Restructuring and Other Expense

9 Months Ended

Feb. 29, 2016

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 rationalizing headcount.

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 nine months ended February 29, 2016 is summarized as follows:

(in thousands)	Beginning Balance		Expense			Payments			Adjustments			Ending Balance
Early retirement and severance	$	2,170	$	5,365		$	(4,639	)	$	26		$	2,922
Facility exit and other costs		371		6,576			(5,760	)		(23	)		1,164
	$	2,541		11,941		$	(10,399	)	$	3		$	4,086
Net gain on sale of assets				(6,647	)
Restructuring and other expense			$	5,294

During fiscal 2016, the following activities were taken related to the Company’s restructuring activities:

• In connection with the closure of the Engineered Cabs facility in Florence, South Carolina the Company recognized severance expense of $2,171,000 and facility exit costs of $888,000.

• The Company recognized severance expense of $1,496,000 related to workforce reductions in our Oil & Gas Equipment business within Pressure Cylinders.

• In connection with the closure of the Company’s stainless steel business, PSM, the Company recognized $5,184,000 of facility exit costs and severance expense of $1,122,000.

• In connection with the pending closure of the steel packaging facility in York, Pennsylvania, the Company recognized severance expense of $556,000.

• The Company recognized a gain of $2,978,000 in connection with the sale of the remaining fixed assets of its legacy Baltimore steel processing facility. The Company also recorded a $240,000 credit to severance expense and recognized facility exit costs of $134,000 during fiscal 2016 related to this matter.

• The Company recognized a gain of $1,484,000 in connection with the sale of the remaining land and building of its legacy metal framing business.

• The Company recognized a gain of $1,928,000 in connection with the sale of its interest in Worthington Nitin Cylinders, the Company’s alternative fuels joint venture in India. The sale was completed on January 28, 2016.

• The Company incurred severance expense and facility costs totaling $260,000 and $370,000, respectively, related to other non-significant restructuring activities.

The total liability as of February 29, 2016 is expected to be paid in the next twelve months.