XML 83 R13.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Restructuring | 6 Months Ended
--- | ---
Nov. 30, 2019
Restructuring And Related Activities [Abstract] |
Restructuring | NOTE 4 — RESTRUCTURING We record restructuring charges associated with management-approved restructuring plans to either reorganize one or more of our business segments, or to remove duplicative headcount and infrastructure associated with our businesses. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. We record the short-term portion of our restructuring liability in Other Accrued Liabilities and the long-term portion, if any, in Other Long-Term Liabilities in our Consolidated Balance Sheets. 2020 MAP to Growth Between May and August 2018, we approved and implemented the initial phases of a multi-year restructuring plan, the 2020 Margin Acceleration Plan (“2020 MAP to Growth”). The initial phases of our 2020 MAP to Growth affected all of our reportable segments, as well as our corporate/nonoperating segment, and focused on margin improvement by simplifying business processes; reducing inventory categories and rationalizing SKUs; eliminating underperforming businesses; reducing headcount and working capital; and improving operating efficiency. The majority of the activities included in the initial phases of the restructuring activities have been completed. During the second quarter ended November 30, 2018, we formally announced the final phases of our 2020 MAP to Growth. This multi-year restructuring is expected to increase operational efficiency while maintaining our entrepreneurial growth culture and will include three additional phases between September 2018 and December 2020. Our execution of the 2020 MAP to Growth will continue to drive the de-layering and simplification of management and businesses associated with group realignment. We will implement four center-led functional areas including manufacturing and operations; procurement and supply chain; information technology; and accounting and finance. Our 2020 MAP to Growth will optimize our manufacturing facilities and will ultimately provide more efficient plant and distribution facilities. To date, in association with our 2020 MAP to Growth initiative, we have completed, or are in the process of completing, the planned closure of 18 plants and 23 warehouses. We also expect to incur additional severance and benefit costs as part of our planned closure of these facilities. Throughout the additional phases of our 2020 MAP to Growth initiative, we will continue to assess and find areas of improvement and cost savings. As such, the final implementation of the aforementioned phases and total expected costs are subject to change. In addition to the announced plan, we have continued to broaden the scope of our 2020 MAP to Growth initiative, specifically in consolidation of the general and administrative areas, potential outsourcing, as well as additional future plant closures and consolidations; the estimated costs of which have not yet been finalized. The current total expected costs associated with this plan are outlined in the table below and increased by approximately $4.6 million compared to our previous estimate, primarily attributable to increases in expected severance and benefit charges of $4.6 million. Most activities under our 2020 MAP to Growth are anticipated to be completed by the end of calendar year 2020. Following is a summary of the charges recorded in connection with restructuring by reportable segment:
|  | Three Months Ended |  |  | Six Months Ended |  |  | Cumulative Costs |  |  | Total Expected |
(in thousands) |  | November 30, 2019 |  |  | November 30, 2019 |  |  | to Date |  |  | Costs |
Construction Products Group (“CPG”) Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (a) |  | $ | 1,447 |  |  | $ | 1,607 |  |  | $ | 12,836 |  |  | $ | 22,146 |
Facility closure and other related costs |  |  | 110 |  |  |  | 798 |  |  |  | 3,767 |  |  |  | 4,597 |
Other asset write-offs |  |  | 39 |  |  |  | 39 |  |  |  | 1,629 |  |  |  | 2,151 |
Total Charges |  | $ | 1,596 |  |  | $ | 2,444 |  |  | $ | 18,232 |  |  | $ | 28,894 |
Performance Coatings Group (“PCG”) Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (b) |  | $ | 431 |  |  | $ | 2,931 |  |  | $ | 9,344 |  |  | $ | 14,765 |
Facility closure and other related costs |  |  | 636 |  |  |  | 745 |  |  |  | 4,219 |  |  |  | 6,638 |
Other asset write-offs |  |  | 172 |  |  |  | 172 |  |  |  | 523 |  |  |  | 528 |
Total Charges |  | $ | 1,239 |  |  | $ | 3,848 |  |  | $ | 14,086 |  |  | $ | 21,931 |
Consumer Group (“Consumer”) Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (c) |  | $ | 780 |  |  | $ | 1,547 |  |  | $ | 8,925 |  |  | $ | 12,424 |
Facility closure and other related costs |  |  | 344 |  |  |  | 860 |  |  |  | 7,552 |  |  |  | 9,352 |
Other asset write-offs |  |  | - |  |  |  | - |  |  |  | 25 |  |  |  | 25 |
Total Charges |  | $ | 1,124 |  |  | $ | 2,407 |  |  | $ | 16,502 |  |  | $ | 21,801 |
Specialty Products Group (“Specialty”) Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (d) |  | $ | 48 |  |  | $ | 414 |  |  | $ | 5,750 |  |  | $ | 10,640 |
Facility closure and other related costs |  |  | 731 |  |  |  | 2,190 |  |  |  | 3,434 |  |  |  | 6,697 |
Other asset write-offs |  |  | 40 |  |  |  | 104 |  |  |  | 1,107 |  |  |  | 1,334 |
Total Charges |  | $ | 819 |  |  | $ | 2,708 |  |  | $ | 10,291 |  |  | $ | 18,671 |
Corporate/Other Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 23 |  |  | $ | 16 |  |  | $ | 12,136 |  |  | $ | 12,136 |
Total Charges |  | $ | 23 |  |  | $ | 16 |  |  | $ | 12,136 |  |  | $ | 12,136 |
Consolidated: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 2,729 |  |  | $ | 6,515 |  |  | $ | 48,991 |  |  | $ | 72,111 |
Facility closure and other related costs |  |  | 1,821 |  |  |  | 4,593 |  |  |  | 18,972 |  |  |  | 27,284 |
Other asset write-offs |  |  | 251 |  |  |  | 315 |  |  |  | 3,284 |  |  |  | 4,038 |
Total Charges |  | $ | 4,801 |  |  | $ | 11,423 |  |  | $ | 71,247 |  |  | $ | 103,433 |
(a) | Severance and benefit costs are associated with the elimination of 25 positions and 46 positions during the three and six months ended November 30, 2019, respectively.
