Note 9 - Restructuring Charges

3 Months Ended

May 05, 2018

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

9

.           Restructuring charges

On

March 24, 2017,

we initiated restructuring activities (the “Fiscal

2018

Plan”) in order to realign resources with our core target markets, such as the IoT market. Our restructuring activities include targeted reductions in labor costs through headcount reductions, facilities closure, and impairment of mask sets and certain purchased IP. The changes to our workforce

may

vary by country based on local legal requirements, as appropriate. 

In the

first

quarter of

2018,

we communicated a plan of termination to several employees, which consisted of headcount reductions mainly in our North America operations, a majority of which are from our research and development group for the Connected Smart TV Platforms market. As a result, for the

three

months ended

April 29, 2017,

we recorded a restructuring charge of

$0.4

million, reflected in general and administrative expense, which includes

$0.2

million of charges related to workforce reductions, and paid less than

$0.1

million in cash payments. In addition, we recorded an impairment charge for purchased IP

not

yet deployed of

$3.0

million as we

no

longer intend to use this IP. Accrued severance liability of

$1.5

million as of

May 5, 2018

is reported within accrued liabilities in the accompanying condensed consolidated statement of net assets.