XML 37 R21.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Restructuring and Related Charges, Net of Reversals | 12 Months Ended
--- | ---
Jun. 30, 2018
Restructuring And Related Activities [Abstract] |
Restructuring and Related Charges, Net of Reversals | 14. Restructuring and Related Charges, Net of Reversals As of June 30, 2018, restructuring liabilities were $6.5 million which are recorded in “Other accrued liabilities” and “Other long-term liabilities” in the accompanying consolidated balance sheets. The restructuring liabilities consist of obligations pertaining to the estimated future obligations for non-cancelable lease payments and severance and benefits obligations. During fiscal years 2018, 2017 and 2016, the Company recorded restructuring charges, net of reversals, of $8.1 million, $8.9 million and $11.0 million, respectively. The charges are reflected in “Restructuring and related charges, net of reversals” in the consolidated statements of operations. 2018 Restructuring The Company announced and began executing a reduction-in-force in its third and fourth fiscal quarters as a result of the acquisitions of the Campus Fabric Business and the Data Center Business. The Company recorded $7.9 million related to employee severance and benefits expenses during the year ended June 30, 2018. The Company also incurred charges of $0.2 million for changes to its estimates for accrued lease costs pertaining to the estimated future obligations for non-cancelable lease payments of its excess facilities. 2017 Restructuring In conjunction with the Company’s restructuring activities noted below, the Company incurred $8.9 million of restructuring charges, net of reversals during fiscal 2017 which is reflected in “Restructuring and related charges, net of reversals” in the consolidated statements of operations. 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, 2018 of $2.6 million. 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 net charges incurred for the remaining lease payments, real estate commissions and other related costs, net of the future sublease payments 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 acquisitions of the Campus Fabric and the Data Center Businesses, 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. 2016 Restructuring During fiscal 2016, the Company abandoned 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, the Company 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. Restructuring liabilities consist of (in thousands):
|  | Excess Facilities |  |  | Severance Benefits |  |  | Other |  |  | Total |
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 |
Period charges |  |  | 207 |  |  |  | 7,945 |  |  |  | — |  |  |  | 8,152 |
Period reversals |  |  | — |  |  |  | — |  |  |  | (12 | ) |  |  | (12 | )
Period payments |  |  | (594 | ) |  |  | (5,140 | ) |  |  | (73 | ) |  |  | (5,807 | )
Balance as of June 30, 2018 |  | $ | 1,797 |  |  | $ | 4,658 |  |  | $ | — |  |  | $ | 6,455 |
Less: current portion included in Other accrued liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,074 |
Restructuring accrual included in Other long-term liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,381 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration