On May 23, 2023, the Board of Directors approved the 2023 Plan which includes site consolidations, facilities moves and closures, as well as the relocation and requalification of certain manufacturing facilities. These restructuring actions were intended to realign our cost structure as part of a transformation to a simpler, more streamlined, resilient and sustainable business model. We evaluate restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations (“ASC 420”), and ASC 712, Compensation-Nonretirement Post-Employment Benefits (“ASC 712”).

In the year ended June 30, 2026, these activities resulted in net charges of $1 million, primarily for site move costs partially offset by adjustments to employee termination costs. In the year ended June 30, 2025, these activities resulted in $53 million of net charges primarily for impairment losses associated with the sale of our Newton Aycliffe business, impairment of ROU assets, employee termination costs, site move costs and accelerated depreciation. In fiscal 2024, these activities resulted in $27 million of charges primarily for acceleration of depreciation, write-off of property and equipment, and site move costs.



	Severance		Asset Write-Offs		Other		Total Accrual
Balance - June 30, 2024	$	51,061	$	—	$	—	$	51,061
Restructuring charges	6,123		24,010		22,864		52,997


Payments	(12,954)		—		—		(12,954)
Asset write-offs and other	—		(24,010)		(22,864)		(46,874)
Balance - June 30, 2025	44,230		—		—		44,230
Restructuring charges (recoveries)	(11,349)		250		11,992		893


Payments	(5,336)		—		—		(5,336)
Asset write-offs and other	1,035		(250)		(11,992)		(11,207)
Balance - June 30, 2026	$	28,580	$	—	$	—	$	28,580

At June 30, 2026, $7 million and $22 million of accrued severance related costs were included in other accrued liabilities and other liabilities on our Consolidated Balance Sheet, respectively, and are expected to result in cash expenditures through fiscal 2028. The current and prior year severance related net charges are primarily comprised of accruals and adjustments for severance and pay for employees being terminated due to the consolidation of certain manufacturing sites, with severance recorded in accordance with ASC 712.

For the year ended June 30, 2026 restructuring costs were not material in any segment. For the year ended June 30, 2025, restructuring costs were primarily incurred in the Datacenter & Communications segment. Restructuring charges (recoveries) are recorded in Restructuring charges in our Consolidated Statements of Earnings (Loss).

Commencing in the quarter ended March 31, 2025, and as part of the ongoing strategic review of the Company’s business, the Company’s management approved the 2025 Plan. In connection therewith, the Company incurs charges for related severance and benefits, lease and contract termination costs, asset write-offs, facilities move and other restructuring costs. We evaluate restructuring charges in accordance with ASC 420 and ASC 712.

In the year ended June 30, 2026, these activities resulted in $62 million of net charges primarily related to write-off of property and equipment, employee termination and site closure costs. In the year ended June 30, 2025, these activities resulted in $107 million of net charges primarily for the write-off of property and equipment and ROU assets, employee and contract termination costs. We expect the restructuring actions to be substantially completed by the end of fiscal 2026. However, the actual timing and costs associated with these restructuring actions may differ from our current expectations and estimates and such differences may be material.



	Severance		Asset Write-Offs		Other		Total Accrual
Balance - June 30, 2024	$	—	$	—	$	—	$	—
Restructuring charges	23,983		59,068		24,033		107,084
Payments	(7,261)		(48,574)		(4,136)		(59,971)
Asset write-offs and other	—		—		—		—
Balance - June 30, 2025	16,722		10,494		19,897		47,113
Restructuring charges	27,583		26,068		8,846		62,497
Payments	(20,652)		—		—		(20,652)
Asset write-offs and other	(1,122)		(26,788)		(16,512)		(44,422)
Balance - June 30, 2026	$	22,531	$	9,774	$	12,231	$	44,536

At June 30, 2026, $23 million of accrued severance related costs were included in other accrued liabilities and are expected to result in cash expenditures primarily through fiscal 2027. The current year severance related net charges are primarily comprised of accruals for severance and pay for employees being terminated due to the consolidation of certain manufacturing and distribution sites as well as workforce reductions, with severance recorded in accordance with ASC 712. At June 30, 2026, total liabilities for asset write-offs and other contract costs of $10 million and $12 million were included in other accrued liabilities and other liabilities, respectively, on our Consolidated Balance Sheet.

For the year ended June 30, 2026, restructuring charges were incurred primarily in the Industrial and Corporate segments. For the year ended June 30, 2025, restructuring charges were primarily incurred in the Industrial and Datacenter & Communications segments. Restructuring charges and recoveries are recorded in Restructuring charges in our Consolidated Statements of Earnings (Loss).