Restructuring and Other Expense

3 Months Ended

Aug. 31, 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 three months ended August 31, 2016 is summarized as follows:

(in thousands)	Beginning Balance		Expense		Payments			Adjustments		Ending Balance
Early retirement and severance	$	1,831	$	190	$	(890	)	$	8	$	1,139
Facility exit and other costs		653		1,027		(529	)		-		1,151
	$	2,484		1,217	$	(1,419	)	$	8	$	2,290
Net loss on sale of assets				111
Restructuring and other expense			$	1,328

Facility exit costs in the current year consisted primarily of costs incurred in connection with the closures of the Company’s stainless steel business, Precision Specialty Metals, Inc. (“PSM”) and the Florence, South Carolina facility in Engineered Cabs.

The total liability as of August 31, 2016 is expected to be paid in the next twelve months.