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Restructuring Plan | 9 Months Ended
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Mar. 31, 2025
Restructuring and Related Activities [Abstract] |
Restructuring Plans | Restructuring Plans 2023 Restructuring Plan On May 23, 2023, the Board of Directors approved the Company’s May 2023 Restructuring Plan (“2023 Plan”) which includes site consolidations, facilities moves and closures, as well as the relocation and requalification of certain manufacturing facilities. These restructuring actions were intended to realign our cost structure as part of a transformation to a simpler, more streamlined, resilient and sustainable business model. We evaluate restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations (ASC 420), and ASC 712, Compensation-Nonretirement Post-Employment Benefits (ASC 712). In the three months ended March 31, 2025, these activities resulted in $11 million of charges primarily for employee termination costs and site move costs. In the nine months ended March 31, 2025, these activities resulted in $43 million of charges primarily for impairment losses associated with the sale of our Newton Aycliffe business, employee termination costs, site move costs and accelerated depreciation. In the three months ended March 31, 2024, these activities resulted in $12 million of charges primarily for employee termination costs, acceleration of depreciation and the write-off of property and equipment. In the nine months ended March 31, 2024, these activities resulted in $13 million of charges primarily for acceleration of depreciation, employee termination costs and write-off of property and equipment as well as site move costs. We expect these restructuring actions to be substantially completed by the end of fiscal 2025. However, the actual timing and costs associated with these restructuring actions may differ from our current expectations and estimates and such differences may be material. Activity and accrual balances for the 2023 Plan were as follows for the first three quarters of fiscal 2025 and 2024 ($000):
| Severance |  | Asset Write-Offs |  | Other |  | Total Accrual
Balance - June 30, 2024 | $ | 51,061 |  |  | $ | — |  |  | $ | — |  |  | $ | 51,061 |
Restructuring charges (recoveries) | (455) |  |  | 15,970 |  |  | 8,850 |  |  | 24,365 |
Payments | (6,796) |  |  | — |  |  | — |  |  | (6,796) |
Asset write-offs and other | — |  |  | (15,970) |  |  | (8,850) |  |  | (24,820) |
Balance - September 30, 2024 | 43,810 |  |  | — |  |  | — |  |  | 43,810 |
Restructuring charges | 2,882 |  |  | — |  |  | 5,139 |  |  | 8,021 |
Payments | (752) |  |  | — |  |  | — |  |  | (752) |
Asset write-offs and other | (1,609) |  |  | — |  |  | (5,139) |  |  | (6,748) |
Balance - December 31, 2024 | 44,331 |  |  | — |  |  | — |  |  | 44,331 |
Restructuring charges | 6,919 |  |  | — |  |  | 3,622 |  |  | 10,541 |
Payments | (5,038) |  |  | — |  |  | — |  |  | (5,038) |
Asset write-offs and other | 547 |  |  | — |  |  | (3,622) |  |  | (3,075) |
Balance - March 31, 2025 | $ | 46,759 |  |  | $ | — |  |  | $ | — |  |  | $ | 46,759 |
| Severance |  | Asset Write-Offs |  | Other |  | Total Accrual
Balance - June 30, 2023 | $ | 64,379 |  |  | $ | — |  |  | $ | — |  |  | $ | 64,379 |
Restructuring charges | 2,050 |  |  | 269 |  |  | 699 |  |  | 3,018 |
Payments | (7,930) |  |  | — |  |  | — |  |  | (7,930) |
Asset write-offs and other | — |  |  | (269) |  |  | (699) |  |  | (968) |
Balance - September 30, 2023 | 58,499 |  |  | — |  |  | — |  |  | 58,499 |
Restructuring charges (recoveries) | (4,848) |  |  | 54 |  |  | 3,224 |  |  | (1,570) |
Payments | (2,103) |  |  | — |  |  | — |  |  | (2,103) |
Asset write-offs and other | — |  |  | (54) |  |  | (3,224) |  |  | (3,278) |
Balance - December 31, 2023 | 51,548 |  |  | — |  |  | — |  |  | 51,548 |
Restructuring charges | 5,232 |  |  | 1,593 |  |  | 4,705 |  |  | 11,530 |
Payments | (3,358) |  |  | — |  |  | — |  |  | (3,358) |
Asset write-offs and other | — |  |  | (1,593) |  |  | (4,705) |  |  | (6,298) |
Balance - March 31, 2024 | $ | 53,422 |  |  | $ | — |  |  | $ | — |  |  | $ | 53,422 |
