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Restructuring and Related Charges and Asset Impairment Charges | 12 Months Ended
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Jun. 30, 2020
Restructuring Charges [Abstract] |
RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING AND RELATED CHARGES FY20 Restructuring Actions In the June quarter of fiscal 2019, we implemented and in the current fiscal year substantially completed restructuring activities associated with our simplification/modernization initiative to reduce structural costs, improve operational efficiency and position us for long-term profitable growth. Total restructuring and related charges since inception of $53.5 million were recorded for this program through June 30, 2020, consisting of: $43.1 million in Industrial, $8.2 million in Infrastructure and $2.2 million in Widia. FY20 Restructuring Actions are substantially complete as of June 30, 2020. FY21 Restructuring Actions In the September quarter of fiscal 2020, we announced the initiation of restructuring actions in Germany associated with our simplification/modernization initiative, which are expected to reduce structural costs. We agreed with local employee representatives to downsize our Essen, Germany operations instead of the previously proposed closure. During the fourth quarter of fiscal 2020, we also announced the acceleration of our structural cost reduction plans and increased the expected pre-tax charges to $90 million to $100 million. These actions are to be completed by the end of fiscal 2021 and are expected to be primarily cash expenditures. Total restructuring and related charges since inception of $43.2 million were recorded for this program through June 30, 2020, consisting of: $37.9 million in Industrial, $3.0 million in Infrastructure and $2.3 million in Widia. Annual Restructuring Charges During 2020, we recorded restructuring and related charges of $83.3 million. Of this amount, restructuring charges totaled $69.2 million, of which $0.9 million was related to inventory and was recorded in cost of goods sold. Restructuring-related charges of $14.1 million were recorded in cost of goods sold. 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 FY19 Restructuring Actions. 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. As of June 30, 2020, $34.9 million of the restructuring accrual is recorded in other current liabilities and $12.5 million is recorded in other liabilities in our consolidated balance sheet. As of June 30, 2019, the restructuring accrual of $19.2 million is recorded in other current liabilities. The amount attributable to each segment is as follows:
(in thousands) | June 30, 2019 |  | Expense |  | Asset Write-Down |  | Translation |  | Cash Expenditures |  | June 30, 2020
Industrial |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 8,863 |  |  | $ | 58,308 |  |  | $ | — |  |  | $ | (331 | ) |  | $ | (30,742 | ) |  | $ | 36,098 |
Facilities | — |  |  | 2,096 |  |  | (2,096 | ) |  | — |  |  | — |  |  | — |
Other | 35 |  |  | 4 |  |  | — |  |  | (1 | ) |  | (23 | ) |  | 15 |
Total Industrial | 8,898 |  |  | 60,408 |  |  | (2,096 | ) |  | (332 | ) |  | (30,765 | ) |  | 36,113 |
Widia |  |  |  |  |  |  |  |  |  |  |
Severance | 2,306 |  |  | 2,627 |  |  | — |  |  | 88 |  |  | (1,696 | ) |  | 3,325 |
Facilities | — |  |  | 51 |  |  | (51 | ) |  | — |  |  | — |  |  | — |
Other | 24 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |
Total Widia | 2,330 |  |  | 2,678 |  |  | (51 | ) |  | 88 |  |  | (1,696 | ) |  | 3,349 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |
Severance | 7,956 |  |  | 5,194 |  |  | — |  |  | (154 | ) |  | (5,116 | ) |  | 7,880 |
Facilities | — |  |  | 892 |  |  | (892 | ) |  | — |  |  | — |  |  | — |
Other | 28 |  |  | 2 |  |  | — |  |  | (1 | ) |  | (5 | ) |  | 24 |
Total Infrastructure | 7,984 |  |  | 6,088 |  |  | (892 | ) |  | (155 | ) |  | (5,121 | ) |  | 7,904 |
Total | $ | 19,212 |  |  | $ | 69,174 |  |  | $ | (3,039 | ) |  | $ | (399 | ) |  | $ | (37,582 | ) |  | $ | 47,366 |
(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 |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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- References No definition available. + Details
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