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Restructuring Accrual
 6 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Accrual
7. Restructuring Accrual

During the first six months fiscal of fiscal 2020, management committed to and continued to execute upon several performance improvement plans. In the first quarter of fiscal 2020, management committed to performance improvement plans related to the strategic decisions to transition Rachael Ray Every Day into a consumer-driven, newsstand-only quarterly magazine and to discontinue the Family Circle brand. Other smaller actions were taken in the local media segment and unallocated corporate. In connection with these plans, the Company recorded pre-tax restructuring charges totaling $12.9 million, including $9.9 million for severance and related benefit costs associated with the involuntary termination of employees and $3.0 million in other costs and expenses. In the second quarter of fiscal 2020, additional smaller actions were taken in the local media segment and unallocated corporate. In connection with these plans, the Company recorded pre-tax restructuring charges of $3.8 million for severance and related benefit costs associated with the involuntary termination of employees. Combined, these actions affected approximately 130 employees in the national media segment, 15 in the local media segment, and 10 in unallocated corporate. The majority of the severance costs are expected to be paid during fiscal 2020. Of these costs, for the six-month period ended December 31, 2019, $13.0 million were recorded in the acquisition, disposition, and restructuring related activities line and $3.7 million were recorded in the loss from discontinued operations, net of income taxes line on the Condensed Consolidated Statements of Earnings.

As part of the Company's plan to realize cost synergies from its acquisition of Time in fiscal 2018, management committed to a performance improvement plan to reduce headcount. To execute this plan, in the first quarter of fiscal 2019, the Company made strategic decisions to merge Cooking Light magazine with EatingWell, transition Coastal Living from a subscription magazine to a special interest publication, consolidate much of the local media's digital advertising functions with MNI Targeted Media, and outsource newsstand sales and marketing operations. During the second quarter of fiscal 2019, the Company completed the closure of Time Customer Service (TCS) and substantially completed consolidating New York office space. The fiscal 2019 performance improvement plans affected approximately 250 people, approximately 175 in the national media segment, approximately 25 in the local media segment, and the remainder in unallocated corporate. In connection with these plans, in the second quarter and first six months of fiscal 2019, the Company recorded pre-tax restructuring charges of $22.8 million and $35.3 million, respectively, for severance and related benefit costs related to the involuntary termination of employees and $7.6 million and $17.7 million, respectively, in other accruals related primarily to the closure of TCS and the consolidation of office space. These costs were recorded in the acquisition, disposition, and restructuring related activities line on the Condensed Consolidated Statements of Earnings. The majority of severance costs have been paid out.

Details of the severance and related benefit costs by segment for these performance improvement plans are as follows:

 
Amount Accrued in
the Period
Total Amount Expected to be Incurred
 
Three Months
Six Months
Periods ended December 31,
2019
2018
2019
2018
(in millions)
 
 
 
 
 
 
National media
$
—

$
17.3

$
8.8

$
23.3

 
$
8.8

Local media
1.7

0.2

2.4

1.7

 
2.4

Unallocated Corporate
2.1

5.3

2.5

10.3

 
3.1

 
$
3.8

$
22.8

$
13.7

$
35.3

 
$
14.3



Details of changes in the Company's restructuring accrual are as follows:

 
Employee Terminations
 
Employee Terminations
Other Exit Costs
Total
Six months ended December 31,
 
2019
 
 
2018
 
2018
 
2018
(In millions)
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
43.7

 
 
$
101.3

 
$
6.3

 
$
107.6

Accruals
 
13.7

 
 
33.8

 
17.7

 
51.5

Cash payments
 
(36.0
)
 
 
(51.3
)
 
(11.0
)
 
(62.3
)
Reversal of excess accrual
 
—

 
 
(4.1
)
 
(1.5
)
 
(5.6
)
Balance at end of period
 
$
21.4

 
 
$
79.7

 
$
11.5

 
$
91.2



As of December 31, 2019, of the $21.4 million liability, $20.9 million was classified as current liabilities on the Condensed Consolidated Balance Sheets, with the remaining $0.5 million classified as noncurrent liabilities. Amounts classified as noncurrent liabilities are expected to be paid through 2021 and relate to future severance payments.

As of June 30, 2019, the Company had a restructuring accrual of $22.8 million related primarily to lease payments and exit or disposal costs for space that has been vacated. In conjunction with the adoption of the lease standard effective July 1, 2019, as disclosed in Note 1, these previously recorded exit cost liabilities were derecognized and operating lease assets recorded at time of adoption were reduced by a corresponding amount.