BALANCE SHEET DETAILS

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



	March 29, 2014		June 29, 2013
	(Thousands)
Cash and cash equivalents:
Cash-in-bank	$	116,221	$	82,634
Money market funds	1,220		2,001
	$	117,441	$	84,635

As of March 29, 2014, we had restricted cash of $4.7 million, consisting of collateral for the performance of our obligations under certain lease facility agreements and $2.4 million (equivalent to RMB 15 million) of cash held in Oclaro Shenzhen’s bank account in China that was frozen by the Xi'an Court in connection with our litigation with Xi’an Raysung Photonics Inc. (see Note 9, Commitments and Contingencies, for additional details regarding this litigation.)

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



	March 29, 2014		June 29, 2013
	(Thousands)
Inventories:
Raw materials	$	28,576	$	32,678
Work-in-process	22,668		26,760
Finished goods	30,417		26,591
	$	81,661	$	86,029

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



	March 29, 2014			June 29, 2013
	(Thousands)
Property and equipment, net:
Buildings and improvements	$	13,030		$	10,271
Plant and machinery	48,449			72,144
Fixtures, fittings and equipment	8,991			4,295
Computer equipment	14,296			13,940
	84,766			100,650
Less: Accumulated depreciation	(31,455		)	(28,622		)
	$	53,311		$	72,028

Property and equipment includes assets under capital leases of $10.9 million at March 29, 2014 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:



	March 29, 2014		June 29, 2013
	(Thousands)
Accrued expenses and other liabilities:
Trade payables	$	11,738	$	10,391
Compensation and benefits related accruals	10,401		13,117
Warranty accrual	5,137		4,670
Accrued restructuring charges, current	1,556		5,363
Other accruals	18,408		18,469
	$	47,240	$	52,010

The following table summarizes the activity related to our accrued restructuring charges for the nine months ended March 29, 2014:



	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	375			11,555			11,930
Paid or written-off	(605		)	(13,981		)	(14,586		)
Balance at March 29, 2014	$	—		$	4,610		$	4,610
Current portion	—			1,556			1,556
Non-current portion	—			3,054			3,054

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.

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 March 29, 2014, we recorded restructuring charges of $2.2 million related to workforce reductions and paid $4.2 million to settle a portion of these restructuring liabilities. During the nine months ended March 29, 2014, we recorded restructuring charges of $8.0 million and paid $7.3 million to settle a portion of these restructuring liabilities. The restructuring charges for the nine months ended March 29, 2014, included $7.7 million related to workforce reductions and $0.3 million related to revised estimates related to lease cancellations and commitments. As of March 29, 2014, we had $0.7 million in accrued restructuring liabilities related to this restructuring plan. We expect to incur an additional $8.0 million to $12.0 million in restructuring charges over the course of the next year in connection with the ongoing activities related to this restructuring plan.

As of June 29, 2013, we also had $1.9 million in accrued restructuring liabilities relating to the separation agreement with our former Chief Executive Officer. During the nine months ended March 29, 2014, we paid $1.2 million to settle a portion of this liability. At March 29, 2014, we have $0.7 million in accrued restructuring liabilities, which we expect to settle during the next quarter.

During the first quarter of fiscal year 2013, we initiated a restructuring plan to integrate our acquisition of Opnext. In connection with this restructuring plan, we recorded $1.1 million in restructuring charges during the nine months ended March 29, 2014, respectively. The restructuring charges recorded in fiscal year 2014 included $0.9 million in external consulting charges and professional fees associated with reorganizing the infrastructure and $0.1 million in revised estimates related to lease cancellations and commitments. During the nine months ended March 29, 2014, we made scheduled payments of $2.2 million, respectively, to settle these restructuring liabilities. During the three and nine months ended March 30, 2013, we recorded $0.5 million and $9.6 million in restructuring charges, respectively. The restructuring charges for the three months ended March 30, 2013, included $0.3 million related to workforce reductions and $0.2 million related to revised estimates for lease cancellations and commitments. The restructuring charges for the nine months ended March 30, 2013, included $8.1 million related to workforce reductions, $0.9 million related to the impairment of certain technology that is now 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 and nine months ended March 30, 2013, we made scheduled payments of $0.4 million and $8.2 million, respectively. As of March 29, 2014, we had no further accrued restructuring liabilities related to this restructuring plan.

During fiscal year 2012, we initiated a restructuring plan in connection with the transfer of a portion of our Shenzhen, China manufacturing operations to Venture Corporation Limited (Venture). In connection with this transition, during the three and nine months ended March 29, 2014, we recorded restructuring charges related to employee separation charges of $0.9 million and $2.7 million, respectively. During the three and nine months ended March 29, 2014, we made scheduled payments of $1.5 million and $3.8 million, respectively, to settle a portion of these restructuring liabilities. During the three and nine months ended March 30, 2013, we recorded restructuring charges related to employee separation charges of $1.1 million and $4.0 million, respectively. During the three and nine months ended March 30, 2013, we made scheduled payments of $0.2 million and $2.1 million, respectively, to settle a portion of these restructuring liabilities. As of March 29, 2014, we had $3.2 million in accrued restructuring liabilities related to this restructuring plan. We expect to incur between $2.0 million and $3.0 million in additional restructuring costs in connection with the transition of our Shenzhen manufacturing operations to Venture over the next year.

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



	March 29, 2014			June 29, 2013
	(Thousands)
Accumulated other comprehensive income:
Currency translation adjustments	$	45,655		$	45,719
Unrealized loss on marketable securities	(144		)	(105		)
Switzerland and Japan defined benefit plans	(398		)	(6,246		)
	$	45,113		$	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.