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.

2020 MAP to Growth

In May 2018, we approved and implemented the first phases of a multi-year restructuring plan, the 2020 Margin Acceleration Plan (“2020 MAP to Growth”). The first phases of our plan were focused within the consumer and industrial segments. The restructuring plan within the consumer segment, led by new senior leadership, is designed to improve margins by simplifying business processes, reducing inventory categories and rationalizing SKUs, reducing headcount and working capital and improving operating efficiency. This restructuring plan allows us to streamline management and focus our attention on faster growing and better performing brands and products within the consumer segment businesses. Payments associated with this initial phase of restructuring activities in the consumer segment are expected to be completed during the first seven months of fiscal 2019. The restructuring plan within the industrial segment is designed to simplify processes, reduce headcount, eliminate underperforming businesses, and deliver better results for customers, employees and stockholders. The restructuring activities outlined during the first phase of the multi-year restructuring plan are expected to be completed during the first five months of fiscal 2019.

During the quarter ended August 31, 2018, we approved and began implementation of the second phase of our 2020 MAP to Growth. The second phase of our multi-year restructuring plan is focused on our specialty and corporate/nonoperating segments, and expands upon the restructuring activities being conducted by our consumer and industrial segments. Each phase of this restructuring plan has been designed to allow management to focus its attention on faster growing and better performing brands and products. The restructuring activities included in the second phase of our restructuring plan are expected to be completed by the end of fiscal 2020.

Furthermore, the restructuring plan within the specialty segment is designed to simplify processes and eliminate underperforming businesses. These actions will allow management to focus its attention on the faster growing and better performing brands and products, in an effort to achieve improved margins and operating results. These restructuring activities are expected to be completed by the end of fiscal 2020.

Lastly, the restructuring plan within the corporate/nonoperating segment is designed to improve consolidated results by reducing corporate overhead. These restructuring activities are expected to be completed during the first six months of fiscal 2019.

In addition to the segment specific restructuring plans outlined above, in the fourth quarter of fiscal 2018, we adopted a restructuring plan for the legal function to streamline litigation management. Payments related to this initial phase of restructuring activities are expected to be completed during the first quarter of fiscal 2020.

In furtherance of the 2020 MAP to Growth phases described above, we continue to work toward finalizing the last phases of our comprehensive, company-wide restructuring plan that we expect to formalize during our second quarter ending November 30, 2018. All activities under our 2020 MAP to Growth plan are anticipated to be completed by the end of calendar year 2020.

A summary of the charges recorded in connection with restructuring by reportable segment during fiscal 2019 is as follows:

	Three Months Ended August 31, 2018
	Current Year		Cumulative Costs		Total Expected
	Charges		to Date		Costs
(in thousands)

Consumer Segment:
Severance and benefit costs (a)	$	1,551	$	7,203	$	11,718
Facility closure and other related costs		-		5,139		11,225
Total Charges	$	1,551	$	12,342	$	22,943

Industrial Segment:
Severance and benefit costs (b)	$	6,365	$	8,534	$	13,098
Facility closure and other related costs		436		1,480		25,643
Other asset write-offs		578		1,951		2,996
Total Charges	$	7,379	$	11,965	$	41,737

Specialty Segment:
Severance and benefit costs (c)	$	2,147	$	2,147	$	5,295
Facility closure and other related costs		-		-		3,835
Total Charges	$	2,147	$	2,147	$	9,130

Corporate/Other Segment:
Severance and benefit costs (d)	$	8,999	$	11,135	$	11,135
Total Charges	$	8,999	$	11,135	$	11,135

Consolidated:
Severance and benefit costs	$	19,062	$	29,019	$	41,246
Facility closure and other related costs		436		6,619		40,703
Other asset write-offs		578		1,951		2,996
Total Charges	$	20,076	$	37,589	$	84,945

(a)	Includes current year charges of $1.6 million associated with the elimination of nine positions.

(b)	Includes current year charges of $6.2 million associated with the elimination of 94 positions and $0.2 million additional charges associated with the prior elimination of one position within the legal function during fiscal 2018.

(c)	Includes charges of $2.1 million associated with the elimination of 47 positions.

(d)	Reflects charges related to the severance of two corporate executives, as well as accelerated vesting of equity awards for two corporate executives, four specialty segment executives and two industrial segment executives in connection with the aforementioned restructuring activities.

A summary of the activity in the restructuring reserves related to the 2020 MAP to Growth plan is as follows:

(in thousands)	Severance and Benefits Costs			Facility Closure and Other Related Costs			Other Asset Write-Offs			Total
Balance at June 1, 2018	$	9,957		$	6,184		$	1,373		$	17,514
Additions charged to expense		19,062			436			578			20,076
Cash payments charged against reserve		(12,575	)		(418	)					(12,993	)
Non-cash charges included above (e)		(5,484	)		(838	)		(1,951	)		(8,273	)
Balance at August 31, 2018	$	10,960		$	5,364		$	-		$	16,324
Total Expected Costs	$	41,246		$	40,703		$	2,996		$	84,945

(e)	Non-cash charges primarily include accelerated vesting of equity awards and asset-write offs.

In connection with the 2020 MAP to Growth plan, during the first quarter of fiscal 2019, we incurred approximately $4.5 million of inventory-related charges at our industrial segment and recorded a favorable adjustment to the previous write off at our consumer segment for approximately $0.2 million, all of which are recorded in cost of sales in our Consolidated Statements of Income. These inventory charges were the result of product line and SKU rationalization initiatives in connection with our overall plan of restructuring.

The total expected costs to be incurred in relation to our 2020 MAP to Growth plan, as outlined in the table above, will be finalized and announced during our second quarter ending November 30, 2018.