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 June 27, 2015, the Company’s total restructuring accrual was $32.1 million. During fiscal 2015, 2014 and 2013 the Company recorded $34.5 million, $23.8 million and $19.0 million, respectively, in restructuring and related charges. 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 year ended June 27, 2015 were as follows (in millions):

	Balance June 28, 2014		Fiscal Year 2015 Charges			Cash Settlements			Non-cash Settlements and Other Adjustments			Balance June 27, 2015
Fiscal 2015 Plan
NE, SE and Shared Service Separation Restructuring Plan (Workforce Reduction)	$	—	$	24.9		$	(9.8	)	$	(0.2	)	$	14.9
CCOP Separation Restructuring Plan (Workforce Reduction)	—		5.1			(0.5		)	—			4.6
CCOP Robbinsville Closure Plan:
Workforce Reduction	—		1.5			(1.5		)	—			—
Lease Costs	—		0.1			(0.1		)	—			—
Transfer Costs	—		0.1			(0.1		)	—			—

Total CCOP Robbinsville Restructuring Plan	—		1.7			(1.7		)	—			—
Fiscal 2014 Plans
NE Realignment Plan (Workforce Reduction)	4.6		0.3			(4.2		)	(0.1		)	0.6
CCOP Serangoon Closure Plan
Workforce Reduction	1.7		0.1			(1.8		)	—			—
Lease Costs	—		0.3			(0.3		)	—			—

Total CCOP Serangoon Closure Plan	1.7		0.4			(2.1		)	—			—
Shared Services Restructuring Plan (Workforce Reduction)	1.8		0.1			(1.2		)	—			0.7
NE Product Strategy Restructuring Plan (Workforce Reduction)	4.4		0.4			(1.9		)	(0.6		)	2.3
NE Lease Restructuring Plan (first floor)	6.9		0.6			(2.3		)	—			5.2
Central Finance and IT Restructuring Plan (Workforce Reduction)	1.5		—			(0.1		)	(0.3		)	1.1
Fiscal 2013 Plans
NE Lease Restructuring Plan	2.1		(0.1		)	(0.5		)	—			1.5
Other plans	0.7		0.6			(1.0		)	—			0.3
Plans Prior to Fiscal 2013	2.5		0.5			(1.8		)	(0.3		)	0.9

Total	$	26.2	$	34.5		$	(27.1	)	$	(1.5	)	$	32.1


Ottawa Lease Exit Costs	$	3.1	$	(0.7	)	$	(1.0	)	$	(0.3	)	$	1.1

As of June 27, 2015 and June 28, 2014, $9.8 million and $11.7 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.

The Company had also previously recorded lease exit charges, net of assumed sub-lease income in prior fiscal years related to its Ottawa facility that was included in SG&A expenses. The fair value of the remaining contractual obligations, net of sublease income, was $1.1 million and $3.1 million as of June 27, 2015 and June 28, 2014, respectively. The Company included the long-term portion of the contract obligations of $0.5 million and $2.0 million in Other non-current liabilities as of each period end, and the short-term portion in Other current liabilities on 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.

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 organization 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, a restructuring charge of $24.9 million was recorded for severance and employee benefits during fiscal 2015. In total approximately 400 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.

CCOP Separation Restructuring Plan

During the second and fourth quarter of fiscal 2015, Management approved a CCOP plan to optimize operations and gain efficiencies by closing the Bloomfield, Connecticut site and consolidating roles and responsibilities across functions in connection with the separation plan. As a result, a restructuring charge of $5.1 million was recorded for severance and employee benefits during fiscal 2015. In total approximately 200 employees in manufacturing, R&D and SG&A functions located in North 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 second quarter of fiscal 2017.

CCOP Robbinsville Closure Plan

During the first quarter of fiscal 2015, Management approved a CCOP plan to optimize operations and gain efficiencies by closing the Robbinsville, New Jersey site and consolidating roles and responsibilities across North America. As a result, a restructuring charge of $1.5 million was recorded for severance and benefits during fiscal 2015. In total approximately 30 employees in manufacturing, R&D and SG&A functions located in North America 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 2016.

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 United States, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the second quarter of fiscal 2016.

CCOP Serangoon Closure Plan

During the fourth quarter of fiscal 2014, Management approved a CCOP plan to close the Serangoon office located in Singapore and move to a lower cost region in order to reduce manufacturing and R&D expenses. As a result, approximately 40 employees primarily in manufacturing and R&D functions were impacted. Payments related to the remaining severance and benefits accrual were paid by the end of the fourth quarter of fiscal 2015.

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 are expected to be paid by the end of the second 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 (first floor)

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 June 27, 2015 was $5.2 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 third quarter of fiscal 2022.

Fiscal 2013 Plans

NE Lease Restructuring Plan

During the fourth quarter of fiscal 2013, Management approved a plan to consolidate space in Germantown, Maryland and Beijing, China, primarily used by the NE segment. As of June 29, 2013, the Company exited the second floor space in Germantown and Beijing under the plan. The fair value of the remaining contractual obligations, net of sublease income as of June 27, 2015 was $1.5 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019. Final payments related to the Beijing lease costs were paid during the first quarter of fiscal 2014.

Other Plans

Other plans account for an immaterial portion of the total restructuring accrual, with minimal or no revisions recorded.

Plans Prior to Fiscal 2013

The restructuring accrual for plans that commenced prior to fiscal year 2013 was $0.9 million, which consists of immaterial various restructuring plans that commenced prior to fiscal 2013.