Restructuring Charges

9 Months Ended

Mar. 31, 2021

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 lowering operating costs and reducing the workforce by approximately 80 positions. The 2020 Restructuring Plan was initiated on July 13, 2020 and completed as of December 31, 2020.

The Company incurred $4.0 million in severance-related costs in the first nine 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 March 31, 2021 is set forth in the following table:

	Employee
(In thousands)	Separation Costs
Balance at June 30, 2020	$	—
Restructuring charges		4,043
Payments		(4,001)
Balance at March 31, 2021	$	42