Restructuring Costs (Notes)

9 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

In February 2020, the Company announced a business improvement plan related to its strategic initiatives to exit the domestic iron and steel industry and to implement business improvements in the Electrical Infrastructure segment. Planned activities under the business improvement plan have been expanded due to lower revenue expectations for the remainder of fiscal 2020 and fiscal 2021 following the uncertainties caused by the COVID-19 pandemic and the significant decline in the price of crude oil, both of which began during the third quarter.

The business improvement plan consists of discretionary cost reductions, workforce reductions and closures of certain offices in order to increase the utilization of the Company's staff and bring the cost structure of the business in line with the near-term expectation of lower revenue. The restructuring costs are primarily comprised of severance and personnel-related costs related to reductions in workforce and impairments of operating lease right-of-use assets and other fixed assets related to the closure of certain office spaces. The Company incurred $6.6 million of restructuring costs during the three months ended March 31, 2020 and expects to incur an additional $4.0 to $6.0 million of restructuring costs related to activities planned during the fourth quarter of fiscal 2020.

Restructuring costs incurred are classified as follows:



	Three Months Ended March 31, 2020
	(in thousands)
Electrical Infrastructure
Severance costs and other benefits	$	811
Facility costs	303
Total Electrical Infrastructure	$	1,114
Oil Gas & Chemical
Severance costs and other benefits	$	635
Facility costs	774
Total Oil Gas & Chemical	$	1,409
Storage Solutions
Severance costs and other benefits	$	225
Facility costs	775
Total Storage Solutions	$	1,000
Industrial
Severance costs and other benefits	$	2,230
Facility costs	806
Total Industrial	$	3,036
Total restructuring costs	$	6,559

Restructuring Costs by Type:
Total severance costs and other benefits	$	3,901
Total facility costs	2,658
Total restructuring costs	$	6,559

The table below is a reconciliation of the beginning and ending restructuring reserve balance (in thousands):



Balance as of December 31, 2019	$	—
Restructuring costs incurred	6,559
Non-cash restructuring costs⁽¹⁾	(2,660		)
Cash payments	(2,963		)
Balance as of March 31, 2020	$	936

(1)

Non-cash restructuring costs consisted of impairments of operating lease right-of-use assets and other fixed asset impairments related to the closure of certain leased office spaces.