Restructuring and Other Expense (Income), Net

9 Months Ended

Feb. 29, 2020

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										Balance, as of
(in thousands)	May 31, 2019		Expense		Payments			Adjustments			February 29, 2020
Early retirement and severance	$	774	$	1,309	$	(860	)	$	(89	)	$	1,134
Facility exit and other costs		2		141		(224	)		81			-
	$	776		1,450	$	(1,084	)	$	(8	)	$	1,134
Net loss on sale of assets				331
Restructuring and other expense, net			$	1,781

During the nine months ended February 29, 2020, 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 the newly-formed Cabs joint venture.  In connection with the transaction, the Company recognized a net gain of $50,000.  Subsequent to closing the transaction, the Company sold some assets of the retained fabricated products business in Stow, Ohio for a net gain of $100,000.

• In February 2020, the Company announced the closure of the Hermosillo, Mexico facility and an office in Sonata, Mexico, both operated by the Company’s consolidated joint venture, TWB.  In connection with the closures, and a reduction in personnel at Puebla, Mexico, the Company recognized severance expense of $232,000.  The closures are expected to be complete by the end of fiscal 2020 with total expected severance expense and facility exit costs estimated to be $672,000 and $70,000, respectively.   

• In February 2020, the Company’s WSP joint venture committed to plans to close and sell the assets of its Canton, Michigan facility.  In connection with the sale, the Company recognized severance expense of $310,000.  The closure is expected to be complete by the end of fiscal 2020 with total expected severance expenses estimated to be $2,109,000.

• In the third quarter of fiscal 2020, the Company announced a plan to consolidate its oil & gas equipment manufacturing operations in Wooster, Ohio into its existing facility in Bremen, Ohio.  In connection with the consolidation, the Company recognized $580,000 in severance expense.  The closure of the Wooster facility is expected to be complete by the end of fiscal 2020 with total expected severance expense and facility exit costs estimated to be $2,273,000 and $500,000, respectively.

• In connection with other non-significant restructuring activities, the Company recognized severance expense of $187,000 and facility exit costs of $141,000.

The total liability associated with our restructuring activities as of February 29, 2020 is expected to be paid in the next twelve months.