Restructuring Charges and Asset Impairment Charges

12 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring Charges and Asset Impairment Charges

Fiscal Year 2021

During fiscal year 2021, restructuring and asset impairment charges were $16.6 million. Additional restructuring actions were executed within the Company's Additive business in the PEP segment. This included $14.2 million of non-cash pre-tax impairment charges related to $8.2 million of property, plant and equipment, $4.3 million associated with certain definite lived intangible assets, $1.3 million related to a lease right of use asset and $0.4 million of other non-cash charges. The Company also recognized $0.4 million for facility shut-down costs and various personnel-related costs for severance payments, medical coverage and related items.

The Company also recorded $2.0 million of non-cash pre-tax impairment charges as a result of the Amega West business exit primarily related to accounts receivable determined to be uncollectible.

Fiscal Year 2020

During fiscal year 2020, restructuring and asset impairment charges were $68.5 million. 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 approved a plan to exit the Amega West oil and gas business. As a result, the Company recognized restructuring charges of $31.1 million. This included non-cash pre-tax impairment charges of $26.8 million on certain long-lived assets, of which $21.2 million related to property, plant and equipment and $5.6 million associated with certain definite lived intangible assets during the year ended June 30, 2020. The Company also recognized $4.3 million for facility shut-down costs and various personnel costs for severance payments, medical coverage and related items.

The Company recorded a pre-tax charge of $20.7 million during the year ended June 30, 2020 to reflect site closure costs for two domestic powder facilities in the PEP segment consisting of non-cash adjustments of property, plant and equipment and other assets.

During the year ended June 30, 2020, the Company implemented a restructuring plan aimed at reducing fixed costs by eliminating 20 percent of global salaried positions across all business segments. In connection with this restructuring plan and other cost saving actions, the Company recorded a pre-tax charge of $8.4 million during the year ended June 30, 2020 consisting primarily of various personnel-related costs for severance payments, medical coverage and related items. Of this charge, $0.9 million was recorded as non-cash forfeiture income related to share-based compensation in fiscal year 2020 and $3.5 million was paid from the Company's qualified pension plan in fiscal year 2021.

The Company recorded a pre-tax charge of $8.3 million during the year ended June 30, 2020 to reflect a non-cash write-down of software related to costs for an enterprise resource system that will not be implemented at a particular business unit.

There were no restructuring and asset impairment charges for fiscal year 2019.

The reserve balances and activity for restructuring charges at June 30, 2021 and 2020 were as follows:


	June 30,
($ in millions)	2021		2020
Reserve balance beginning of year	$	9.5	$	—
Restructuring charges excluding non-cash impairments	1.2		13.0
Cash payments	(9.3)		(3.5)
Reserve balance end of year	$	1.4	$	9.5