POST-RETIREMENT BENEFITS

Switzerland Defined Benefit Plan

During the first quarter of fiscal year 2014, we sold our Zurich Business, and as part of the sale transferred our pension plan covering employees of our Swiss subsidiary (the “Swiss Plan”) to II-VI. At the end of our first quarter of fiscal year 2014, we had no remaining obligations under the Swiss Plan.

Net periodic pension costs associated with our Swiss Plan are recorded in discontinued operations and included the following:



	Three Months Ended					Nine Months Ended
	March 29, 2014		March 30, 2013			March 29, 2014			March 30, 2013
	(Thousands)
Service cost	$	—	$	816		$	703		$	2,455
Interest cost	—		185			169			556
Expected return on plan assets	—		(308		)	(279		)	(928		)
Net amortization	—		93			76			282
Net periodic pension costs	$	—	$	786		$	669		$	2,365

Prior to transferring our pension plan to II-VI, we contributed $0.5 million to our Swiss Plan. During the three and nine months ended March 30, 2013, we contributed $0.5 million and $1.7 million, respectively, to our Swiss Plan.

Japan Defined Contribution and Benefit Plan

In connection with our acquisition of Opnext, we assumed a defined contribution plan and a defined benefit plan that provides retirement benefits to our employees in Japan.

Under the defined contribution plan, contributions are provided based on grade level and totaled $0.2 million and $0.6 million for the three and nine months ended March 29, 2014, respectively, and $0.2 million and $0.7 million for the three months ended March 30, 2013 and for the period from July 23, 2012, the acquisition date, to March 30, 2013, respectively. Employees can elect to receive the benefit as additional salary or contribute the benefit to the plan on a tax-deferred basis.

Under the defined benefit plan in Japan (the “Japan Plan”), we calculate benefits based on an employee’s individual grade level and years of service. Employees are entitled to a lump sum benefit upon retirement or upon certain instances of termination. As of March 29, 2014, there were no plan assets. Net periodic pension costs for the Japan Plan included the following:



	Three Months Ended				Nine Months Ended
	March 29, 2014		March 30, 2013		March 29, 2014		March 30, 2013
	(Thousands)
Service cost	$	239	$	251	$	720	$	827
Interest cost	23		32		70		105
Net amortization	17		17		48		58
Net periodic pension costs	$	279	$	300	$	838	$	990

In connection with the Japan Plan, we have $0.2 million in accrued expenses and other liabilities and $8.0 million in other non-current liabilities in our condensed consolidated balance sheet as of March 29, 2014, to account for the projected benefit obligations.

We made benefit payments under the Japan plan of $0.3 million and $0.4 million during the three and nine months ended March 29, 2014, respectively, and $0.1 million during the nine months ended March 30, 2013.