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Restructuring and Other Expense (Income), Net
 6 Months Ended
Nov. 30, 2019
Restructuring And Related Activities [Abstract]  
Restructuring and Other Expense (Income), Net

NOTE F – 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 expense (income), net financial statement caption, in our consolidated statement of earnings is summarized below for the period presented:

 

 

 

Balance, as of

 

 

Expense

 

 

 

 

 

 

 

 

 

 

Balance, as of

 

(in thousands)

 

May 31, 2019

 

 

(income)

 

 

Payments

 

 

Adjustments

 

 

November 30, 2019

 

Early retirement and severance

 

$

774

 

 

$

-

 

 

$

(596

)

 

$

(89

)

 

$

89

 

Facility exit and other costs

 

 

2

 

 

 

(26

)

 

 

(56

)

 

 

81

 

 

 

1

 

 

 

$

776

 

 

 

(26

)

 

$

(652

)

 

$

(8

)

 

$

90

 

Net loss on sale of assets

 

 

 

 

 

 

431

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other expense, net

 

 

 

 

 

$

405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During the six months ended November 30, 2019, the following actions were taken related to the Company’s restructuring activities:

 

 

•

In July 2019, the Company completed the sale of its cryogenics business in Turkey, the net assets of which had been previously classified as assets held for sale.  In connection with the sale, the Company realized net cash proceeds of $8,295,000 and recognized a net loss of $481,000.

 

 

•

In November 2019, the Company contributed substantially all of the net assets of the Engineered Cabs business to a newly-formed Cabs joint venture.  In connection with the transaction, the Company recognized a net gain of $50,000.

 

 

•

In connection with other non-significant restructuring activities, the Company recognized a reduction to facility exit costs of $26,000.

 

The total liability associated with our restructuring activities as of November 30, 2019 is expected to be paid in the next twelve months.