Restructuring

9 Months Ended

Feb. 28, 2022

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 31 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 $0.2 million compared to our previous estimate, primarily attributable to an increase in expected severance and benefit charges of $0.3 million, partially offset by a decrease in expected facility closure and other related costs of $0.1 million.

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


	Three Months Ended			Nine Months Ended			Cumulative Costs		Total Expected
(In thousands)	February 28, 2022			February 28, 2022			to Date		Costs
Construction Products Group ("CPG") Segment:
Severance and benefit costs (credits) (a)	$	(7	)	$	(322	)	$	20,966	$	21,066
Facility closure and other related costs		325			1,368			7,948		8,191
Other restructuring costs		-			4			1,982		1,982
Total Charges	$	318		$	1,050		$	30,896	$	31,239

Performance Coatings Group ("PCG") Segment:
Severance and benefit costs (b)	$	65		$	193		$	16,552	$	17,261
Facility closure and other related costs		121			779			7,408		8,188
Other restructuring costs		-			-			917		947
Total Charges	$	186		$	972		$	24,877	$	26,396

Consumer Segment:
Severance and benefit costs	$	-		$	-		$	12,307	$	12,307
Facility closure and other related costs		277			788			12,869		13,088
Other restructuring costs		-			-			4,420		4,420
Total Charges	$	277		$	788		$	29,596	$	29,815

Specialty Products Group ("SPG") Segment:
Severance and benefit costs (c)	$	47		$	249		$	8,376	$	8,726
Facility closure and other related costs		312			557			6,147		6,380
Other restructuring costs (credits)		-			(1	)		1,220		1,220
Total Charges	$	359		$	805		$	15,743	$	16,326

Corporate/Other Segment:
Severance and benefit costs (d)	$	-		$	1,513		$	15,051	$	15,051
Total Charges	$	-		$	1,513		$	15,051	$	15,051

Consolidated:
Severance and benefit costs	$	105		$	1,633		$	73,252	$	74,411
Facility closure and other related costs		1,035			3,492			34,372		35,847
Other restructuring costs		-			3			8,539		8,569
Total Charges	$	1,140		$	5,128		$	116,163	$	118,827

(a) Severance and benefit recoveries are associated with the adjustment of previously estimated severance accruals partially offset by the elimination of 16 positions during the nine months ended February 28, 2022.

(b) Severance and benefit costs are associated with the elimination of one position and four positions during the three and nine months ended February 28, 2022, respectively.

(c) Severance and benefit costs are associated with the elimination of two and 18 positions during the three and nine months ended February 28, 2022, respectively.

(d) Severance and benefit costs are associated with the elimination of one position during the nine months ended February 28, 2022.


	Three Months Ended			Nine Months Ended
(In thousands)	February 28, 2021			February 28, 2021

CPG Segment:
Severance and benefit costs (e)	$	255		$	1,829
Facility closure and other related costs		665			1,473
Other restructuring costs (credits)		(60	)		38
Total Charges	$	860		$	3,340

PCG Segment:
Severance and benefit costs (f)	$	118		$	1,959
Facility closure and other related costs		265			1,109
Other restructuring costs		-			213
Total Charges	$	383		$	3,281

Consumer Segment:
Severance and benefit costs (g)	$	11		$	797
Facility closure and other related costs		1,300			2,682
Other restructuring costs		-			302
Total Charges	$	1,311		$	3,781

SPG Segment:
Severance and benefit costs (h)	$	49		$	461
Facility closure and other related costs		385			1,160
Other restructuring costs		-			116
Total Charges	$	434		$	1,737

Corporate/Other Segment:
Severance and benefit costs	$	141		$	141
Total Charges	$	141		$	141

Consolidated:
Severance and benefit costs	$	574		$	5,187
Facility closure and other related costs		2,615			6,424
Other restructuring costs (credits)		(60	)		669
Total Charges	$	3,129		$	12,280

(e) Severance and benefit costs are associated with the elimination of three positions and 24 positions during the three and nine months ended February 28, 2021, respectively.

(f) Severance and benefit costs are associated with the elimination of five positions and 55 positions during the three and nine months ended February 28, 2021, respectively.

(g) Severance and benefit costs for the nine months ended February 28, 2021 are associated with the elimination of three positions, partially offset by the adjustment in severance accruals during the period. There were no position eliminations during the three months ended February 28, 2021.

(h) Severance and benefit costs are associated with the elimination of three positions and 27 positions during the three and nine months ended February 28, 2021, 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 November 30, 2021	$	1,571		$	896		$	-		$	2,467
Additions charged to expense		105			1,035			-			1,140
Cash payments charged against reserve		(506	)		(868	)		-			(1,374	)
Non-cash charges and other adjustments		(95	)		(28	)		-			(123	)
Balance at February 28, 2022	$	1,075		$	1,035		$	-		$	2,110

(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		1,633			3,492			3			5,128
Cash payments charged against reserve		(4,314	)		(3,155	)		-			(7,469	)
Non-cash charges and other adjustments		(674	)		(592	)		(3	)		(1,269	)
Balance at February 28, 2022	$	1,075		$	1,035		$	-		$	2,110

(In thousands)	Severance and Benefits Costs			Facility Closure and Other Related Costs			Other Restructuring Costs			Total
Balance at November 30, 2020	$	4,655		$	5,896		$	-		$	10,551
Additions charged to expense		574			2,615			(60	)		3,129
Cash payments charged against reserve		(1,699	)		(2,968	)		-			(4,667	)
Non-cash charges and other adjustments		71			(4,292	)		60			(4,161	)
Balance at February 28, 2021	$	3,601		$	1,251		$	-		$	4,852


(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		5,187			6,424			669			12,280
Cash payments charged against reserve		(9,014	)		(6,761	)		(335	)		(16,110	)
Non-cash charges and other adjustments		71			(4,292	)		(334	)		(4,555	)
Balance at February 28, 2021	$	3,601		$	1,251		$	-		$	4,852