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Restructuring | 3 Months Ended
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Aug. 31, 2021
Restructuring And Related Activities [Abstract] |
Restructuring | NOTE 3 — 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. MAP to Growth Between May and August 2018, we approved and implemented the initial phases of a multi-year restructuring plan, which was originally referred to as 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 disruption caused by the outbreak of the Covid pandemic delayed the finalization of our 2020 MAP to Growth past the original target completion date of December 31, 2020. In recognition of the fact our restructuring plan extends past calendar year 2020, we began referring to it simply as our “MAP to Growth.” On May 31, 2021, we formally concluded our MAP to Growth. However, certain projects identified prior to May 31, 2021 are not yet completed. Accordingly, we expect to incur restructuring expense throughout fiscal year 2022. The total expected costs are subject to change as we complete these projects. Our execution of the MAP to Growth drove the de-layering and simplification of management and businesses associated with group realignment. We have implemented four center-led functional areas including manufacturing and operations; procurement and supply chain; information technology; and accounting and finance. Our MAP to Growth optimized our manufacturing facilities and provided more efficient plant and distribution facilities. Through the balance sheet date, in association with our MAP to Growth, we have completed, or are in the process of completing, the planned closure of 29 plants and 28 warehouses. We also expect to incur additional severance and benefit costs as part of our planned closure of these facilities. The current total expected costs associated with this plan are outlined in the table below and decreased by approximately $1.6 million compared to our previous estimate, primarily attributable to decreases in expected severance and benefit charges of $0.8 million and expected facility closure and other related costs of $0.8 million. Following is a summary of the charges recorded in connection with restructuring by reportable segment:
|  | Three Months Ended |  |  | Three Months Ended |  |  | Cumulative Costs |  |  | Total Expected |
(In thousands) |  | August 31, 2021 |  |  | August 31, 2020 |  |  | to Date |  |  | Costs |
Construction Products Group ("CPG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (credits) (a) |  | $ | (493 | ) |  | $ | 180 |  |  | $ | 20,795 |  |  | $ | 20,928 |
Facility closure and other related costs |  |  | 540 |  |  |  | 368 |  |  |  | 7,120 |  |  |  | 7,609 |
Other restructuring costs |  |  | 4 |  |  |  | 36 |  |  |  | 1,982 |  |  |  | 1,982 |
Total Charges |  | $ | 51 |  |  | $ | 584 |  |  | $ | 29,897 |  |  | $ | 30,519 |
Performance Coatings Group ("PCG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (b) |  | $ | 128 |  |  | $ | 1,039 |  |  | $ | 16,487 |  |  | $ | 17,012 |
Facility closure and other related costs |  |  | 408 |  |  |  | 288 |  |  |  | 7,037 |  |  |  | 7,968 |
Other restructuring costs |  |  | - |  |  |  | 29 |  |  |  | 917 |  |  |  | 917 |
Total Charges |  | $ | 536 |  |  | $ | 1,356 |  |  | $ | 24,441 |  |  | $ | 25,897 |
Consumer Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (c) |  | $ | - |  |  | $ | 790 |  |  | $ | 12,307 |  |  | $ | 12,307 |
Facility closure and other related costs |  |  | 240 |  |  |  | 597 |  |  |  | 12,321 |  |  |  | 13,015 |
Other restructuring costs |  |  | - |  |  |  | 98 |  |  |  | 4,420 |  |  |  | 4,420 |
Total Charges |  | $ | 240 |  |  | $ | 1,485 |  |  | $ | 29,048 |  |  | $ | 29,742 |
Specialty Products Group ("SPG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (d) |  | $ | 87 |  |  | $ | 469 |  |  | $ | 8,214 |  |  | $ | 9,190 |
Facility closure and other related costs |  |  | 98 |  |  |  | 268 |  |  |  | 5,688 |  |  |  | 6,706 |
Other restructuring costs (credits) |  |  | (2 | ) |  |  | 71 |  |  |  | 1,219 |  |  |  | 1,219 |
Total Charges |  | $ | 183 |  |  | $ | 808 |  |  | $ | 15,121 |  |  | $ | 17,115 |
Corporate/Other Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | - |  |  | $ | - |  |  | $ | 13,538 |  |  | $ | 13,538 |
Total Charges |  | $ | - |  |  | $ | - |  |  | $ | 13,538 |  |  | $ | 13,538 |
Consolidated: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs (credits) |  | $ | (278 | ) |  | $ | 2,478 |  |  | $ | 71,341 |  |  | $ | 72,975 |
Facility closure and other related costs |  |  | 1,286 |  |  |  | 1,521 |  |  |  | 32,166 |  |  |  | 35,298 |
Other restructuring costs |  |  | 2 |  |  |  | 234 |  |  |  | 8,538 |  |  |  | 8,538 |
Total Charges |  | $ | 1,010 |  |  | $ | 4,233 |  |  | $ | 112,045 |  |  | $ | 116,811 |
(a) Severance and benefit recoveries are associated with the adjustment of previously estimated severance accruals partially offset by the elimination of five positions during the three months ended August 31, 2021. Severance and benefit costs for the three months ended August 31, 2020 are associated with the elimination of nine positions. (b) Severance and benefit costs are associated with the elimination of two positions and 39 positions during the three months ended August 31, 2021 and 2020, respectively. (c) Severance and benefit costs are associated with the elimination of three positions during the three months ended August 31, 2020. (d) Severance and benefit costs are associated with the elimination of 16 positions and 28 positions during the three months ended August 31, 2021 and 2020, respectively. A summary of the activity in the restructuring reserves related to our MAP to Growth is as follows:
(In thousands) |  | Severance and Benefits Costs |  |  | Facility Closure and Other Related Costs |  |  | Other Restructuring Costs |  |  | Total |
Balance at June 1, 2021 |  | $ | 4,430 |  |  | $ | 1,290 |  |  | $ | - |  |  |  | 5,720 |
Charges (credits) to expense |  |  | (278 | ) |  |  | 1,286 |  |  |  | 2 |  |  |  | 1,010 |
Cash payments charged against reserve |  |  | (1,766 | ) |  |  | (1,248 | ) |  |  | - |  |  |  | (3,014 | )
Non-cash charges and other adjustments |  |  | - |  |  |  | (377 | ) |  |  | (2 | ) |  |  | (379 | )
Balance at August 31, 2021 |  | $ | 2,386 |  |  | $ | 951 |  |  | $ | - |  |  | $ | 3,337 |
(In thousands) |  | Severance and Benefits Costs |  |  | Facility Closure and Other Related Costs |  |  | Other Restructuring Costs |  |  | Total |
Balance at June 1, 2020 |  | $ | 7,357 |  |  | $ | 5,880 |  |  | $ | - |  |  | $ | 13,237 |
Charges to expense |  |  | 2,478 |  |  |  | 1,521 |  |  |  | 234 |  |  |  | 4,233 |
Cash payments charged against reserve |  |  | (4,942 | ) |  |  | (1,263 | ) |  |  | - |  |  |  | (6,205 | )
Non-cash charges and other adjustments |  |  | - |  |  |  | - |  |  |  | (234 | ) |  |  | (234 | )
Balance at August 31, 2020 |  | $ | 4,893 |  |  | $ | 6,138 |  |  | $ | - |  |  | $ | 11,031 |

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- 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
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