Costs Associated with LED Business Restructuring

3 Months Ended

Sep. 27, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Costs Associated with LED Business Restructuring

In June 2015, the Company’s Board of Directors approved a plan to restructure the LED Products business. The restructuring is expected to reduce excess capacity and overhead in order to improve the cost structure moving forward. The primary components of the restructuring include the planned sale or abandonment of certain manufacturing equipment, facility consolidation and the elimination of certain positions.

The following table summarizes the actual and planned charges incurred through September 27, 2015 (in thousands):

Capacity and Overhead Cost Reductions	Estimated charges		Amounts incurred during the three months ended September 27, 2015		Cumulative amounts incurred through September 27, 2015		Affected Line Item in the Consolidated Statements of (Loss) Income
Loss on disposal or impairment of long-lived assets		$57,720		$13,878		$56,010	Loss on disposal or impairment of long-lived assets
Severance expense	2,319		300		2,319		Sales, general and administrative expenses
Lease termination and facility consolidation costs	4,559		1,735		3,564		Sales, general and administrative expenses
Increase in channel inventory reserves	26,479		—		26,479		Revenue, net
Increase in inventory reserves	11,091		—		11,091		Cost of revenue, net
Total restructuring charges		$102,168		$15,913		$99,463

The Company anticipates that the remaining restructuring charges will be recognized in the second quarter of fiscal 2016.

The following table presents the changes in the severance liability under the LED Products restructuring plan (in thousands):

Severance liability at June 30, 2014		$—
Severance expense	2,019
Severance payments	—
Severance liability at June 28, 2015		$2,019
Severance expense	300
Severance payments	(1,950		)
Severance liability at September 27, 2015		$369