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 this plan, approximately $0.4 million of credit and $2.4 million of expense was incurred during the three months ended July 1, 2017 and July 2, 2016, respectively, and approximately $0.1 million of credit and $5.9 million of expense was incurred during the six months ended July 1, 2017 and July 2, 2016, respectively. Approximately $20.5 million of total expense has been incurred through July 1, 2017 under the March 2015 Plan, and we expect the total cost 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 but which will be expensed as incurred. Under this reduction, approximately $0.5 million of credit and $0.2 million of expense were incurred during the three months ended July 1, 2017 and July 2, 2016, respectively, and approximately $0.7 million of credit and $2.1 million of expense was incurred during the six months ended July 1, 2017 and July 2, 2016, respectively. Approximately $7.2 million of total expense has been incurred through July 1, 2017 under the September 2015 Reduction, and we expect the total cost to be approximately $8.0 million.

In June 2017, our Board of Directors approved an additional internal restructuring plan (the "June 2017 Plan"), which resulted in the sale of our Hyderabad, India subsidiary and certain assets related to non-core businesses, a worldwide workforce reduction, and an initiative to reduce our infrastructure costs. These actions are part of an overall plan to achieve financial targets and to enhance our financial and competitive position by better aligning our revenue and operating expenses. Approximately $2.4 million of total expense has been incurred through July 1, 2017 under the June 2017 Plan, and we expect the total cost to be approximately $8.0 million to $19.0 million.

The approximately $2.4 million of expense related to the June 2017 Plan has been offset by credits from the March 2015 Plan and the September 2015 Reduction discussed above totaling approximately $0.8 million for both the second quarter and first six months of fiscal 2017, resulting in the net charge of approximately $1.6 million 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 our Consolidated Balance Sheets.

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



(In thousands)	Severance & related *			Lease Termination			Software Contracts & Engineering Tools **			Other			Total
Balance at January 2, 2016	$	3,696		$	1,005		$	377		$	—		$	5,078
Restructuring charges	1,878			2,234			1,931			1,956			7,999
Costs paid or otherwise settled	(4,406		)	(1,402		)	(2,111		)	(1,940		)	(9,859		)
Balance at July 2, 2016	$	1,168		$	1,837		$	197		$	16		$	3,218

Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874
Restructuring charges	1,276			57			—			309			1,642
Costs paid or otherwise settled	(52		)	(616		)	(25		)	(301		)	(994		)
Balance at July 1, 2017	$	2,025		$	477		$	—		$	20		$	2,522

* Includes employee relocation costs

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

relationship management systems