Note 11. Restructuring and Related Charges

The Company continues to take advantage of opportunities to further reduce costs through targeted restructuring events intended to consolidate its operations and rationalize the manufacturing of its products based on core competencies and cost efficiencies, together with the need to align the business in response to the market conditions. As of June 29, 2013, the Company's total restructuring accrual was $16.5 million. During the twelve months ended June 29, 2013 and June 30, 2012, the Company recorded $19.0 million and $12.5 million in restructuring and related charges, respectively. Of the $12.5 million in restructuring and related charges recorded during fiscal 2012, $0.1 million attributable to the Hologram Business is presented in the Consolidated Statements of Operations as a component of Loss from discontinued operations, net of tax. The Company's restructuring charges can include severance and benefit costs to eliminate a specified number of positions, facilities and equipment costs to vacate facilities and consolidate operations, and lease termination costs. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over multiple periods.

Summary of Restructuring Plans

The adjustments to the accrued restructuring expenses related to all of the Company's restructuring plans described below for the twelve months ended June 29, 2013, were as follows (in millions):

	Balance June 30, 2012		Fiscal Year 2013 Charges		Cash Settlements			Non-cash Settlements and Other Adjustments			Balance June 29, 2013

Fiscal 2013 Plans
CCOP Product Line Marketing Restructuring Plan (Workforce Reduction)	$	—	$	1.2	$	(0.7	)	$	—		$	0.5
OSP Operational Realignment Plan (Workforce Reduction)		—		3.7		—			—			3.7
CommTest Lease Restructuring Plan (Lease Costs)		—		4.2		(0.1	)		0.9			5.0
CCOP Outsourcing Plan (Workforce Reduction)		—		0.9		(0.2	)		—			0.7
CommTest Wireless Business Restructuring Plan (Workforce Reduction)		—		3.0		(2.0	)		—			1.0
CCOP CPV Plan (Workforce Reduction)		—		0.4		(0.4	)		—			—
Fiscal 2012 Plans
CommTest Operation and Repair Outsourcing Restructuring Plan:
Workforce Reduction	$	3.9	$	4.0	$	(5.9	)	$	—		$	2.0
Facilities and Equipment		—		0.8		(0.8	)		—			—
Lease Costs		—		0.5		(0.8	)		0.4			0.1

Total CommTest Operation and Repair Outsourcing		3.9		5.3		(7.5	)		0.4			2.1
OSP Business Consolidation Plan (Workforce Reduction)		0.8		—		(0.8	)		—			—
CommTest Manufacturing Support Consolidation Plan (Workforce Reduction)		2.5		0.2		(2.6	)		—			0.1
CommTest Germantown Restructuring Plan (Lease Costs)		0.5		—		—			—			0.5
Other plans		0.2		—		(0.2	)		—			—
Fiscal 2011 Plans
CommTest Market Rebalancing Restructuring Plan:
Workforce Reduction	$	0.1	$	—	$	(0.1	)	$	—		$	—
Lease Costs		1.0		—		(0.4	)		—			0.6

Total CommTest Market Rebalancing Restructuring Plan	$	1.1	$	—	$	(0.5	)	$	—		$	0.6
Plans Prior to Fiscal 2011		3.6		0.1		(1.5	)		0.1			2.3

Total	$	12.6	$	19.0	$	(16.5	)	$	1.4		$	16.5

Ottawa Lease Exit Costs	$	4.6	$	0.4	$	(1.2	)	$	(0.1	)	$	3.7

As of June 29, 2013 and June 30, 2012, the Company included the long-term portion of the restructuring liability of $6.2 million and $4.0 million, respectively, as "restructuring accrual", a component under Other non-current liabilities, and the short-term portion as "restructuring accrual", a component under Other current liabilities in the Consolidated Balance Sheets.

