Restructuring and Related Charges

3 Months Ended

Sep. 30, 2021

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 to reduce structural costs. Subsequently, we also announced the acceleration of our other structural cost reduction plans including the closure of the Johnson City, Tennessee facility. Expected pre-tax charges for the FY21 Restructuring Actions are approximately $90 million. Total restructuring and related charges since inception of $83.4 million were recorded for this program through September 30, 2021, consisting of: $75.7 million in Metal Cutting and $7.7 million in Infrastructure. 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 $1.2 million for the three months ended September 30, 2021, which consisted of charges of $1.2 million in Metal Cutting and an immaterial amount in Infrastructure. Of this amount, restructuring charges were $0.2 million and restructuring-related charges were $1.1 million (included in cost of goods sold) for the three months ended September 30, 2021. For the three months ended September 30, 2020, we recorded restructuring and related charges of $28.6 million which consisted of charges of $26.0 million in Metal Cutting and $2.6 million in Infrastructure. Of this amount, restructuring charges were $25.6 million and restructuring-related charges were $3.0 million (included in cost of goods sold) for the three months ended September 30, 2020.

As of September 30, 2021, $15.8 million and $9.0 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, 2021, $19.9 million and $9.9 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively. The amounts are as follows:


(in thousands)	June 30, 2021		Expense, net		Asset Write-Down		Translation		Cash Expenditures		September 30, 2021
Severance	$	29,723	$	131	$	—	$	(558)	$	(4,492)	$	24,804
Facilities	—		28		(28)		—		—		—

Total	$	29,723	$	159	$	(28)	$	(558)	$	(4,492)	$	24,804