Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges

v3.3.1.900
Restructuring Charges
6 Months Ended
Dec. 31, 2015
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES
NOTE 13 — RESTRUCTURING CHARGES
The Company has in recent years undertaken a number of cost reduction activities, including workforce reductions, in an effort to lower its ongoing expense run rate. The program in the United States is accounted for in accordance with the authoritative guidance related to compensation for non-retirement post-employment benefits, whereas the programs in the Company’s international locations are accounted for in accordance with the authoritative guidance for contingencies.
During the fourth quarter of fiscal year 2015, the Company implemented a plan to reduce its global employee workforce to streamline the organization and business processes in response to changing customer requirements in the industry. The goals of this reduction were to enable continued innovation, direct the Company’s resources toward its best opportunities and lower its ongoing expense run rate. The Company substantially completed its global workforce reduction during the six months ended December 31, 2015 and recorded a $1.4 million net restructuring charge for the three months ended December 31, 2015 , of which $0.5 million was recorded to costs of revenues, $0.5 million to engineering, research and development expense and $0.4 million 销售、一般和法e expense. The Company recorded $8.5 million net restructuring charge for the six months ended December 31, 2015 , of which $3.3 million was recorded to costs of revenues, $1.5 million to engineering, research and development expense and $3.7 million 销售、一般和法e expense.
The following table shows the activity primarily related to the accrual for severance and benefits for the three and six months ended December 31, 2015 and 2014 :
Three months ended
December 31,
Six months ended
December 31,
(In thousands)
2015
2014
2015
2014
Beginning balance
$
13,061

$
4,955

$
24,887

$
2,329

Restructuring costs
1,392

3,399

8,458

7,280

Adjustments
(563
)
(90
)
(190
)
54

Cash payments
(10,881
)
(2,934
)
(30,146
)
(4,333
)
Ending balance
$
3,009

$
5,330

$
3,009

$
5,330


The remaining accrual for severance and benefits as of December 31, 2015 is expected to be paid out by the end of the Company’s fiscal year ending June 30, 2016 .
Baidu