RESTRUCTURING

9 Months Ended

Jun. 30, 2022

RESTRUCTURING

RESTRUCTURING

12.RESTRUCTURING

During June 2022, the Company approved and announced a plan to close its facility in Cumberland, Virginia (“Cumberland facility”) and to close and relocate its operations in Dublin, Virginia (“Dublin facility”) into its other existing facilities, as a part of the Company’s ongoing restructuring and site optimization plan. The Cumberland facility exit is also a part of the transfer plan settlement, as further described in Note 15 – Contingencies. The operations at both the Cumberland facility and the Dublin facility are within the RMS segment. The Cumberland facility exit is expected to be complete by October 2022. Any potential decision to sell the facility and related property may extend past that date. The Company expects the Dublin facility transition to be complete by December 2022.

As part of its restructuring activities, the Company has incurred and expects to continue to incur further expenses that qualify as exit and disposal costs under GAAP. For the three and nine months ended June 30, 2022, these costs included employee severance and other costs related to workforce reductions (“employee-related”) of $1,193 and other exit costs (“other”) of $2,614, which primarily relate to inventory write-downs related to the exit of the Cumberland facility and to costs to maintain the facilities until each facility has been exited. Exit and disposal costs have been charged to Other operating expense.

The liability balance for restructuring costs that qualify as exit and disposal costs under GAAP is shown below.  

		Employee Related		Other		Total
Liability as of September 30, 2021		—		—		—
Charges	$	1,193	$	364	$	1,557
Cash Payments		—		—		—
Liability as of June 30, 2022	$	1,193	$	364	$	1,557

The Company has also incurred asset-related costs that relate to our restructuring activities, which do not qualify as exit and disposal costs under GAAP. Asset-related costs include asset impairment charges. As of June 30, 2022, the Company incurred asset-related costs of $1,054 in connection with the impairment of property, plant and equipment at the Dublin and Cumberland facilities, as a result of obtaining market quotes for the value of the real property at the facility and the review of the usefulness of the personal property if transferred to other sites in connection with exit plans.