Note 11. Restructuring and Related Charges

The Company has initiated various strategic restructuring events primarily intended to reduce its costs, consolidate its operations, rationalize the manufacturing of its products and align its businesses in response to market conditions. As of April 2, 2016 and June 27, 2015, the Company’s total restructuring accrual was $12.3 million and $27.2 million. During the three and nine months ended April 2, 2016 the Company recorded restructuring and related (benefits) charges of $(0.1) million and $1.7 million, respectively. During the three and nine months ended March 28, 2015 the Company recorded restructuring and related charges of $7.8 million and $18.0 million, respectively. The Company’s restructuring charges can 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 the Company’s restructuring plans described below for the three and nine months ended April 2, 2016 were as follows (in millions):



	Balance June 27, 2015		Nine Months Ended April 2, 2016 Charges			Cash Settlements				Non-cash Settlements and Other Adjustments			Balance April 2, 2016		Three Months Ended April 2, 2016 Charges
Fiscal 2016 Plan
NE and SE Agile Restructuring Plan (Workforce Reduction)	$	—	$	3.0		$	(1.1	)		$	—		$	1.9	$	—
Fiscal 2015 Plan
NE, SE and Shared Service Separation Restructuring Plan (Workforce Reduction)	14.9		(0.6		)	(11.7		)		(0.2		)	2.4		(0.1		)
Fiscal 2014 Plans
NE Realignment Plan (Workforce Reduction)	0.6		(0.1		)	(0.5		)		—			—		—
Shared Services Restructuring Plan (Workforce Reduction)	0.7		—			(0.7		)		—			—		—
NE Product Strategy Restructuring Plan (Workforce Reduction)	2.3		—			(0.5		)	—	—			1.8		—
NE Lease Restructuring Plan	5.2		0.2			(1.0		)		—			4.4		—
Central Finance and IT Restructuring Plan (Workforce Reduction)	1.1		(0.7		)	(0.1		)		—			0.3		—
Plans Prior to Fiscal 2014	2.4		(0.1		)	(0.8		)		—			1.5		—
Total	$	27.2	$	1.7		$	(16.4	)		$	(0.2	)	$	12.3	$	(0.1	)

As of April 2, 2016 and June 27, 2015, $5.3 million and $8.2 million, respectively, of our restructuring liability was long-term in nature and included as a component of Other non-current liabilities, with the remaining short-term portion included as a component of Other current liabilities on the Consolidated Balance Sheets.

Fiscal 2016 Plans

NE and SE Agile Restructuring Plan

During the second quarter of fiscal 2016, Management approved a plan primarily impacting the NE and SE business segments as part of Viavi’s ongoing commitment for an agile and more efficient operating structure. As a result, a restructuring charge of $3.0 million was recorded for severance and employee benefits for approximately 50 employees primarily in manufacturing, R&D and SG&A functions located in North America, Latin America, Europe and Asia. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2017.

Fiscal 2015 Plans

NE, SE and Shared Service Separation Restructuring Plan

During the second, third and fourth quarters of fiscal 2015, Management approved a plan to eliminate certain positions in its shared services functions in connection with the Company’s plan to split into two separate public companies. Further, Management consolidated its operations, sales and R&D organizations and eliminated positions within the NE and SE segments to align to the Company’s product market strategy and lower manufacturing costs in connection with the separation. As a result, approximately 330 employees in manufacturing, R&D and SG&A functions located in North America, Latin America, Europe and Asia were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2018.

Fiscal 2014 Plans

NE Realignment Plan

During the fourth quarter of fiscal 2014, Management approved a NE plan to realign its operations and strategy to allow for greater investment in high-growth areas. As a result, approximately 100 employees in manufacturing, R&D and SG&A functions located in North America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual were paid by the end of the second quarter of fiscal 2016.

Shared Services Restructuring Plan

During the fourth quarter of fiscal 2014, Management approved a plan to eliminate positions and re-define roles and responsibilities in its shared services functions in order to reduce cost, standardize global processes and establish a more efficient organization. As a result, approximately 40 employees primarily in the general and administrative functions located in the United States, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual were paid by the end of the fourth quarter of fiscal 2016.

NE Product Strategy Restructuring Plan

During the third quarter of fiscal 2014, Management approved a NE plan to realign its services, support and product resources in response to market conditions in the mobile assurance market and to increase focus on software products and next generation solutions through acquisitions and R&D. As a result, approximately 60 employees primarily in SG&A and manufacturing functions located in North America, Latin America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2020.

NE Lease Restructuring Plan

During the second quarter of fiscal 2014, Management approved a NE plan to exit the remaining space in Germantown, Maryland. As of June 28, 2014, the Company exited the space in Germantown under the plan. The fair value of the remaining contractual obligations, net of sublease income, as of April 2, 2016 was $4.4 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019.

Central Finance and Information Technology (“IT”) Restructuring Plan

During the second quarter of fiscal 2014, Management approved a plan to eliminate positions and re-define roles and responsibilities in the Finance and IT organization to align with the future state of the organizations under new executive management and move positions to lower-cost locations where appropriate. As a result, approximately 20 employees primarily in SG&A functions located in North America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2019.

Plans Prior to Fiscal 2014

As of April 2, 2016, the restructuring accrual for plans that commenced prior to fiscal year 2014 was $1.5 million, which consists of immaterial accruals from various restructuring plans.