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Impairment, Restructuring and Other Charges

9 Months Ended

Mar. 31, 2020

Impairment, Restructuring and Other Charges

Impairment, Restructuring and Other Charges

5. Impairment, 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.

During the three and nine months ended March 31, 2020, we abandoned a non-core product line in our Healthcare division which resulted in the write-off of assets, including intangible and fixed assets, totaling $3.3 million as we determined that these assets had no value and were permanently impaired. In addition, we continued to recover certain legal costs related to class action litigation and government investigations through insurance reimbursement. We also incurred additional legal fees related to these matters as well as restructuring charges by the divisions as noted in the tables below. This resulted in a net expense of $4.5 million and $1.5 million during the three and nine months ended March 31, 2020, respectively.

During the three and nine months ended March 31, 2019, we recovered certain legal costs related to class action litigation and government investigations through insurance reimbursements. We also incurred additional legal fees related to these matters as well as restructuring charges by the divisions as noted in the tables below. This resulted in a net (benefit) expense of $(1.8) million and $1.2 million for the three and nine months ended March 31, 2019, respectively.

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


	Three Months Ended March 31, 2019
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Legal costs (recoveries), net	$	—	$	—	$	—	$	(1,777)	$	(1,777)


	Three Months Ended March 31, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	—	$	3,258	$	—	$	—	$	3,258
Acquisition-related costs		107		—		41		155		303
Employee termination costs		328		466		259		50		1,103
Facility closures/consolidation		30		—		—		—		30
Legal costs (recoveries), net		—		—		—		(146)		(146)
Total expensed	$	465	$	3,724	$	300	$	59	$	4,548


	Nine Months Ended March 31, 2019
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	287	$	—	$	287
Employee termination costs		—		1,442		133		—		1,575
Facility closures/consolidation		—		2,084		—		—		2,084
Legal costs (recoveries), net		—		—		—		(2,792)		(2,792)
Total expensed	$	—	$	3,526	$	420	$	(2,792)	$	1,154


	Nine Months Ended March 31, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	—	$	3,258	$	—	$	—	$	3,258
Acquisition-related costs		107		—		41		155		303
Employee termination costs		734		466		277		119		1,596
Facility closures/consolidation		30		—		—		—		30
Legal costs (recoveries), net		—		—		—		(3,667)		(3,667)
Total expensed	$	871	$	3,724	$	318	$	(3,393)	$	1,520

The changes in the accrued liability for restructuring and other charges for the nine-month period ended March 31, 2020 were as follows (in thousands):


					Facility
			Employee		Closure/
	Acquisition-		Termination		Consolidation		Legal Costs and
	related Costs		Costs		Cost		Settlements		Total
Balance as of June 30, 2019	$	—	$	432	$	—	$	6,331	$	6,763
Restructuring and other charges (benefit), net		303		1,596		30		(3,667)		(1,738)
(Payments), adjustments and reimbursements, net		(303)		(2,022)		(30)		1,204		(1,151)
Balance as of March 31, 2020	$	—	$	6	$	—	$	3,868	$	3,874