XML 21 R12.htm IDEA: XBRL DOCUMENT v3.21.4
Restructuring
6 Months Ended
Dec. 31, 2021
Restructuring [Abstract]  
Restructuring  5.  RESTRUCTURING On May 15, 2019, the Company announced its plans to exit the Commercial Office and custom-designed Hospitality product lines. The changes were initial outcomes driven from customer and product line profitability and footprint utilization analyses in the fourth quarter of fiscal 2019. On June 18, 2019, the Company announced it completed the analysis and planning process and set forth the comprehensive transformation program to be executed over a two-year period, which included the previously announced restructuring activities on May 15, 2019. The transformation program included activities such as business simplification, process improvement, exiting of non-core businesses, facility closures, and reductions in the workforce. The Company has substantially completed the portion of the restructuring activities related to the exit of the Commercial Office and custom-designed Hospitality product lines. On April 28, 2020, the Company announced the exit of Vehicle Seating and the remainder of the Hospitality product lines, and subsequently closed its Dubuque, Iowa and Starkville, Mississippi manufacturing facilities. The remaining properties listed for sale as part of the footprint optimization are included in Note 3, Assets Held for Sale. The Company substantially completed the restructuring activities related to the exit of Vehicle Seating and the remainder of the Hospitality product lines during fiscal 2021. As a result of these planned actions, which will be complete in the fiscal year ending June 30, 2022, the Company anticipates incurring pre-tax restructuring and related expenses of approximately $60 million over this two-year timeframe. Total cumulative restructuring and related costs incurred as of December 31, 2021, were $59.4 million. The following is a summary of restructuring costs: Three Months Ended Six Months Ended(in thousands) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020Inventory impairment $ — $ 45 $ — $ 45One-time employee termination benefits — — — 179Other associated costs 622 863 774 2,065Total restructuring and related expenses $ 622 $ 908 $ 774 $ 2,289Reported as: Cost of goods sold $ — $ 45 $ — $ 45Operating expenses $ 622 $ 863 $ 774 $ 2,244 Other associated costs include legal and professional fees, stock-based compensation expenses for retention restricted stock units in connection with the Company’s restructuring plan, and ongoing facilities and transition costs. The roll-forward of the accrued restructuring costs is as follows: One-time Employee Contract Other Inventory Termination Termination Associated (in thousands) Impairment Benefits Costs Costs TotalAccrual balance at June 30, 2021 $ — $ 1,502 $ — $ 20 $ 1,522Costs incurred — — — 774 774Expenses (paid) reimbursed — (130) — 505 375Accrual balance at December 31, 2021 $ — $ 1,372 $ — $ 1,299 $ 2,671