Restructuring Costs

12 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring Costs

During the third quarter of fiscal 2020, we initiated a business improvement plan to increase profitability and reduce our cost structure related to:

•our strategic initiative to exit the domestic iron and steel industry;

•the implementation of business improvements in the power delivery portion of the Utility and Power Infrastructure segment; and

•the decline in revenue caused by the ongoing effects of the COVID-19 pandemic and related market disruptions.

The business improvement plan consists of discretionary cost reductions, workforce reductions, reduction of capital expenditures and the reduction in size or closure of certain offices in order to increase the utilization of our staff and bring the cost structure of the business in line with revenue volume. We incurred $14.0 million of restructuring costs during fiscal 2020 and $6.8 million during fiscal 2021. The restructuring costs consist primarily of severance costs, facility closure costs, lease and fixed asset impairments, other intangible asset impairments and other liabilities as a result of exiting certain operations.

In fiscal 2021, we engaged a third party consultant to help us perform a strategic review of our end markets in support of updating our business strategy and to ensure that our organizational structure is properly designed to support our updated strategy. Based on the preliminary results of this review, we believe there are opportunities for us to be more competitive, which will require organizational and process changes and will likely result in additional restructuring costs. We expect to substantially complete this initiative in fiscal 2022.

Restructuring costs incurred are classified as follows:


	Fiscal Year Ended June 30, 2021		Since Inception of Business Improvement Plan
	(in thousands)
Utility and Power Infrastructure
Severance and other personnel-related costs	$	1,199	$	2,539
Facility costs	113		348
Other intangible asset impairments	—		1,150
Total Utility and Power Infrastructure	$	1,312	$	4,037
Process and Industrial Facilities
Severance and other personnel-related costs	$	2,951	$	9,118
Facility costs	431		3,188
Other intangible asset impairments	—		375
Other costs	426		426
Total Process and Industrial Facilities	$	3,808	$	13,107
Storage and Terminal Solutions
Severance and other personnel-related costs	$	1,231	$	1,578
Facility costs	159		879
Total Storage and Terminal Solutions	$	1,390	$	2,457
Corporate
Severance and other personnel-related costs	$	164	$	1,083
Facility costs	82		82
Other intangible asset impairments	—		—
Total Corporate	$	246	$	1,165
Total restructuring costs	$	6,756	$	20,766

Restructuring Costs by Type:
Severance and other personnel-related costs	$	5,545	$	14,318
Total facility costs	785		4,497
Total other intangible asset impairments	—		1,525
Other costs	426		426
Total restructuring costs	$	6,756	$	20,766

The restructuring reserve is included in other accrued expenses and other liabilities in the Consolidated Balance Sheets. The table below is a reconciliation of the beginning and ending restructuring reserve balance (in thousands):


Balance as of June 30, 2020	$	2,403
Restructuring costs incurred	4,026
Cash payments	(3,484)
Adjustment to liability	(510)
Balance as of June 30, 2021	$	2,435