Basis of Presentation, Business Description and Summary of Significant Accounting Policies (Tables)

12 Months Ended

May 31, 2018

Refer below for useful lives by category:



		Estimated useful lives
Building and building improvements		39 years
Machinery and equipment		5 to 8 years
Computer software and equipment		3 to 5 years

As of May 31, 2018 and 2017, property, plant and equipment are summarized as follows:



	May 31, 2018			May 31, 2017
(in thousands)
Building and building improvements	$	39,887		$	40,597
Machinery and equipment	22,668			25,434
Computer software and equipment	24,899			25,668
Construction in progress	2,153			1,464
	89,607			93,163
Less accumulated depreciation and amortization	(48,794		)	(49,652		)
	40,813			43,511
Land and land improvements	1,648			1,723
	$	42,461		$	45,234

Recent accounting pronouncements

The following table provides a description of recent accounting pronouncements that may have a material effect on the Company's consolidated financial statements:



Recently Issued Accounting Pronouncements - Adopted
Standard	Description	Date Adopted	Effect on the Consolidated Financial Statements
ASU 2016-09, Compensation - Stock Based Compensation (Topic 718: Improvements to Employee Share-Based Payment Accounting)	This ASU simplifies and improves various aspects of ASC 718 for share-based payments, including income tax items and the classification of these items on the statement of cash flows.	June 1, 2017	The Company now recognizes unrealized excess tax benefits and will classify such benefits as an operating activity in the statement of cash flows on a prospective basis. Due to the full valuation allowance on our federal and state income taxes, the adoption of ASU 2016-09 did not impact our accounting for income taxes.
			The Company elected the accounting policy change to account for forfeitures as they occur. This was adopted using the modified retrospective transition method by means of a cumulative-effect adjustment to equity as of June 1, 2017. The adoption of ASU 2016-09 did not materially impact the Company's consolidated statements of income, consolidated balance sheet, equity or cash flows.
ASU 2017-04, Intangibles - Goodwill and Other (Topic 350)	This ASU simplifies the subsequent measurement of goodwill by eliminating steps from the goodwill impairment test.	June 1, 2017	This adoption did not have an impact on the Company's financial statements.
ASC Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Update No. 2015-11	This ASU more closely aligns the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards by requiring companies using the first-in, first-out and average costs methods to measure inventory using the lower of cost and net realizable value, where net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.	June 1, 2017	This adoption did not have an impact on the Company's financial statements.



Recently Issued Accounting Pronouncements - Not Yet Applicable or Adopted
Standard	Description	Effective Date	Effect on the Consolidated Financial Statements
ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606, ASU 2014-09)	Under Topic 606, an entity is required to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration to be received in exchange for those goods or services. Topic 606 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates, and also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. The new standard also defines accounting for certain costs related to origination and fulfillment of contracts with customers, including whether such costs should be capitalized.	June 1, 2018	The Company established an implementation team which included third-party specialists to assist in the evaluation and implementation of the new standard. The Company’s assessment has included performing analysis for each revenue stream identified, assessing the potential differences in recognition and measurement that may result from adopting this standard and assessing whether the Company meets certain practical expedients. Based on the results of the assessment, the adoption of this standard will not have a material impact on the timing or amount of revenue recognized upon adoption and there is no cumulative prior period adjustment to be recorded to the opening balance of retained earnings upon adoption. The Company will adopt the standard using the modified retrospective method. The Company is implementing changes to accounting policies, business processes and internal controls to support the new standard as necessary. Upon adoption of Topic 606, as the disclosure requirements under the new guidance have been significantly expanded in comparison to the disclosure requirements under the current guidance, we will provide additional disclosures in the notes to the consolidated financial statements, specifically related to performance obligations, the judgments made in revenue recognition determinations, costs to obtain or fulfill contracts and contract balances.
ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15)	This ASU identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230.	June 1, 2018	This adoption is not expected to have a material impact on the Company's financial statements.
ASU 2016-02, Leases (Topic 842)	This ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities.	June 1, 2019	The Company is currently in the process of evaluating the impact of this ASU on its consolidated financial statements.