Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges

v3.4.0.3
Restructuring Charges
 9 Months Ended
Mar. 31, 2016
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES
NOTE 13 — RESTRUCTURING CHARGES
The Company has in recent years undertaken a number of cost reduction activities, including workforce reductions, in an effort to lower its ongoing 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 fourth quarter of fiscal year 2015, the Company implemented a plan to reduce its global employee workforce to streamline the organization and business processes in response to changing customer requirements in the industry. The goals of this reduction were to enable continued innovation, direct the Company’s resources toward its best opportunities and lower its ongoing expense run rate. The Company substantially completed its global workforce reduction during the nine months ended March 31, 2016 and recorded a $0.1 million net restructuring charge for the three months ended March 31, 2016, which was primarily recorded to the costs of revenues line of the condensed consolidated statements of operations. The Company recorded an $8.6 million net restructuring charge for the nine months ended March 31, 2016, of which $3.4 million was recorded to costs of revenues, $1.5 million to engineering, research and development expense and $3.7 million to selling, general and administrative expense lines of the condensed consolidated statements of operations.
The following table shows the activity primarily related to the accrual for severance and benefits for the three and nine months ended March 31, 2016 and 2015:
 
Three months ended
March 31,
 
Nine months ended
March 31,
(In thousands)
2016
 
2015
 
2016
 
2015
Beginning balance
$
3,009

 
$
5,330

 
$
24,887

 
$
2,329

Restructuring costs
125

 
1,921

 
8,583

 
9,201

Adjustments
38

 
(543
)
 
(152
)
 
(489
)
Cash payments
(2,514
)
 
(3,000
)
 
(32,660
)
 
(7,333
)
Ending balance
$
658

 
$
3,708

 
$
658

 
$
3,708


The remaining accrual for severance and benefits as of March 31, 2016 is expected to be paid out by the end of the Company’s fiscal year ending June 30, 2016.