XML 97 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Restructuring Charges
 12 Months Ended
Jun. 30, 2014
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring Charges
As of June 30, 2014, restructuring liabilities were $0.3 million and consisted of obligations for termination benefits. During fiscal 2014, 2013 and 2012, the Company recorded a restructuring charge, net of $0.5 million, $6.8 million, and $1.6 million, respectively. A portion of the 2012 restructuring activity is related to the liquidation of the Company's Japan subsidiary with a charge of $0.5 million during fiscal 2012. The Company substantially liquidated the subsidiary in Japan in the fourth quarter of fiscal 2012, as part of the Company's broad restructuring effort. The Company disposed the remaining immaterial assets and liabilities and completed the liquidation process during fiscal 2013.
Fiscal 2013 Restructuring
During the second quarter of fiscal 2013, the Company further reduced costs through targeted restructuring activities intended to reduce operating costs and realign its organization in the current competitive environment. As part of its restructuring efforts in the second quarter, the Company initiated a plan to reduce its worldwide headcount by 13%, consolidate specific global administrative functions, and shift certain operating costs to lower cost regions, among other actions. As of June 30, 2014, the Company had restructuring liabilities of $0.3 million related to the fiscal 2013 restructuring, which it anticipates paying by the end of fiscal 2015.
Fiscal 2012 Restructuring
During fiscal 2012, the Company incurred total charges of $2.2 million, including $6.3 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. There are no outstanding liabilities as of June 30, 2014.
Restructuring liabilities consist of (in thousands):
 
 
Contract
Termination
 
Termination
Benefits
 
Other
 
Total
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 payments
(13
)
 
(4,077
)
 
(224
)
 
(4,314
)
Balance at June 30, 2012
$
93

 
$
359

 
$
11

 
$
463

Period charges
113

 
6,293

 
719

 
7,125

Period reversals
(2
)
 
(287
)
 
—

 
(289
)
Period payments
(204
)
 
(5,148
)
 
(481
)
 
(5,833
)
Balance at June 30, 2013
$
—

 
$
1,217

 
$
249

 
$
1,466

Period charges
628

 
119

 
86

 
833

Period reversals
(11
)
 
(309
)
 
(4
)
 
(324
)
Addition from acquisition
(20
)
 
—

 
—

 
(20
)
Period payments
(275
)
 
(1,027
)
 
(331
)
 
(1,633
)
Restructuring liabilities at June 30, 2014
$
322

 
$
—

 
$
—

 
$
322