Note 11 - Restructuring Charges and Exit Costs

9 Months Ended

Dec. 28, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

NOTE 11. RESTRUCTURING CHARGES AND EXIT COSTS

2015 Restructuring Charges and Exit Costs

Exar completed a significant strategic restructuring process that began in the quarter ended September 28, 2014 and ended in October 2014.  This restructuring was prompted by the recent acquisition of iML, and an associated significant reduction in force, including reductions at our Hangzhou, China; Loveland, Colorado; and Ipoh, Malaysia locations.  We believe this restructuring allows us to achieve meaningful synergies and operating efficiencies and focus our resources on strategic priorities that we expect will yield the highest incremental return for Exar’s stockholders.  During the three and nine months ended December 28, 2014, we incurred $3.5 million and $10.4 million restructuring charges and exit costs, respectively. The charges consisted primarily of reduction of our workforce, the impairment of certain fixed assets, licensed technologies and write-off of related inventory.

2014 Restructuring Charges and Exit Costs

During the three and nine months ended December 29, 2013, we incurred restructuring charges and exit costs of $0.1 million and $1.5 million, respectively. The charges include $1.3 million of severance benefits, net of adjustments in other costs and $0.2 million of costs related to efforts to sell and market our campus in Fremont, California.

Our restructuring liabilities were included in the other current liabilities and other non-current obligations lines within our condensed consolidated balance sheets. The following table summarizes the activities affecting the liabilities as of the dates indicated below (in thousands):

	March 30, 2014		Additions/ adjustments		Non-cash charges			Payments			December 28, 2014
Lease termination costs and others	$	1,615	$	294	$	(164	)	$	(1,485	)	$	260
Impairment of fixed assets, licensed technologies and write down of inventory		—		6,568		(6,568	)		—			—
Severance		754		3,574		—			(3,183	)		1,145
Total	$	2,369	$	10,436	$	(6,732	)	$	(4,668	)	$	1,405

	April 1, 2013		Additions/ adjustments		Non-cash charges			Payments			March 30, 2014
Lease termination costs and others	$	2,860	$	570	$	(57	)	$	(1,758	)	$	1,615
Severance		426		2,444		—			(2,116	)		754
Total	$	3,286	$	3,014	$	(57	)	$	(3,874	)	$	2,369