POST-RETIREMENT BENEFITS

6 Months Ended

Dec. 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 $0.1 million and $0.3 million for the three and six months ended December 27, 2014, respectively, and $0.2 million and $0.4 million for the three and six months ended December 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. During the second quarter of fiscal year 2015, we sold our Komoro Business, and as part of the sale transferred a portion of our Japan Plan covering employees of the Komoro Business to II-VI. As of December 27, 2014, there were no plan assets associated with the Japan Plan. As of December 27, 2014, there was $0.2 million in accrued expenses and other liabilities and $4.9 million in other non-current liabilities in our condensed consolidated balance sheet as of December 27, 2014, to account for the projected benefit obligations under the Japan Plan. Net periodic pension costs for the Japan Plan included the following:

	Three Months Ended				Six Months Ended
	December 27, 2014		December 28, 2013		December 27, 2014		December 28, 2013
	(Thousands)
Service cost	$	177	$	233	$	376	$	481
Interest cost	18		23		38		47
Net amortization	12		15		27		31
Net periodic pension costs	$	207	$	271	$	441	$	559

During the first quarter of fiscal year 2015, 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 made benefit payments under the Japan Plan of $0.1 million and $0.1 million during the three and six months ended December 27, 2014, respectively, and $0.1 million and $0.1 million during the three and six months ended December 28, 2013, respectively.