Restructuring Costs (Notes)

9 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

During the third quarter of fiscal 2020, the Company initiated a business improvement plan to increase profitability and reduce its cost structure related to:

•its strategic initiative to exit the domestic iron and steel industry;

•the implementation of business improvements in the power delivery portion of the Utility and Power Infrastructure segment; and

•the decline in revenue caused by the ongoing effects of the COVID-19 pandemic and related market disruptions.

The business improvement plan consists of discretionary cost reductions, workforce reductions, reduction of capital expenditures and the reduction in size or closure 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 revenue volumes. The Company incurred $14.0 million of restructuring costs during fiscal 2020 and $6.6 million during the nine months ended March 31, 2021. The restructuring costs consist primarily of severance costs, facility closure costs, intangible asset impairments and other liabilities as a result of exiting certain operations. The Company will continue to assess whether further reductions in its cost structure are necessary and may incur additional restructuring costs in the near-term.

Restructuring costs under our business improvement plan are classified as follows:

	Three Months Ended				Nine Months Ended				Since Inception of Business Improvement Plan
	March 31, 2021		March 31, 2020		March 31, 2021		March 31, 2020
	(In thousands)
Utility and Power Infrastructure
Severance and other personnel-related costs	$	291	$	632	$	1,109	$	632	$	2,450
Facility costs	112		303		117		303		351
Other intangible asset impairments	—		—		—		—		1,150
Total Utility and Power Infrastructure	$	403	$	935	$	1,226	$	935	$	3,951
Process and Industrial Facilities
Severance and other personnel-related costs	$	315	$	2,506	$	2,905	$	2,506	$	9,073
Facility costs	264		1,581		279		1,581		3,035
Other intangible asset impairments	—		—		—		—		375
Other costs	202		—		461		—		461
Total Process and Industrial Facilities	$	781	$	4,087	$	3,645	$	4,087	$	12,944
Storage and Terminal Solutions
Severance and other personnel-related costs	$	423	$	47	$	1,076	$	47	$	1,422
Facility costs	167		774		168		774		888
Total Storage and Terminal Solutions	$	590	$	821	$	1,244	$	821	$	2,310
Corporate
Severance and other personnel-related costs	$	3	$	716	$	164	$	716	$	1,084
Facility costs	83		—		306		—		306
Total Corporate	$	86	$	716	$	470	$	716	$	1,390
Restructuring Costs by Type:
Severance and other personnel-related costs	$	1,032	$	3,901	$	5,254	$	3,901	$	14,029
Facility costs	626		2,658		870		2,658		4,580
Other intangible asset impairments	—		—		—		—		1,525
Other costs	202		—		461		—		461
Total restructuring costs	$	1,860	$	6,559	$	6,585	$	6,559	$	20,595

The restructuring reserve is included in other accrued expenses and other liabilities in the condensed consolidated balance sheets. The table below is a reconciliation of the beginning and ending restructuring reserve balance under the business improvement plan (in thousands):

Balance as of June 30, 2020	$	2,403
Restructuring costs incurred	3,510
Cash payments	(3,143)
Adjustment to liability	(510)
Balance as of March 31, 2021	$	2,260