Severance, Impairment and Other Charges

12 Months Ended

Jun. 30, 2016

Severance, Impairment and Other Charges [Abstract]

12.Severance, Impairment and Other Charges

During the third quarter of fiscal 2016, we announced a financial improvement plan that resulted in a reduction in global headcount of approximately 10%. This plan was implemented to re-align our fixed costs with our near-to mid-term expectations for our business. As a result of this restructuring plan, we expect 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 fiscal year ended June 30, 2016 related to this restructuring plan are as follows


(in thousands)	Fiscal Year ended June 30, 2016
Severance and related costs	$	1,968
Impairment		694
Inventory write-off		164
Total	$	2,826

Severance expense for the fiscal year ended June 30, 2016 was associated with a reduction in force at our U.S. ($1,395,000), Germany ($472,000) and China ($101,000) locations. We also recorded an impairment charge of previously capitalized software and wrote-off inventory in the amount of $858,000 related to a product line that was discontinued in the third quarter of fiscal 2016.

The following table reconciles the activity for fiscal year ended June 30, 2016 for the Restructuring Reserve:


(in thousands)	Restructuring Reserve
Balance at July 1, 2015	$	-
Accruals - Severance related		1,968
Payments		(1,154)
Balance at June 30, 2016	$	814

The remaining accrued balance at June 30, 2016 mainly includes payments to be made related to our U.S. and Germany reduction in force and is expected to be paid within the next 9 months.