The Company had also previously recorded lease exit charges, net of assumed sub-lease income in prior fiscal years related to the Ottawa facility that was included in selling, general and administrative expenses. The fair value of the remaining contractual obligations, net of sublease income is $3.7 million and $4.6 million as of June 29, 2013 and June 30, 2012 respectively. The Company included the long-term portion of the contract obligations of $2.7 million and $3.7 million in Other non-current liabilities as of each period end, and the short-term portion in Other current liabilities in the Consolidated Balance Sheets. The payments related to these lease costs are expected to be paid by the end of the third quarter of fiscal 2018.

Fiscal 2013 Plans

CCOP Product Line Marketing Restructuring Plan

During the fourth quarter of fiscal 2013, management approved a plan to re-align certain functions related to the CCOP segment to drive organizational efficiency and enhance the product line marketing leadership. As a result, a restructuring charge of $1.2 million was recorded for severance and employee benefits for 28 employees primarily in manufacturing, R&D and SG&A functions located in the North America and Asia. As of June 29, 2013, 21 employees have been terminated and payments related to remaining severance and benefits accrual are expected to be paid by the end of the second quarter of fiscal 2014.

OSP Operational Realignment Plan

During the fourth quarter of fiscal 2013, management approved a plan in its OSP segment to realign its operations to focus on priority markets such as Anti-counterfeiting, Consumer and Industrial and Other offerings in government, aerospace and defense which resulted in ceasing production of certain legacy products such as anti-reflection coatings and front-surface mirrors for display and office automation applications, solar cell covers, and select infrared products that use our MAC, custom display, and some box coater production platforms which were at the end of their lifecycle. The business segment intends to phase out production of these product offerings by the end of the second quarter of fiscal 2014 and de-commission and dispose of certain production equipment as part of the plan. This will result in consolidation of manufacturing operations and office space in our site in Santa Rosa, CA and reduction of workforce by approximately 126 employees primarily in in manufacturing, R&D and SG&A functions located in the United States. As a result, a restructuring charge of $3.7 million was recorded for severance and employee benefits. As of June 29, 2013, no employees have been terminated and payments related to remaining severance and benefits accrual are expected to be paid by the end of second quarter of fiscal 2014.

CommTest Lease Restructuring Plan

During the fourth quarter of fiscal 2013, management approved a plan to consolidate workspace in Germantown, Maryland and Beijing, China, primarily used by the CommTest segment. As of June 29, 2013, the Company had exited the affected facilities in both Germantown and Beijing under the plan. The fair value of the remaining contractual obligations, net of sublease income as of June 29, 2013 was $5.0 million. Payments related to the lease costs are expected to be paid by first quarter of fiscal 2014 and second quarter of fiscal 2021 for the facilities in Beijing and Germantown, respectively.

CCOP Outsourcing Plan

During the third quarter of fiscal 2013, management approved a plan to transition certain functions related to the CCOP segment to an offshore contract manufacturer to align with our continuous efforts for supply chain optimization. As a result, a restructuring charge of $0.9 million was recorded for severance and employee benefits for 44 employees primarily in manufacturing, R&D and SG&A functions located in the United States. As of June 29, 2013, 4 employees have been terminated and payments related to remaining severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2015.

CommTest Wireless Business Restructuring Plan

During the second quarter of fiscal 2013, management approved a plan to align the Company's investment strategy in its CommTest segment with customer spending priorities in high-growth product lines such as wireless network assurance and eliminate positions in R&D, sales and operations organization that supported low-growth product lines. As a result, a restructuring charge of $3.0 million was recorded for severance and employee benefits for 63 employees primarily in manufacturing, R&D and SG&A functions located in North America, Europe and Asia. As of June 29, 2013, 53 employees have been terminated and payments related to remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2014.

CCOP CPV Plan

During the first quarter of fiscal 2013, management approved a plan to terminate the CPV product line within the CCOP segment based on limited opportunities for market growth. As a result, a restructuring charge of $0.4 million was recorded for severance and employee benefits for 9 employees primarily in manufacturing, R&D and SG&A functions located in United States, Europe, and Asia. As of June 29, 2013, all 9 employees have been terminated and fully paid.

