges

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

 

 

 

0.3

 

Contract termination costs

 

0.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.6

 

Total

$

2.0

 

 

$

0.6

 

 

$

0.7

 

 

$

 

 

$

0.1

 

 

$

3.4

 

The Company’s restructuring liability was $0.2 million and $1.2 million as of July 31, 2021 and May 1, 2021, respectively. Estimates of restructuring costs are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring costs, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals.