Annual report pursuant to Section 13 and 15(d)

Description of Business and Summary of Significant Accounting Policies (Tables)

v3.24.2.u1
Description of Business and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Jun. 30, 2024
Notes Tables  
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 Consolidated Statements of Earnings as follows (in thousands):

Year Ended

June 30, 

2024

Cost of sales

$

3,349

Selling, general and administrative(1)

30,638

Total

$

33,987

(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):

Year ended June 30, 2024

Employee

Asset-related

Impairment of

severance

and other

assets held-for-sale

Total

Protein Sciences

$

3,483

$

5,130

$

21,963

$

30,576

Diagnostics and Genomics

1,007

224

1,231

Corporate

1,153

1,027

2,180

Total

$

5,643

$

6,381

$

21,963

$

33,987

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

Incremental expense incurred in the third quarter of 2024

133

1,140

1,273

Incremental expense incurred in the fourth quarter of 2024

409

4,737

15,926

21,072

Cash payments

(4,882)

(2,800)

(7,682)

Non-cash adjustments

(3,391)

(21,963)

(25,354)

Adjustments(3)

219

219

Accrued restructuring actions balance as of June 30, 2024

$

761

$

190

$

$

952

(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.

Protein Sciences | QT Holdings Corporation  
Notes Tables  
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

$

$

$

Protein Sciences | Employee severance  
Notes Tables  
Schedule of restructuring charges

tax charges for the year ended June 30, 2024 were $0.2 million. 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

(1,118)

Fiscal year 2024 adjustments(1)

221

Accrued restructuring actions balances as of June 30, 2024

$

(1)Fiscal year 2024 adjustments relate to the refinement of the accrual recorded in fiscal year 2023.

Diagnostics and Genomics  
Notes Tables  
Schedule of restructuring charges Total restructuring charges for the closure of the Exosome Diagnostics Germany facility for the year ended June 30, 2022 were recorded within operating income on the income statement as follows (in thousands):

Employee

Asset

    

severance

    

impairment and other

    

Total

Selling, general and administrative

$

649

$

750

$

1,399

Employee

Asset

    

severance

    

impairment and other

    

Total

Expense incurred in the first quarter of 2022

$

639

$

546

$

1,185

Incremental expense incurred during fiscal 2022

242

242

Cash payments

(589)

(554)

(1,143)

Adjustments

(50)

(234)

(284)

Accrued restructuring actions balances as of June 30, 2022

$

$

$

(1) Adjustments include refinements to our estimated close down costs as well as the impacts from foreign currency exchange.