Restructuring

12 Months Ended

Jun. 27, 2021

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

The Company has approved various operational plans that include restructuring costs. All restructuring costs are recorded in other operating expense on the consolidated statement of operations.

Corporate Restructuring

In April 2018, the Company approved a corporate restructuring plan. The purpose was to restructure and realign the Company's cost base with the long-range business strategy that was announced in February 2018. The restructuring activity was completed in the second quarter of fiscal 2019. For the fiscal year ended June 30, 2019, $2.6 million was expensed relating to this corporate restructuring plan.

In September 2020, the Company realigned certain resources to further focus on areas vital to the Company's growth while driving efficiencies. As a result, the Company recorded $2.8 million in severance-related costs for the fiscal year ended June 27, 2021. The plan has concluded and all expenses have been paid as of June 27, 2021.

Additionally, in February 2021, the Company realigned the structure of its Asia sales presence. As a result, the Company recorded $0.6 million in severance related costs for the fiscal year ended June 27, 2021. The plan has concluded and all expenses have been paid as of June 27, 2021.

Factory Optimization Restructuring

In May 2019, the Company started a significant, multi-year factory optimization plan anchored by a state-of-the-art, automated 200mm capable silicon carbide and GaN fabrication facility and an expansion of its materials factory at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company has incurred and will incur restructuring charges associated with the movement of equipment as well as disposals on certain long-lived assets.

In September 2019, the Company announced its intent to build a new device fabrication facility in Marcy, New York to complement the factory expansion underway at its U.S. campus headquarters in Durham, North Carolina. The Company has commenced the building of the New York facility and is currently evaluating the impact of this decision on future restructuring charges.

The Company expects approximately $90.0 million in restructuring charges related to the factory optimization plan to be incurred through 2024. For the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, the Company expensed $5.2 million, $9.0 million and $4.1 million, respectively, of restructuring charges associated with the movement of equipment related to the factory optimization plan, of which $0.1 million was accrued for as of June 27, 2021. Additionally, the Company expensed $3.4 million of restructuring charges associated with disposals of certain long-lived assets for the fiscal year ended June 27, 2021.

Sales Restructuring

In June 2019, the Company approved and implemented a sales restructuring plan to restructure and realign the Company's geographical sales team with the skills and experience needed to execute on the Company's business objectives. The restructuring activity was completed in the fourth quarter of fiscal 2019. The Company recorded $0.2 million in restructuring expense relating to this plan in the fourth quarter of fiscal 2019.

Sales Representatives Restructuring

In July 2019, the Company realigned its sales resources as part of the Company's transition to a more focused semiconductor company. As a result, the Company recorded $0.6 million in contract termination costs during the fiscal year ended June 28, 2020, of which $0.1 million was accrued in other current liabilities as of June 28, 2020.