XML 44 R22.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Restructuring and Related Charges and Asset Impairment Charges | 12 Months Ended
--- | ---
Jun. 30, 2017
Restructuring Charges [Abstract] |
RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES We are implementing restructuring actions to streamline the Company's cost structure. These initiatives are expected to improve the alignment of our cost structure with the current operating environment through headcount reductions, as well as rationalization and consolidation of certain manufacturing facilities. These restructuring actions are expected to be completed by December 31, 2018 and are anticipated to be mostly cash expenditures. The total pre-tax charges for these programs are expected to be in the range of $165 million to $195 million, which is expected to be approximately 60 percent Industrial, 5 percent Widia, 30 percent Infrastructure and 5 percent Corporate. Total restructuring and related charges since inception of $147.7 million have been recorded for these programs through June 30, 2017: $80.5 million in Industrial, $12.9 million in Widia, $47.0 million in Infrastructure and $7.3 million in Corporate. During 2017, we recognized total restructuring and related charges of $76.2 million. Of this amount, restructuring charges totaled $65.6 million, of which $0.6 million were charges related to inventory and were recorded in cost of goods sold. Restructuring-related charges of $7.1 million were recorded in cost of goods sold and $3.5 million in operating expense during 2017. During 2016, we recognized total restructuring and related charges of $53.5 million. Of this amount, restructuring charges totaled $30.0 million. Restructuring-related charges of $7.3 million were recorded in cost of goods sold and $16.2 million in operating expense during 2016. During 2015, we recognized total restructuring and related charges of $58.1 million. Of this amount, restructuring charges totaled $42.1 million, of which $1.5 million were charges related to inventory and were recorded in cost of goods sold. Restructuring-related charges of $8.2 million were recorded in cost of goods sold and $7.8 million in operating expense during 2015. As of June 30, 2017, property, plant, and equipment of $7.0 million for certain closed manufacturing locations that are part of our restructuring programs met held for sale criteria. We expect to sell these assets within one year from the balance sheet date. These assets are recorded at the lower of carrying amount or fair value less cost to sell. We have also ceased depreciation for these assets. As of June 30, 2017, $27.3 million and $2.5 million of the restructuring accrual is recorded in other current liabilities and other liabilities, respectively, in our condensed consolidated balance sheet. The restructuring accrual of $15.7 million and $20.8 million as of June 30, 2016 and 2015, respectively, is recorded in other current liabilities. The amount attributable to each segment is as follows:
(in thousands) | June 30, 2016 |  | Expense |  | Asset Write-Down |  | Translation |  | Cash Expenditures |  | June 30, 2017
Industrial |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 8,180 |  |  | $ | 39,214 |  |  | $ | — |  |  | $ | 229 |  |  | $ | (29,984 | ) |  | $ | 17,639 |
Facilities | — |  |  | 237 |  |  | (237 | ) |  | — |  |  | — |  |  | — |
Other | 809 |  |  | 162 |  |  | — |  |  | (8 | ) |  | (869 | ) |  | 94 |
Total Industrial | 8,989 |  |  | 39,613 |  |  | (237 | ) |  | 221 |  |  | (30,853 | ) |  | 17,733 |
Widia |  |  |  |  |  |  |  |  |  |  |
Severance | 909 |  |  | 6,325 |  |  | — |  |  | 37 |  |  | (4,837 | ) |  | 2,434 |
Facilities | — |  |  | 10 |  |  | (10 | ) |  | — |  |  | — |  |  | — |
Other | 90 |  |  | 26 |  |  | — |  |  | (1 | ) |  | (115 | ) |  | — |
Total Widia | 999 |  |  | 6,361 |  |  | (10 | ) |  | 36 |  |  | (4,952 | ) |  | 2,434 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |
Severance | 5,301 |  |  | 17,710 |  |  | — |  |  | 103 |  |  | (13,541 | ) |  | 9,573 |
Facilities | 33 |  |  | 1,849 |  |  | (1,849 | ) |  | — |  |  | (12 | ) |  | 21 |
Other | 381 |  |  | 73 |  |  | — |  |  | (4 | ) |  | (405 | ) |  | 45 |
Total Infrastructure | 5,715 |  |  | 19,632 |  |  | (1,849 | ) |  | 99 |  |  | (13,958 | ) |  | 9,639 |
Total | $ | 15,703 |  |  | $ | 65,606 |  |  | $ | (2,096 | ) |  | $ | 356 |  |  | $ | (49,763 | ) |  | $ | 29,806 |
(in thousands) | June 30, 2015 |  | Expense |  | Asset Write-Down |  | Other (4) |  | Translation |  | Cash Expenditures |  | June 30, 2016
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 12,110 |  |  | $ | 15,590 |  |  | $ | — |  |  | $ | (312 | ) |  | $ | (126 | ) |  | $ | (19,082 | ) |  | $ | 8,180 |
Facilities | — |  |  | 297 |  |  | (702 | ) |  | — |  |  | — |  |  | 405 |  |  | — |
Other | 25 |  |  | 267 |  |  | — |  |  | — |  |  | (4 | ) |  | 521 |  |  | 809 |
Total Industrial | 12,135 |  |  | 16,154 |  |  | (702 | ) |  | (312 | ) |  | (130 | ) |  | (18,156 | ) |  | 8,989 |
Widia |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | 1,346 |  |  | 1,732 |  |  | — |  |  | (35 | ) |  | (14 | ) |  | (2,120 | ) |  | 909 |
Facilities | — |  |  | 33 |  |  | (78 | ) |  | — |  |  | — |  |  | 45 |  |  | — |
Other | 3 |  |  | 30 |  |  | — |  |  | — |  |  | (1 | ) |  | 58 |  |  | 90 |
Total Widia | 1,349 |  |  | 1,795 |  |  | (78 | ) |  | (35 | ) |  | (15 | ) |  | (2,017 | ) |  | 999 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | 7,173 |  |  | 7,424 |  |  | — |  |  | (201 | ) |  | (60 | ) |  | (9,035 | ) |  | 5,301 |
Facilities | 131 |  |  | 4,515 |  |  | (3,914 | ) |  | — |  |  | — |  |  | (699 | ) |  | 33 |
Other | — |  |  | 127 |  |  | — |  |  | — |  |  | (2 | ) |  | 256 |  |  | 381 |
Total Infrastructure | 7,304 |  |  | 12,066 |  |  | (3,914 | ) |  | (201 | ) |  | (62 | ) |  | (9,478 | ) |  | 5,715 |
Total | $ | 20,788 |  |  | $ | 30,015 |  |  | $ | (4,694 | ) |  | $ | (548 | ) |  | $ | (207 | ) |  | $ | (29,651 | ) |  | $ | 15,703 |
(4) Special termination benefit charge and settlement charge for one of our U.S.-based benefit pension plans resulting from executive retirement - see Note 13. Asset impairment Charges See discussion on goodwill and other intangible asset impairment charges in Note 2. During 2016, we identified specific machinery and equipment that was no longer being utilized in the manufacturing organization of which we disposed by abandonment. As a result of this review, we recorded property, plant, and equipment impairment charges of $5.4 million during 2016, which has been presented in restructuring and asset impairment charges in our consolidated statement of income.

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RestructuringChargesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration