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Industrial Development Subsidy
9 Months Ended
Mar. 28, 2015
Industrial Development Subsidy [Abstract]  
INDUSTRIAL DEVELOPMENT SUBSIDY

15. INDUSTRIAL DEVELOPMENT SUBSIDY

As of March 28, 2015, industrial development subsidies in the amount of $11.9 million have been earned and applied for by PSE-SD from the Jinan Hi-Tech Industries Development Zone Commission based on meeting certain pre-defined criteria. The subsidies may be used for the acquisition of assets or to cover business expenses. When a subsidy is used to acquire assets, the subsidy will be amortized over the useful life of the asset. When a subsidy is used for expenses incurred, the subsidy is regarded as earned upon the incurrence of the expenditure. The remaining balance of the subsidies at March 28, 2015 was $5.6 million, which amount is expected to be recognized over the next five to seven years.

The Company recognized $185,000 and $190,000 of industrial development subsidy as a reduction of cost of goods sold and $46,000 and $47,000 of industrial development subsidy as a reduction of operating expenses in the consolidated statements of operations for the three month periods ended March 28, 2015 and March 29, 2014, respectively. The Company recognized $561,000 and $567,000 of industrial development subsidy as a reduction of cost of goods sold and $139,000 and $140,000 of industrial development subsidy as a reduction of operating expenses in the consolidated statements of operations for the nine month periods ended March 28, 2015 and March 29, 2014, respectively.