Restructuring Charges and Asset Impairment Charges

12 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring Charges and Asset Impairment Charges

For fiscal year 2020, restructuring and asset impairment charges were $68.5 million. There were no restructuring and asset impairment charges for fiscal years 2019 or 2018.

As a result of the prolonged weakness in oil and gas drilling and exploration activities and the impact this weakness had on certain reporting units in the PEP segment, the Company approved a plan to exit the Amega West oil and gas business. As a result the Company recognized restructuring charges of $31.1 million. This includes non-cash impairment pre-tax charges of $26.8 million on certain long-lived assets, $21.2 million related to property, plant and equipment and $5.6 million associated with certain definite lived intangible assets during the year ended June 30, 2020. The Company also recognized $4.3 million for facility shut-down costs and various personnel-related costs for severance payments, medical coverage and related items.

The Company recorded a pre-tax charge of $20.7 million during the year ended June 30, 2020 to reflect site closure costs for two domestic powder facilities in the PEP segment consisting of non-cash adjustments of property, plant and equipment and other assets.

During the year ended June 30, 2020, the Company implemented a restructuring plan aimed at reducing fixed costs by eliminating 20 percent of global salaried positions across all business segments. In connection with this restructuring plan and other cost saving actions, the Company recorded a pre-tax charge of $8.4 million during the year ended June 30, 2020 consisting primarily of various personnel-related costs for severance payments, medical coverage and related items. Of this charge, $3.5 million will be paid from the Company’s qualified pension plan in fiscal year 2021, $0.9 million was recorded as non-cash forfeiture income related to share-based compensation in fiscal year 2020. The remaining balance will be paid by the Company in fiscal year 2021.

The Company recorded a pre-tax charge of $8.3 million during the year ended June 30, 2020 to reflect a non-cash write-down of software related to costs for an enterprise resource system that will not be implemented at a particular business unit.

Activity for restructuring and asset impairment charges at June 30, 2020 was as follows:



	June 30,
($ in millions)	2020
Restructuring charges and asset impairment charges	68.5
Non-cash asset impairment charges	(56.4		)
Payments to be made from qualified pension plan associated with restructuring charges	(3.5		)
Other items, net of cash payments	0.9
Reserve balance end of year	$	9.5