Restructuring

12 Months Ended

Mar. 28, 2020

Restructuring and Related Activities [Abstract]

During fiscal years 2020, 2019 and 2018, the Company recorded restructuring related charges totaling approximately $47.9 million, $50.7 million and $67.7 million, respectively, related primarily to (1) fiscal 2019 actions to reduce operating expenses and improve manufacturing cost structure, (2) fiscal 2018 actions to improve operating efficiencies, and (3) actions resulting from the Business Combination.

During fiscal 2019, the Company initiated restructuring actions to reduce operating expenses and improve its manufacturing cost structure, including the phased closure of a wafer fabrication facility in Florida and idling production at a wafer fabrication facility in Texas. As a result of these actions, the Company recorded cumulative restructuring related charges of $92.0 million during fiscal years 2020 and 2019, including accelerated depreciation of $47.4 million (to reflect changes in estimated useful lives of certain property and equipment), impairment charges of $15.9 million (to adjust the carrying value of certain property and equipment to reflect its fair value), employee termination benefits of $13.7 million and other exit costs of $15.0 million. The Company expects to record additional expenses of approximately $1.0 million for employee termination benefits and other exit costs as a result of these actions.

The fair value of the real property was derived based upon a market approach with substantial input from market participants, including brokers, investors, developers and appraisers. The fair value of the personal property was determined using a market approach based upon quoted market prices from auction data for comparable assets. Factors such as age, condition, capacity and manufacturer were considered to adjust the auction price and determine an orderly liquidation value of the personal property assets. The significant inputs related to valuing these assets are classified as Level 2 in the fair value measurement hierarchy.

During fiscal 2018, the Company initiated restructuring actions to improve operating efficiencies. As a result of these actions (which are substantially complete), in fiscal years 2020, 2019 and 2018, the Company recorded cumulative restructuring related charges of $46.3 million, $23.5 million and $0.2 million for asset impairments, employee termination benefits and other exit costs, respectively.

Primarily as a result of the Business Combination (see Note 1), during fiscal years 2020, 2019 and 2018, the Company recorded restructuring related charges (including employee termination benefits and ongoing expenses related to exited leased facilities) of approximately $0.3 million, $1.3 million and $2.7 million, respectively.

The following table summarizes the restructuring charges primarily resulting from these restructuring events (in thousands):



	Fiscal 2020
	Cost of Goods Sold		Other Operating Expense		Total
One-time employee termination benefits	$	—	$	6,289	$	6,289
Contract termination and other associated costs	8,365		7,154		15,519
Accelerated depreciation	26,061		—		26,061
Total	$	34,426	$	13,443	$	47,869

	Fiscal 2019
	Cost of Goods Sold		Other Operating Expense		Total
One-time employee termination benefits	$	—	$	12,826	$	12,826
Contract termination and other associated costs	—		641		641
Asset impairment and accelerated depreciation	21,346		15,901		37,247
Total	$	21,346	$	29,368	$	50,714

	Fiscal 2018
	Cost of Goods Sold		Other Operating Expense		Total
One-time employee termination benefits	$	—	$	19,232	$	19,232
Contract termination and other associated costs	—		2,174		2,174
Asset impairment	—		46,315		46,315
Total	$	—	$	67,721	$	67,721

The following table summarizes the activity related to the Company's restructuring liabilities for fiscal years 2019 and 2020 (in thousands):



	One-Time Employee Termination Benefits			Asset Impairment and Accelerated Depreciation			Contract Termination and Other Associated Costs			Total
Accrued restructuring balance as of March 31, 2018	$	6,130		$	—		$	2,557		$	8,687
Costs incurred and charged to expense	12,826			37,247			641			50,714
Cash payments	(11,968		)	—			(1,572		)	(13,540		)
Non-cash activity	—			(37,247		)	—			(37,247		)
Accrued restructuring balance as of March 30, 2019	$	6,988		$	—		$	1,626		$	8,614
Costs incurred and charged to expense	6,289			26,061			15,519			47,869
Transfer to right-of-use asset	—			—			(1,248		)	(1,248		)
Cash payments	(11,549		)	—			(7,262		)	(18,811		)
Non-cash activity	—			(26,061		)	(8,365		)	(34,426		)
Accrued restructuring balance as of March 28, 2020	$	1,728		$	—		$	270		$	1,998