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Restructuring Charges, Net of Reversals and Impairment | 6 Months Ended
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Dec. 31, 2019
Restructuring And Related Activities [Abstract] |
Restructuring Charges, Net of Reversals and Impairment |
14. | Restructuring Charges, net of reversals and impairment
The Company recorded $6.6 million and $12.8 million of restructuring charges, net of reversals and impairments during the three and six months ended December 31, 2019, respectively. The charges included facility related charges of $3.9 million and $7.9 million and severance and benefits charges of $2.7 million and $4.9 million for the three and six-month periods ended December 31, 2019, respectively. During the first quarter of fiscal 2020, the Company continued its initiative to realign its operations by exiting a floor of its San Ignacio building in San Jose California and consolidating its workforce. Also, the Company exited additional space in its Salem New Hampshire facility, which includes general office and lab space. The Company has the intent and ability to sub-lease these facilities which it has ceased using and as such has considered estimated future sub-lease income based on its existing leases agreement, as well as the local real estate market conditions in measuring the amount of asset impairment. The Company also factored into its estimate the time for a sub-lease tenant to enter into an agreement and complete any improvements. For the three months ended September 30, 2019, the Company recorded restructuring charges of $3.9 million related to the exited facilities. During the second quarter of fiscal 2020, the Company continued its initiative to realign its operations resulting from the acquisition of Aerohive and consolidating its workforce. The Company exited its facility in Milpitas, California which includes general office and lab space. The Company has the intent and ability to sub-lease these facilities which it has ceased using and as such has considered estimated future sub-lease income based on its existing leases agreement, as well as the local real estate market conditions in measuring the amount of asset impairment. The Company also factored into its estimate the time for a sub-lease tenant to enter into an agreement and complete any improvements. For the three months ended December 31, 2019, the Company recorded charges for the impairment of right-of-use-assets of $2.8 million, long-lived assets of $0.9 million, and other charges of $0.2 million related to the exited facilities. Certain amounts have been reclassified from restructuring liabilities and have been recorded as a reduction to operating lease ROU assets as of July 1, 2019. Restructuring liabilities related to severance and benefits obligations are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. Total restructuring and related liabilities consist of (in thousands):
|  | Excess Facilities |  |  | Severance Benefits |  |  | Total |
Balance as of June 30, 2019 |  | $ | 1,764 |  |  | $ | 3,559 |  |  | $ | 5,323 |
Period charges |  |  | — |  |  |  | 5,879 |  |  |  | 5,879 |
Period reversals |  |  | — |  |  |  | (1,005 | ) |  |  | (1,005 | )
Reclassification to reduce operating lease assets |  |  | (1,764 | ) |  |  | — |  |  |  | (1,764 | )
Period payments |  |  | — |  |  |  | (7,565 | ) |  |  | (7,565 | )
Balance as of December 31, 2019 |  | $ | — |  |  | $ | 868 |  |  | $ | 868 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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