Note 5 — Restructuring

On July 24, 2013, we adopted a rebalancing plan (the “July 2013 plan”) to better align our operating expenses with strategic growth areas for the purpose of improving competitiveness and execution across the business. The July 2013 plan includes a reduction in our workforce of approximately 150 employees which is anticipated to be gradually offset by the addition of new hires in design and development over the next few quarters. We recorded restructuring and related costs of $8.7 million during the quarter ended October 4, 2013 related to the July 2013 plan. The July 2013 plan is expected to be substantially complete by the end of the first quarter of 2014.

In October 2013, we adopted a restructuring plan to realign our internal fab with existing operations, (the “October 2013 Plan”). The October 2013 plan includes a reduction in workforce of 17 employees. We expect to record restructuring and related costs of $0.5 million during our fourth quarter of 2013 related to the October 2013 plan.

On February 15, 2013, our Board of Directors approved a restructuring plan (the “February 2013 plan”) to prioritize our sales and development efforts, strengthen financial performance and improve cash flow. The February 2013 plan included a reduction of approximately 18% of our worldwide workforce. We recorded restructuring and related costs of $19.9 million related to the February 2013 plan during the three quarters ending October 4, 2013. The February 2013 restructuring plan was substantially complete at the end of the second quarter of 2013. No further expense related to these plans is anticipated.

During 2012, we initiated restructuring plans to reorganize certain operations and reduce our global workforce and other operating costs. The 2012 restructuring plans were substantially completed at the end of the fourth quarter of 2012. No further expense related to these plans is anticipated.

The amounts below relating to the restructuring are included in accrued restructuring on our consolidated balance sheets (in thousands):


	Restructuring activity from the July 2013 plan	Restructuring activity from the February 2013 plan	Restructuring activity from plans initiated in 2012	Combined plans
Balance as of December 28, 2012	$ -	$ -	$ 1,053	$ 1,053

Costs incurred
Severance costs	6,327	12,435	70	18,832
Lease exit costs	1,112	897	13	2,022
Other costs	1,304	6,532	4	7,840
Cash payments
Severance payments	(3,051)	(9,702)	(364)	(13,117)
Lease exit payments	(28)	(853)	(224)	(1,105)
Other payments	(130)	(389)	(163)	(682)
Non-cash items in restructuring	(1,174)	(6,145)	-	(7,319)

Balance as of October 4, 2013	$ 4,360	$ 2,775	$ 389	$ 7,524

Non-cash items include certain prepaid, intangible, fixed, and other assets that were written off as a result of the restructuring initiative.