Restructuring and Other Expense (Income), Net

12 Months Ended

May 31, 2019

Restructuring And Related Activities [Abstract]

Restructuring and Other Expense (Income), Net

Note E – Restructuring and Other Expense (Income), 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 income, net financial statement caption in our consolidated statement of earnings for fiscal 2019, is summarized below:

	Beginning											Ending
(in thousands)	Balance		Expense			Payments			Adjustments			Balance
Early retirement and severance	$	1,116	$	1,899		$	(2,127	)	$	(114	)	$	774
Facility exit and other costs		-		503			(313	)		(188	)		2
	$	1,116		2,402		$	(2,440	)	$	(302	)	$	776
Net gain on sale of assets				(13,420	)
Restructuring and other income, net			$	(11,018	)

During fiscal 2019, the following actions were taken related to the Company’s restructuring activities:

• In connection with the consolidation of the Company’s industrial gas operations in Portugal following the acquisition of AMTROL in fiscal 2018, the Company recognized severance expense of $1,086,000 and facility exit costs of $513,000.

• Within the Pressure Cylinders business, the Company sold two oil & gas manufacturing facilities resulting in net proceeds of $20,256,000 and a net gain on disposal of $1,962,000.

• In connection with the sale of the operating assets and real property related to the solder business and certain brazing assets within the Pressure Cylinders business, the Company recognized net proceeds of $27,577,000, severance expense of $89,000 and a net gain on disposal of $11,458,000.

• Upon exit of the North America CNG fuel system market in the Salt Lake City, Utah facility, the Company recognized severance expense of $519,000.

• In connection with other non-significant restructuring activities, the Company recognized severance expense of $205,000 and a reduction to facility exit costs of $10,000.

The total liability as of May 31, 2019 is expected to be paid in the next twelve months.