Restructuring Charges

6 Months Ended

Dec. 31, 2020

Restructuring Charges

Restructuring Charges

Note 4. Restructuring Charges

2020 Restructuring Plan

On July 10, 2020, the Board of Directors authorized a restructuring and cost savings plan (the “2020 Restructuring Plan”) to enhance manufacturing efficiencies, streamline operations and reduce the Company’s cost structure. The 2020 Restructuring Plan was implemented, in part, as a result of previously anticipated near-term competition and pricing pressure with respect to certain key products. The 2020 Restructuring Plan includes the consolidation of the Company’s R&D function into a single location in Philadelphia, PA, lowering operating costs and reducing the workforce by approximately 80 positions, equal to approximately 8.5% of the Company’s total number of employees. The 2020 Restructuring Plan was initiated on July 13, 2020 and is complete as of December 31, 2020.

The Company incurred $4.0 million in severance-related costs in the first six months of Fiscal 2021 in connection with the 2020 Restructuring Plan. The Company expects the 2020 Restructuring Plan to result in annual cost savings in excess of $15.0 million.

A reconciliation of the changes in restructuring liabilities associated with the 2020 Restructuring Plan from June 30, 2020 through December 31, 2020 is set forth in the following table:

	Employee
(In thousands)	Separation Costs
Balance at June 30, 2020	$	—
Restructuring Charges		4,043
Payments		(3,882)
Balance at December 31, 2020	$	161