Fiscal 2012 Plans

CommTest Operation and Repair Outsourcing Restructuring Plan

During the fourth quarter of fiscal 2012, management approved a plan which focuses on three areas in the CommTest segment: (1) moving the repair organization to a repair outsourcing partner; (2) reorganizing the R&D global team because of portfolio prioritization primarily in the CEM ("Customer Experience Management") business to consolidate key platforms from several sites to a single site, and (3) reorganizing Global Sales to focus on strategic software growth, wireless growth, and to ensure sales account resources on the most critical global growth accounts. This action will occur over the next several quarters and affected 168 employees in manufacturing, R&D and SG&A functions and resulted in the exit of workspaces in Techpoint Singapore and Atlanta, Georgia. The fair value of the remaining contractual obligations, net of sublease income as of June 29, 2013, was $0.1 million. The employees being affected are located in North America, Europe, Latin America and Asia. During the twelve months ended June 29, 2013, the Company adjusted the accrual for $4.0 million of additional severance and employee benefits arising from 64 employees added to the original plan, $0.8 million for transfer costs and lease construction costs as the result of the repair outsourcing initiative, and $0.5 million for the exit of workspaces in Techpoint Singapore and Atlanta, Georgia. As of June 29, 2013, 143 of these employees have been terminated and payments related to the remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2014.

OSP Business Consolidation Plan

During the fourth quarter of fiscal 2012, management approved a plan to consolidate and re-align the various business units primarily within its OSP segment to improve synergies. As a result of this plan 15 employees in manufacturing, R&D and SG&A functions located in the United States and Europe were impacted. Payments related to severance and benefits were paid by the third quarter of fiscal 2013.

CommTest Manufacturing Support Consolidation Plan

During the third quarter of fiscal 2012, management approved a plan to continue to consolidate its manufacturing support operations in the CommTest segment by reducing the number of contract manufacturer locations worldwide and moving most of them to lower cost regions such as Mexico and China. This action will occur over the next several quarters and affected 77 employees in manufacturing and SG&A functions. The employees being affected are located in United States, Europe and Asia. As of June 29, 2013, 75 employees have been terminated and payments related to the severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2014.

CommTest Germantown Restructuring Plan

During the second quarter of fiscal 2012, management approved a plan to consolidate workspace in Germantown, Maryland, primarily used by the CommTest segment. As of December 31, 2011, the Company exited the workspace in Germantown under the plan. The fair value of the remaining contractual obligations, net of sublease income as of June 29, 2013 was $0.5 million. Payments related to the lease costs are expected to be paid by the end of the second quarter of fiscal 2019.

Other plans

Other plans account for an immaterial portion of the total restructuring accrual, with minimal or no revisions recorded.

Fiscal 2011 Plans

CommTest Market Rebalancing Restructuring Plan

During the third quarter of fiscal 2011, management approved a plan for the CommTest segment to focus on higher growth products and services in lower cost markets with higher growth potential. This resulted in termination of employment, exit of three facilities and manufacturing transfer costs. As of June 30, 2012, all employees had been terminated. The fair value of the remaining contractual obligations with respect to the facilities exited, net of sublease income as of June 29, 2013 was $0.6 million. Payments related to the lease costs are expected to be paid by the end of the second quarter of fiscal 2016.

Plans Prior to Fiscal 2011

The restructuring accrual for plans that commenced prior to fiscal year 2011 was $2.3 million. Of this amount, $1.6 million is related to severance and benefits accrual for the CommTest Germany Restructuring Plan which commenced in the fourth quarter of fiscal 2009. Payments related to the severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2016. The remaining balance consists of immaterial lease obligation accruals from various restructuring plans that commenced prior to fiscal year 2011.