Restructuring Plans

During fiscal 2014, the Company announced a restructuring plan ("2014 Plan") that was implemented as part of the final phase of integration activities relating to the Company’s recent acquisitions. The integration plan includes the consolidation of manufacturing facilities, centralization of administrative functions using common information systems and processes, and realignment of research and development resources. The restructuring plan included the elimination of 70 positions largely in engineering, manufacturing and administrative functions. Additionally, the Company closed four facilities relocating all related activities to the Company's Advanced Microelectronics Center ("AMC") in Hudson, New Hampshire. The Company also completed the first phase of the Chelmsford, Massachusetts headquarters consolidation in the fourth quarter of fiscal 2014. These restructuring expenses associated with the Company's fiscal 2014 restructuring plan amounted to $5,443 and affected both the MCE and MDS reportable segments.

During the fourth quarter of fiscal 2013, the Company initiated a restructuring plan ("Q4 2013 Plan") expanding the first phase of the integration activities surrounding our recent acquisitions primarily affecting Micronetics and the MCE reportable segment. The Company eliminated 17 positions, primarily in operations, and incurred facility costs related to the loss on the sale of the Company's legacy Hudson, New Hampshire facility of approximately $1,109. The legacy Hudson, New Hampshire facility was leased back through February 2014. Restructuring expenses of $7,060 were recognized for the year ended June 30, 2013.

In the first quarter of fiscal 2013, the Company announced a restructuring plan (“Q1 2013 Plan”). The 2013 Plan was implemented to cope with reduced defense revenues and the near term uncertainties in the defense industry driven by the potential for defense budget sequestration. The 2013 Plan primarily consisted of costs related to the reduction in force which eliminated 142 positions largely in engineering, manufacturing and administrative functions, as well as reductions associated with the first phase of the integration of Micronetics. The 2013 Plan's restructuring expenses affect the MCE reportable segment.

In fiscal 2012, the Company announced a restructuring plan (“2012 Plan”) affecting both the MCE and MDS reportable segments. The 2012 Plan primarily consisted of costs related to the reduction in force which eliminated 41 positions largely in engineering and manufacturing functions and facility costs related to outsourcing of certain manufacturing activities at the Company’s Huntsville, Alabama site. The 2012 Plan, for which expense of $2,712 was recorded in fiscal 2012, was implemented to cope with the near term uncertainties in the defense industry and improve the Company’s overall business scalability.

All of the restructuring charges are classified as operating expenses in the consolidated statements of operations and any remaining obligations are expected to be paid within the next twelve months. The remaining restructuring liability is classified as accrued expenses in the consolidated balance sheets.

The following table presents the detail of expenses by business segment for the Company’s restructuring plans:



	Severance & Related			Facilities & Other			Total
Restructuring liability at June 30, 2012	$	2,404		$	185		$	2,589
MCE restructuring charges	5,939			1,574			7,513
Cash paid	(7,456		)	(364		)	(7,820		)
Non-cash	—			(1,109		)	(1,109		)
Reversals (*)	(453		)	—			(453		)
Restructuring liability at June 30, 2013	434			286			720
MCE restructuring charges	3,961			1,512			5,473
MDS restructuring charges	55			—			55
Cash paid	(3,054		)	(966		)	(4,020		)
Reversals (*)	(25		)	(60		)	(85		)
Restructuring liability at June 30, 2014	$	1,371		$	772		$	2,143

(*) Reversals result from the finalization of severance agreements and unused outplacement services.