XML 30 R14.htm IDEA: XBRL DOCUMENT

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

12 Months Ended

Jun. 30, 2023

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

7. 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 fiscal year ended June 30, 2023, we recognized $7.6 million in impairment, restructuring and other charges, which included $3.9 million in legal charges primarily related to class action litigation and government investigations, $1.7 million for employee terminations, $1.5 million for other facility closure costs for operational efficiency activities, and $0.4 million in acquisition related costs.

During the fiscal year ended June 30, 2022, we recognized $7.5 million in impairment, restructuring and other charges, which included $5.1 million in legal charges primarily related to class action litigation and government investigations, $1.1 million for employee terminations, $1.0 million for impairment of software assets, $0.3 million in acquisition related costs, and a net benefit for facility closures activity of a nominal amount.

During the fiscal year ended June 30, 2021, we incurred $7.2 million for exit activities associated with an expired turnkey contract in Mexico. Such exit costs include $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 ROU asset impairment for a leased facility. We also incurred costs of $1.6 million for other employee terminations and $0.5 million for other facility closure costs for operational efficiency activities, $0.3 million for acquisition-related activities, and $0.5 million for certain legal charges, net of insurance reimbursements.

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


	Fiscal 2021
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Impairment charges	$	552	$	—	$	—	$	—	$	552
Acquisition-related costs		249		27		—		—		276
Employee termination costs		4,130		—		315		—		4,445
Mexico transaction costs		2,691		—		—		—		2,691
Facility closures/consolidation		1,675		—		—		—		1,675
Legal costs, net		—		—		—		465		465
Total expensed	$	9,297	$	27	$	315	$	465	$	10,104


	Fiscal 2022
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Impairment charges	$	—	$	—	$	—	$	1,006	$	1,006
Acquisition-related costs		232		—		—		56		288
Employee termination costs		1,077		—		100		—		1,177
Facility closures/consolidation		(33)		—		—		—		(33)
Legal costs, net		—		—		—		5,104		5,104
Total expensed	$	1,276	$	—	$	100	$	6,166	$	7,542


	Fiscal 2023
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	23	$	225	$	7	$	127	$	382
Employee termination costs		849		355		532		—		1,736
Facility closures/consolidation		35		—		1,504		—		1,539
Legal costs, net		808		2,497		464		140		3,909
Total expensed	$	1,715	$	3,077	$	2,507	$	267	$	7,566

The accrued liability for restructuring and other charges is included in other accrued expenses and current liabilities in the consolidated balance sheet. The changes in the accrued liability for restructuring and other charges for fiscal 2022 and 2023 were as follows (in thousands):


					Facility
	Acquisition-		Employee		Closure /		Legal
	Related		Termination		Consolidation		Costs and
	Costs		Costs		Cost		Settlements		Total
Balance as of June 30, 2021	$	—	$	250	$	386	$	2,772	$	3,408
Restructuring and other charges (benefit), net		288		1,177		(33)		6,110		7,542
Payments, adjustments and reimbursements, net		(288)		(1,246)		(330)		(7,102)		(8,966)
Balance as of June 30, 2022	$	—	$	181	$	23	$	1,780	$	1,984
Restructuring and other charges (benefit), net		383		1,736		1,539		3,909		7,567
Payments, adjustments and reimbursements, net		(376)		(1,810)		47		(5,033)		(7,172)
Balance as of June 30, 2023	$	7	$	107	$	1,609	$	656	$	2,379