XML 24 R13.htm IDEA: XBRL DOCUMENT

Impairment, Restructuring and Other Charges

6 Months Ended

Dec. 31, 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 December 31, 2021, we recognized $0.8 million in restructuring and other charges, which primarily included $0.5 million in legal charges primarily related to class action litigation and government investigations and $0.3 million for employee terminations.

During the three months ended December 31, 2020, we recognized a net benefit of $0.5 million for reimbursements from our insurance carriers for covered legal charges, partially offset by additional legal fees related to class action litigation and government investigations. This net benefit was partially offset by charges of $0.1 million for employee terminations from operational efficiency activities and $0.2 million for acquisition-related activities.

During the six months ended December 31, 2021, we recognized $3.3 million in restructuring and other charges, which primarily included $0.7 million in employee terminations and $2.7 million in legal charges. During the six months ended December 31, 2020, we incurred $7.2 million for exit activities associated with an expired turnkey contract in Mexico. Such exit costs commenced in the first quarter of the 2021 fiscal year and included $2.8 million for employee terminations, $1.1 million for facility closure and other exit costs, direct transaction costs of $2.7 million, and $0.6 million for right-of-use asset impairment. We also incurred costs of $1.2 million for employee terminations and facility closure costs for operational efficiency activities and $0.3 million for acquisition-related activities, partially offset by a net benefit of $0.5 million for reimbursements from our insurance carriers for covered legal charges.

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


	Three Months Ended December 31, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs	$	139	$	27	$	—	$	—	$	166
Employee termination costs		147		—		—		—		147
Facility closures/consolidation costs (benefit)		(17)		—		—		—		(17)
Legal recoveries, net		—		—		—		(458)		(458)
Total expensed (benefit), net	$	269	$	27	$	—	$	(458)	$	(162)


	Three Months Ended December 31, 2021
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Employee termination costs	$	332	$	—	$	—	$	—	$	332
Facility closures/consolidation		22		—		—		—		22
Legal costs, net		—		—		—		477		477
Total expensed	$	354	$	—	$	—	$	477	$	831


	Six Months Ended December 31, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	552	$	—	$	—	$	—	$	552
Acquisition-related costs		227		27		—		—		254
Employee termination costs		3,797		—		146		—		3,943
Mexico transaction costs		2,691		—				—		2,691
Facility closures/consolidation costs		1,255		—		—		—		1,255
Legal recoveries, net		—		—		—		(498)		(498)
Total expensed (benefit), net	$	8,522	$	27	$	146	$	(498)	$	8,197


	Six Months Ended December 31, 2021
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Employee termination costs	$	668	$	—	$	—	$	—	$	668
Facility closures/consolidation		(40)		—		—		—		(40)
Legal costs, net		—		—		—		2,713		2,713
Total expensed	$	628	$	—	$	—	$	2,713	$	3,341

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 six-month period ended December 31, 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		668		(40)		2,713		3,341
Payments, adjustments and reimbursements, net		(837)		(346)		(2,913)		(4,096)
Balance as of December 31, 2021	$	81	$	—	$	2,572	$	2,653