BALANCE SHEET DETAILS

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



	September 27, 2014		June 28, 2014
	(Thousands)
Cash and cash equivalents:
Cash-in-bank	$	88,095	$	97,759
Money market funds	1,214		1,214
	$	89,309	$	98,973

As of September 27, 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 8, Commitments and Contingencies, for additional details regarding this litigation.)

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



	September 27, 2014		June 28, 2014
	(Thousands)
Inventories:
Raw materials	$	21,630	$	20,036
Work-in-process	22,942		20,505
Finished goods	30,841		30,558
	$	75,413	$	71,099

In connection with our sale of the Komoro Business, we reclassified $4.3 million of the $75.4 million in inventories as assets held for sale in our condensed consolidated balance sheet at September 27, 2014.

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



	September 27, 2014			June 28, 2014
	(Thousands)
Property and equipment, net:
Buildings and improvements	$	11,764		$	12,989
Plant and machinery	33,297			47,247
Fixtures, fittings and equipment	5,074			9,701
Computer equipment	12,982			13,723
	63,117			83,660
Less: Accumulated depreciation	(15,461		)	(32,892		)
	$	47,656		$	50,768

In connection with our sale of the Komoro Business, we reclassified $3.4 million of the $47.7 million in property and equipment as assets held for sale in our condensed consolidated balance sheet at September 27, 2014.

Property and equipment includes assets under capital leases of $7.8 million (excluding $0.5 million in capital leases classified as assets held for sale) at September 27, 2014 and $9.9 million at June 28, 2014, respectively. Amortization associated with assets under capital leases is recorded in depreciation expense.

The following table summarizes the activity related to our other intangible assets for the three months ended September 27, 2014:



	Core and Current Technology			Development and Supply Agreements			Customer Relationships			Patent Portfolio		Other Intangibles		Amortization			Total
	(Thousands)
Balance at June 28, 2014	$	8,267		$	4,660		$	5,143		$	915	$	3,338	$	(13,787	)	$	8,536
Held for sale in connection with the transfer of the Komoro Business	(1,926		)	(2,559		)	—			—		—		—			(4,485		)
Amortization	—			—			—			—		—		(418		)	(418		)
Translations and adjustments	(141		)	(41		)	(197		)	—		—		—			(379		)
Balance at September 27, 2014	$	6,200		$	2,060		$	4,946		$	915	$	3,338	$	(14,205	)	$	3,254

In connection with the sale of our Komoro Business, we intend to transfer certain of our other intangible assets to Ushio Opto. We have classified $4.5 million of our other intangible assets as assets held for sale in our condensed consolidated balance sheet at September 27, 2014.

With the sale of our Komoro Business, we expect the amortization of intangible assets to be $0.9 million for fiscal year 2015, $0.8 million for each fiscal year 2016 through 2017, $0.7 million for fiscal year 2018, $0.1 million for fiscal year 2019 and $0.1 million thereafter, based on the current level of our other intangible assets as of September 27, 2014.

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



	September 27, 2014		June 28, 2014
	(Thousands)
Accrued expenses and other liabilities:
Trade payables	$	32,090	$	18,612
Compensation and benefits related accruals	9,977		10,242
Warranty accrual	4,054		4,672
Accrued restructuring, current	1,630		2,220
Other accruals	15,647		15,746
	$	63,398	$	51,492

In connection with our sale of the Komoro Business, we reclassified $2.0 million of the $63.4 million in accrued expenses and other liabilities as liabilities in connection with the sale in our condensed consolidated balance sheet at September 27, 2014.

The following table summarizes the activity related to our accrued restructuring charges for the three months ended September 27, 2014:



	Lease Cancellations, Commitments and Other Charges			Termination Payments to Employees and Related Costs			Total Accrued Restructuring Charges
	(Thousands)
Balance at June 28, 2014	$	1,881		$	962		$	2,843
Charged to restructuring costs	654			1,076			1,730
Paid or written-off	(1,250		)	(1,693		)	(2,943		)
Balance at September 27, 2014	$	1,285		$	345		$	1,630
Current portion	1,285			345			1,630
Non-current portion	—			—			—

The current portion of accrued restructuring liabilities is included in the caption accrued expenses and other 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 September 27, 2014 and September 28, 2013, we recorded restructuring charges of $0.8 million and $0.2 million, respectively, in connection with this restructuring plan. The restructuring charges for the three months ended September 27, 2014 included $0.2 million related to workforce reductions and $0.6 million related to revised estimates related to lease cancellations and commitments. The restructuring charges for the three months ended September 28, 2013 related to workforce reductions in our research and development facility in Israel. During the three months ended September 27, 2014 and September 28, 2013, we made scheduled payments of $1.4 million and $2.0 million, respectively, to settle a portion of these restructuring liabilities. As of September 27, 2014, we had $1.4 million in accrued restructuring liabilities related to this restructuring plan.

In connection with the acquisition of Opnext, we initiated a restructuring plan to integrate our acquisition of Opnext. During the three months ended September 27, 2014 and September 28, 2013, we recorded restructuring charges of zero and $0.9 million, respectively, in connection with this restructuring plan. The restructuring charges recorded in fiscal year 2014 included $0.9 million in external consulting charges and professional fees associated with reorganizing the infrastructure. During the three months ended September 28, 2013, we made scheduled payments of $2.0 million to settle these restructuring liabilities. As of September 27, 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"). This transition is scheduled to occur in a phased and gradual transfer of certain products, which is scheduled to be completed in fiscal year 2015. In connection with this transition, during the three months ended September 27, 2014 and September 28, 2013, we recorded restructuring charges related to employee separation charges of $0.9 million and $1.0 million, respectively. During the three months ended September 27, 2014 and September 28, 2013, we made scheduled payments of $1.3 million and $0.5 million,, respectively, to settle a portion of these restructuring liabilities. As of September 27, 2014, we had $0.2 million in accrued restructuring liabilities related to this restructuring plan.

We expect to incur an additional $3.0 million to $9.0 million, in aggregate, in restructuring charges over the course of the next year in connection with these restructuring plans.

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



	September 27, 2014			June 28, 2014
	(Thousands)
Accumulated other comprehensive income:
Currency translation adjustments	$	44,781		$	46,490
Unrealized loss on marketable securities	(228		)	(209		)
Japan defined benefit plan	86			(417		)
	$	44,639		$	45,864

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.