Quarterly report pursuant to Section 13 or 15(d)

Restructuring Costs

Restructuring Costs

6 Months Ended

Nov. 30, 2015

Restructuring and Related Activities [Abstract]

RESTRUCTURING COSTS

In November 2015, the Company announced to the employees of its distribution facility (the “Distribution Facility”) in Mississauga, Ontario, its intention to discontinue distribution operations at the Distribution Facility in February 2016. As a result, 59 employees are expected to be terminated between January and February 2016. The Distribution Facility is being closed in an effort to better align the Company’s distribution activities with its overall business needs while enabling the Company to better serve its customers and is part of a cost reduction initiative.

The Company currently expects to incur estimated pre-tax expenses of $3,800 in connection with the discontinuation of distribution activities at the Distribution Facility. These expenses include the following major components: (i) estimated employee-related costs (including severance) of $3,000 and (ii) estimated other related costs of $800.

The restructuring liability, which is recorded in accrued liabilities on the consolidated balance sheet, is summarized as follows:



	Severance and other employee-related costs			Other Costs			Total
Balance as of May 31, 2015	$	—		$	—		$	—
Charges	1,700			24			1,724
Payments	—			(24		)	(24		)
Foreign currency and other	(29		)	—			(29		)
Balance at November 30, 2015	$	1,671		$	—		$	1,671

The Company recognized restructuring costs of $1,724 in the three and six months ended November 30, 2015, which are included in cost of goods sold.