Restructuring and Related Charges

9 Months Ended

Mar. 31, 2021

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 March 31, 2021, 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 $95 million. Total restructuring and related charges since inception of $76.7 million were recorded for this program through March 31, 2021, consisting of: $71.0 million in Metal Cutting and $5.8 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 $2.1 million for the three months ended March 31, 2021, which consisted of charges of $2.5 million in Metal Cutting offset by a benefit from the reversal of charges of $0.4 million in Infrastructure, and $5.8 million for the three months ended March 31, 2020. Of these amounts, restructuring benefits from the reversal of charges of $0.9 million were recorded for the three months ended March 31, 2021, of which $0.1 million is included in cost of goods sold, and charges of $1.8 million were recorded for the three months ended March 31, 2020, of which $0.2 million was included in cost of goods sold. Restructuring-related charges of $3.0 million and $4.0 million were recorded in cost of goods sold for the three months ended March 31, 2021 and 2020, respectively.

We recorded restructuring and related charges of $34.9 million for the nine months ended March 31, 2021, of which $32.0 million was in Metal Cutting and $2.9 million was in Infrastructure, and $65.1 million for the nine months ended March 31, 2020. Of these amounts, restructuring charges totaled $26.5 million for the nine months ended March 31, 2021, of which $0.3 million is included in cost of goods sold, and $54.5 million for the nine months ended March 31, 2020, of which $0.6 million was included in cost of goods sold. Restructuring-related charges of $8.5 million and $10.6 million were recorded in cost of goods sold for the nine months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, $27.8 million and $8.6 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, net		Asset Write-Down		Translation		Cash Expenditures		March 31, 2021
Severance	$	47,303	$	23,645	$	—	$	7,378	$	(41,886)	$	36,440
Facilities	—		2,805		(2,805)		—		—		—
Other	63		—		—		4		(67)		—
Total	$	47,366	$	26,450	$	(2,805)	$	7,382	$	(41,953)	$	36,440