Severence, Impairment And Other Charges

9 Months Ended

Mar. 31, 2016

Severance, Impairment And Other Charges [Abstract]

11.Severance, Impairment and Other Charges

During the third quarter of fiscal 2016, the Company announced a financial improvement plan that resulted in a reduction in global headcount of approximately 10%. This plan was implemented to re-align the Company’s fixed cost with its near-to mid-term expectations for the Company’s business. As a result of this restructuring plan, the Company expects to incur pre-tax cash and non-cash charges of approximately $3.0 million. The charges recorded as Severance, Impairment and Other Charges for the three and nine months ended March 31, 2016 related to this restructuring plan are as follows:



	Three and Nine Months Ended
	March 31, 2016
Severance and related costs	$	1,754
Impairment		694
Inventory Write-off		119
Total	$	2,567

Severance expense for the three and nine months ended March 31, 2016 was associated with a reduction in force at our U.S. ($1,200,000), Germany ($524,000) and China ($30,000) locations. The Company also recorded an impairment charge of previously capitalized software and wrote-off inventory in the amount of $813,000 related to a product line that was discontinued in the third quarter of fiscal 2016.

The following table reconciles the activity for the nine months ended March 31, 2016 for the Restructuring Reserve:



	Restructuring Reserve
Balance at July 1, 2015	$	-
Accruals - Severance related		1,754
Payments		(306)
Balance at March 31, 2016	$	1,448

The accrued balance at March 31, 2016 mainly includes payments to be made related to our U.S., Germany and China reduction in force and is expected to be paid within the next 11 months.