(b) | Severance and benefit costs are associated with the elimination of 18 positions and 69 positions during the three and six months ended November 30, 2019, respectively.
(c) | Severance and benefit costs are associated with the elimination of 9 positions and 11 positions during the three and six months ended November 30, 2019, respectively.
(d) | Severance and benefit costs are associated with the elimination of 49 positions and 59 positions during the three and six months ended November 30, 2019, respectively.
|  | Three Months Ended |  |  | Six Months Ended |
(in thousands) |  | November 30, 2018 |  |  | November 30, 2018 |
Construction Products Group (“CPG”) Segment: |  |  |  |  |  |  |  |
Severance and benefit costs (e) |  | $ | 3,574 |  |  | $ | 5,993 |
Facility closure and other related costs |  |  | 384 |  |  |  | 397 |
Other asset write-offs |  |  | 3 |  |  |  | 368 |
Total Charges |  | $ | 3,961 |  |  | $ | 6,758 |
Performance Coatings Group (“PCG”) Segment: |  |  |  |  |  |  |  |
Severance and benefit costs (f) |  | $ | 364 |  |  | $ | 4,769 |
Facility closure and other related costs |  |  | 483 |  |  |  | 906 |
Other asset write-offs |  |  | 146 |  |  |  | 359 |
Total Charges |  | $ | 993 |  |  | $ | 6,034 |
Consumer Group (“Consumer”) Segment: |  |  |  |  |  |  |  |
Severance and benefit costs (g) |  | $ | 76 |  |  | $ | 1,095 |
Facility closure and other related costs |  |  | 105 |  |  |  | 105 |
Other asset write-offs |  |  | - |  |  |  | - |
Total Charges |  | $ | 181 |  |  | $ | 1,200 |
Specialty Products Group (“Specialty”) Segment: |  |  |  |  |  |  |  |
Severance and benefit costs (h) |  | $ | 1,458 |  |  | $ | 3,678 |
Facility closure and other related costs |  |  | 65 |  |  |  | 65 |
Other asset write-offs |  |  | 5 |  |  |  | 5 |
Total Charges |  | $ | 1,528 |  |  | $ | 3,748 |
Corporate/Other Segment: |  |  |  |  |  |  |  |
Severance and benefit costs (i) |  | $ | 1,061 |  |  | $ | 10,060 |
Total Charges |  | $ | 1,061 |  |  | $ | 10,060 |
Consolidated: |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 6,533 |  |  | $ | 25,595 |
Facility closure and other related costs |  |  | 1,037 |  |  |  | 1,473 |
Other asset write-offs |  |  | 154 |  |  |  | 732 |
Total Charges |  | $ | 7,724 |  |  | $ | 27,800 |
(e) | Severance and benefit costs are associated with the elimination of 37 positions and 68 positions during the three and six months ended November 30, 2018, respectively. Additionally, $0.2 million included in the charges incurred during the six months ended November 30, 2018 are associated with the prior elimination of one position within the legal function during fiscal 2018.
(f) | Severance and benefit costs are associated with the elimination of 17 positions and 102 positions during the three and six months ended November 30, 2018, respectively.
(g) | Severance and benefit costs are associated with the elimination of 9 positions during the six months ended November 30, 2018.
(h) | Severance and benefit costs are associated with the elimination of 95 positions and 120 positions during the three and six months ended November 30, 2018, respectively.
(i) | Reflects charges related to the severance of two corporate executives, as well as accelerated vesting of equity awards for two corporate executives, four Specialty segment executives and three CPG segment executives in connection with the aforementioned restructuring activities.
