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Restructuring | 9 Months Ended
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Feb. 29, 2024
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 associates, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other costs. 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. During 2018, we approved and implemented the initial phases of a multi-year restructuring plan, which is referred to as the 2020 Margin Acceleration Plan (“MAP to Growth”). We incurred $0.7 million and $3.3 million of restructuring costs associated with this plan for the three and nine months ended February 28, 2023, respectively. We did no t incur any restructuring costs for the three and nine months ended February 29, 2024, and we do not expect to incur any further costs associated with this plan. In August 2022, we approved and announced our Margin Achievement Plan 2025 (“MAP 2025”), which is a multi-year restructuring plan to build on the achievements of MAP to Growth and designed to improve margins by streamlining business processes, reducing working capital, implementing commercial initiatives to drive improved mix and salesforce effectiveness and improving operating efficiency. Most activities under MAP 2025 are anticipated to be completed by the end of fiscal 2025; however, we expect some costs to extend beyond this date. The current total expected costs associated with this plan are outlined below and increased approximately $8.4 million compared to our previous estimate, attributable to increases in expected severance and benefit charges of $4.9 million and expected facility closure and other related costs of $3.5 million. Throughout our MAP 2025 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. Following is a summary of the charges recorded in connection with MAP 2025 by reportable segment for the three- and nine-month periods ending February 29, 2024, as well as the total expected costs related to projects identified to date:
|  | Three Months Ended |  |  | Nine Months Ended |  |  | Cumulative Costs |  |  | Total Expected |
(In thousands) |  | February 29, 2024 |  |  | February 29, 2024 |  |  | to Date |  |  | Costs |
Construction Products Group ("CPG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 4,034 |  |  | $ | 4,836 |  |  | $ | 10,928 |  |  | $ | 16,698 |
Facility closure and other related costs |  |  | 163 |  |  |  | 163 |  |  |  | 163 |  |  |  | 16,435 |
Total Charges |  | $ | 4,197 |  |  | $ | 4,999 |  |  | $ | 11,091 |  |  | $ | 33,133 |
Performance Coatings Group ("PCG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 579 |  |  | $ | 1,623 |  |  | $ | 2,771 |  |  | $ | 5,339 |
Facility closure and other related costs |  |  | 2 |  |  |  | 125 |  |  |  | 125 |  |  |  | 1,557 |
Other restructuring costs (a) |  |  | - |  |  |  | 4,555 |  |  |  | 7,092 |  |  |  | 7,092 |
Total Charges |  | $ | 581 |  |  | $ | 6,303 |  |  | $ | 9,988 |  |  | $ | 13,988 |
Consumer Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 817 |  |  | $ | 852 |  |  | $ | 1,359 |  |  | $ | 1,598 |
Facility closure and other related costs |  |  | 18 |  |  |  | 32 |  |  |  | 653 |  |  |  | 693 |
Total Charges |  | $ | 835 |  |  | $ | 884 |  |  | $ | 2,012 |  |  | $ | 2,291 |
Specialty Products Group ("SPG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 639 |  |  | $ | 1,774 |  |  | $ | 2,579 |  |  | $ | 3,562 |
Facility closure and other related costs |  |  | 107 |  |  |  | 136 |  |  |  | 136 |  |  |  | 6,688 |
Total Charges |  | $ | 746 |  |  | $ | 1,910 |  |  | $ | 2,715 |  |  | $ | 10,250 |
Corporate/Other Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit (credits) |  | $ | - |  |  | $ | - |  |  | $ | (50 | ) |  | $ | (50 | )
Total Charges |  | $ | - |  |  | $ | - |  |  | $ | (50 | ) |  | $ | (50 | )
Consolidated: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 6,069 |  |  | $ | 9,085 |  |  | $ | 17,587 |  |  | $ | 27,147 |
Facility closure and other related costs |  |  | 290 |  |  |  | 456 |  |  |  | 1,077 |  |  |  | 25,373 |
Other restructuring costs |  |  | - |  |  |  | 4,555 |  |  |  | 7,092 |  |  |  | 7,092 |
Total Charges |  | $ | 6,359 |  |  | $ | 14,096 |  |  | $ | 25,756 |  |  | $ | 59,612 |
(a) Of the $4.6 million of other restructuring costs incurred for the nine-month period ending February 29, 2024, $3.3 million is associated with the impairment of an indefinite-lived tradename as described below in Note 4, "Goodwill and Other Intangible Assets," of the Consolidated Financial Statements. Following is a summary of the charges recorded in connection with MAP 2025 by reportable segment for the three- and nine-month periods ending February 28, 2023:
|  | Three Months Ended |  |  | Nine Months Ended |
(In thousands) |  | February 28, 2023 |  |  | February 28, 2023 |
CPG Segment: |  |  |  |  |  |
Severance and benefit costs |  | $ | 324 |  |  | $ | 324 |
Total Charges |  | $ | 324 |  |  | $ | 324 |
PCG Segment: |  |  |  |  |  |
Severance and benefit costs |  | $ | 573 |  |  | $ | 573 |
Other restructuring costs (b) |  |  | 2,537 |  |  |  | 2,537 |
Total Charges |  | $ | 3,110 |  |  | $ | 3,110 |
Consumer Segment: |  |  |  |  |  |
Severance and benefit costs |  | $ | 13 |  |  | $ | 13 |
Total Charges |  | $ | 13 |  |  | $ | 13 |
Consolidated: |  |  |  |  |  |
Severance and benefit costs |  | $ | 910 |  |  | $ | 910 |
Other restructuring costs |  |  | 2,537 |  |  |  | 2,537 |
Total Charges |  | $ | 3,447 |  |  | $ | 3,447 |
(b) Other restructuring costs are associated with the impairment of an indefinite-lived tradename as described below in Note 4, "Goodwill and Other Intangible Assets," of the Consolidated Financial Statements. A summary of the activity in the restructuring reserves related to MAP 2025 is as follows:
(in thousands) |  | Severance and Benefits Costs |  |  | Facility Closure and Other Related Costs |  |  | Other Asset Write-Offs |  |  | Total |
Balance at November 30, 2023 |  | $ | 2,805 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,805 |
Additions charged to expense |  |  | 6,069 |  |  |  | 290 |  |  |  | - |  |  |  | 6,359 |
Cash payments charged against reserve |  |  | (1,863 | ) |  |  | (288 | ) |  |  | - |  |  |  | (2,151 | )
Non-cash charges and other adjustments |  |  | (1 | ) |  |  | - |  |  |  | - |  |  |  | (1 | )
Balance at February 29, 2024 |  | $ | 7,010 |  |  | $ | 2 |  |  | $ | - |  |  | $ | 7,012 |
(In thousands) |  | Severance and Benefits Costs |  |  | Facility Closure and Other Related Costs |  |  | Other Asset Write-Offs |  |  | Total |
Balance at June 1, 2023 |  | $ | 2,717 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,717 |
Additions charged to expense |  |  | 9,085 |  |  |  | 456 |  |  |  | 4,555 |  |  |  | 14,096 |
Cash payments charged against reserve |  |  | (4,808 | ) |  |  | (454 | ) |  |  | - |  |  |  | (5,262 | )
Non-cash charges and other adjustments |  |  | 16 |  |  |  | - |  |  |  | (4,555 | ) |  |  | (4,539 | )
Balance at February 29, 2024 |  | $ | 7,010 |  |  | $ | 2 |  |  | $ | - |  |  | $ | 7,012 |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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