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Restructuring and Other (Income) Expense, Net
 12 Months Ended
May 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Other (Income) Expense, Net

Note F – Restructuring and Other (Income) 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.

 

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 for fiscal 2024, is summarized below:

 

 

 

Beginning

 

 

Expense

 

 

 

 

 

 

 

 

Ending

 

 

 

Balance

 

 

(Income)

 

 

Payments

 

 

Adjustments

 

 

Balance

 

Early retirement and severance

 

$

135

 

 

$

714

 

 

$

(661

)

 

$

-

 

 

$

188

 

Facility exit and other costs

 

 

-

 

 

 

111

 

 

 

(111

)

 

 

-

 

 

 

-

 

 

 

$

135

 

 

$

825

 

 

$

(772

)

 

$

-

 

 

$

188

 

Loss on deconsolidation of Sustainable Energy Solutions

 

 

 

 

 

30,502

 

 

 

 

 

 

 

 

 

 

Release of contingent liability for Level5 earnout

 

 

 

 

 

(2,000

)

 

 

 

 

 

 

 

 

 

Restructuring and other expense, net

 

 

 

 

$

29,327

 

 

 

 

 

 

 

 

 

 

 

During fiscal 2024, the following selected actions were taken related to our restructuring activities:

•
On May 29, 2024, we entered into an agreement with Hexagon and contributed the net assets of our Sustainable Energy Solutions business to a newly-formed joint venture in which we retained a 49% noncontrolling interest. As a result, we recognized a pre-tax loss of $30,502 within restructuring and other expense, net, including closing costs.
•
During fiscal 2024, we reversed amounts accrued for the anticipated payout under the final earnout opportunity associated with the Level5 acquisition.

 

The total liability as of May 31, 2024 is expected to be paid in the immediately following twelve months.

 

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 2023, is summarized below:

 

 

 

Beginning

 

 

Expense

 

 

 

 

 

 

 

 

Ending

 

 

 

Balance

 

 

(Income)

 

 

Payments

 

 

Adjustments

 

 

Balance

 

Early retirement and severance

 

$

-

 

 

$

810

 

 

$

(675

)

 

$

-

 

 

$

135

 

Net gain on sale of assets

 

 

 

 

 

(1,177

)

 

 

 

 

 

 

 

 

 

Restructuring and other income, net

 

 

 

 

$

(367

)

 

 

 

 

 

 

 

 

 

 

During fiscal 2023, the following actions were taken related to our restructuring activities:

•
On June 14, 2022, we sold real property in Tulsa, Oklahoma, for net cash proceeds of $5,775, resulting in a pre-tax gain of $1,177. These assets had been excluded from the sale of our former oil & gas equipment business in January 2021. The assets were classified as assets held for sale on our consolidated balance sheets immediately prior to the closing of the sale.