Note

Restructuring Actions

Business Integration Project

The integration of the industrial adhesives business we acquired in

March 2012

involved a significant amount of restructuring and capital investment to optimize the new combined entity. In addition, we took a series of actions in our existing EIMEA operating segment to improve the profitability and future growth prospects of this operating segment. We combined these

two

initiatives into a single project which we refer to as the “Business Integration Project.” During the

second

quarter and

six

months ended

May 28, 2016,

incurred costs of

$370

and

$783

related to transformation costs, workforce reduction costs, facility exit costs and other related costs for the Business Integration Project, which are included in special charges, net in the Condensed Consolidated Statements of Income. The Business Integration Project was substantially complete at the end of

2016.

2017

Restructuring

Plan

During the

first

quarter of

2017,

we approved a restructuring plan (the

“2017

Restructuring Plan”) related to organizational changes and other actions to optimize operations. The

2017

Restructuring Plan was implemented in the

first

quarter of

2017

and is currently expected to be completed by mid-year of fiscal

2018.

During the

three

and

six

months ended

June 3, 2017,

we recorded a pre-tax charge of

$5,634

and

$15,802,

respectively, related to the implementation of the

2017

Restructuring Plan.

The following table summarizes the pre

tax distribution of restructuring charges by income statement classification:

	Three Months Ended		Six Months Ended
	June 3, 2017		June 3, 2017
Cost of sales	$	5,252	$	8,899
Selling, general and administrative		382		6,903
	$	5,634	$	15,802

The following table summarizes the pre-tax impact of restructuring charges by segment:

	Three Months Ended		Six Months Ended
	June 3, 2017		June 3, 2017
Americas Adhesives	$	39	$	1,765
EIMEA		1,266		6,055
Asia Pacific		35		1,887
Construction Products		4,209		5,458
Engineering Adhesives		85		637
	$	5,634	$	15,802

A summary of the restructuring liability during the

six

months ended

June 3, 2017

is presented below:

	Employee- Related			Asset-Related			Other			Total
Balance at December 3, 2016	$	-		$	-		$	-		$	-
Expenses incurred		9,898			5,094			810			15,802
Non-cash charges		-			(4,291	)		-			(4,291	)
Cash payments		(5,810	)		(803	)		(505	)		(7,118	)
Foreign currency translation		261			-			-			261
Balance at June 3, 2017	$	4,349		$	-		$	305		$	4,654

Non-cash charges include accelerated depreciation resulting from the cessation of use of certain long-lived assets and the recording of a provision related to the discontinuance of certain retail and wholesale products. Restructuring liabilities have been classified as a component of other accrued expenses on the Condensed Consolidated Balance Sheets.