XML 34 R21.htm IDEA: XBRL DOCUMENT v3.6.0.2
Restructuring Activities (Notes)
 6 Months Ended
Dec. 24, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
RESTRUCTURING ACTIVITIES

Fiscal year 2017:

During the three and six months ended December 24, 2016, the Company recorded $0.9 million and $10.8 million, respectively, in “Severance and restructuring expenses” in the Condensed Consolidated Statements of Income related to various restructuring plans designed to reduce costs. These charges were associated with continued reorganization of certain business units and functions and the planned closure of the Dallas wafer level packaging (“WLP”) manufacturing facilities. Multiple job classifications and locations were impacted by these activities.

As the Company plans to close its Dallas, Texas campus, including its WLP manufacturing facility in fiscal year 2017, the Company recorded accelerated depreciation charges of $1.6 million and $3.1 million during the three and six months ended December 24, 2016, respectively.

As of December 24, 2016, the Company expects to incur future restructuring costs of $1.2 million related to these restructuring plans.

Fiscal year 2016:

San Jose Fab Shutdown

In October 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 was used primarily for fab process development and low volume manufacturing, as the Company intended to utilize other resources to complete such activities in the future. This plan included cash charges related to employee severance and non-cash charges related to accelerated depreciation. This plan has been completed, and the shutdown took place in the second quarter of fiscal year 2016.

During the fiscal year ending June 25, 2016, the Company recorded accelerated depreciation charges of $41.6 million, in “Cost of goods sold” and $0.4 million in “Severance and restructuring expenses” in the Consolidated Statements of Income. The sale of the San Jose wafer fabrication facility took place during the second quarter of fiscal year 2016. The cumulative costs recorded in fiscal year 2015 and 2016 to complete this restructuring plan were $100.3 million and no future restructuring costs associated with this plan is expected.

Other Plans

During the fiscal year ending June 25, 2016, the Company recorded $24.0 million in “Severance and restructuring expenses” in the Consolidated Statements of Income related to various restructuring plans designed to reduce costs. These charges were associated with continued reorganization of certain business units and functions and the planned closure of the Dallas wafer level packaging (“WLP”) manufacturing facilities. Multiple job classifications and locations were impacted by these activities.

As the Company plans to close its Dallas, Texas campus, including its WLP manufacturing facility in fiscal year 2017, the Company recorded accelerated depreciation charges of $13.0 million during the fiscal year ending June 25, 2016.

Restructuring Accruals

The Company has accruals for severance and restructuring payments within Accrued salary and related expenses in the accompanying Condensed Consolidated Balance Sheets. The following table summarizes changes in the accruals associated with these restructuring activities during the six months ended December 24, 2016:

 
Balance, June 25, 2016
 
Six Months Ended
December 24, 2016
 
Balance, December 24, 2016
 
Charges
 
Cash Payments
 
Change in Estimates
 
 
(in thousands)
Severance - All plans (1)
$
7,578

 
$
11,276

 
$
(11,928
)
 
$
(447
)
 
$
6,479


(1)
Charges and change in estimates are included in Severance and restructuring expenses in the accompanying Condensed Consolidated Statements of Income.

Change in estimate:

Due to the above mentioned restructuring activities, the Company recorded accelerated depreciation resulting from the change in estimated useful lives of certain long lived assets included in restructuring plans. In all periods that accelerated depreciation expense was recorded, this resulted in additional expense and therefore impacted operating income (loss), net income (loss) and earnings (loss) per share as presented in the table below.

 
Three Months Ended
 
Six Months Ended
 
December 24,
2016
 
December 26,
2015
 
December 24,
2016
 
December 26,
2015
 
(in thousands, except per share data)
Operating income (loss), as reported
$
149,074

 
$
89,533

 
$
321,147

 
$
13,768

Operating income (loss), excluding accelerated depreciation expense
150,635

 
91,565

 
324,268

 
59,432

Effect of change in estimate
$
(1,561
)
 
$
(2,032
)
 
$
(3,121
)
 
$
(45,664
)
 
 
 
 
 
 
 
 
Net income (loss), as reported
$
130,477

 
$
67,469

 
$
268,091

 
$
(4,674
)
Net income (loss), excluding accelerated depreciation expense
131,849

 
73,119

 
270,929

 
37,705

Effect of change in estimate
$
(1,372
)
 
$
(5,650
)
 
$
(2,838
)
 
$
(42,379
)
 
 
 
 
 
 
 
 
Basic earnings (loss) per share, as reported
$
0.46

 
$
0.24

 
$
0.95

 
$
(0.02
)
Diluted earnings (loss) per share, as reported
$
0.45

 
$
0.23

 
$
0.93

 
$
(0.02
)
 
 
 
 
 
 
 
 
Basic earnings (loss) per share, excluding accelerated depreciation expense
$
0.47

 
$
0.26

 
$
0.96

 
$
0.13

Diluted earnings (loss) per share, excluding accelerated depreciation expense
$
0.46

 
$
0.25

 
$
0.94

 
$
0.13

 
 
 
 
 
 
 
 
Effect of change in estimate - basic earnings (loss) per share
$
(0.01
)
 
$
(0.02
)
 
$
(0.01
)
 
$
(0.15
)
Effect of change in estimate - diluted earnings (loss) per share
$
(0.01
)
 
$
(0.02
)
 
$
(0.01
)
 
$
(0.15
)