Restructuring and Other Related Activities

12 Months Ended

Dec. 28, 2014

Restructuring and Related Activities Disclosure

Restructuring and Other

During the fiscal year ended December 28, 2014, the Company recorded the following in Restructuring and other (in thousands):



Restructuring costs	$	12,050
Other costs	20,941
Total restructuring and other	$	32,991

Restructuring Costs. During the six months ended December 28, 2014, the Company implemented a restructuring plan which primarily consisted of reductions in workforce in certain functions of the organization, primarily in the U.S. and certain foreign countries, because of redundant activities due to the Fusion‑io acquisition, as well as realignment of certain projects. A restructuring charge of $12.0 million was recorded during the fiscal year ended December 28, 2014, of which $11.4 million related to severance and benefits for involuntary termination of personnel in manufacturing operations, research and development, sales and marketing, and general and administrative functions of approximately 143 employees. The remaining $0.6 million was primarily for asset disposals and an excess lease obligation. All expenses, including adjustments, associated with the restructuring plan are included in Restructuring and other in the Company’s Consolidated Statements of Operations.

The following table sets forth an analysis of the components of the restructuring charge and payments made against the reserve as of December 28, 2014 (in thousands):



	Severance and Benefits			Other Charges			Total
Accrual balance at December 29, 2013	$	—		$	—		$	—
Charges	11,437			585			12,022
Adjustments	33			(5		)	28
Cash payments	(6,699		)	(25		)	(6,724		)
Non-cash items	—			(515		)	(515		)
Accrual balance at December 28, 2014	$	4,771		$	40		$	4,811

The Company anticipates that the remaining restructuring reserve balance will be paid out in cash through the second quarter of fiscal year 2015 in connection with the Company’s employee transition program.

Other Costs. During the fiscal year ended December 28, 2014, the Company recognized other costs of $20.9 million related to its acquisition of Fusion‑io. Direct acquisition-related costs of $9.1 million primarily consisted of expenses incurred for legal, banker, accounting and tax fees. The remaining costs incurred were primarily related to certain employee change of control charges, employee retention bonus payments and litigation and integration expenses.

- 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.

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