Restructuring

In March 2015, our Board of Directors approved an internal restructuring plan (the "March 2015 Plan"), in connection with our acquisition of Silicon Image. The March 2015 Plan was designed to realize synergies from the acquisition by eliminating redundancies created as a result of combining the two companies. This included reductions in our worldwide workforce, consolidation of facilities, and cancellation of software contracts and engineering tools. The March 2015 Plan is substantially complete, subject to certain remaining expected costs that we do not expect to be material and any changes in sublease assumptions should they occur, which will be expensed as incurred under U.S. GAAP rules through the first quarter of fiscal 2017. Under this plan, approximately $7.3 million and $13.3 million of expense was incurred during the years ended December 31, 2016 and January 2, 2016, respectively. Approximately $20.6 million of total expense has been incurred through December 31, 2016 under the March 2015 Plan. We expect the total cost of the March 2015 Plan to be approximately $21.0 million.

In September 2015, we implemented a further reduction of our worldwide workforce (the "September 2015 Reduction") separate from the March 2015 Plan. The September 2015 Reduction was designed to resize the company in line with the market environment and to better balance our workforce with the long-term strategic needs of our business. The September 2015 Reduction is substantially complete, subject to certain remaining expected costs, which we do not expect to be material, which will be expensed as incurred under U.S. GAAP rules through the first quarter of fiscal 2017. Under this reduction, approximately $2.0 million and $5.9 million of expense was incurred during the years ended December 31, 2016 and January 2, 2016, respectively. Approximately $7.9 million of total expense has been incurred through December 31, 2016 under the September 2015 Reduction. We expect the total cost of the September 2015 Reduction to be approximately $8.0 million.

In each of the fiscal years 2015 and 2014, less than $0.1 million of expense was incurred related to a prior restructuring plan. No charges were incurred in fiscal 2016 under this prior plan.

These expenses were recorded to restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in accounts payable and accrued expenses (includes restructuring) on the Consolidated Balance Sheets.

The following table displays the activity related to the restructuring plans described above:



(In thousands)	Severance & related *			Lease termination			Software Contracts & Engineering Tools**			Other			Total
Balance at December 28, 2013	$	17		$	368		$	—		$	147		$	532
Restructuring charges	—			1			—			9			10
Costs paid or otherwise settled	(8		)	(341		)	—			(18		)	(367		)
Adjustments to prior restructuring costs	(9		)	15			—			1			7
Balance at January 3, 2015	$	—		$	43		—			$	139		$	182
Restructuring charges	12,861			2,667			3,040			671			19,239
Costs paid or otherwise settled	(9,165		)	(1,705		)	(2,663		)	(810		)	(14,343		)
Balance at January 2, 2016	$	3,696		$	1,005		377			$	—		$	5,078
Restructuring charges	2,883			2,993			1,903			1,488			9,267
Costs paid or otherwise settled	(5,778		)	(2,962		)	(2,255		)	(1,476		)	(12,471		)
Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874

* Includes employee relocation costs

**Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer

relationship management systems