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Restructuring
12 Months Ended
Jun. 26, 2022
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 July 2019, the Company realigned its sales resources as part of the Company's transition to a more focused semiconductor company. As a result, the Company recorded $0.6 million in contract termination costs during the fiscal year ended June 28, 2020. The plan has concluded and all expenses have been paid as of June 27, 2021.
In September 2020, the Company realigned certain resources to further focus on areas vital to the Company's growth while driving efficiencies. As a result, the Company recorded $2.8 million in severance-related costs for the fiscal year ended June 27, 2021. The plan has concluded and all expenses have been paid as of June 27, 2021.
In February 2021, the Company realigned the structure of its Asia sales presence. As a result, the Company recorded $0.6 million in severance related costs for the fiscal year ended June 27, 2021. The plan has concluded and all expenses have been paid as of June 27, 2021.
In January 2022, the Company commenced a plan to open a global IT shared services hub in Belfast, Northern Ireland in partnership with the Northern Ireland government. As a result, the Company recorded $1.2 million in severance-related costs for the fiscal year ended June 26, 2022, all of which is accrued for as of June 26, 2022.
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 Silicon Carbide 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 has incurred restructuring charges associated with the movement of equipment as well as disposals on certain long-lived assets.
In September 2019, the Company announced its intent to build a new Silicon Carbide device fabrication facility in Marcy, New York to complement the expansion of the Company's Silicon Carbide materials production capacity at its U.S. campus headquarters in Durham, North Carolina.
The factory optimization restructuring plan concluded in fiscal 2022. For the fiscal years ended June 26, 2022, June 27, 2021 and June 28, 2020, the Company expensed $4.8 million, $5.2 million and $9.0 million, respectively, of restructuring charges associated with the movement of equipment related to the factory optimization plan, of which $0.2 million was accrued for as of June 26, 2022. Additionally, the Company expensed $1.3 million and $3.4 million of restructuring charges associated with disposals of certain long-lived assets for the fiscal years ended June 26, 2022 and June 27, 2021, respectively. The Company incurred less expense in connection with the plan than previously projected due to strategic changes in the Company's capacity expansion plans at its Durham and RTP facilities.