Restructuring

3 Months Ended

Sep. 25, 2022

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 January 2022, the Company commenced a plan to open a global IT shared services hub in Belfast, Northern Ireland in partnership with the Northern Ireland government. The Company recorded less than $0.1 million of severance-related costs relating to this plan for the three months ended September 25, 2022 and has accrued $0.8 million as of September 25, 2022.

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 a large materials factory at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company has incurred 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 Silicon Carbide device fabrication facility in Marcy, New York to complement the expansion of the Company's Silicon Carbide materials production capacity at its U.S. campus headquarters in Durham, North Carolina.

The factory optimization restructuring plan concluded in fiscal 2022. For the three months ended September 26, 2021, the Company expensed and paid $1.6 million of restructuring charges associated with the movement of equipment related to the factory optimization plan. Additionally, the Company expensed and paid $1.0 million of restructuring charges associated with disposals of certain long-lived assets for the three months ended September 26, 2021.