Costs Associated with LED Business Restructuring

9 Months Ended

Mar. 27, 2016

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 reduced 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 restructuring activity ended in the second quarter of fiscal 2016. While no charges were incurred for the three months ended March 27, 2016, the Company did realize a $1.1 million gain of the sale of long-lived assets related to the restructuring which were sold for a value in excess of their estimated net realizable value.

The following table summarizes the actual and planned charges incurred through March 27, 2016 (in thousands):

Capacity and Overhead Cost Reductions	Estimated charges		Amounts incurred during the nine months ended March 27, 2016		Cumulative amounts incurred through March 27, 2016		Affected Line Item in the Consolidated Statements of Income (Loss)
Loss on disposal or impairment of long-lived assets		$57,651		$15,519		$57,651	Loss on disposal or impairment of long-lived assets
Severance expense	2,283		264		2,283		Sales, general and administrative expenses
Lease termination and facility consolidation costs	4,762		2,933		4,762		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		$102,266		$18,716		$102,266

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

Severance liability at June 28, 2015		$2,019
Severance expense	264
Severance payments	(2,283		)
Severance liability at March 27, 2016		$—