Property, plant and equipment, net

12 Months Ended

Jun. 29, 2012

10.

Property, plant and equipment, net

The components of property, plant and equipment, net were as follows:


	Land		Building and Building Improvement			Manufacturing Equipment			Office Equipment			Motor Vehicles			Computers			Construction and Machinery Under Installation			Total
As of June 24, 2011
Cost	$	14,353	$	40,743		$	53,002		$	5,341		$	784		$	10,528		$	6,489		$	131,240
Less: Accumulated depreciation		—		(9,330	)		(35,307	)		(2,632	)		(695	)		(7,866	)		—			(55,830	)

Net book value	$	14,353	$	31,413		$	17,695		$	2,709		$	89		$	2,662		$	6,489		$	75,410

As of June 29, 2012
Cost	$	14,353	$	72,508		$	55,729		$	5,566		$	638		$	11,389		$	1,280		$	161,463
Less: Accumulated depreciation		—		(11,677	)		(37,017	)		(3,009	)		(601	)		(8,711	)		—			(61,015	)
Less: Impairment reserve		—		(1,076	)		(1,091	)		(51	)		—			(303	)		(4	)		(2,525	)

Net book value	$	14,353	$	59,755		$	17,621		$	2,506		$	37		$	2,375		$	1,276		$	97,923

Depreciation expense amounted to $9,339, $8,696 and $7,705 for the years ended June 29, 2012, June 24, 2011 and June 25, 2010, respectively.

Depreciation expense is allocated between cost of revenues and selling, general and administrative expenses in the consolidated statements of operations.

In the second quarter of fiscal 2012, an impairment reserve of $2,525 was set up to write-off certain property, plant and equipment because such assets were damaged in the severe flooding that occurred in Thailand during October and November 2011. This amount has been included in “Expenses related to flooding” in the consolidated statements of operations.

The cost of fully depreciated property, plant and equipment written-off during the years ended June 29, 2012, June 24, 2011 and June 25, 2010 amounted to $4,178, $1,514 and $855, respectively.

Interest expense relating to a long-term loan from a bank for the development of Pinehurst Building 6, of $504 and $2 was capitalized in construction in progress during the years ended June 29, 2012 and June 24, 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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