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 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 financial statement caption, in our consolidated statement of earnings for the six months ended November 30, 2017 is summarized below:


(in thousands)	Beginning Balance		Expense			Payments			Adjustments		Ending Balance
Early retirement and severance	$	253	$	2,560		$	(598	)	$	-	$	2,215
Facility exit and other costs		536		502			(1,038	)		-		-

	$	789		3,062		$	(1,636	)	$	-	$	2,215

Net gain on sale of assets				(10,452	)

Restructuring and other income, net			$	(7,390	)

During the six months ended November 30, 2017, the following actions were taken related to the Company’s restructuring activities:

•

In connection with the acquisition of Amtrol on June 2, 2017, the Company recognized severance expense of $2,365,000 related to corporate management positions at Amtrol that were eliminated.

•

In connection with the closure of the Company’s stainless steel business, Precision Specialty Metals, Inc. (“PSM”), the Company recognized facility exit costs of $580,000 and a net gain on disposal of assets of $10,595,000 for the sale of the legacy real estate of this business. Net proceeds were $15,874,000.

•

In connection with other non-significant restructuring activities, the Company recognized severance expense of $195,000 and a credit to facility exit costs of $78,000. The Company also recognized a net loss on disposal of assets of $143,000.

The total liability associated with our restructuring activities as of November 30, 2017 is expected to be paid in the next twelve months.