POST-RETIREMENT BENEFITS

9 Months Ended

Mar. 26, 2016

Compensation and Retirement Disclosure [Abstract]

Japan Defined Contribution 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 nine months ended March 26, 2016, respectively, and $0.1 million and $0.4 million for the three and nine months ended March 28, 2015, respectively. Employees can elect to receive the benefit as additional salary or contribute the benefit to the plan on a tax-deferred basis.

Japan Defined Benefit Plan

Under the defined benefit plan in Japan (the “Japan Plan”), we calculate benefits based on an employee’s individual grade level and expected 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 Ushio Opto.

As of March 26, 2016, there were no plan assets associated with the Japan Plan. As of March 26, 2016, there was $0.1 million in accrued expenses and other liabilities and $5.5 million in other non-current liabilities in our condensed consolidated balance sheet 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				Nine Months Ended
	March 26, 2016		March 28, 2015		March 26, 2016		March 28, 2015
	(Thousands)
Service cost	$	132	$	177	$	376	$	553
Interest cost	11		18		32		56
Net amortization	—		10		—		37
Net periodic pension costs	$	143	$	205	$	408	$	646

We made benefit payments under the Japan Plan of zero and $0.1 million during the three and nine months ended March 26, 2016, respectively, and $0.1 million and $0.2 million during the three and nine months ended March 28, 2015, respectively.