Restructuring

6 Months Ended

Nov. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring

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 increased by approximately $1.9 million compared to our previous estimate, primarily attributable to increases in expected severance and benefit charges of $1.2 million and expected facility closure and other related costs of $0.7 million.

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

	Three Months Ended		Six Months Ended			Cumulative Costs		Total Expected
(In thousands)	November 30, 2021		November 30, 2021			to Date		Costs
Construction Products Group ("CPG") Segment:
Severance and benefit costs (credits) (a)	$	177	$	(316	)	$	20,972	$	21,072
Facility closure and other related costs		503		1,043			7,623		7,785
Other restructuring costs		-		4			1,982		1,982
Total Charges	$	680	$	731		$	30,577	$	30,839
Performance Coatings Group ("PCG") Segment:
Severance and benefit costs (b)	$	-	$	128		$	16,487	$	16,832
Facility closure and other related costs		250		658			7,287		8,372
Other restructuring costs		-		-			917		917
Total Charges	$	250	$	786		$	24,691	$	26,121
Consumer Segment:
Severance and benefit costs	$	-	$	-		$	12,307	$	12,307
Facility closure and other related costs		271		511			12,592		13,088
Other restructuring costs		-		-			4,420		4,420
Total Charges	$	271	$	511		$	29,319	$	29,815
Specialty Products Group ("SPG") Segment:
Severance and benefit costs (c)	$	115	$	203		$	8,330	$	8,898
Facility closure and other related costs		147		245			5,835		6,732
Other restructuring costs (credits)		1		(1	)		1,220		1,220
Total Charges	$	263	$	447		$	15,385	$	16,850
Corporate/Other Segment:
Severance and benefit costs (d)	$	1,513	$	1,513		$	15,051	$	15,051
Total Charges	$	1,513	$	1,513		$	15,051	$	15,051
Consolidated:
Severance and benefit costs	$	1,805	$	1,528		$	73,147	$	74,160
Facility closure and other related costs		1,171		2,457			33,337		35,977
Other restructuring costs		1		3			8,539		8,539
Total Charges	$	2,977	$	3,988		$	115,023	$	118,676

(a) Severance and benefit costs are associated with the elimination of 11 positions during the three months ended November 30, 2021. Severance and benefit recoveries are associated with the adjustment of previously estimated severance accruals partially offset by the elimination of 16 positions during the six months ended November 30, 2021.

(b) Severance and benefit costs are associated with the elimination of three positions during the six months ended November 30, 2021.

(c) Severance and benefit costs are associated with the elimination of 16 positions during the six months ended November 30, 2021.

(d) Severance and benefit costs are associated with the elimination of one position during the three months ended November 30, 2021.

	Three Months Ended			Six Months Ended
(In thousands)	November 30, 2020			November 30, 2020
CPG Segment:
Severance and benefit costs (e)	$	1,394		$	1,574
Facility closure and other related costs		440			808
Other restructuring costs		62			99
Total Charges	$	1,896		$	2,481
PCG Segment:
Severance and benefit costs (f)	$	802		$	1,841
Facility closure and other related costs		556			844
Other restructuring costs		184			213
Total Charges	$	1,542		$	2,898
Consumer Segment:
Severance and benefit costs (g)	$	(4	)	$	786
Facility closure and other related costs		785			1,382
Other restructuring costs		204			302
Total Charges	$	985		$	2,470
SPG Segment:
Severance and benefit costs (h)	$	(57	)	$	411
Facility closure and other related costs		507			775
Other restructuring costs		45			116
Total Charges	$	495		$	1,302
Corporate/Other Segment:
Severance and benefit costs	$	-		$	-
Total Charges	$	-		$	-
Consolidated:
Severance and benefit costs	$	2,135		$	4,612
Facility closure and other related costs		2,288			3,809
Other restructuring costs		495			730
Total Charges	$	4,918		$	9,151

(e) Severance and benefit costs are associated with the elimination of 12 positions and 21 positions during the three and six months ended November 30, 2020, respectively.

(f) Severance and benefit costs are associated with the elimination of 11 positions and 50 positions during the three and six months ended November 30, 2020, respectively.

(g) Severance and benefit recoveries are associated with the adjustment of estimated severance accruals for the three months ended November 30, 2020. Severance and benefit costs for the six months ended November 30, 2020 are associated with the elimination of three positions partially offset by the adjustment in severance accruals during the period.

(h) Severance and benefit recoveries for the three months ended November 30, 2020 are associated with the reversal of severance accruals made for five positions which will no longer be eliminated, partially offset by the charges incurred related to the elimination of one position. Severance and benefit charges for the six months ended November 30, 2020 are associated with the elimination of 24 positions.

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 August 31, 2021	$	2,386		$	951		$	-		$	3,337
Additions charged to expense		1,805			1,171			1			2,977
Cash payments charged against reserve		(2,044	)		(1,039	)		-			(3,083	)
Non-cash charges and other adjustments		(576	)		(187	)		(1	)		(764	)
Balance at November 30, 2021	$	1,571		$	896		$	-		$	2,467
(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
Additions charged to expense		1,528			2,457			3			3,988
Cash payments charged against reserve		(3,808	)		(2,287	)		-			(6,095	)
Non-cash charges and other adjustments		(579	)		(564	)		(3	)		(1,146	)
Balance at November 30, 2021	$	1,571		$	896		$	-		$	2,467
(In thousands)	Severance and Benefits Costs			Facility Closure and Other Related Costs			Other Restructuring Costs			Total
Balance at August 31, 2020	$	4,893		$	6,138		$	-		$	11,031
Additions charged to expense		2,135			2,288			495			4,918
Cash payments charged against reserve		(2,373	)		(2,530	)		(335	)		(5,238	)
Non-cash charges and other adjustments		-			-			(160	)		(160	)
Balance at November 30, 2020	$	4,655		$	5,896		$	-		$	10,551
(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
Additions charged to expense		4,612			3,809			730			9,151
Cash payments charged against reserve		(7,314	)		(3,793	)		(335	)		(11,442	)
Non-cash charges and other adjustments		-			-			(395	)		(395	)
Balance at November 30, 2020	$	4,655		$	5,896		$	-		$	10,551