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IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

12 Months Ended

Jun. 30, 2024

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, 2024, we recognized $6.4 million in restructuring and other charges, which included $3.2 million for facility closure costs for operational efficiency activities, $1.4 million for employee terminations, $1.0 million in acquisition related costs, and $0.8 million in legal charges.

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.

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


	Fiscal 2024
			Optoelectronics
			and
	Security		Manufacturing		Healthcare
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	247	$	201	$	—	$	514	$	962
Employee termination costs		285		199		810		122		1,416
Facility closures/consolidation		90		3,148		—		—		3,238
Legal costs, net		53		—		—		722		775
Total expensed	$	675	$	3,548	$	810	$	1,358	$	6,391


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


	Fiscal 2022
			Optoelectronics
			and
	Security		Manufacturing		Healthcare
	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

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 2023 and 2024 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, 2022	$	—	$	181	$	23	$	1,780	$	1,984
Restructuring and other charges (benefit), net		382		1,736		1,539		3,909		7,566
Payments, adjustments and reimbursements, net		(375)		(1,810)		47		(5,033)		(7,171)
Balance as of June 30, 2023	$	7	$	107	$	1,609	$	656	$	2,379
Restructuring and other charges (benefit), net		962		1,416		3,238		775		6,391
Payments, adjustments and reimbursements, net		(473)		(1,229)		(4,620)		(623)		(6,945)
Balance as of June 30, 2024	$	496	$	294	$	227	$	808	$	1,825