Restructuring and Other Expense

3 Months Ended

Aug. 31, 2015

Restructuring and Other Expense

NOTE D – Restructuring and Other Expense

We consider restructuring activities to be programs whereby we fundamentally change our operations such as closing and consolidating manufacturing facilities, moving manufacturing of a product to another location, and employee severance (including rationalizing headcount or other significant changes in personnel).

A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other expense financial statement caption in our consolidated statement of earnings for the three months ended August 31, 2015 is summarized as follows:

(in thousands)	Beginning Balance		Expense		Payments			Adjustments			Ending Balance
Early retirement and severance	$	2,170	$	3,030	$	(686	)	$	(15	)	$	4,499
Facility exit and other costs		371		39		(53	)		-			357
Restructuring and other expense	$	2,541	$	3,069	$	(739	)	$	(15	)	$	4,856

Severance expense in the current year consisted primarily of $1,891,000 related to the pending closure of the Engineered Cabs facility in Florence, South Carolina, and $690,000 related to workforce reductions in our oil and gas equipment business within Pressure Cylinders announced on September 22, 2015. The total liability as of August 31, 2015 is expected to be paid in the next twelve months.