| Schedule of restructuring charges |
The restructuring and restructuring-related charges, including the impairment of assets held-for-sale, for periods presented were recorded in the Condensed Consolidated Statements of Earnings as follows (in thousands):
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Nine Months Ended |
|
|
March 31, |
|
March 31, |
|
|
2024 |
|
2024 |
Cost of sales |
|
$ |
647 |
|
$ |
1,821 |
Selling, general and administrative(1) |
|
|
903 |
|
|
11,153 |
Total |
|
$ |
1,550 |
|
$ |
12,974 |
|
|
|
|
|
|
|
(1) Restructuring actions impacting research and development are not material to separately disclose and have been included within Selling, general and administrative costs.
Restructuring and restructuring-related costs by segment are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2024 |
|
|
|
Employee |
|
|
Asset-related |
|
|
Impairment of |
|
|
|
|
|
|
severance |
|
|
and other |
|
|
assets held-for-sale |
|
|
Total |
Protein Sciences |
|
$ |
28 |
|
$ |
914 |
|
$ |
— |
|
$ |
942 |
Diagnostics and Genomics |
|
|
265 |
|
|
90 |
|
|
— |
|
|
355 |
Corporate |
|
|
117 |
|
|
136 |
|
|
— |
|
|
253 |
Total |
|
$ |
410 |
|
$ |
1,140 |
|
$ |
— |
|
$ |
1,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended March 31, 2024 |
|
|
|
Employee |
|
|
Asset-related |
|
|
Impairment of |
|
|
|
|
|
|
severance |
|
|
and other |
|
|
assets held-for-sale |
|
|
Total |
Protein Sciences |
|
$ |
2,978 |
|
$ |
1,386 |
|
$ |
6,038 |
|
$ |
10,402 |
Diagnostics and Genomics |
|
|
1,004 |
|
|
90 |
|
|
— |
|
|
1,094 |
Corporate |
|
|
1,310 |
|
|
168 |
|
|
— |
|
|
1,478 |
Total |
|
$ |
5,292 |
|
$ |
1,644 |
|
$ |
6,038 |
|
$ |
12,974 |
The following table summarizes the changes in the Company’s accrued restructuring balance, which is included within Other current liabilities in the accompanying balance sheet. Other amounts reported as restructuring and restructuring-related costs in the accompanying statements of income have been summarized in the notes to the table (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee |
|
|
Asset-related |
|
|
Impairment of |
|
|
|
|
|
|
severance(1) |
|
|
and other(2) |
|
|
assets held-for-sale |
|
|
Total |
Expense incurred in the second quarter of 2024 |
|
$ |
4,882 |
|
$ |
504 |
|
$ |
6,038 |
|
$ |
11,424 |
Cash payments |
|
|
(1,257) |
|
|
(177) |
|
|
— |
|
|
(1,434) |
Non-cash adjustments |
|
|
— |
|
|
(191) |
|
|
(6,038) |
|
|
(6,229) |
Accrued restructuring actions balance as of December 31, 2023 |
|
$ |
3,625 |
|
$ |
136 |
|
$ |
— |
|
$ |
3,761 |
Incremental expense incurred in the third quarter of 2024 |
|
|
133 |
|
|
1,140 |
|
|
— |
|
|
1,273 |
Cash payments |
|
|
(2,806) |
|
|
(433) |
|
|
— |
|
|
(3,239) |
Non-cash adjustments |
|
|
— |
|
|
(843) |
|
|
— |
|
|
(843) |
Adjustments(3) |
|
|
277 |
|
|
— |
|
|
— |
|
|
277 |
Accrued restructuring actions balance as of March 31, 2024 |
|
$ |
1,229 |
|
$ |
— |
|
$ |
— |
|
$ |
1,229 |
(1) Relates to impacted employees’ final paycheck, separation payments, outplacement services, legal fees, and retention packages related to the closure or sale of certain distribution and manufacturing sites.
(2) Primarily relates to impairment of right-of-use assets, lease termination fees, consulting fees, and expenses for changes to supporting IT systems that are enabling the Company to complete the restructuring initiatives.
(3) Relates to the refinement of the accrual recorded in the second quarter of fiscal 2024.
|
| Schedule of restructuring charges |
The related restructuring charges for the year ended June 30, 2023 were recorded in the income statement as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Employee |
|
Asset |
|
|
|
|
severance |
|
impairment and other |
|
Total |
Selling, general and administrative |
|
$ |
1,328 |
|
$ |
842 |
|
$ |
2,170 |
|
|
|
|
|
|
|
|
|
|
|
|
Employee |
|
Asset |
|
|
|
|
severance |
|
impairment and other |
|
Total |
Expense incurred in the first quarter of 2023 |
|
$ |
1,328 |
|
$ |
842 |
|
$ |
2,170 |
Cash payments |
|
|
(1,233) |
|
|
(772) |
|
|
(2,005) |
Adjustments |
|
|
(95) |
|
|
(70) |
|
|
(165) |
Accrued restructuring actions balances as of June 30, 2023 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| Schedule of restructuring charges |
Restructuring actions, including cash and non-cash impacts, are as follows (in thousands):
|
|
|
|
|
|
Employee |
|
|
severance |
Expense incurred in fiscal year 2023 |
|
$ |
1,677 |
Fiscal year 2023 cash payments |
|
|
(762) |
Fiscal year 2023 adjustments |
|
|
(18) |
Accrued restructuring actions balances as of June 30, 2023 |
|
$ |
897 |
Fiscal year 2024 cash payments |
|
|
(1,006) |
Fiscal year 2024 adjustments(1) |
|
|
221 |
Accrued restructuring actions balances as of March 31, 2024(2) |
|
$ |
112 |
(1) Fiscal year 2024 adjustments relate to the refinement of the accrual recorded in fiscal year 2023.
(2) The remaining balance as of March 31, 2024 relates to employee severance that is paid out over a one-year period.
|