Restructuring, Asset Impairments and Other, Net

3 Months Ended

Apr. 03, 2020

Restructuring, Asset Impairments and Other, Net

Note 4: Restructuring, Asset Impairments and Other, Net

Details of restructuring, asset impairments and other charges are as follows (in millions):


	Restructuring		Asset Impairments (1)		Other		Total
Quarter ended April 3, 2020
Voluntary separation program	$	27.5	$	—	$	—	$	27.5
General workforce reduction	3.4		—		—		3.4
Post-Quantenna acquisition restructuring	0.4		—		—		0.4

Other	—		1.4		0.1		1.5
Total	$	31.3	$	1.4	$	0.1	$	32.8

(1) Impairment of lease right-of-use assets.

Summary of changes in accrued restructuring from December 31, 2019 to April 3, 2020 is as follows (in millions):


	As of						As of
	December 31, 2019		Charges		Usage		April 3, 2020
Employee separation charges	$	0.1	$	31.3	$	(3.6)	$	27.8
Other	0.1		—		—		0.1
Total	$	0.2	$	31.3	$	(3.6)	$	27.9

Voluntary Separation Program and Involuntary Separation Program

During the first quarter of 2020, the Company offered a voluntary separation program (the "VSP") to employees that met certain criteria. Participation was subject to management review and approval. The purpose of the VSP was to allow employees to voluntarily separate employment during a specific time and with enhanced separation compensation and benefits, thereby enabling the Company to optimize its cost structure and progress towards its target financial model. Management approved 243 employees for participation in the VSP during the quarter ended April 3, 2020, after which the VSP was terminated. The aggregate expense for the VSP amounted to $27.5 million, which remained accrued as of April 3, 2020 and is expected to be paid during the second quarter of 2020 when the employees exit.

The Company will also implement an involuntary separation program (the “ISP”) during the second quarter of 2020. Under the ISP, the Company expects to notify an estimated 215 additional employees of their employment termination, with aggregate severance costs amounting to approximately $15.0 million.

Other General Workforce Reduction

In addition to the VSP and the ISP, the Company took other general workforce reduction measures during the first quarter of 2020. In connection with such measures, the Company notified approximately 88 employees of their employment termination, all of whom exited by April 3, 2020. During the quarter ended April 3, 2020, the aggregate expense for these other general workforce reduction measures amounted to $3.4 million.

Post-Quantenna acquisition restructuring

Following the acquisition of Quantenna, the Company implemented a cost-reduction plan resulting in the elimination of positions, primarily as a result of redundancies. During the quarter ended April 3, 2020, the Company terminated an additional ten employees and severance costs amounted to $0.4 million. All employees have exited and severance benefits have been paid out. This program has closed and no further expenses are expected to be incurred.