XML 43 R28.htm IDEA: XBRL DOCUMENT v3.19.2

Restructuring Restructuring

12 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

The Company has approved various operational plans that include restructuring costs. All restructuring costs are recorded in other operating expense on the consolidated statement of operations.

Corporate Restructuring

In April 2018, the Company approved a corporate restructuring plan. The purpose is to restructure and realign the Company's cost base with the long-range business strategy that was announced in February 2018. The restructuring activity was completed in the second quarter of fiscal 2019.

The following table summarizes the charges incurred (in millions of U.S. Dollars):

Capacity and overhead cost reductions	Total estimated charges				Amounts incurred in fiscal 2018				Amounts incurred in fiscal 2019				Cumulative amounts incurred through fiscal year 2019
Loss on disposal or impairment of long-lived assets		$0.2				$0.2				$—				$0.2
Severance expense	4.2				3.5				0.7				4.2
Lease termination and facility consolidation costs	2.0				0.1				1.9				2.0
Total restructuring charges		$6.4				$3.8				$2.6				$6.4

An additional $3.6 million in previously reported estimated and incurred restructuring charges related to this plan were classified as discontinued operations due to the sale of the Lighting Products business unit.

Factory Optimization Restructuring

In May 2019, the Company started a significant, multi-year factory optimization plan anchored by a state-of-the-art, automated 200mm capable SiC and GaN fabrication facility and a large materials factory at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company will incur restructuring charges associated with the movement of equipment as well as disposals and impairments on certain long-lived assets.

The following table summarizes the charges incurred (in millions of U.S Dollars):

Factory optimization costs	Amounts incurred in fiscal 2019				Cumulative amounts incurred through fiscal year 2019
Loss on disposal or impairment of long-lived assets		$2.3				$2.3
Facility consolidation costs	1.8				1.8
Total restructuring charges		$4.1				$4.1

The Company expects $70.0 million in restructuring charges related to the factory optimization plan to be incurred through 2024.

Sales Restructuring

In June 2019, the Company approved and implemented a sales restructuring plan to restructure and realign the Company's geographical sales team with the skills and experience needed to execute on the Company's business objectives. The Company recorded $1.6 million in restructuring expense relating to this plan in the fourth quarter of fiscal 2019. No additional restructuring expense relating to this plan is expected.

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