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 our ongoing businesses that are discrete in nature but incremental to our normal business activities.

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 2026, is summarized below:


	Beginning							Ending
	Balance		Expense		Payments			Balance
Early retirement and severance	$	585	$	941	$	(1,333	)	$	193
Other restructuring charges (1)		100		5,926		(6,026	)		-
	$	685	$	6,867	$	(7,359	)	$	193
Net loss on sale of assets				233
Restructuring and other expense, net			$	7,100

(1)

During fiscal 2026 other restructuring charges consisted primarily of acquisition-related costs such as advisory, legal, and other professional fees.

The total liability as of May 31, 2026 is expected to be paid in the immediately following 12 months.


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

(1)

During fiscal 2025, other restructuring charges consisted primarily of acquisition-related costs such as advisory, legal, and other professional fees.

(2)

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.

(3)

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.