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Industrial Development Subsidy
3 Months Ended
Sep. 26, 2015
Industrial Development Subsidy [Abstract]  
INDUSTRIAL DEVELOPMENT SUBSIDY

15. INDUSTRIAL DEVELOPMENT SUBSIDY

As of September 26, 2015, industrial development subsidies in the amount of $11.6 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 as of September 26, 2015 was $5.0 million, which is expected to be recognized over the next five to seven years. 

The Company recognized $186,000 and $188,000 of industrial development subsidy as a reduction of cost of goods sold and $42,000 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 September 26, 2015 and September 27, 2014, respectively.