At March 31, 2025, $14 million and $33 million of accrued severance related costs were included in other accrued liabilities and other liabilities, respectively, and are expected to result in cash expenditures through fiscal 2028. The current and prior year severance related net charges are primarily comprised of accruals for severance and pay for employees being terminated due to the consolidation of certain manufacturing sites, with severance recorded in accordance with ASC 712. By segment, for the three and nine months ended March 31, 2025, $2 million and $29 million, respectively, of restructuring costs were incurred in the Materials segment, $8 million and $11 million, respectively, of restructuring costs were incurred in the Networking segment, and $1 million and $3 million, respectively, of restructuring costs were incurred in the Lasers segment. By segment, for the three and nine months ended March 31, 2024, $8 million and $15 million, respectively, of restructuring costs were incurred in the Materials segment, and $4 million and $4 million, respectively, of restructuring costs were incurred in the Lasers segment, partially offset by no and $5 million, respectively, of restructuring recoveries in the Networking segment. Restructuring charges and recoveries are recorded in Restructuring charges in our Condensed Consolidated Statements of Earnings (Loss). 2025 Restructuring Plan Commencing in the quarter ended March 31, 2025, and as part of the ongoing strategic review of the Company’s business, the Company’s management approved a plan to take a number of restructuring actions, including site consolidations, facilities moves and closures, workforce reductions, contract terminations, and certain other associated cost reductions (“2025 Plan”). In connection therewith, the Company expects to incur charges for related severance and benefits, lease and contract termination costs, accelerated depreciation and asset write-offs, facilities move and other restructuring costs. We evaluate restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations (ASC 420), and ASC 712, Compensation-Nonretirement Post-Employment Benefits (ASC 712). In the three months ended March 31, 2025, these activities resulted in $63 million of charges primarily for the write-off of property and equipment and employee termination costs. We expect the restructuring actions to be substantially completed by the end of fiscal 2026. However, the actual timing and costs associated with these restructuring actions may differ from our current expectations and estimates and such differences may be material. Activity and accrual balances for the 2025 Plan were as follows for the third quarter of fiscal 2025 ($000):
| Severance |  | Asset Write-Offs |  | Other |  | Total Accrual
Balance - December 31, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Restructuring charges (recoveries) | 22,202 |  |  | 40,759 |  |  | 266 |  |  | 63,227 |
Payments | (2,735) |  |  | — |  |  | — |  |  | (2,735) |
Asset write-offs and other | (301) |  |  | (40,759) |  |  | (266) |  |  | (41,326) |
Balance - March 31, 2025 | $ | 19,166 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,166 |
At March 31, 2025, $19 million of accrued severance related costs were included in other accrued liabilities and are expected to result in cash expenditures primarily through fiscal 2026. The current year severance related net charges are primarily comprised of accruals for severance and pay for employees being terminated due to the consolidation of certain manufacturing sites, with severance recorded in accordance with ASC 712. By segment, for the three months ended March 31, 2025, $32 million of restructuring costs were incurred in the Materials segment, $17 million were incurred in the Networking segment, $12 million were incurred in the Lasers segment, and $2 million were incurred in the Corporate segment. Restructuring charges and recoveries are recorded in Restructuring charges in our Condensed Consolidated Statements of Earnings (Loss).

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- 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
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