Restructuring and Other Costs

The following table provides details of the Company’s restructuring and other charges (in thousands):



	Three Months Ended					Six Months Ended
	May 3, 2014			April 27, 2013		May 3, 2014			April 27, 2013
Goodwill impairment⁽¹⁾	$	83,382		$	—	$	83,382		$	—
Severance and Benefits	(43		)	—		(1,788		)	—
Lease Loss Reserve and Related Costs	(636		)	—		7,326			—
Restructuring, goodwill impairment, and other related costs	$	82,703		$	—	$	88,920		$	—


⁽¹⁾	For additional discussion on goodwill impairment, see Note 4, “Goodwill and Intangible Assets,” of the Notes to Condensed Consolidated Financial Statements.

The following table provides a reconciliation of the Company’s beginning and ending restructuring liability balances (in thousands):



	Fiscal 2013 Fourth Quarter Restructuring Plan									Prior Restructuring Plans
	Severance and Benefits			Contract Terminations and Other			Lease Loss Reserve and Related Costs			Lease Loss Reserve and Related Costs			Total
Restructuring liabilities at October 26, 2013	$	15,216		$	416		$	—		$	1,794		$	17,426
Restructuring and other charges	(1,788		)	—			7,326			—			5,538
Cash payments	(13,258		)	(249		)	(2,460		)	(561		)	(16,528		)
Translation adjustment	—			—			27			—			27
Restructuring liabilities at May 3, 2014	$	170		$	167		$	4,893		$	1,233		$	6,463

Current restructuring liabilities at May 3, 2014	$	170		$	167		$	2,078		$	461		$	2,876
Non-current restructuring liabilities at May 3, 2014	$	—		$	—		$	2,815		$	772		$	3,587

Fiscal 2013 Fourth Quarter Restructuring Plan

During the fiscal year ended October 26, 2013, and the first quarter of fiscal year 2014, the Company restructured certain business operations and reduced the Company’s operating expense structure. The restructuring plan was approved by the Company’s management and communicated to the Company’s employees in September 2013. The restructuring plan included a workforce reduction of approximately 250 employees, primarily in the engineering, sales, and marketing organizations, as well as the cancellation of certain nonrecurring engineering agreements and exit from certain leased facilities.

In connection with the restructuring plan, the Company incurred aggregate charges of $31.0 million through May 3, 2014, primarily related to severance and benefits charges and lease loss reserve and related costs, and substantially completed the restructuring plan by the end of the first quarter of fiscal year 2014.

Severance and benefits charges incurred under this restructuring plan consisted of severance and related employee termination costs, including salary and other compensation payments to the employees during their post-notification retention period as well as associated outplacement services. The post-notification retention period for the employees terminated under the plan did not exceed the legal notification period, or, in the absence of a legal notification requirement, 60 days. Contract terminations and other charges were primarily related to the cancellation of certain contracts in connection with the restructuring of certain business functions. Lease loss reserve and related costs were primarily related to the costs that will continue to be incurred under exited facilities’ lease contracts for the remaining term of the leases without economic benefit to the Company, reduced by estimated sublease income that could be reasonably obtained for these facilities.

The Company reevaluates its estimates and assumptions on a quarterly basis and makes adjustments to the restructuring liabilities balance if necessary. During the six months ended May 3, 2014, the Company reversed approximately $1.8 million of severance and benefits charges due to actual cash payments to certain terminated employees being lower than original estimates as a result of the completion of the severance arrangements with these employees during the first quarter of fiscal year 2014.

The above restructuring and other related charges are included in “Restructuring, goodwill impairment, and other related costs” in the Condensed Consolidated Statements of Operations.

Prior Restructuring Plans

Prior to fiscal year 2013, the Company also recorded charges related to estimated facilities lease losses, net of expected sublease income, due to consolidation of real estate space as a result of acquisitions.

Cash payments for facilities that are part of the Company’s lease loss reserve are expected to be paid over the respective lease terms through fiscal year 2021.