Restructuring and Impairment Charges

12 Months Ended

May 31, 2013

Restructuring and Impairment Charges

Restructuring and Impairment Charges

12. Restructuring and Impairment Charges

        In order to improve efficiencies and streamline operations in the Technology Products segment, during fiscal 2012 we decided to close two manufacturing plants and idle one other facility. The financial impact included restructuring and other charges of $3.7 million. Approximately $1.2 million was recorded as severance expense and approximately $2.5 million was recorded for asset impairments to reduce the carrying value of certain equipment and inventory to net realizable value. The charges are recorded in Costs of sales—restructuring and impairment in the Consolidated Statement of Income.

        During fiscal 2011, we decided to offer one narrow body aircraft for sale from our wholly-owned aircraft portfolio and subsequent to May 31, 2011, we entered into a letter of intent to sell the aircraft to a foreign air carrier. As a result, we recorded a $5.3 million pre-tax impairment charge in fiscal 2011 to reduce the carrying value of the aircraft to its net realizable value, which was approximately $8.9 million at May 31, 2011.