POST-RETIREMENT BENEFITS

3 Months Ended

Sep. 27, 2014

Compensation and Retirement Disclosure [Abstract]

POST-RETIREMENT BENEFITS

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.

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 $0.2 million for the three months ended September 27, 2014 and September 28, 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 September 27, 2014, there were no plan assets. Net periodic pension costs for the Japan Plan included the following:

	Three Months Ended
	September 27, 2014		September 28, 2013
	(Thousands)
Service cost	$	199	$	248
Interest cost	20		24
Net amortization	15		16
Net periodic pension costs	$	234	$	288

During the three months ended September 27, 2014, we recorded an adjustment of $0.5 million in accumulated other comprehensive income in connection with revising our methodology for estimating the actuarial present value of accumulated plan benefits under the Japan Plan.

We have $0.2 million in accrued expenses and other liabilities and $7.4 million in other non-current liabilities in our condensed consolidated balance sheet as of September 27, 2014, to account for the projected benefit obligations under the Japan Plan, of which a portion will be transferred as part of the sale of the Komoro Business.

We made benefit payments under the Japan plan of $0.3 million and $0.1 million during the three months ended September 27, 2014 and September 28, 2013, respectively.