Restructuring Plan

6 Months Ended

Dec. 31, 2012

M. Restructuring Plan

In the first quarter of fiscal 2013, the Company announced a restructuring plan (“2013 Plan”) affecting the ACS business segment. 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 sequestration. The 2013 Plan primarily consisted of involuntary separation 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 integration of Micronetics. Restructuring expenses of $217 and $5,201 were recognized for the three and six months ended December 31, 2012, respectively. Future restructuring expenses of approximately $203 associated with the 2013 Plan are expected in the second half of fiscal 2013 as the Company continues transitioning manufacturing activities related to the Micronetics acquisition. These restructuring expenses affect the ACS business segment.

In the fourth quarter of fiscal 2012, the Company announced a restructuring plan (“2012 Plan”) affecting both the ACS and MFS business segments. The 2012 Plan primarily consisted of involuntary separation 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. Future restructuring expenses of approximately $404 associated with the 2012 Plan are expected in the second half of fiscal 2013 as the Company continues transitioning the manufacturing activities formerly conducted at the Huntsville, Alabama facility. This restructuring expense will affect the ACS business segment.

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
ACS restructuring charges	$	2,406		$	306		$	2,712
MFS restructuring charges		109			—			109

Total 2012 provision		2,515			306			2,821
Cash paid		(2	)		(121	)		(123	)

Restructuring liability at June 30, 2012	$	2,513		$	185		$	2,698
ACS restructuring charges		5,333			146			5,479
MFS restructuring charges		—			—			—

Total 2013 provision		5,333			146			5,479
Cash paid		(5,103	)		(148	)		(5,251	)
Reversals^(*)		(278	)		—			(278	)

Restructuring liability at December 31, 2012	$	2,465		$	183		$	2,648

^(*)

Reversals consist primarily of a true up for the finalization of severance agreements and unused outplacement services.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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