Restructuring Expenses

12 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring Expenses

Restructuring Expenses

During the year ended June 30, 2023, we incurred restructuring expenses of $9.2 million associated with the reorganization and rationalization of our operations. We recorded the full amount of $9.2 million during the year ended June 30, 2023, of which $6.7 million related to our Sleep and Respiratory Care segment and $2.5 million related to our SaaS segment. The restructuring expenses consisted primarily of severance to employees and were separately disclosed within our operating expenses. We had $7.8 million remaining in our accruals at year end which will be paid during the year ended June 30, 2024.

We did not incur material restructuring expenses during the year ended June 30, 2022.

During the year ended June 30, 2021, we closed our Portable Oxygen Concentrator business, which was part of the Sleep and Respiratory Care segment. We recognized restructuring expenses of $13.9 million primarily related to inventory write-

downs of $5.2 million, accelerated amortization of acquired intangible assets of $5.1 million, asset impairments of $2.3 million, employee-related costs of $0.7 million and contract cancellation costs of $0.6 million. Of the total expense recognized during year ended June 30, 2021, the inventory write-down of $5.2 million is presented within cost of sales and the remaining $8.7 million in restructuring costs is separately disclosed as restructuring expenses on the consolidated statements of income. The restructure was completed as of June 30, 2021.