RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES

Legacy Restructuring

In prior years, we implemented restructuring actions to streamline the Company's cost structure. The purpose of this restructuring initiative was to improve the alignment of our cost structure with the operating environment through employee reductions and to consolidate certain manufacturing facilities. These restructuring actions were substantially completed in the September quarter of 2018, were mostly cash expenditures and achieved annual run rate ongoing pre-tax savings of approximately $165 million.

Total restructuring and related charges since inception of $152.7 million have been recorded for these programs through June 30, 2018: $85.6 million in Industrial, $13.9 million in Widia, $45.9 million in Infrastructure and $7.3 million in Corporate.

Industrial Simplification

In the June quarter of 2018, we implemented and substantially completed restructuring actions to streamline the Industrial segment's cost structure by directing resources to more profitable business and increasing sales force productivity. These actions are currently anticipated to deliver annual ongoing pre-tax savings of $10 million and are anticipated to be mostly cash expenditures. Total restructuring and related charges since inception of $8.2 million have been recorded for this program in the Industrial segment through June 30, 2018.

Combined Restructuring

During 2018, we recorded restructuring and related charges of $15.9 million, net of a $4.7 million gain on sale of the previously closed Houston manufacturing location that was part of our legacy restructuring programs. Of this amount, restructuring charges totaled $16.4 million, of which benefit of $0.2 million was related to inventory and were recorded in cost of goods sold. Restructuring-related charges of $3.7 million were recorded in cost of goods sold and $0.5 million were recorded in operating expense during 2018.

During 2017, we recorded 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 recorded 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.

As of June 30, 2017, property, plant, and equipment of $7.0 million for certain closed manufacturing locations that were part of our legacy restructuring programs met held for sale criteria. We expected to sell these assets within one year from the balance sheet date. These assets were recorded at the lower of carrying amount or fair value less cost to sell. We had also ceased depreciating these assets.

As of June 30, 2018 and 2017, $17.5 million and $27.3 million of the restructuring accrual is recorded in other current liabilities, and $0.1 million and $2.5 million is recorded in other liabilities, respectively, in our consolidated balance sheet. The restructuring accrual of $15.7 million as of June 30, 2016 is recorded in other current liabilities. The amount attributable to each segment is as follows:



(in thousands)	June 30, 2017		Expense			Asset Write-Down			Translation		Cash Expenditures			June 30, 2018
Industrial
Severance	$	17,639	$	9,734		$	—		$	868	$	(20,274	)	$	7,967
Facilities	—		3,084			(3,084		)	—		—			—
Other	94		(85		)	—			1		(10		)	—
Total Industrial	17,733		12,733			(3,084		)	869		(20,284		)	7,967

Widia
Severance	2,434		475			—			42		(864		)	2,087
Facilities	—		747			(747		)	—		—			—
Other	—		(4		)	—			—		19			15
Total Widia	2,434		1,218			(747		)	42		(845		)	2,102

Infrastructure
Severance	9,573		2,053			—			183		(4,251		)	7,558
Facilities	21		433			(433		)	—		(21		)	—
Other	45		(18		)	—			—		(15		)	12
Total Infrastructure	9,639		2,468			(433		)	183		(4,287		)	7,570
Total	$	29,806	$	16,419		$	(4,264	)	$	1,094	$	(25,416	)	$	17,639



(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

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.