Annual report pursuant to Section 13 and 15(d)

Restructuring Charges

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Restructuring Charges
 12 Months Ended
Jun. 30, 2014
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, 2014, the Company recorded a net restructuring charge of approximately $7.0 million, of which $1.4 million was recorded to costs of revenues, $3.3 million was recorded to engineering, research and development expense and $2.3 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 accrual for severance and benefits for the fiscal years ended June 30, 2014 and 2013:
 
Year ended June 30,
(In thousands)
2014
 
2013
Beginning balance
$
3,947

 
$
2,795

Restructuring costs
6,662

 
6,633

Adjustments
(459
)
 
(590
)
Cash payments
(7,821
)
 
(4,891
)
Ending balance
$
2,329

 
$
3,947


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 fiscal year 2015.