Restructuring and Related Charges

6 Months Ended

Dec. 31, 2020

FY20 Restructuring Actions

In the June quarter of fiscal 2019, we implemented, and in fiscal 2020 substantially completed, the FY20 Restructuring Actions 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 $54.8 million were recorded for this program through December 31, 2020, consisting of: $46.5 million in Metal Cutting and $8.3 million in Infrastructure.

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. Subsequently, we also announced the acceleration of our structural cost reduction plans including the closing of the Johnson City, Tennessee facility. Expected pre-tax charges for the FY21 Restructuring Actions are $90 million to $100 million. Total restructuring and related charges since inception of $74.7 million were recorded for this program through December 31, 2020, consisting of: $68.5 million in Metal Cutting and $6.2 million in Infrastructure. The majority of the remaining charges related to the FY21 Restructuring Actions are expected to be within the Metal Cutting segment.

Restructuring and Related Charges Recorded

We recorded restructuring and related charges of $4.2 million, of which $3.5 million was in Metal Cutting and $0.7 million was in Infrastructure, and $51.3 million for the three months ended December 31, 2020 and 2019, respectively. Of these amounts, restructuring charges totaled $1.8 million, of which $0.4 million is included in cost of goods sold, for the three months ended December 31, 2020 and $48.0 million, of which $0.3 million was included in cost of goods sold, for the three months ended December 31, 2019. Restructuring-related charges of $2.4 million and $3.3 million were recorded in cost of goods sold for the three months ended December 31, 2020 and 2019, respectively.

We recorded restructuring and related charges of $32.9 million, of which $29.5 million was in Metal Cutting and $3.3 million was in Infrastructure, and $59.3 million for the six months ended December 31, 2020 and 2019, respectively. Of these amounts, restructuring charges totaled $27.4 million, of which $0.4 million is included in cost of goods sold, for the six months ended December 31, 2020 and $52.7 million, of which $0.3 million was included in cost of goods sold, for the six months ended December 31, 2019. Restructuring-related charges of $5.5 million and $6.6 million were recorded in cost of goods sold for the six months ended December 31, 2020 and 2019, respectively.

As of December 31, 2020, $36.2 million and $16.9 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively, in our condensed consolidated balance sheet. As of June 30, 2020, $34.9 million and $12.5 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively. The amounts are as follows:


(in thousands)	June 30, 2020		Expense		Asset Write-Down		Translation		Cash Expenditures		December 31, 2020
Severance	$	47,303	$	25,775	$	—	$	5,400	$	(25,382)	$	53,096
Facilities	—		1,602		(1,602)		—		—		—
Other	63		—		—		4		(67)		—
Total	$	47,366	$	27,377	$	(1,602)	$	5,404	$	(25,449)	$	53,096