Restructuring

3 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

We recognized pre-tax restructuring expense of $1.5 million in the three months ended September 30, 2021, and recognized $4.2 million for the three months ended September 30, 2020.

We utilized available market prices and management estimates to determine the fair value of impaired assets. Restructuring is included in the Restructuring Expense line item on our Condensed Consolidated Statements of Income.

Transformation Restructuring Plan:

Included in the current phase of our transformation restructuring plan are activities such as the streamlining of manufacturing facilities, voluntary retirement incentive programs, and the consolidation of showrooms. This phase of the transformation restructuring plan began in the first quarter of our fiscal year 2021, and we expect a substantial majority of the restructuring actions to be completed by the end of fiscal year 2023.

In addition to the savings already generated from first phase of the transformation restructuring plan, the efforts of this second phase of the transformation restructuring plan are expected to generate annualized pre-tax savings of approximately $16.0 million when it is fully implemented. We currently estimate this phase of the transformation restructuring plan will incur total pre-tax restructuring charges of approximately $16.0 million to $18.0 million, with approximately $5.5 million expected to be recorded in fiscal year 2022, and approximately $2.5 million thereafter. The restructuring charges are expected to consist of approximately $5.0 million to $5.5 million for severance and other employee-related costs, $5.5 million to $6.5 million for facility costs, and $5.5 million to $6.0 million for lease and other asset impairment. Approximately 65% of the total cost estimate is expected to be cash expense.

A summary of the charges recorded in connection with the second phase of the transformation restructuring plan is as follows:

	Three Months Ended		Three Months Ended		Charges Incurred to Date
	September 30		September 30
(Amounts in Thousands)	2021		2020
Cash-related restructuring charges:
Severance and other employee related costs	$	146	$	2,890	$	5,228
Facility exit costs and other cash charges	456		127		2,043
Total cash-related restructuring charges	$	602	$	3,017	$	7,271
Non-cash charges:
Impairment of assets and accelerated depreciation	853		460		3,009
Total charges	$	1,455	$	3,477	$	10,280

A summary of the current period activity in accrued restructuring related to the second phase of the transformation restructuring plan is as follows:

(Amounts in Thousands)	Severance and other employee related costs
Balance at June 30, 2021	$	1,386
Additions charged to expense	146
Cash payments charged against reserve	(1,434)
Balance at September 30, 2021	$	98