Restructuring and Related Charges

6 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Note 11. Restructuring and Related Charges

We have initiated various strategic restructuring actions primarily to reduce costs, consolidate our operations, rationalize the manufacturing of our products and align our business in response to market conditions and as a result of our acquisitions in the first quarter of fiscal 2023.

The following table summarizes the activity of restructuring and related charges for the periods as presented (in millions):


	Three Months Ended				Six Months Ended
	December 31, 2022		January 1, 2022		December 31, 2022		January 1, 2022
Balance as of beginning of period	$	3.1	$	0.8	$	—	$	5.7
Charges (reversals), net	13.9		0.1		23.2		(1.0)
Payments	(2.9)		(0.6)		(9.1)		(4.4)
Balance as of end of period	$	14.1	$	0.3	$	14.1	$	0.3

During the three months ended December 31, 2022, we recorded restructuring and related charges of $13.9 million in our condensed consolidated statements of operations, which was primarily due to company-wide integration efforts as a result of the merger with NeoPhotonics, as well as our cost reduction initiatives.

During the six months ended December 31, 2022, we recorded restructuring and related charges of $23.2 million in our condensed consolidated statements of operations, which was primarily attributable to company-wide integration efforts as a result of the merger with NeoPhotonics, our cost reduction initiatives, as well as severance and employee-related benefits associated with NeoPhotonics’ executive severance and retention agreements. These agreements provide for payments and benefits upon an involuntary termination of employment under certain circumstances.

We made $2.9 million and $9.1 million of restructuring payments during the three and six months ended December 31, 2022, respectively. In addition, we recorded $1.5 million of incremental stock-based compensation during the three months ended December 31, 2022 in connection with our restructuring activities during the period.

During the three and six months ended January 1, 2022, we recorded a net reversal to our restructuring and related charges of $1.0 million in our condensed consolidated statements of operations, which was attributable to lower than anticipated employee severance charges primarily as a result of retaining and re-assigning certain employees.

Any changes in the estimates of executing our restructuring activities will be reflected in our future results of operations.