G & K Services, Inc. Integration Expenses

12 Months Ended

May 31, 2020

Business Combinations [Abstract]

G & K Services, Inc. Integration Expenses

G&K Services, Inc. Integration Expenses

As a result of the acquisition of G&K in fiscal 2017, the Company incurred $14.4 million and $41.9 million, in integration expenses in fiscal 2019 and 2018, respectively. No such costs were incurred in fiscal 2020. In fiscal 2019, the Company incurred integration expenses directly related to the acquisition of $16.9 million, which primarily consisted of facility closure expenses, partially offset by a $2.5 million adjustment to the accrual for employee termination expenses previously recognized under ASC Topic 712, "Compensation - Nonretirement Postemployment Benefits" (Topic 712). The $41.9 million of costs incurred in fiscal 2018 related to lease cancellation costs, facility closure expenses and other integration expenses directly related to the acquisition.

The integration expenses for all fiscal years are included in a single line in the consolidated statements of income and are reported by operating segment in Note 14 entitled Operating Segment Information.

The amount of employee termination benefits paid during the fiscal year ended May 31, 2020, 2019 and 2018 was $0.7 million, $3.8 million and $15.2 million, respectively. The related liability balance was fully paid at May 31, 2020 and was $2.8 million at May 31, 2019. We do not expect to pay any additional employee termination benefits related to G&K.