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Restructuring Charges | 12 Months Ended
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Jun. 30, 2017
Restructuring And Related Activities [Abstract] |
Restructuring Charges | 13. Restructuring Charges As of June 30, 2017, restructuring liabilities were $4.1 million and consisted of obligations pertaining to the estimated future obligations for non-cancelable lease payments and severance and benefits obligations. The restructuring liability of $4.1 million is recorded in "Other accrued liabilities" and “Other long-term liabilities” in the consolidated balance sheets. During fiscal years 2017, 2016 and 2015, the Company recorded restructuring charges, net of reversals, of $8.9 million, $11.0 million and $9.8 million, respectively. The charges are reflected in "Restructuring and related charges, net of reversals" in the consolidated statements of operations. Fiscal year 2017 Pursuant with the WLAN Business acquisition from Zebra, the Company assumed a facility lease located at 6480 Via del Oro in San Jose, California (“Via del Oro”) and transferred the Company’s headquarters from Rio Robles Drive in San Jose, California (“Rio Robles”) to Via del Oro. The Company consolidated its existing workforce with employees assumed from Zebra at the Via del Oro site and exited the Rio Robles site on January 31, 2017. Due to the Company’s move from the Rio Robles facility and abandonment of all leasehold improvements, it accelerated the amortization of the remaining leasehold improvements balance for this site over the shortened service period such that the leasehold improvements were fully amortized on the cease-use date. The Company recorded accelerated amortization expense for the year ended June 30, 2017 of $2.6 million and it is reflected in "Restructuring and related charges, net of reversals" in the condensed consolidated statements of operations. The Company entered into a sublease agreement for its Rio Robles facility during the third quarter of fiscal 2017. The sublease is for the remaining duration of the Company’s lease. The sublease resulted in adjustments to the prior estimates for the amount of sublease payments, timing of sublease activities and real estate commissions associated with the sublease. The net adjustments, including modifications to its future obligations for non-cancellable lease payments and related future subleasing income resulted in additional charges of $2.0 million during fiscal 2017. The excess facilities payments will continue through fiscal year 2023. In anticipation of the acquisition of Avaya Networking (see Note 14), the Company reoccupied the majority of its exited space at its Salem New Hampshire location during its fiscal fourth quarter to accommodate the growth in headcount and lab facility requirements. This action resulted in a reversal of prior accruals of $1.3 million. In conjunction with the consolidation actions noted above, the Company announced a reduction-in-force affecting 90 employees. The Company recorded $5.6 million in severance and benefits charges, net during the year ended June 30, 2017. Cash payments of $3.8 million were made during the year and the balance of cash payments are expected to be paid by the end of the second quarter of fiscal 2018. Fiscal year 2016 During fiscal 2016, the Company continued its initiative to realign its operations by abandoning excess facilities, primarily in San Jose, California; Salem, New Hampshire; Morrisville, North Carolina and other smaller leased locations. The abandoned facilities represented approximately 32% of the floor space in the aggregate at these locations and included general office and warehouse space. In conjunction with the exiting of facilities noted above, we incurred $11.0 million of restructuring charges. Excess facilities charges included accrued lease costs pertaining to the estimated future obligations for non-cancelable lease payments for excess facilities and contract termination charges of $5.4 million, acceleration of depreciation of leasehold improvements of $4.5 million, professional fees of $1.0 million and other of $0.1 million. Significant restructuring charges incurred during 2016, by location, included $1.8 million of charges for excess facilities pertaining to the estimated future obligations for non-cancelable lease payments at Rio Robles. This represented 39% of the San Jose leased space. The Company amended its facility lease at its North Carolina location and exited excess space while recording $4.1 million of charges, which included $3.1 million in accelerated depreciation of leasehold improvements. This action represented 36% of the North Carolina location lease space. The Company recorded $4.4 million of charges for excess facilities at its Salem location, which included $1.3 million in accelerated depreciation of leasehold improvements. This action represented 27% of the Salem lease space. Fiscal year 2015 During the fourth quarter of fiscal 2015, the Company reduced costs through targeted restructuring activities intended to reduce operating costs and realign our organization in the current competitive environment. We initiated a plan to reduce worldwide headcount by more than 225 employees, primarily in sales and marketing, as well as research and development, consolidate specific global administrative functions, and shift certain operating costs to lower cost regions, among other actions. The Company recorded $9.7 million of charges associated with this initiative. The restructuring liability related to this initiative was fully paid as of June 30, 2016. Restructuring liabilities consist of (in thousands):
|  | Excess Facilities |  |  | Severance Benefits |  |  | Other |  |  | Total |
Balance as of June 30, 2014 |  | $ | 322 |  |  | $ | — |  |  | $ | — |  |  | $ | 322 |
Period charges |  |  | — |  |  |  | 9,694 |  |  |  | 125 |  |  |  | 9,819 |
Period payments |  |  | (322 | ) |  |  | (3,957 | ) |  |  | (8 | ) |  |  | (4,287 | )
Balance as of June 30, 2015 |  |  | — |  |  |  | 5,737 |  |  |  | 117 |  |  |  | 5,854 |
Period charges |  |  | 10,811 |  |  |  | 668 |  |  |  | 237 |  |  |  | 11,716 |
Period reversals |  |  | (18 | ) |  |  | (618 | ) |  |  | (90 | ) |  |  | (726 | )
Non cash adjustments |  |  | (4,463 | ) |  |  | — |  |  |  | — |  |  |  | (4,463 | )
Period payments |  |  | (1,686 | ) |  |  | (5,787 | ) |  |  | (264 | ) |  |  | (7,737 | )
Balance as of June 30, 2016 |  |  | 4,644 |  |  |  | — |  |  |  | — |  |  |  | 4,644 |
Period charges |  |  | 1,951 |  |  |  | 5,728 |  |  |  | 2,663 |  |  |  | 10,342 |
Period reversals |  |  | (1,337 | ) |  |  | (109 | ) |  |  | — |  |  |  | (1,446 | )
Non cash adjustments |  |  | — |  |  |  | — |  |  |  | (2,578 | ) |  |  | (2,578 | )
Period payments |  |  | (3,074 | ) |  |  | (3,766 | ) |  |  | — |  |  |  | (6,840 | )
Balance as of June 30, 2017 |  | $ | 2,184 |  |  | $ | 1,853 |  |  | $ | 85 |  |  | $ | 4,122 |
Less: current portion included in Other accrued liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,394 |
Restructuring accrual included in Other long-term liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,728 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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