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Restructuring and Other Income, Net
 12 Months Ended
May 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Other Income, Net

Note E – Restructuring and Other Income, Net

The Company considers restructuring activities to be programs whereby it fundamentally changes its operations, such as divestitures, closing or consolidating facilities, employee severance (including rationalizing headcount or other significant changes in personnel), and realignment of existing operations (including changes to management structure in response to underlying performance and/or changing market conditions).

During fiscal 2024, no material restructuring and other income, net charges were recorded.

There were no liabilities associated with restructuring activities as of May 31, 2024.

A progression of the liabilities associated with the restructuring activities, combined with a reconciliation to the restructuring and other income, net financial statement caption in our consolidated statement of earnings for fiscal 2023, is summarized below:

 

 

 

Beginning

 

 

Expense

 

 

 

 

 

 

 

 

Ending

 

(In millions)

 

Balance

 

 

(Income)

 

 

Payments

 

 

Adjustments

 

 

Balance

 

Early retirement and severance

 

$

0.5

 

 

$

0.1

 

 

$

(0.6

)

 

$

-

 

 

$

-

 

 

 

$

0.5

 

 

$

0.1

 

 

$

(0.6

)

 

$

-

 

 

$

-

 

Net gain on sale of assets

 

 

 

 

 

(4.3

)

 

 

 

 

 

 

 

 

 

Restructuring and other income, net

 

 

 

 

$

(4.2

)

 

 

 

 

 

 

 

 

 

 

During fiscal 2023, the following actions were taken related to the Company’s restructuring activities:

•
On October 31, 2022, the consolidated joint venture, WSP, ceased operations and sold its remaining manufacturing facility, located in Jackson, Michigan. Net cash proceeds of $20.8 million were realized in connection with the transaction, of which $2.0 million is being held in escrow for contingent indemnification obligations associated with general representations and warranties. The transaction resulted in a gain of $3.9 million.

 

During fiscal 2022, the following actions were taken related to the Company’s restructuring activities, which resulted in the recognition of $14.5 million within restructuring and other income, net:

•
On June 9, 2021, the historical consolidated joint venture, WSP, sold the remaining assets of its Canton, Michigan, facility with a net book value of $7.6 million for net cash proceeds of $19.8 million, resulting in a gain of $12.2 million.
•
In April of fiscal 2022, the Company completed its exit of the Decatur, Alabama steel processing facility and sold the remaining fixed assets with a net book value of $1.4 million for net cash proceeds of $4.0 million, resulting in a gain of $2.6 million.
•
Additional incremental early retirement and severance costs of $0.3 million offset the above gains.