Severance, Impairment And Other Charges

3 Months Ended

Sep. 30, 2016

Severance, Impairment And Other Charges [Abstract]

10.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 11%. This plan was implemented to re-align our fixed costs with our near-to mid-term expectations for our business. In addition, during the first quarter of fiscal 2017, we decided to terminate production and marketing of a specific product line due to limitations in its design. As a result of this decision, we wrote-off related inventory of $397,000 and impaired certain customer receivable balances in the amount of $145,000. Total pre-tax cash and non-cash charges related to the original restructuring plan as well as the additional charges from the terminated product line, are expected to be up to $4.0 million.

The charges recorded as Severance, Impairment and Other Charges for the three months ended September 30, 2016 related to this restructuring plan are as follows:



	Three Months Ended
(in thousands)	September 30, 2016
Severance and Related Costs	$	114
Impairment		145
Inventory Write-Off		397
Total	$	656

Severance expense (income) for the three months ended September 30, 2016 was associated with adjustments at our U.S. (increase of $110,000), Chinese (increase of $82,000) and German (reduction of $78,000) locations as we reached final settlements related to several individuals impacted by the reduction in force. See Note 16 for further discussion regarding our settlement with the previous owner of Coord3.

The following table reconciles the activity for the three months ended September 30, 2016 for the Restructuring Reserve:



(in thousands)	Restructuring Reserve
Balance at July 1, 2016	$	814
Accruals - Severance Related		114
Payments		(329)
Balance at September 30, 2016	$	599

The accrued balance at September 30, 2016 mainly includes payments to be made related to our U.S, China. and Germany reduction in force and is expected to be paid within the next 6 months.