Note 6 - Restructuring

9 Months Ended

Oct. 02, 2021

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Under the Q1 2020 Plan, which is described in the 2020 10-K, we recorded no expense and approximately $0.6 million of expense during the third quarter of fiscal 2021 and 2020, respectively; and we recorded less than $0.1 million and approximately $2.0 million of expense in the first nine months of fiscal 2021 and 2020, respectively. Approximately $2.0 million of total expense has been incurred through October 2, 2021 under the Q1 2020 Plan. Substantially all actions planned under the Q1 2020 Plan have been implemented.

Under the Q2 2019 Sales Plan, which is described in the 2020 10-K, we recorded no expense and less than $0.1 million of expense during the third quarter of fiscal 2021 and 2020, respectively; and we recorded no expense and less than $0.1 million of expense during the first nine months of fiscal 2021 and 2020, respectively. Approximately $2.1 million of total expense has been incurred through October 2, 2021 under the Q2 2019 Sales Plan. All actions planned under the Q2 2019 Sales Plan have been implemented.

Under the June 2017 Plan, which is described in the 2020 10-K, we incurred restructuring expense related to our partially vacated facility in San Jose, California of approximately $0.1 million and approximately $2.0 million during the third quarter of fiscal 2021 and 2020, respectively; and approximately $0.5 million and approximately $2.1 million during the first nine months of fiscal 2021 and 2020, respectively. We have incurred approximately $21.5 million of total expense through October 2, 2021 under the June 2017 Plan, and all planned actions have been implemented. We expect the total cost of the June 2017 Plan to be approximately $21.5 million to $23.5 million as ROU asset amortization expenses related to our partially vacated facility in San Jose, California will be incurred over the remaining lease term.

These expenses were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accrued expenses and in Other long-term liabilities on our Consolidated Balance Sheets. The following table displays the activity related to our restructuring plans:

(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Other (2)			Total
Accrued Restructuring at January 2, 2021	$	246		$	8,233		$	664		$	9,143
Restructuring charges		15			531			—			546
Costs paid or otherwise settled		(165	)		(1,346	)		(664	)		(2,175	)
Accrued Restructuring at October 2, 2021	$	96		$	7,418		$	-		$	7,514
Accrued Restructuring at December 28, 2019	$	160		$	6,585		$	865		$	7,610
Restructuring charges		1,733			2,132			313			4,178
Costs paid or otherwise settled		(1,254	)		(1,275	)		(526	)		(3,055	)
Accrued Restructuring at September 26, 2020	$	639		$	7,442		$	652		$	8,733

(1)	Includes employee relocation and outplacement costs
(2)	Includes termination fees on the cancellation of certain contracts under the Q2 2019 Sales Plan