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IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

12 Months Ended

Jun. 30, 2020

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

7. IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

Impairment

During fiscal 2020, we impaired an intangible asset for IPR&D in the Security division due to a strategic shift in the direction of the project and abandoned a non-core product line in our Healthcare division which resulted in the write-off of assets, including intangible and fixed assets. As a result, $5.5 million of assets, including intangible and fixed assets, were written off as we determined that these assets had no value and were permanently impaired.

During fiscal 2019, there were no impairment charges. During fiscal 2018, we impaired (i) a product line in our Security division that became redundant as a result of the ETD acquisition, (ii) two product lines in our Healthcare division, and (iii) certain trademarks in our Optoelectronics and Manufacturing division that are no longer used. As a result, $7.8 million of assets, including intangible and fixed assets, were written off as we determined that these assets had no value and were permanently impaired.

Restructuring and Other Charges

We endeavor to align our global capacity and infrastructure with demand by our customers as well as fully integrate acquisitions and thereby improve operational efficiency.

Acquisition and integration costs. During fiscal 2020, we incurred $0.4 million in costs for professional fees relating to acquisitions.

Facility consolidation / employee termination. During fiscal 2020, we incurred $4.0 million in employee termination costs as part of operational efficiency initiatives. We also incurred $0.2 million in costs associated with the consolidation of facilities in our Security division.

Legal fees and settlement costs. During fiscal 2020, legal fees and settlement costs resulted in a net recovery of $3.6 million as a result of insurance reimbursements of certain legal costs.

The following tables summarize restructuring and other charges for the periods set forth below (in thousands):


	2018
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	—	$	1,541	$	1,541
Employee termination costs		1,485		16		610		—		2,111
Facility closures/consolidation		213		263		26		—		502
Legal and accrued settlement costs		—		19,364		—		3,650		23,014
Total expensed	$	1,698	$	19,643	$	636	$	5,191	$	27,168


	2019
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	287	$	1,021	$	1,308
Employee termination costs		132		1,629		687		—		2,448
Facility closures/consolidation		—		1,918		84		—		2,002
Legal and accrued settlement costs, net		—		—		—		(1,931)		(1,931)
Total expensed	$	132	$	3,547	$	1,058	$	(910)	$	3,827


	2020
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	309	$	—	$	41	$	—	$	350
Employee termination costs		2,748		466		618		184		4,016
Facility closures/consolidation		231		—		—				231
Legal and accrued settlement costs, net		—		—		—		(3,572)		(3,572)
Total expensed	$	3,288	$	466	$	659	$	(3,388)	$	1,025

The changes in the accrual for restructuring and other charges for fiscal 2019 and 2020 were as follows (in thousands):


							Legal
					Facility		Settlements
	Acquisition-		Employee		Closure/		and
	related		Termination		Consolidation		Related
	Costs		Costs		Cost		Costs		Total
Balance as of June 30, 2018	$	—	$	837	$	399	$	14,065	$	15,301
Restructuring and other charges		1,308		2,448		2,002		(1,931)		3,827
Payments and other adjustments		(1,308)		(2,853)		(2,401)		(5,803)		(12,365)
Balance as of June 30, 2019	$	—	$	432	$	—	$	6,331	$	6,763
Restructuring and other charges, net		350		4,016		231		(3,572)		1,025
Payments and other adjustments		(350)		(3,903)		(30)		(877)		(5,160)
Balance as of June 30, 2020	$	—	$	545	$	201	$	1,882	$	2,628

The following table summarizes the impairment, restructuring and other charges for fiscal 2018, 2019 and 2020 (in thousands):


	2018		2019		2020
Impairment of assets	$	7,795	$	—	$	5,458
Facility closure / consolidations		502		2,002		231
Employee termination costs		2,111		2,448		4,016
Legal fees, settlements and related costs, net		23,014		(1,931)		(3,572)
Acquisition-related costs		1,541		1,308		350
Total impairment, restructuring and other charges	$	34,963	$	3,827	$	6,483