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Impairment, Restructuring and Other Charges

9 Months Ended

Mar. 31, 2026

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 and to effectively integrate acquisitions and thereby improve our operational efficiency.

During the three months ended March 31, 2026, we recognized $6.2 million in impairment, restructuring and other charges, which included $0.2 million for impairment of assets, $1.7 million for employee terminations, $2.0 million for acquisition-related costs, $1.2 million for non-recurring business unit modifications and $1.1 million for a legal settlement, primarily in our Healthcare division. During the nine months ended March 31, 2026, we recognized $11.8 million in impairment, restructuring and other charges, which included $1.2 million for impairment of assets, $2.7 million for employee terminations, $2.0 million for acquisition-related costs, $2.6 million for non-recurring business unit modifications and $1.1 million for a legal settlement in our Healthcare division, and $2.2 million of non-recurring charges in our Security division.

During the three months ended March 31, 2025, we recognized $2.3 million in restructuring and other charges, which included $1.8 million in employee terminations and $0.5 million for facility closure costs. During the nine months ended March 31, 2025, we recognized $3.6 million in restructuring and other charges, which included $0.6 million in acquisition-related costs, $0.8 million for facility closure costs for operational efficiency activities, and $2.3 million for employee terminations.

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


	Three Months Ended March 31, 2025
			Optoelectronics and
			Manufacturing		Healthcare
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs (recoveries), net	$	(29)	$	—	$	—	$	14	$	(15)
Employee termination costs		910		72		627		139		1,748
Facility closures/consolidation		522		—		—		—		522
Total	$	1,403	$	72	$	627	$	153	$	2,255


		Three Months Ended March 31, 2026
					Optoelectronics and
					Manufacturing			Healthcare
		Security Division			Division			Division			Corporate			Total
Acquisition-related costs		$	—		$	—		$	—		$	1,950		$	1,950
Employee termination costs			1,243			155			165			149			1,712
Impairment of assets			198			—			—			—			198
Legal and other expense (benefit), net			(8)			(155)			2,471			—			2,308
Total		$	1,433		$	—		$	2,636		$	2,099		$	6,168


		Nine Months Ended March 31, 2025
					Optoelectronics and
					Manufacturing			Healthcare
		Security Division			Division			Division			Corporate			Total
Acquisition-related costs		$	341		$	—		$	—		$	228		$	569
Employee termination costs			1,012			391			779			140			2,322
Facility closures/consolidation			529			242			—			—			771
Legal costs (reimbursements), net			—			(14)			—			—			(14)
Total		$	1,882		$	619		$	779		$	368		$	3,648


		Nine Months Ended March 31, 2026
					Optoelectronics and
					Manufacturing			Healthcare
		Security Division			Division			Division			Corporate			Total
Acquisition-related costs		$	27		$	—		$	—		$	1,950		$	1,977
Employee termination costs			1,742			416			458			149			2,765
Impairment of assets			1,154			—			—			—			1,154
Legal and other expense (benefit), net			2,164			(155)			3,867			—			5,876
Total		$	5,087		$	261		$	4,325		$	2,099		$	11,772

The accrued liability for impairment, restructuring and other charges is included in Other accrued expenses and current liabilities in our condensed consolidated balance sheets. The changes in the accrued liability for impairment, restructuring and other charges for the nine-month period ended March 31, 2026 were as follows (in thousands):


								Facility
		Acquisition-			Employee			Closure/			Legal
		Related			Termination			Consolidation			and Other
		Costs			Costs			Costs			Costs			Total
Balance as of June 30, 2025		$	—		$	445		$	623		$	1,717		$	2,785
Restructuring and other charges (benefit), net			1,977			2,765			—			5,876			10,618
Payments and adjustments, net			(27)			(2,972)			(623)			(6,099)			(9,721)
Balance as of March 31, 2026		$	1,950		$	238		$	—		$	1,494		$	3,682