Restructuring Plan

12 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

On May 23, 2023, the Board of Directors approved the Company’s May 2023 Restructuring Plan which includes site consolidations, facilities moves and closures, as well as the relocation and requalification of certain manufacturing facilities. These restructuring actions are expected to be accompanied by other cost reductions and are intended to realign our cost structure as part of a transformation to a simpler, more streamlined, resilient and sustainable business model. We evaluate restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations, and ASC 712, Compensation-Nonretirement Post-Employment Benefits (ASC 712).

In fiscal 2024, these activities resulted in $27 million of charges primarily for acceleration of depreciation, write-off of property and equipment, and site move costs. In fiscal 2023, these activities resulted in $119 million of charges primarily for employee termination and the write-off of property and equipment, net of $65 million from reimbursement arrangements. We expect the restructuring actions to be substantially completed by the end of fiscal 2025; however, the actual timing and costs associated with these restructuring actions may differ from our current expectations and estimates and such differences may be material.

Activity and accrual balances for the Restructuring Plan were as follows ($000):


	Severance		Asset Write-Offs		Other		Total Accrual
Balance - June 30, 2022	$	—	$	—	$	—	$	—
Restructuring charges	76,944		107,157		—		184,101
Reimbursement arrangements	(9,247)		(55,753)		—		(65,000)
Reimbursement arrangement related accrual	9,247		—		—		9,247
Payments	(12,565)		—		—		(12,565)
Asset write-offs and other	—		(51,404)		—		(51,404)
Balance - June 30, 2023	$	64,379	$	—	$	—	$	64,379
Restructuring charges (recoveries)	(129)		11,658		15,527		27,056
Payments	(13,189)		—		—		(13,189)
Asset write-offs and other	—		(11,658)		(15,527)		(27,185)
Balance - June 30, 2024	$	51,061	$	—	$	—	$	51,061

At June 30, 2024, $15 million and $37 million of accrued severance related costs were included in other accrued liabilities and other liabilities on our Consolidated Balance Sheet, respectively, and are expected to result in cash expenditures through fiscal 2028. The current year severance related recoveries are primarily comprised of adjustments to accruals for severance pay for employees being terminated due to the consolidation of certain manufacturing sites, with severance recorded in accordance with ASC 712. The current year asset write-offs are primarily comprised of specifically identified equipment write-offs due to the consolidation of certain manufacturing sites. The fiscal 2023 severance related costs are primarily comprised of severance pay for employees being terminated due to the consolidation of certain manufacturing sites, with severance recorded in accordance with ASC 712. The fiscal 2023 asset write-offs are primarily comprised of specifically identified equipment write-offs due to the consolidation of certain manufacturing sites. At June 30, 2023, a $50 million receivable under a reimbursement arrangement was recorded in Prepaid and other current assets; the receivable was received during fiscal 2024.

By segment in fiscal 2024, $(4) million, $28 million and $4 million of restructuring costs (recoveries) were incurred in the Networking, Materials and Lasers segments, respectively. By segment in fiscal 2023, $56 million, $60 million and $3 million of restructuring costs were incurred in the Networking, Materials and Lasers segments, respectively. Restructuring charges are recorded in Restructuring charges in our Consolidated Statements of Earnings (Loss).