Restructuring

The following table shows the provision of the restructuring charges and the liability remaining as of July 1, 2018:




(in thousands)	Continuing Operations			HSC (Discontinued Operations)		Total
Severance and related charges:
Balance as of April 1, 2018	$	4,013		$	624	$	4,637
Provision	533			—		533
Payments and other adjustments	(3,115		)	—		(3,115		)
Balance as of July 1, 2018	$	1,431		$	624	$	2,055
Facility and related charges:
Balance as of April 1, 2018	$	2,281		$	—	$	2,281
Provision	121			—		121
Payments and other adjustments	(202		)	—		(202		)
Balance as of July 1, 2018	$	2,200		$	—	$	2,200

As part of an effort to streamline operations with changing market conditions and to create a more efficient organization, the Company has undertaken restructuring actions to reduce its workforce and consolidate facilities. The Company’s restructuring expenses consist primarily of severance and termination benefit costs related to the reduction of its workforce, asset impairment charges and lease obligation charges related to a facility that is no longer used.

Integration-related Restructuring Plans

In fiscal 2018, the Company implemented planned cost reduction and restructuring activities in connection with the acquisition of GigPeak. Accordingly, the Company reduced headcount by 46 and recorded severance costs of approximately $2.7 million, of which $2.1 million was paid during fiscal 2018. The Company paid $0.4 million during the first quarter of fiscal 2019 and the remaining $0.2 million will be paid by the second quarter of fiscal 2019.

In connection with the GigPeak integration, the Company recorded $2.8 million in fiscal 2018 for lease obligation charges related to a facility that the Company had determined to meet the cease-use date criteria. The fair value of this liability at the cease-use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals, discounted using a credit adjusted risk free rate in accordance with ASC 420, Exit or Disposal Cost Obligations. As of July 1, 2018, the total accrued balance for the lease obligation was $2.2 million, of which $1.5 million was classified as other long-term liabilities and the remaining $0.7 million was recorded as other accrued liabilities.

Other Restructuring Plans

In fiscal 2018, the Company exited certain non-strategic businesses and reduced headcount by 63. The Company recorded employee severance costs of approximately $5.1 million, of which $2.3 million was paid during fiscal 2018. The Company recorded additional accruals of $0.5 million and paid $2.2 million during the first quarter of fiscal 2019. As of July 1, 2018, the total accrued balance for employee severance costs related to this action was $1.1 million which is expected to be paid by the second quarter of fiscal 2019. In addition, in fiscal 2018, the Company recorded an impairment charge of $7.8 million on certain assets comprised of intangibles, equipment and prepaid licenses, which were determined to be specifically used in these non-strategic businesses and had no alternative use. Impairment charges of $5.4 million and $2.4 million, were included in Cost of Revenues and Research and Development Expenses, respectively in the Condensed Consolidated Statements of Operations.

In fiscal 2017, the Company prepared a workforce-reduction plan with respect to employees and closed its remaining business in France. The Company has substantially completed payments of termination benefits and the total accrued balance related to this action was $0.8 million as of April 1, 2018. The Company paid $0.5 million during the first quarter of fiscal 2019. Accordingly, the total accrued balance for employee severance costs related to this action was $0.3 million as of July 1, 2018. The Company expects to complete this action by the third quarter of fiscal 2019.

In fiscal 2015, the Company prepared a workforce-reduction plan with respect to employees of its HSC business in France and the Netherlands. The Company has substantially completed payments of termination benefits and the total accrued balance related to this action was $0.6 million as of April 1, 2018 and July 1, 2018. The Company expects to complete this action by the third quarter of fiscal 2019.