Restructuring activities consist of established programs that are intended to fundamentally change our operations. Our restructuring programs may include closing or consolidating production facilities or moving manufacturing of a product to another location, realignment of the management structure of a business unit in response to changing market conditions or general rationalization of headcount. Our restructuring activities generally give rise to employee-related costs, such as severance pay, and facility-related costs, such as exit costs and gains or losses on asset disposals but may include other incremental operating items associated with the our ongoing businesses that are nonrecurring in nature but incremental to our normal business activities. These items are not part of the ongoing operations of our underlying business and are footnoted in the tables below.

A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other expense, net financial statement caption in our consolidated statement of earnings for fiscal 2025, is summarized below:


	Beginning							Ending
	Balance		Expense		Payments			Balance
Early retirement and severance	$	188	$	1,993	$	(1,596	)	$	585
Other restructuring charges		-		1,235		(1,135	)		100
	$	188	$	3,228	$	(2,731	)	$	685
Net loss on sale of assets				95
Stock-based compensation (1)				2,665
Change in fair value of Ragasco earnout (2)				4,536
Restructuring and other expense, net			$	10,524

(1)

Reflects non-cash stock-based compensation expense related to the accelerated vesting of certain outstanding equity awards held by our former CEO upon his retirement, effective November 1, 2024.

(2)

Reflects the change in fair value of the contingent liability associated with the Ragasco earnout arrangement covering the 12-month period ended December 31, 2024. See “Note P – Acquisitions” for additional information.

The total liability as of May 31, 2025 is expected to be paid in the immediately following twelve months.


	Beginning		Expense						Ending
	Balance		(Income)			Payments			Balance
Early retirement and severance	$	135	$	714		$	(661	)	$	188
Facility exit and other costs		-		111			(111	)		-
	$	135	$	825		$	(772	)	$	188
Loss on deconsolidation of Sustainable Energy Solutions (1)				30,502
Release of contingent liability for Level5 earnout (2)				(2,000	)
Restructuring and other expense, net			$	29,327

(1)

On May 29, 2024, we entered into an agreement with Hexagon and contributed the net assets of our Sustainable Energy Solutions business to a newly-formed joint venture in which we retained a 49% noncontrolling interest. As a result, we recognized a pre-tax loss of $30,502 within restructuring and other expense, net, including closing costs.

(2)

During fiscal 2024, we reversed amounts accrued for the anticipated payout under the final earnout opportunity associated with the Level5 acquisition.