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Impairment, Restructuring and Other Charges

3 Months Ended

Sep. 30, 2021

Impairment, Restructuring and Other Charges

Impairment, Restructuring and Other Charges

6. 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 months ended September 30, 2021, we recognized $2.5 million in restructuring and other charges which included $2.2 million in legal charges net of insurance recoveries, $0.3 million for employee terminations, and an insignificant net benefit for facility closure and operational efficiency activities.

During the three months ended September 30, 2020, we commenced exit activities associated with an expired turnkey contract in Mexico whereby we incurred non-recurring charges totaling $6.9 million comprised of exit costs of $2.5 million for employee terminations, facility closure and other exit costs of $1.1 million, direct transaction costs of $2.7 million and impairment of a right-of-use asset of $0.6 million. We also conducted other operational efficiency activities which resulted in employee termination costs of $1.4 million and other costs of $0.1 million.

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


	Three Months Ended September 30, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	552	$	—	$	—	$	—	$	552
Employee termination costs		3,737		—		146		—		3,883
Mexico transaction costs		2,692		—		—		—		2,692
Facility closures/consolidation		1,272		—		—		—		1,272
Legal costs (recoveries), net		—		—		—		(40)		(40)
Total expensed	$	8,253	$	—	$	146	$	(40)	$	8,359


	Three Months Ended September 30, 2021
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Employee termination costs	$	336	$	—	$	—	$	—	$	336
Facility closures/consolidation		(61)		—		—		—		(61)
Legal costs (recoveries), net		—		—		—		2,235		2,235
Total expensed	$	275	$	—	$	—	$	2,235	$	2,510

The accrued liability for restructuring and other charges is included in other accrued expenses and current liabilities in the condensed consolidated balance sheets. The changes in the accrued liability for restructuring and other charges for the three-month period ended September 30, 2021 were as follows (in thousands):


			Facility
	Employee		Closure/		Legal
	Termination		Consolidation		Costs and
	Costs		Cost		Settlements		Total
Balance as of June 30, 2021	$	250	$	386	$	2,772	$	3,408
Restructuring and other charges (benefits), net		336		(61)		2,235		2,510
Payments, adjustments and reimbursements, net		(275)		(130)		(812)		(1,217)
Balance as of September 30, 2021	$	311	$	195	$	4,195	$	4,701