NOTE 3. BALANCE SHEET DETAILS

The following table provides details regarding our cash and cash equivalents at the dates indicated:


	September 28, 2013		June 29, 2013
	(Thousands)
Cash and cash equivalents:
Cash-in-bank	$	90,773	$	82,634
Money market funds		1,214		2,001

	$	91,987	$	84,635

The following table provides details regarding our inventories at the dates indicated:


	September 28, 2013		June 29, 2013
	(Thousands)
Inventories:
Raw materials	$	29,916	$	32,729
Work-in-process		23,845		26,760
Finished goods		34,530		26,623

	$	88,291	$	86,112

The following table provides details regarding our property and equipment, net at the dates indicated:


	September 28, 2013			June 29, 2013
	(Thousands)
Property and equipment, net:
Buildings and improvements	$	10,990		$	10,334
Plant and machinery		74,902			71,487
Fixtures, fittings and equipment		4,568			4,295
Computer equipment		14,916			13,978

		105,376			100,094
Less: Accumulated depreciation		(39,494	)		(28,252	)

	$	65,882		$	71,842

Property and equipment includes assets under capital leases of $16.7 million at September 28, 2013 and $18.2 million at June 29, 2013, respectively. Amortization associated with assets under capital leases is recorded in depreciation expense.

The following table presents details regarding our accrued expenses and other liabilities at the dates indicated:


	September 28, 2013		June 29, 2013
	(Thousands)
Accrued expenses and other liabilities:
Trade payables	$	18,351	$	10,391
Compensation and benefits related accruals		15,408		13,117
Warranty accrual		5,970		5,887
Accrued restructuring charges, current		4,419		5,363
Deferred gain related to option on Amplifier Business		5,000		—
Other accruals		13,290		18,469

	$	62,438	$	53,227

The following table summarizes the activity related to our accrued restructuring charges for the three months ended September 28, 2013:


	Lease Cancellations, Commitments and Other Charges			Termination Payments to Employees and Related Costs			Total Accrued Restructuring Charges
	(Thousands)
Balance at June 29, 2013	$	230		$	7,036		$	7,266
Charged to restructuring costs		—			2,141			2,141
Paid or written-off		(168	)		(2,521	)		(2,689	)

Balance at September 28, 2013	$	62		$	6,656		$	6,718

Current portion		62			4,357			4,419
Non-current portion		—			2,299			2,299

During the first quarter of fiscal year 2014, we initiated a restructuring plan to simplify our operating footprint, reduce our cost structure and focus our research and development investment in the optical communications market where we can leverage our core competencies. During the three months ended September 28, 2013, we recorded restructuring charges and paid $0.2 million related to workforce reductions in our research and development facility in Israel. We expect to incur an additional $20.0 million to $25.0 million in restructuring charges over the course of the next year in connection with the ongoing activities related to this restructuring plan.

In connection with the acquisition of Opnext, we initiated a restructuring plan to integrate the businesses in the first quarter of fiscal year 2013. We recorded $0.9 million and $8.3 million in restructuring charges during the three months ended September 28, 2013 and September 29, 2012, respectively. The restructuring charges for the three months ended September 28, 2013, included $0.9 million related to external consulting charges and professional fees associated with reorganizing the infrastructure. The restructuring charges for the three months ended September 29, 2012, included $7.0 million related to workforce reductions, $0.9 million related to the impairment of certain technology that was considered redundant following the acquisition and $0.4 million related to the write-off of net book value inventory that supported this technology. During the three months ended September 28, 2013 we made scheduled payments of $2.0 million to settle a portion of these restructuring liabilities. As of September 28, 2013, we had $0.1 million in accrued restructuring liabilities related to this restructuring plan.

During fiscal year 2012, we initiated a restructuring plan in connection with the transfer of our Shenzhen, China manufacturing operations to Venture Corporation Limited (Venture). In connection with this transition, we recorded restructuring charges related to employee separation charges of $1.0 million and $1.6 million during the three months ended September 28, 2013 and September 29, 2012, respectively. During the three months ended September 28, 2013, we made scheduled payments of $0.5 million to settle a portion of these restructuring liabilities. As of September 28, 2013, we had $4.8 million in accrued restructuring liabilities related to this restructuring plan. We expect to incur between $4.0 million and $6.0 million in additional restructuring costs in connection with the transition of our Shenzhen manufacturing operations to Venture over the next year and a half.

At September 28, 2013, we also had $1.9 million in accrued restructuring liabilities relating to the separation agreement with our former Chief Executive Officer.

The current portion of accrued restructuring liabilities is included in the caption accrued expenses and other liabilities and the non-current portion is included in the caption other non-current liabilities in the condensed consolidated balance sheet.

The following table presents the components of accumulated other comprehensive income at the dates indicated:


	September 28, 2013			June 29, 2013
	(Thousands)
Accumulated other comprehensive income:
Currency translation adjustments	$	42,832		$	45,719
Unrealized loss on marketable securities		(135	)		(105	)
Switzerland and Japan defined benefit plans		(429	)		(6,246	)

	$	42,268		$	39,368

In connection with the sale of the Zurich Business in the first quarter of fiscal year 2014, II-VI assumed the pension plan covering employees of the Swiss subsidiary.