Restructuring

3 Months Ended

Jul. 31, 2020

Restructuring and Related Activities [Abstract]

In the fourth quarter of fiscal 2020 and first quarter of fiscal 2021, the Company implemented nationwide reductions in force, which were substantially completed in the fourth quarter of fiscal 2020 and first quarter of fiscal 2021, respectively. During the first quarter of fiscal 2021, the Company recognized pre-tax restructuring charges of $1.7 million related to these reductions in force, which were primarily severance and separation costs.

During June 2020, the Company's Board of Directors approved the closure and eventual disposal of its manufacturing plant located in Humboldt, Tennessee. The Company expects to incur total pre-tax restructuring costs of $3.0 million to $5.0 million related to the closing of the plant, net of building proceeds. The restructuring costs consist of employee severance and separation costs of approximately $0.5 million to $1.0 million, and charges for accelerated depreciation on property, equipment and inventory write-offs of approximately $2.5 million to $4.0 million. The Company expects to recognize substantially all of these costs during fiscal 2021. Operations ceased at the Humboldt plant in July 2020. During the first quarter of fiscal 2021, the Company recognized pre-tax restructuring charges of $1.8 million related to the closure of the plant. Included in the $1.8 million of restructuring charges were $0.4 million of severance and separation costs and $1.4 million for equipment, inventory and facilities-related expenses.

A reserve for restructuring charges is included in accrued compensation and related expenses in the condensed consolidated balance sheets as of July 31, 2020 which relates to employee termination costs accrued but not yet paid as follows:


	July 31,
(in thousands)	2020
Restructuring reserve balance at May 1	$	189
Expense	1,667
Payments and adjustments	(1,002)

Restructuring reserve balance at July 31	$	854