Restructuring Expense

9 Months Ended

Feb. 27, 2021

Restructuring and Related Activities [Abstract]

During the fourth quarter of fiscal 2018, the Company announced a facilities consolidation plan related to its International Contract segment. This impacted certain office and manufacturing facilities in the United Kingdom and China. The plan is expected to generate cost savings of approximately $3 million. To date, the Company recognized restructuring and impairment expenses of $5.9 million, with a net credit of $1.9 million recognized to-date in fiscal 2021 and the remainder in fiscal 2020, 2019 and 2018. These expenses related to the facilities consolidation plan, comprised primarily of an asset impairment recorded against an office building in the United Kingdom that was vacated and the consolidation of the Company's manufacturing facilities in China. No future restructuring costs related to the plan are expected as the plan is substantially complete.

The office building and related assets in China were sold in the first quarter of fiscal 2021, resulting in a gain of approximately $3.4 million. The office building and related assets in the United Kingdom were sold in the second quarter of fiscal 2021, resulting in a nominal gain. Both of these gains are included within "Restructuring expense" in the Condensed Consolidated Statements of Comprehensive Income.

In the second quarter of fiscal 2020, the North America Contract segment initiated restructuring discussions with labor unions related to its Nemschoff operation in Wisconsin. The discussions were concluded in the third quarter of fiscal 2020 and as a result, the Company anticipates the total estimated costs related to the actions will be approximately $5 million. These restructuring costs relate to potential partial outsourcing and in-sourcing strategies, long-lived asset impairments and employee-related costs. To date, the Company has recorded approximately $3.1 million in pre-tax restructuring expense related to this plan, with a net credit of $0.1 million recognized in fiscal 2021 and the remainder in fiscal 2020. The plan is expected to be completed in fiscal 2021.

In the second quarter of fiscal 2020, the Company initiated a reorganization of the Global Sales and Product teams. The reorganization activities occurred primarily in the North America business with additional costs incurred internationally. To date, the Company has recorded a total of $2.6 million in pre-tax restructuring expense related to this plan. The reorganization is complete and no future costs related to this plan are expected.

In the third quarter of fiscal 2020, the Company announced a reorganization of the Retail segment's leadership team. The Company recognized pre-tax severance and employee related restructuring expense of $2.2 million related to the plan. No future restructuring costs related to the plan are expected as the plan is complete.

The following table provides an analysis of the changes in the restructuring costs reserve for the above plans for the nine months ended February 27, 2021:


(In millions)	Severance and Employee-Related		Exit or Disposal Activities		Total
May 30, 2020	$	5.9	$	0.8	$	6.7
Restructuring Costs	0.1		(2.0)		$	(1.9)
Amounts Paid	(3.0)		(0.1)		$	(3.1)
Other*	$	—	$	1.9	$	1.9
February 27, 2021	$	3.0	$	0.6	$	3.6

*This represents the gains on the sales of office buildings and related assets in China and the United Kingdom offset by other non-cash charges. The gains and other non-cash charges were recorded as restructuring cost, but do not impact the restructuring reserve.

In the fourth quarter of fiscal 2020, the Company announced a restructuring plan (“May 2020 restructuring plan") to substantially reduce expenses in response to the impact of the COVID-19 pandemic and related restrictions. These activities included voluntary and involuntary reductions in its North American and International workforces. Combined, these actions resulted in the elimination of approximately 400 full-time positions throughout the Company in various businesses and functions. As the result of these actions, the Company projects an annualized expense reduction of approximately $40 million. To date, the Company incurred severance and related charges of $18.7 million with $3.4 million recognized in fiscal 2021 and the remainder in fiscal 2020. No material future restructuring costs related to the plan are expected and the remaining amounts will be paid in fiscal 2022.

The following table provides an analysis of the changes in the restructuring cost reserve for May 2020 restructuring plan for the nine months ended February 27, 2021:


(In millions)	Severance and Employee-Related
May 30, 2020	$	15.3
Restructuring Costs	3.4
Amounts Paid	(17.3)
February 27, 2021	$	1.4

The following is a summary of restructuring expenses by segment for the periods indicated:


	Three Months Ended				Nine Months Ended
(In millions)	February 27, 2021		February 29, 2020		February 27, 2021		February 29, 2020
North America Contract	$	0.2	$	1.4	$	2.6	$	6.9
International Contract	0.1		0.4		(1.1)		1.0
Retail	—		1.7		—		1.7

Total	$	0.3	$	3.5	$	1.5	$	9.6