Restructuring Plan

6 Months Ended

Dec. 31, 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 (ASC 420), and ASC 712, Compensation-Nonretirement Post-Employment Benefits (ASC 712).

In the three months ended December 31, 2024, these activities resulted in $8 million of charges primarily for site move costs, employee termination costs and accelerated depreciation. In the six months ended December 31, 2024, these activities resulted in $32 million of charges primarily for impairment losses associated with the sale of our Newton Aycliffe business, accelerated depreciation, employee termination and site move costs. In the three months ended December 31, 2023, these activities resulted in $2 million of net recoveries primarily for adjustments to employee termination costs partially offset by acceleration of depreciation and site move costs. In the six months ended December 31, 2023, these activities resulted in $1 million of charges primarily for employee termination costs as well as site move costs, write-off of property and equipment and acceleration of depreciation. 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 for the first two quarters of fiscal 2024 and 2023 ($000):


	Severance		Asset Write-Offs		Other		Total Accrual
Balance - June 30, 2024	$	51,061	$	—	$	—	$	51,061
Restructuring charges (recoveries)	(455)		15,970		8,850		24,365


Payments	(6,796)		—		—		(6,796)
Asset write-offs and other	—		(15,970)		(8,850)		(24,820)
Balance - September 30, 2024	43,810		$	—	$	—	$	43,810
Restructuring charges	2,882		—		5,139		8,021


Payments	(752)		—		—		(752)
Asset write-offs and other	(1,609)		—		(5,139)		(6,748)
Balance - December 31, 2024	$	44,331	$	—	$	—	$	44,331


	Severance		Asset Write-Offs		Other		Total Accrual
Balance - June 30, 2023	$	64,379	$	—	$	—	$	64,379
Restructuring charges	2,050		269		699		3,018
Payments	(7,930)		—		—		(7,930)
Asset write-offs and other	—		(269)		(699)		(968)
Balance - September 30, 2023	58,499		—		—		58,499
Restructuring charges (recoveries)	(4,848)		54		3,224		(1,570)
Payments	(2,103)		—		—		(2,103)
Asset write-offs and other	—		(54)		(3,224)		(3,278)
Balance - December 31, 2023	$	51,548	$	—	$	—	$	51,548

At December 31, 2024, $12 million and $32 million of accrued severance related costs were included in other accrued liabilities and other liabilities, respectively, and are expected to result in cash expenditures through fiscal 2028. The current and prior year severance related net charges are primarily comprised of accruals for severance and pay for employees being terminated due to the consolidation of certain manufacturing sites, with severance recorded in accordance with ASC 712. The prior year severance related net 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.

By segment, for the three and six months ended December 31, 2024, $3 million and $26 million, respectively, of restructuring costs were incurred in the Materials segment, $3 million and $4 million, respectively, of restructuring costs were incurred in the Networking segment, and $2 million of restructuring costs were incurred in both periods in the Lasers segment. By segment, for the three and six months ended December 31, 2023, $2 million and $7 million, respectively, of restructuring costs were incurred in the Materials segment, partially offset by $3 million and $5 million, respectively, of restructuring recoveries in the

Networking segment. Restructuring charges and recoveries are recorded in Restructuring Charges (Recoveries) in our Condensed Consolidated Statements of Earnings (Loss).