RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES

FY19 Restructuring Actions

In the June quarter of fiscal 2018, we implemented and subsequently substantially completed restructuring activities to simplify the Industrial segment's cost structure by directing our resources to more profitable business and increasing sales force productivity. We supplemented this with the rationalization of small manufacturing facilities in the Infrastructure and Industrial segments, which we substantially completed in fiscal 2019. Total restructuring and related charges since inception of $13.4 million were recorded for this program through June 30, 2019: $11.8 million in Industrial, $1.0 million in Widia, $0.5 million in Infrastructure and $0.1 million in Corporate.

FY20 Restructuring Actions

In the June quarter of fiscal 2019, we began implementing the next phase of restructuring associated with our simplification/modernization initiative. These proposed actions are expected to reduce structural costs, improve operational efficiency and position the Company for long-term profitable growth. The Company expects to incur pre-tax charges of $55 million to $65 million through fiscal 2020 for these restructuring activities, which are anticipated to be primarily cash expenditures. Total restructuring and related charges since inception of $14.2 million were recorded for this program through June 30, 2019: $10.0 million in Industrial, $2.4 million in Infrastructure and $1.8 million in Widia.

FY21 Restructuring Actions

On July 11, 2019, we announced the initiation of restructuring actions in Germany associated with simplification/modernization. Incremental to restructuring actions previously announced, the actions are expected to reduce structural costs and be completed by fiscal 2022. Pre-tax charges of $60 million to $75 million are expected to be incurred through fiscal 2020 and 2021 and are anticipated to be primarily cash expenditures.

Annual Restructuring Charges

During 2019, we recorded restructuring and related charges of $16.9 million, net of a $4.8 million gain on the sale of our previously closed Madison, AL manufacturing location as part of our legacy restructuring programs. Of this amount, restructuring charges totaled $19.5 million, of which $0.7 million was related to inventory and was recorded in cost of goods sold. Restructuring-related charges of $1.8 million were recorded in cost of goods sold and $0.3 million were recorded in operating expense during 2019.

During 2018, we recorded restructuring and related charges of $15.9 million, net of a $4.7 million gain on the sale of our previously closed Houston, TX manufacturing location as 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 was 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 was recorded in cost of goods sold. Restructuring-related charges of $7.1 million were recorded in cost of goods sold and $3.5 million were recorded in operating expense during 2017.

As of June 30, 2019, the restructuring accrual of $19.2 million is recorded in other current liabilities. 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 amount attributable to each segment is as follows:



(in thousands)	June 30, 2018		Expense			Asset Write-Down			Translation			Cash Expenditures			June 30, 2019
Industrial
Severance	$	7,967	$	8,957		$	—		$	(176	)	$	(7,885	)	$	8,863
Facilities	—		3,488			(3,488		)	—			—			—
Other	—		(103		)	—			(1		)	139			35
Total Industrial	7,967		12,342			(3,488		)	(177		)	(7,746		)	8,898

Widia
Severance	2,087		2,185			—			(43		)	(1,923		)	2,306
Facilities	—		401			(401		)	—			—			—
Other	15		(25		)	—			—			34			24
Total Widia	2,102		2,561			(401		)	(43		)	(1,889		)	2,330

Infrastructure
Severance	7,558		3,977			—			(78		)	(3,501		)	7,956
Facilities	—		708			(708		)	—			—			—
Other	12		(46		)	—			—			62			28
Total Infrastructure	7,570		4,639			(708		)	(78		)	(3,439		)	7,984
Total	$	17,639	$	19,542		$	(4,597	)	$	(298	)	$	(13,074	)	$	19,212



(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