XML 20 R13.htm IDEA: XBRL DOCUMENT
v3.24.3

Restructuring | 3 Months Ended
--- | ---
Aug. 31, 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. In August 2022, we approved and announced our Margin Achievement Plan 2025 (“MAP 2025”), which is a multi-year restructuring plan designed to improve margins by streamlining business processes, reducing working capital, implementing commercial initiatives to drive improved mix, pricing discipline 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 decreased approximately $10.9 million compared to our prior quarter estimate, attributable to decreases in expected facility closure and other related costs of $13.0 million and increases in expected severance and benefit charges of $2.1 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. USL Restructuring During the quarter ended August 31, 2023, we recognized a loss on sale of $4.5 million in connection with the divestiture of USL’s Bridgecare services division. The Bridgecare division was a contracting business focused on the installation of joints and waterproofing in the UK. The loss on this sale was included in selling, general and administrative ("SG&A") expenses in our Consolidated Statements of Income and net loss on sales of assets and businesses in our Consolidated Statements of Cash Flows. Additionally, during the quarter ended August 31, 2023, in connection with MAP 2025, we realigned certain businesses and management structures within our segments. Within our PCG segment, certain businesses of our USL reporting unit were transferred to our Fibergrate, Carboline and Stonhard reporting units. As a result of this change in our market strategy, we performed an interim impairment assessment of the USL indefinite-lived tradename. Calculating the fair value of the USL’s indefinite-lived tradename required the use of various estimates and assumptions. We estimated the fair value of USL’s indefinite-lived tradename by applying a relief-from-royalty calculation, which included discounted future cash flows related to projected revenues impacted by this decision. In applying this methodology, we relied on a number of factors, including actual and forecasted revenues and market data. As the carrying amount of the tradename exceeded its fair value, an impairment loss of $3.3 million was recorded for the three months ended August 31, 2023. This impairment loss was classified as restructuring expense within our PCG segment. Following is a summary of the charges recorded in connection with MAP 2025 by reportable segment for the three-month periods ending August 31, 2024 and 2023, as well as the total expected costs related to projects identified to date:
|  | Three Months Ended |  |  | Three Months Ended |  |  | Cumulative Costs |  |  | Total Expected |
(In thousands) |  | August 31, 2024 |  |  | August 31, 2023 |  |  | to Date |  |  | Costs |
Construction Products Group ("CPG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 890 |  |  | $ | 415 |  |  | $ | 16,093 |  |  | $ | 20,037 |
Facility closure and other related costs |  |  | 376 |  |  |  | - |  |  |  | 984 |  |  |  | 6,715 |
Total Charges |  | $ | 1,266 |  |  | $ | 415 |  |  | $ | 17,077 |  |  | $ | 26,752 |
Performance Coatings Group ("PCG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 150 |  |  | $ | 831 |  |  | $ | 4,009 |  |  | $ | 5,669 |
Facility closure and other related costs |  |  | 5 |  |  |  | 30 |  |  |  | 177 |  |  |  | 1,435 |
Other restructuring costs (a) |  |  | - |  |  |  | 4,555 |  |  |  | 7,092 |  |  |  | 7,092 |
Total Charges |  | $ | 155 |  |  | $ | 5,416 |  |  | $ | 11,278 |  |  | $ | 14,196 |
Consumer Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 3,938 |  |  | $ | - |  |  | $ | 13,711 |  |  | $ | 17,826 |
Facility closure and other related costs |  |  | 20 |  |  |  | 14 |  |  |  | 797 |  |  |  | 2,726 |
Total Charges |  | $ | 3,958 |  |  | $ | 14 |  |  | $ | 14,508 |  |  | $ | 20,552 |
Specialty Products Group ("SPG") Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 1,481 |  |  | $ | 653 |  |  | $ | 5,180 |  |  | $ | 5,220 |
Facility closure and other related costs |  |  | 342 |  |  |  | - |  |  |  | 877 |  |  |  | 3,978 |
Total Charges |  | $ | 1,823 |  |  | $ | 653 |  |  | $ | 6,057 |  |  | $ | 9,198 |
Corporate/Other Segment: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit (credits) |  | $ | - |  |  | $ | - |  |  | $ | (50 | ) |  | $ | (50 | )
Total Charges |  | $ | - |  |  | $ | - |  |  | $ | (50 | ) |  | $ | (50 | )
Consolidated: |  |  |  |  |  |  |  |  |  |  |  |
Severance and benefit costs |  | $ | 6,459 |  |  | $ | 1,899 |  |  | $ | 38,943 |  |  | $ | 48,702 |
Facility closure and other related costs |  |  | 743 |  |  |  | 44 |  |  |  | 2,835 |  |  |  | 14,854 |
Other restructuring costs |  |  | - |  |  |  | 4,555 |  |  |  | 7,092 |  |  |  | 7,092 |
Total Charges |  | $ | 7,202 |  |  | $ | 6,498 |  |  | $ | 48,870 |  |  | $ | 70,648 |
(a) Of the $4.6 million of other restructuring costs incurred for the three-month period ending August 31, 2023, $3.3 million is associated with the impairment of an indefinite-lived tradename as described above. 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 June 1, 2024 |  | $ | 17,351 |  |  | $ | 18 |  |  | $ | - |  |  | $ | 17,369 |
Additions charged to expense |  |  | 6,459 |  |  |  | 743 |  |  |  | - |  |  |  | 7,202 |
Cash payments charged against reserve |  |  | (7,443 | ) |  |  | (736 | ) |  |  | - |  |  |  | (8,179 | )
Non-cash charges and other adjustments |  |  | 244 |  |  |  | - |  |  |  | - |  |  |  | 244 |
Balance at August 31, 2024 |  | $ | 16,611 |  |  | $ | 25 |  |  | $ | - |  |  | $ | 16,636 |
(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 |  |  | 1,899 |  |  |  | 44 |  |  |  | 4,555 |  |  |  | 6,498 |
Cash payments charged against reserve |  |  | (2,061 | ) |  |  | (44 | ) |  |  | - |  |  |  | (2,105 | )
Non-cash charges and other adjustments |  |  | (45 | ) |  |  | - |  |  |  | (4,555 | ) |  |  | (4,600 | )
Balance at August 31, 2023 |  | $ | 2,510 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,510 |

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://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 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: 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 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration