Restructuring and Related Charges

9 Months Ended

Mar. 31, 2022

FY21 Restructuring Actions

In the September quarter of fiscal 2020, we announced the initiation of restructuring actions in Germany associated with our simplification/modernization initiative to reduce structural costs. Subsequently, we also announced the acceleration of our other structural cost reduction plans including the closure of the Johnson City, Tennessee facility. As of March 31, 2022, the FY21 Restructuring Actions are considered substantially complete. In line with our target of approximately $85 million, total restructuring and related charges since inception of $84.8 million were recorded for this program through March 31, 2022, consisting of: $77.1 million in Metal Cutting and $7.7 million in Infrastructure.

Restructuring and Related Charges Recorded

We recorded restructuring and related charges of $3.0 million for the three months ended March 31, 2022, which consisted of charges of $3.0 million in Metal Cutting and an immaterial amount in Infrastructure. Of this amount, restructuring charges were $0.9 million and restructuring-related charges were $2.1 million (included in cost of goods sold) for the three months ended March 31, 2022. For the three months ended March 31, 2021, we recorded restructuring and related charges of $2.1 million, which consisted of charges of $2.5 million in Metal Cutting offset by a benefit from the reversal of charges of $0.4 million in Infrastructure. Of this amount, restructuring benefits from the reversal of charges were $0.9 million of which $0.1 million was included in cost of goods sold for the three months ended March 31, 2021. Restructuring-related charges of $3.0 million were recorded in cost of goods sold for the three months ended March 31, 2021.

We recorded restructuring and related charges of $2.6 million for the nine months ended March 31, 2022, which consisted of charges of $2.6 million in Metal Cutting and an immaterial amount in Infrastructure. Of this amount, restructuring benefits were $2.3 million and restructuring-related charges were $4.9 million (included in cost of goods sold) for the nine months ended March 31, 2022. For the nine months ended March 31, 2021, we recorded restructuring and related charges of $34.9 million, which consisted of charges of $32.0 million in Metal Cutting and $2.9 million in Infrastructure. Of this amount, restructuring charges were $26.5 million of which $0.3 million was included in cost of goods sold. Restructuring-related charges of $8.5 million were recorded in cost of goods sold for the nine months ended March 31, 2021.

As of March 31, 2022, $7.8 million and $3.6 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively, in our condensed consolidated balance sheet. As of June 30, 2021, $19.9 million and $9.9 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively. The amounts are as follows:


(in thousands)	June 30, 2021		Expense		Asset Write-Down		Translation		Cash Expenditures		March 31, 2022
Severance	$	29,723	$	(3,903)	$	—	$	(1,224)	$	(13,144)	$	11,452
Facilities	—		1,580		(1,580)		—		—		—
Other	—		—		—		—		—		—
Total	$	29,723	$	(2,323)	$	(1,580)	$	(1,224)	$	(13,144)	$	11,452