A summary of the activity in the restructuring reserves related to our 2020 MAP to Growth is as follows:
(in thousands) |  | Severance and Benefits Costs |  |  | Facility Closure and Other Related Costs |  |  | Other Asset Write-Offs |  |  | Total |
Balance at August 31, 2019 |  | $ | 2,946 |  |  | $ | 9,430 |  |  | $ | - |  |  | $ | 12,376 |
Additions charged to expense |  |  | 2,729 |  |  |  | 1,821 |  |  |  | 251 |  |  |  | 4,801 |
Cash payments charged against reserve |  |  | (2,109 | ) |  |  | (5,016 | ) |  |  | - |  |  |  | (7,125 | )
Non-cash charges included above (j) |  |  | - |  |  |  | (155 | ) |  |  | (251 | ) |  |  | (406 | )
Balance at November 30, 2019 |  | $ | 3,566 |  |  | $ | 6,080 |  |  | $ | - |  |  | $ | 9,646 |
(in thousands) |  | Severance and Benefits Costs |  |  | Facility Closure and Other Related Costs |  |  | Other Asset Write-Offs |  |  | Total |
Balance at June 1, 2019 |  | $ | 4,837 |  |  | $ | 7,857 |  |  | $ | - |  |  |  | 12,694 |
Additions charged to expense |  |  | 6,515 |  |  |  | 4,593 |  |  |  | 315 |  |  |  | 11,423 |
Cash payments charged against reserve |  |  | (7,786 | ) |  |  | (5,350 | ) |  |  | - |  |  |  | (13,136 | )
Non-cash charges included above (j) |  |  | - |  |  |  | (1,020 | ) |  |  | (315 | ) |  |  | (1,335 | )
Balance at November 30, 2019 |  | $ | 3,566 |  |  | $ | 6,080 |  |  | $ | - |  |  | $ | 9,646 |
(in thousands) |  | Severance and Benefits Costs |  |  | Facility Closure and Other Related Costs |  |  | Other Asset Write-Offs |  |  | Total |
Balance at August 31, 2018 |  | $ | 10,960 |  |  | $ | 5,364 |  |  | $ | - |  |  | $ | 16,324 |
Additions charged to expense |  |  | 6,533 |  |  |  | 1,037 |  |  |  | 154 |  |  |  | 7,724 |
Cash payments charged against reserve |  |  | (6,013 | ) |  |  | (1,330 | ) |  |  | - |  |  |  | (7,343 | )
Non-cash charges included above (j) |  |  | (1,053 | ) |  |  | (2,536 | ) |  |  | (154 | ) |  |  | (3,743 | )
Balance at November 30, 2018 |  | $ | 10,427 |  |  | $ | 2,535 |  |  | $ | - |  |  | $ | 12,962 |
(in thousands) |  | Severance and Benefits Costs |  |  | Facility Closure and Other Related Costs |  |  | Other Asset Write-Offs |  |  | Total |
Balance at June 1, 2018 |  | $ | 9,957 |  |  | $ | 6,184 |  |  | $ | 1,373 |  |  | $ | 17,514 |
Additions charged to expense |  |  | 25,595 |  |  |  | 1,473 |  |  |  | 732 |  |  |  | 27,800 |
Cash payments charged against reserve |  |  | (18,588 | ) |  |  | (1,748 | ) |  |  | - |  |  |  | (20,336 | )
Non-cash charges included above (j) |  |  | (6,537 | ) |  |  | (3,374 | ) |  |  | (2,105 | ) |  |  | (12,016 | )
Balance at November 30, 2018 |  | $ | 10,427 |  |  | $ | 2,535 |  |  | $ | - |  |  | $ | 12,962 |
(j) | Non-cash charges primarily include accelerated vesting of equity awards and asset-write offs.
In connection with our 2020 MAP to Growth, during the second quarter of fiscal 2020, we incurred approximately $6.3 million and $1.0 million of inventory-related charges at our Consumer and PCG segments, respectively. During the first half of fiscal 2020, we incurred $7.2 million, $3.1 million and $0.3 million of inventory-related charges at our Consumer, PCG, and CPG segments, respectively. During the second quarter of fiscal 2019, we incurred approximately $2.3 million, $1.0 million and $0.3 million of inventory-related charges at our PCG, Consumer and CPG segments, respectively. During the first half of fiscal 2019, we incurred $6.6 million, $1.3 million and $0.5 million of inventory-related charges at our PCG, Consumer and CPG segments, respectively. The fiscal 2019 inventory-related charges were partially offset by a favorable adjustment of approximately $0.2 million to the fiscal 2018 inventory write-off at our Consumer segment. All of the aforementioned inventory-related charges are recorded in cost of sales in our Consolidated Statements of Income. These inventory charges were the result of product line and SKU rationalization initiatives in connection with our overall plan of restructuring.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration