Restructuring and Related Charges

3 Months Ended

Sep. 26, 2015

Restructuring And Related Activities [Abstract]

Note 9. Restructuring and Related Charges

We have initiated various strategic restructuring events primarily intended to reduce costs and align our business in response to the market conditions. As of September 26, 2015 and June 27, 2015, our total restructuring and related charges accrual was $5.1 million and $4.9 million, respectively. During the three months ended September 26, 2015 and September 27, 2014, we recorded $0.9 million and $1.8 million, respectively, in restructuring and related charges in the consolidated statements of operations. Our restructuring charges include severance and benefit costs to eliminate a specified number of positions, facilities and equipment costs to vacate facilities and consolidate operations, and lease termination costs. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over multiple periods.

Summary of Restructuring Plans

The adjustments to the accrued restructuring expenses related to all of our restructuring plans described below for the three months ended September 26, 2015, were as follows (in millions):

Separation Restructuring Plan

During the second and fourth quarter of fiscal 2015, Management approved restructuring plans impacting our Optical Communications (“OpComms”) segment to optimize manufacturing operations and gain efficiencies which include closing the Bloomfield, Connecticut site and consolidating roles and responsibilities across functions as we move forward with our separation plan. As a result, approximately 200 employees in manufacturing, R&D and SG&A functions located in North America, Europe and Asia will be impacted. For the three months ended September 26, 2015 the Company recorded $0.9 million expense for additional employee retention costs related to the restructuring plan implemented in the fourth quarter of 2015. Payments related to the remaining severance and benefits accrual are expected to be paid in fiscal year 2017.

Balance June 27, 2015

Three Months Ended September 26, 2015 Charges

Cash Settlements

Balance September 26,

2015

Separation Restructuring Plan (Workforce Reduction)

4.9

0.9

(0.7

)

5.1

As of September 26, 2015 and June 27, 2015, $5.1 million and $3.2 million were included in other current liabilities, and zero and $1.7 million were included in other non-current liabilities, respectively, in the consolidated balance sheets.

Ottawa Lease Exit Costs

During fiscal 2008, we recorded lease exit charges, net of assumed sub-lease income related to our Ottawa facility which was included in selling, general and administrative expenses as the space was never occupied and we had no need for the space in the foreseeable future due to changes in business requirements. For the three months ended September 26, 2015, we had cash settlements of $0.1 million. The fair value of the remaining contractual obligations, net of sublease income is $1.0 million and $1.1 million as of September 26, 2015 and June 27, 2015, respectively. As of September 26, 2015 and June 27, 2015, $0.5 million was included in other current liabilities for each year, and $0.5 million and $0.5 million in other non-current liabilities, respectively, in the consolidated balance sheets. The payments related to these lease costs are expected to be paid by the end of the third quarter of fiscal 2018.