XML 76 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Restructuring Charges (Notes)
 12 Months Ended
Jun. 30, 2012
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring Charges
As of June 30, 2012, restructuring liabilities were $0.5 million and consisted of obligations under excess facility operating leases, net of projected future sublease receipts and termination benefits. During fiscal 2012, 2011 and 2010, the Company recorded a restructuring charge of $1.6 million, restructuring charge of $3.8 million, and restructuring charge of $4.2 million, respectively. A portion of this restructuring activity is related to the liquidation of the Company's Japan subsidiary with a cost of $0.5 million at June 30, 2012. The Company substantially liquidated the subsidiary in Japan in the fourth quarter or fiscal 2012, as part of the Company's broad restructuring effort. The Company will dispose the remaining immaterial assets and liabilities and complete the liquidation process by the end of fiscal 2013.
Fiscal 2012 Restructuring
During fiscal 2012, the Company incurred total charges of $2.2 million, including $1.8 million of related severance, $0.1 million of contract termination fees, and $0.2 million other charges. The Company also made payments of $4.3 million. The associated restructuring costs were primarily termination benefits and contract termination costs. Termination benefits primarily consist of outplacement services, health insurance coverage, and legal costs. Contract termination costs primarily consist of costs to terminate operating leases and other contracts, including rent expense (less expected sublease income) on facilities under operating leases.
Fiscal 2011 Restructuring
During fiscal 2011, the Company commenced a strategy to focus on growing revenue in specific market verticals and on improving operational effectiveness.  As part of the strategy, the Company reduced headcount by 139 and incurred total restructuring charges of $4.2 million, of which $1.0 million and $3.2 million were recognized in the third and fourth quarter of fiscal 2011, respectively. During the fourth quarter of fiscal 2011, the lease term for the excess leased facilities ended. The Company recognized a restructuring reversal of $0.4 million related to the true up of operating and rent expenses.
Fiscal 2010 Restructuring
During the second quarter of fiscal 2010 the Company restructured the organization, from a business unit organization to a functional organization. In connection with the restructuring, the Company had a reduction in force (“RIF”) and terminated 8% of the workforce incurring termination benefits of $4.1 million and eliminated certain redundant engineering projects of $0.5 million. Total restructuring charges related to the RIF and engineering projects recognized in fiscal 2010 was $4.6 million.
Additionally there were $0.2 million increase in facilities operating expenses related to one of the Company's restructured facilities along with a $0.5 million reversal of restructuring expense due to higher projected sublease receipt from a sublease renewal arrangement and $0.1 million reversal of restructuring expense related to the settlement of employment termination benefits incurred in the third fiscal quarter of 2009.
Restructuring liabilities consist of (in thousands):
 
 
Excess
Facilities
 
Asset
Impairment
 
Contract
Termination
 
Termination
Benefits
 
Acceleration
of Stock
Awards
 
Other
 
Total
Balance at June 28, 2009
6,337

 
—

 
—

 
741

 
—

 
—

 
7,078

Period charges
260

 
449

 
86

 
3,763

 
353

 
—

 
4,911

Period reversals
(529
)
 
—

 
—

 
(139
)
 
—

 
—

 
(668
)
Period impairments
—

 
(65
)
 
—

 
—

 
(353
)
 
—

 
(418
)
Period payments
(2,928
)
 
(384
)
 
(77
)
 
(4,144
)
 
—

 
—

 
(7,533
)
Balance at June 27, 2010
3,140

 
—

 
9

 
221

 
—

 
—

 
3,370

Period charges
—

 
—

 
—

 
4,146

 
—

 
80

 
4,226

Period reversals
(381
)
 
—

 
—

 
(38
)
 
—

 
—

 
(419
)
Period impairments
—

 
—

 
—

 
—

 
—

 
—

 
—

Period payments
(2,759
)
 
—

 
(9
)
 
(1,226
)
 
—

 
—

 
(3,994
)
Balance at July 3, 2011
—

 
—

 
—

 
3,103

 
—

 
80

 
3,183

Period charges
—

 
—

 
124

 
1,832

 
—

 
206

 
2,162

Period reversals
—

 
—

 
(18
)
 
(499
)
 
—

 
(51
)
 
(568
)
Period impairments
—

 
—

 
—

 
—

 
—

 
—

 
—

Period payments
—

 
—

 
(13
)
 
(4,077
)
 
—

 
(224
)
 
(4,314
)
Restructuring liabilities at June 30, 2012
—

 
—

 
93

 
359

 
—

 
11

 
463