Annual report pursuant to Section 13 and 15(d)

Restructuring Charges

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Restructuring Charges
 12 Months Ended
Jun. 30, 2013
Restructuring Charges [Abstract]  
Restructuring Charges
RESTRUCTURING CHARGES
The Company has in recent years undertaken a number of cost reduction activities, including workforce reductions, in an effort to lower its quarterly operating expense run rate. The program in the United States is accounted for in accordance with the authoritative guidance related to compensation for non-retirement post-employment benefits, whereas the programs in the Company's international locations are accounted for in accordance with the authoritative guidance for contingencies. During the fiscal year ended June 30, 2013, the Company recorded a $6.0 million net restructuring charge, of which $1.9 million was recorded to costs of revenues, $2.9 million was recorded to engineering, research and development expense and $1.2 million was recorded to selling, general and administrative expense. These charges represent the estimated minimum liability associated with expected termination benefits to be provided to employees after employment.
The following table shows the activity primarily related to severance and benefits expense for the fiscal years ended June 30, 2013 and 2012:
 
 
Year ended June 30,
(In thousands)
2013
 
2012
Beginning balance
$
2,795

 
$
1,861

Restructuring costs
6,633

 
6,712

Adjustments
(590
)
 
(651
)
Cash payments
(4,891
)
 
(5,127
)
Ending balance
$
3,947

 
$
2,795


Substantially all of the remaining accrued restructuring balance related to the Company’s workforce reductions is expected to be paid out by the end of calendar year 2013.