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Government Subsidies
6 Months Ended
Jun. 26, 2020
Government Grants And Subsidies [Abstract]  
Government Subsidies

16. GOVERNMENT SUBSIDIES

 

During the three months ended June 26, 2020, the Singapore government announced a series of relief measures for wages paid to local employees with the purpose of supporting employers during this period of economic uncertainty and will co-fund wages incurred by local employers for nine months ending December 31, 2020. The Company estimated that the total amount of these subsidies will be $2.7 million of which $ 0.7 million was recorded in the second quarter as an offset to cost of revenues.

 

The Company also received unconditional subsidies of $0.6 million from the China government during the quarter ended June 26, 2020. These subsidies were recognized as other income in the condensed consolidated statements of operations. In addition, the China government reduced the cost of certain social insurance requirements and also subsidized rent which benefited the Company by $0.7 million. These subsidies were recorded as an offset to cost of revenues and other operating expenses during the three months ended June 26, 2020.