Restructuring and Related Charges and Asset Impairment Charges

12 Months Ended

Jun. 30, 2024

RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES

RESTRUCTURING AND OTHER CHARGES, NET

In the June quarter of fiscal 2023, we announced an initiative to streamline our cost structure while continuing to invest in our high-return commercial and operational excellence initiatives. Total restructuring and related charges for this program of $20.1 million, compared to a target of approximately $25 million, were recorded through June 30, 2024, consisting of $14.8 million in Metal Cutting and $5.3 million in Infrastructure. The majority of the remaining charges are expected to be recognized in fiscal 2025.

Annual Restructuring Charges

During 2024, we recorded restructuring and related charges of $12.4 million, which consisted of $8.5 million in Metal Cutting and $3.9 million in Infrastructure. These amounts are inclusive of a reversal of restructuring and related charges of $1.1 million related to prior actions, including $0.4 million in operating expense. Also included in restructuring and other charges, net during 2024 is a net benefit of $0.6 million primarily due to the sale of properties.

During 2023, we recorded restructuring and related charges of $6.6 million, which consisted of $5.3 million in Metal Cutting and $1.3 million in Infrastructure. These amounts are inclusive of a reversal of restructuring and related charges of $0.8 million related to prior actions. Also included in restructuring and other charges, net during 2023 is a net benefit of $2.5 million primarily due to the sale of properties.

During 2022, we recorded restructuring and related charges of $4.2 million which consisted of $3.6 million in Metal Cutting and $0.6 million in Infrastructure. Of this amount, a net benefit from the reversal of restructuring charges totaled $1.2 million and restructuring-related charges of $5.5 million were included in cost of goods sold.

As of June 30, 2024, $8.4 million of the restructuring accrual is recorded in other current liabilities and $2.4 million is recorded in other liabilities in our consolidated balance sheet. As of June 30, 2023, $9.4 million of the restructuring accrual is recorded in other current liabilities and $0.5 million is recorded in other liabilities in our consolidated balance sheet. The amounts are as follows:


(in thousands)	June 30, 2023		Expense		Asset Write-Down		Translation		Cash Expenditures		June 30, 2024
Severance	$	9,885	$	12,372	$	—	$	257	$	(11,715)	$	10,799


Total	9,885		12,372		—		257		(11,715)		10,799


(in thousands)	June 30, 2022		Expense		Asset Write-Down		Translation		Cash Expenditures		June 30, 2023
Severance	$	7,919	$	6,605	$	—	$	29	$	(4,668)	$	9,885


Total	7,919		6,605		—		29		(4,668)		9,885