Restructuring Activities (Notes)

6 Months Ended

Dec. 27, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING ACTIVITIES

Fiscal year 2015:

Summary of Restructuring Plans

The Company has accruals for severance and restructuring payments as well as expected losses relating to lease terminations.

The Company's restructuring activities in the six months ended December 27, 2014 were as follows:

	Balance, June 28, 2014		Three Months Ended December 27, 2014 Charges		Six Months Ended December 27, 2014							Balance, December 27, 2014		As of December 27, 2014
					Charges		Cash Payments			Change in Estimates				Total Costs Incurred to Date		Total Expected Costs to be Incurred
San Jose Fab Shutdown
Severance	$	—	$	6,042	$	6,042	$	—		$	—	$	6,042	$	6,042	$	1,721
Accelerated depreciation	—		8,895		8,895		—			—		—		8,895		71,119
Total San Jose Fab Shutdown	—		14,937		14,937		—			—		6,042		14,937		72,840
Other Plans
Severance	5,782		7,593		8,574		(8,263		)	404		6,497		14,760		—
Lease termination losses	9,132		—		352		(2,019		)	—		7,465		9,483		—
Total other plans	14,914		7,593		8,926		(10,282		)	404		13,962		24,243		—
Total restructuring plans	$	14,914	$	22,530	$	23,863	$	(10,282	)	$	404	$	20,004	$	39,180	$	72,840
In Balance Sheets:
Accrued salary and related expenses	$	5,782										$	8,628
Accrued expenses	$	4,276										$	6,520
Other liabilities	$	4,856										$	4,856

San Jose Fab Shutdown

On October 23, 2014, the Company initiated a plan to shut down its San Jose wafer fabrication facility. The Company reached the decision that it was not economically feasible to maintain this facility, which is used primarily for fab process development and low volume manufacturing, as the Company intends to utilize other resources to complete such activities in the future. This plan includes cash charges related to employee severance and non-cash charges related to accelerated depreciation.

During the three and six months ended December 27, 2014, respectively, the Company recorded accelerated depreciation charges of $8.9 million in "Cost of goods sold" and $6.0 million in "Severance and restructuring expenses" in the Condensed Consolidated Statement of Income. The expected total cost of the plan is approximately $87.8 million and it is expected to be complete by the end of fiscal year 2016.

Other Plans

During the six months ended December 27, 2014, the Company recorded $8.6 million in "Severance and restructuring expenses" in the Condensed Consolidated Statement of Income related to various restructuring plans designed to reduce costs. These charges were associated with the reorganization of certain business units and functions. Multiple job classifications and locations were impacted by these activities.

The Company also accrued for expected losses relating to lease terminations as a result of plans to consolidate office space. The need for consolidation resulted from acquisition and relocation activities.

Fiscal year 2014:

Volterra Restructuring Plan

In connection with the acquisition of Volterra, the Company's management approved and initiated plans to restructure the operations of Volterra, including acceleration of certain stock-based compensation awards, costs to vacate duplicative facilities, severance for transitional and exiting employees, contract cancellation costs and other items. The total combined cost of the plan was $9.9 million in Severance and restructuring expenses in the Company's Condensed Consolidated Statements of Income. As of December 28, 2013, the Company recorded all of the costs of the plan based upon the anticipated timing of planned terminations and facility closure costs. Expected severance and retention costs for transitional employees are being accrued over the transitional period. Amounts accrued and future estimated costs to be incurred as of December 28, 2013 are immaterial.

Business Unit Reorganization

During the six months ended December 28, 2013, the Company recorded $5.9 million in Severance and restructuring expenses in the Company's Condensed Consolidated Statements of Income associated with the reorganization of certain business units. Multiple job classifications and locations were impacted as this was a company-wide action. The reorganization was driven by the desire to focus on specific investment areas and simplify business processes.