Restructuring

3 Months Ended

Aug. 31, 2021

Restructuring And Related Activities [Abstract]

NOTE 3 — RESTRUCTURING

We record restructuring charges associated with management-approved restructuring plans to either reorganize one or more of our business segments, or to remove duplicative headcount and infrastructure associated with our businesses. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. We record the short-term portion of our restructuring liability in Other Accrued Liabilities and the long-term portion, if any, in Other Long-Term Liabilities in our Consolidated Balance Sheets.

MAP to Growth

Between May and August 2018, we approved and implemented the initial phases of a multi-year restructuring plan, which was originally referred to as the 2020 Margin Acceleration Plan (“2020 MAP to Growth”). The initial phases of our 2020 MAP to Growth affected all of our reportable segments, as well as our corporate/nonoperating segment, and focused on margin improvement by simplifying business processes; reducing inventory categories and rationalizing SKUs; eliminating underperforming businesses; reducing headcount and working capital; and improving operating efficiency.

The disruption caused by the outbreak of the Covid pandemic delayed the finalization of our 2020 MAP to Growth past the original target completion date of December 31, 2020. In recognition of the fact our restructuring plan extends past calendar year 2020, we began referring to it simply as our “MAP to Growth.”

On May 31, 2021, we formally concluded our MAP to Growth. However, certain projects identified prior to May 31, 2021 are not yet completed. Accordingly, we expect to incur restructuring expense throughout fiscal year 2022. The total expected costs are subject to change as we complete these projects.

Our execution of the MAP to Growth drove the de-layering and simplification of management and businesses associated with group realignment. We have implemented four center-led functional areas including manufacturing and operations; procurement and supply chain; information technology; and accounting and finance.

Our MAP to Growth optimized our manufacturing facilities and provided more efficient plant and distribution facilities. Through the balance sheet date, in association with our MAP to Growth, we have completed, or are in the process of completing, the planned closure of 29 plants and 28 warehouses. We also expect to incur additional severance and benefit costs as part of our planned closure of these facilities.

The current total expected costs associated with this plan are outlined in the table below and decreased by approximately $1.6 million compared to our previous estimate, primarily attributable to decreases in expected severance and benefit charges of $0.8 million and expected facility closure and other related costs of $0.8 million.

Following is a summary of the charges recorded in connection with restructuring by reportable segment:


	Three Months Ended			Three Months Ended		Cumulative Costs		Total Expected
(In thousands)	August 31, 2021			August 31, 2020		to Date		Costs
Construction Products Group ("CPG") Segment:
Severance and benefit costs (credits) (a)	$	(493	)	$	180	$	20,795	$	20,928
Facility closure and other related costs		540			368		7,120		7,609
Other restructuring costs		4			36		1,982		1,982
Total Charges	$	51		$	584	$	29,897	$	30,519

Performance Coatings Group ("PCG") Segment:
Severance and benefit costs (b)	$	128		$	1,039	$	16,487	$	17,012
Facility closure and other related costs		408			288		7,037		7,968
Other restructuring costs		-			29		917		917
Total Charges	$	536		$	1,356	$	24,441	$	25,897

Consumer Segment:
Severance and benefit costs (c)	$	-		$	790	$	12,307	$	12,307
Facility closure and other related costs		240			597		12,321		13,015
Other restructuring costs		-			98		4,420		4,420
Total Charges	$	240		$	1,485	$	29,048	$	29,742

Specialty Products Group ("SPG") Segment:
Severance and benefit costs (d)	$	87		$	469	$	8,214	$	9,190
Facility closure and other related costs		98			268		5,688		6,706
Other restructuring costs (credits)		(2	)		71		1,219		1,219
Total Charges	$	183		$	808	$	15,121	$	17,115

Corporate/Other Segment:
Severance and benefit costs	$	-		$	-	$	13,538	$	13,538
Total Charges	$	-		$	-	$	13,538	$	13,538

Consolidated:
Severance and benefit costs (credits)	$	(278	)	$	2,478	$	71,341	$	72,975
Facility closure and other related costs		1,286			1,521		32,166		35,298
Other restructuring costs		2			234		8,538		8,538
Total Charges	$	1,010		$	4,233	$	112,045	$	116,811

(a) Severance and benefit recoveries are associated with the adjustment of previously estimated severance accruals partially offset by the elimination of five positions during the three months ended August 31, 2021. Severance and benefit costs for the three months ended August 31, 2020 are associated with the elimination of nine positions.

(b) Severance and benefit costs are associated with the elimination of two positions and 39 positions during the three months ended August 31, 2021 and 2020, respectively.

(c) Severance and benefit costs are associated with the elimination of three positions during the three months ended August 31, 2020.

(d) Severance and benefit costs are associated with the elimination of 16 positions and 28 positions during the three months ended August 31, 2021 and 2020, respectively.

A summary of the activity in the restructuring reserves related to our MAP to Growth is as follows:


(In thousands)	Severance and Benefits Costs			Facility Closure and Other Related Costs			Other Restructuring Costs			Total
Balance at June 1, 2021	$	4,430		$	1,290		$	-			5,720
Charges (credits) to expense		(278	)		1,286			2			1,010
Cash payments charged against reserve		(1,766	)		(1,248	)		-			(3,014	)
Non-cash charges and other adjustments		-			(377	)		(2	)		(379	)
Balance at August 31, 2021	$	2,386		$	951		$	-		$	3,337

(In thousands)	Severance and Benefits Costs			Facility Closure and Other Related Costs			Other Restructuring Costs			Total
Balance at June 1, 2020	$	7,357		$	5,880		$	-		$	13,237
Charges to expense		2,478			1,521			234			4,233
Cash payments charged against reserve		(4,942	)		(1,263	)		-			(6,205	)
Non-cash charges and other adjustments		-			-			(234	)		(234	)
Balance at August 31, 2020	$	4,893		$	6,138		$	-		$	11,031