Restructuring and Related Charges

3 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Note 13. Restructuring and Related Charges

The Company’s restructuring events are primarily intended to reduce costs, consolidate operations, integrate various acquisitions, streamline product manufacturing and address market conditions. Restructuring charges primarily include severance, benefits and outplacement costs to eliminate a specified number of positions. The timing of associated cash payments is dependent upon the jurisdiction of the affected employees and can extend over multiple periods.

Fiscal 2023 Plan

During the second quarter of fiscal 2023, Management approved a restructuring and workforce reduction plan (the Fiscal 2023 Plan) to better align the Company’s workforce with current business needs and strategic growth opportunities. The Company expects approximately 5% of its global workforce to be affected.

The first phase of the Fiscal 2023 Plan impacted our Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments and Corporate (Corp) functions and was substantially complete as of September 30, 2023. The second phase of the Fiscal 2023 Plan is primarily focused on reducing costs in our Service Enablement (SE) segment and the Company anticipates this phase to be substantially complete by the end of the second quarter of fiscal 2024.

A summary of the activity in the restructuring accrual is outlined below (in millions):





	Balance as of July 1, 2023		Restructuring and related benefits		Cash Settlements		Balance as of September 30, 2023
Fiscal 2023 Plan
NSE/Corp	$	3.5	$	(0.6)	$	(2.4)	$	0.5

OSP	0.6		—		(0.6)		—
Fiscal 2023 Plan Phase I	4.1		(0.6)		(3.0)		0.5
NSE/Corp	1.7		(0.2)		(0.5)		1.0
Fiscal 2023 Plan Phase II	1.7		(0.2)		(0.5)		1.0
Total (1)	$	5.8	$	(0.8)	$	(3.5)	$	1.5

(1) Included in Other current liabilities on the Consolidated Balance Sheets as of September 30, 2023 and July 1, 2023.