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Restructuring expenses
9 Months Ended
Mar. 31, 2018
Restructuring expenses  
Restructuring expenses

14. Restructuring expenses

 

Fiscal 2018

 

During fiscal 2018, the Company executed certain restructuring actions in an effort to integrate acquisitions and reduce future operating expenses. Restructuring expenses are included as a component of restructuring, integration and other expenses in the Consolidated Statements of Operations. The activity related to the restructuring liabilities established during fiscal 2018 is presented in the following table:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

Facility

    

 

Asset

     

 

 

    

 

 

 

 

 

Severance

    

Exit Costs

    

Impairments

    

Other

    

Total

 

 

 

(Thousands)

 

Fiscal 2018 restructuring expenses

 

$

38,705

 

$

270

 

$

943

 

$

164

 

$

40,082

 

Cash payments

 

 

(31,302)

 

 

(26)

 

 

 —

 

 

(165)

 

 

(31,493)

 

Non-cash amounts

 

 

 —

 

 

 —

 

 

(943)

 

 

 —

 

 

(943)

 

Other, principally foreign currency translation

 

 

176

 

 

 4

 

 

 —

 

 

 1

 

 

181

 

Balance at March 31, 2018

 

$

7,579

 

$

248

 

$

 —

 

$

 —

 

$

7,827

 

 

Severance expense recorded in the first nine months of fiscal 2018 related to the reduction, or planned reduction of approximately 700 employees, primarily in executive management, operations, warehouse, sales and business support functions. Facility exit costs primarily consist of liabilities for remaining lease obligations for exited facilities. Asset impairments relate to the impairment of property, plant and equipment as a result of the underlying restructuring activities. Other restructuring costs related primarily to other miscellaneous restructuring and exit costs. Of the $40.1 million in restructuring expenses recorded during the first nine months of fiscal 2018, $33.5 million related to EC, $4.8 million related to PF and $1.8 million related to corporate executive and business support functions. The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2018.

 

Fiscal 2017

 

During fiscal 2017, the Company incurred restructuring expenses related to various restructuring actions intended to achieve planned synergies from acquired businesses and to reduce future operating expenses. The following table presents the activity during the first nine months of fiscal 2018 related to the remaining restructuring liabilities from continuing operations established during fiscal 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

Facility

    

 

 

 

 

Severance

    

Exit Costs

    

Total

 

 

(Thousands)

Balance at July 1, 2017

 

$

12,186

 

$

76

 

$

12,262

Cash payments

 

 

(10,670)

 

 

(77)

 

 

(10,747)

Changes in estimates, net

 

 

(606)

 

 

 —

 

 

(606)

Non-cash amounts

 

 

 —

 

 

 —

 

 

 —

Other, principally foreign currency translation

 

 

250

 

 

 1

 

 

251

Balance at March 31, 2018

 

$

1,160

 

$

 —

 

$

1,160

 

The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2018.