On May 15, 2019, the Company announced its plans to exit the Commercial Office and custom-designed Hospitality product lines. These changes were initial outcomes driven by customer and product line profitability and footprint utilization analyses in the fourth quarter of fiscal 2019.

On June 18, 2019, the Company announced that it completed the analysis and the planning process and set forth the comprehensive transformation program to be executed over a two-year period, which included 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 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 that it will exit the 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 6, Assets Held for Sale. The Company completed all the restructuring activities related to the exit of the Vehicle Seating and the remainder of the Hospitality product lines during fiscal 2021.

As a result of these planned actions, which were complete as of the fiscal year ended June 30, 2022, the Company had planned to incur pre-tax restructuring and related expenses of approximately $60 million over this two-year timeframe. Total cumulative restructuring and related costs incurred as of June 30, 2022, were $59.4 million. There were no costs related to these restructuring activities in the fiscal years ended June 30, 2023 and June 30, 2024.

On February 5, 2024, the Company announced its plan to close its Dublin, Georgia manufacturing facility. The closure was completed in the fourth quarter of fiscal year 2024. As a result of the closure the Company expected to incur pre-tax restructuring expense of approximately $2.5 to $3.2 million. Total cumulative restructuring costs related to the planned action were $3.0 million. The Dublin, Georgia facility and property are listed for sale following the closure. See Note 6, Assets Held For Sale for more information.


	For the years ended June 30,
(in thousands)	2024		2023		2022
One-time employee termination benefits		2,558		—		(211	)
Fixed asset impairments		74		—		—
Other associated costs		350		—		941
Total restructuring and related expenses	$	2,982	$	—	$	730
Reported as:
Operating expenses	$	2,982	$	—	$	730

One-time employee termination benefits include costs for employee separation benefits.

During the year ended June 30, 2024, the Company recorded one-time employee termination benefits, fixed asset impairment charges and other associated costs related to the Dublin closure. Other associated costs include legal and professional fees, inventory and equipment transfer costs, and other transition costs.

During the year ended June 30, 2022, the Company recorded a decrease in a pension plan liability related to the exit of commercial office, hospitality and vehicle seating activities that resulted in an expense reduction of $0.2 million and recorded a net settlement agreement of $0.4 million. 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, ongoing facilities, and transition costs.

All expenses related to the manufacturing network optimization restructuring plan were incurred and paid during the year ended June 30, 2024. The Company paid all remaining costs associated with the exit of commercial office, hospitality and vehicle seating restructuring program in the year ended June 30, 2023.

The roll forward of the accrued restructuring costs is as follows, for the years ended June 30, 2024, 2023, and 2022:


	One-time
	Employee			Fixed Asset			Other
	Termination			Impairment			Associated
(in thousands)	Benefits			Costs			Costs			Total
Accrual balance at June 30, 2022	$	1,275		$	—		$	15		$	1,290
Costs incurred		—			—			—			—
Expenses paid		(1,275	)		—			(15	)		(1,290	)
Accrual balance at June 30, 2023	$	—		$	—		$	—		$	—
Costs incurred		2,558			74			350			2,982
Expenses paid		(2,558	)		(74	)		(350	)		(2,982	)
Accrual balance at June 30, 2024	$	—		$	—		$	—		$	—