Restructuring Charges and Asset Impairment Charges

There were no restructuring or asset impairment charges during fiscal year 2017. Restructuring and asset impairment charges for the years ended June 30, 2016 and 2015 were $18.0 million and $29.1 million, respectively.

Fiscal Year 2016

During the year ended June 30, 2016, the Company recorded $10.4 million of pre-tax charges, consisting of $9.4 million associated with an early retirement incentive funded by the Company’s qualified pension plan, $0.7 million of other severance costs paid by the Company in fiscal year 2016 and $0.3 million of other severance related costs paid by the Company in fiscal year 2017. At this time, the Company does not expect any additional charges related to these restructuring actions in the future.

As a result of the prolonged weakness in oil and gas drilling and exploration activities and the impact this weakness had on certain reporting units in the PEP segment, the Company recognized non-cash impairment pre-tax charges of $7.6 million on certain long-lived assets, including $6.5 million related to property, plant and equipment and $1.1 million associated with certain definite lived intangible assets during the year ended June 30, 2016.

Fiscal Year 2015

In fiscal year 2015, the Company implemented a restructuring plan aimed at reducing fixed costs by approximately $30 million annually across the Company. In connection with this restructuring plan, the Company recorded a pre-tax charge of $12.7 million during the year ended June 30, 2015 consisting primarily of various personnel-related costs for severance payments, medical coverage and related items. Of this charge, $2.5 million was paid by the Company in fiscal year 2015, $8.3 million was paid from the Company’s qualified pension plan in fiscal year 2015, $0.4 million was recorded as non-cash forfeiture income related to stock-based compensation in fiscal year 2015 and the remaining balance was paid by the Company in fiscal year 2016.

The Company recorded a pre-tax charge of $13.4 million during the year ended June 30, 2015 to exit a materials development program. This includes an $8.0 million cash payment during the year ended June 30, 2015 to exit a licensing agreement and non-cash asset impairment charges totaling $5.4 million.

The Company recorded a pre-tax charge of $3.0 million during the year ended June 30, 2015 to reflect site closure costs consisting of $0.4 million cash payments and $2.6 million non-cash write-downs of inventory, property and equipment and related items.

Activity and reserve balances for restructuring charges at June 30, 2017 and 2016 were as follows:



	June 30,
($ in millions)	2017			2016
Reserve balance beginning of year	$	0.3		$	2.3
Restructuring charges and asset impairment charges	—			18.0
Cash payments	(0.3		)	(3.0		)
Payments from qualified pension plan associated with restructuring charges	—			(9.4		)
Non-cash asset impairment charges and other	—			(7.6		)
Reserve balance end of year	$	—		$	0.3