Restructuring and Asset Impairment Charges

12 Months Ended

Jun. 30, 2011

Restructuring Costs and Asset Impairment Charges [Abstract]

RESTRUCTURING AND ASSET IMPAIRMENT CHARGES

NOTE 15 - RESTRUCTURING AND ASSET IMPAIRMENT CHARGES

During 2011, we completed our restructuring plans to reduce costs and improve operating efficiencies. These actions related to the rationalization of certain manufacturing and service facilities as well as other employment and cost reduction programs. Restructuring and related charges recorded in 2011 amounted to $21.5 million, including $13.7 million of restructuring charges of which $1.1 million were related to inventory disposals and recorded in cost of goods sold. Restructuring related charges of $4.4 million were recorded in cost of goods sold and $3.4 million in operating expense during 2011.

During 2010, restructuring and related charges amounted to $48.9 million, including $44.3 million of restructuring charges of which $0.4 million were related to inventory disposals and recorded in cost of goods sold. Restructuring related charges of $3.5 million were recorded in cost of goods sold and $1.1 million in operating expense during 2010.

During 2009, restructuring and related charges amounted to $73.3 million, including $64.7 million of restructuring charges of which $2.1 million were related to inventory disposals and recorded in cost of goods sold. Restructuring related charges of $8.8 million were recorded in cost of goods sold and a net restructuring related benefit of $0.2 million was recorded in operating expense during 2009.

The combined total pre-tax charges from inception of these restructuring programs through June 30, 2011 were approximately $150 million. The majority of these pre-tax charges were severance charges. Total restructuring and related charges since inception through June 30, 2011 have been recorded as follows: approximately $104 million in Industrial, approximately $44 million in Infrastructure and approximately $2 million in Corporate for the write-off our pre-existing ERP system. These restructuring programs are complete and we do not expect any additional charges.

Restructuring accruals are recorded in other current liabilities in our consolidated balance sheet and the amount attributable to each segment is as follows:

					Asset			Cash
(in thousands)	June 30, 2010		Expense		Write-down			Expenditures			Translation		June 30, 2011
Industrial
Severance	$	18,327	$	4,363	$	-		$	(16,510	)	$	1,631	$	7,811
Facilities		508		2,318		(1,857	)		(444	)		-		525
Other		403		2,031		-			(931	)		101		1,604
Total Industrial		19,238		8,712		(1,857	)		(17,885	)		1,732		9,940
Infrastructure
Severance		7,637		2,484		-			(9,399	)		928		1,650
Facilities		211		1,319		(1,057	)		(204	)		-		269
Other		168		1,156		-			(530	)		58		852
Total Infrastructure		8,016		4,959		(1,057	)		(10,133	)		986		2,771
Total	$	27,254	$	13,671	$	(2,914	)	$	(28,018	)	$	2,718	$	12,711

					Asset
(in thousands)	June 30, 2009		Expense		Write-down			Cash Expenditures			Translation			June 30, 2010
Industrial
Severance	$	18,378	$	29,082	$	-		$	(28,086	)	$	(1,047	)	$	18,327
Facilities		477		790		(604	)		(142	)		(13	)		508
Other		176		1,393		-			(1,241	)		75			403
Total Industrial		19,031		31,265		(604	)		(29,469	)		(985	)		19,238
Infrastructure
Severance		7,659		12,119		-			(11,704	)		(437	)		7,637
Facilities		199		329		(251	)		(59	)		(7	)		211
Other		73		580		-			(517	)		32			168
Total Infrastructure		7,931		13,028		(251	)		(12,280	)		(412	)		8,016
Total	$	26,962	$	44,293	$	(855	)	$	(41,749	)	$	(1,397	)	$	27,254

Asset impairment See discussion of our 2009 Industrial goodwill and indefinite-lived trademark impairment charges in Note 2 under the caption “Goodwill and Other Intangible Assets.”