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Restructuring and Related Charges
 6 Months Ended
Dec. 31, 2014
Restructuring Charges [Abstract]  
RESTRUCTURING AND RELATED CHARGES
RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES
Restructuring and Related
As previously set forth in the 2014 Annual Report on Form 10-K, we are implementing restructuring actions in conjunction with our Phase 1 restructuring program to achieve synergies across Kennametal as a result of the TMB acquisition by consolidating operations among both organizations, reducing administrative overhead and leveraging the supply chain. These restructuring actions are expected to be completed by the end of fiscal 2016 and are anticipated to be mostly cash expenditures.
During the six months ended December 31, 2014, we recognized restructuring and related charges of $20.4 million, of this amount, restructuring charges totaled $8.6 million, of which $0.2 million were charges related to inventory disposals and were recorded in cost of goods sold. Restructuring-related charges of $6.3 million were recorded in cost of goods sold and $5.5 million in operating expense for the six months ended December 31, 2014.
During the six months ended December 31, 2013, we recorded restructuring charges of $2.3 million.
The total pre-tax charges for Phase 1 programs are expected to be in the range of $55 million to $60 million, which is expected to be approximately 50 percent Industrial and 50 percent Infrastructure. Total restructuring and related charges since inception of $39.5 million have been recorded for these programs through December 31, 2014: $24.5 million in Industrial, $13.1 million in Infrastructure, and $1.8 million in Corporate.
The restructuring accrual is recorded in other current liabilities in our condensed consolidated balance sheet and the amount attributable to each segment is as follows:
(in thousands)
June 30, 2014
 
Expense
 
Asset Write-Down
 
Other (2)
 
Translation
 
Cash Expenditures
 
December 31, 2014
Industrial
 
 
 
 
 
 
 
 
 
 
 
 
 
Severance
$
5,815

 
$
3,361

 
$
—

 
$
—

 
$
(282
)
 
$
(4,291
)
 
$
4,603

Facilities
444

 
489

 
(489
)
 
—

 
(22
)
 
(389
)
 
33

Other
67

 
21

 
—

 
—

 
(2
)
 
(86
)
 
—

Total Industrial
$
6,326

 
$
3,871

 
$
(489
)
 
$
—

 
$
(306
)
 
$
(4,766
)
 
$
4,636

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Infrastructure
 
 
 
 
 
 
 
 
 
 
 
 
 
Severance
$
2,458

 
$
4,177

 
$
—

 
$
(459
)
 
$
(312
)
 
$
(4,747
)
 
$
1,117

Facilities
190

 
542

 
(541
)
 
—

 
(25
)
 
(166
)
 
—

Other
28

 
23

 
—

 
—

 
(3
)
 
(48
)
 
—

Total Infrastructure
$
2,676

 
$
4,742

 
$
(541
)
 
$
(459
)
 
$
(340
)
 
$
(4,961
)
 
$
1,117

Total
$
9,002

 
$
8,613

 
$
(1,030
)
 
$
(459
)
 
$
(646
)
 
$
(9,727
)
 
$
5,753


(2) Special termination benefit charge for one of our U.S.-based benefit pension plans resulting from a plant closure - see Note 10.

Asset impairment

See discussion on Infrastructure segment goodwill and other intangible asset impairment charges in Note 18.