Restructuring Charges

6 Months Ended

Jul. 03, 2021

Restructuring and Related Activities [Abstract]

13.	Restructuring Charges

During the first quarter of fiscal 2021, Intevac substantially completed implementation of the 2021 cost reduction plan (the “Cost Reduction Plan”), which was intended to reduce expenses and reduce its workforce by 1.4 percent. The cost of implementing the Cost Reduction Plan was reported under cost of net revenues and operating expenses in the condensed consolidated statements of operations. Substantially all cash outlays in connection with the Cost Reduction Plan occurred in the first quarter of fiscal 2021. Implementation of the Cost Reduction Plan is expected to reduce salary, wages and other employee-related expenses by approximately $576,000 on an annual basis.

The changes in restructuring reserves, which resulted from cash-based severance payments and other employee-related costs, associated with the Cost Reduction Plan for the six months ended July 3, 2021 were as follows.


	Six Months Ended July 3, 2021
	(In thousands)

Beginning balance	$	—
Provision for restructuring reserves		43
Cash payments made		(43	)

Ending balance	$	—