Note 9 - Restructuring

12 Months Ended

Jan. 01, 2022

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

In March 2020, our management approved and executed an internal restructuring plan (the “Q1 2020 Plan”), which included a workforce reduction in order to reduce our operating cost structure by leveraging our low-cost regions as well as enhancing efficiency. Under this plan, we incurred restructuring expense of approximately $0.2 million and $2.0 million, respectively, during fiscal 2021 and 2020. Approximately $2.2 million of total expense has been incurred through January 1, 2022 under the Q1 2020 Plan. Substantially all actions planned under the Q1 2020 Plan have been implemented.

In April 2019, our management approved and executed an internal restructuring plan (the “Q2 2019 Sales Plan”), which focused on a restructuring of the global sales organization through cancellation of certain contracts and a workforce reduction. Under this plan, no restructuring expense was incurred during fiscal 2021, and we incurred restructuring expense of approximately $0.1 million and $2.0 million, respectively, during fiscal 2020 and 2019. Approximately $2.1 million of total expense has been incurred through January 1, 2022 under the Q2 2019 Sales Plan. All actions planned under the Q2 2019 Sales Plan have been implemented.

In June 2017, our Board of Directors approved an internal restructuring plan (the "June 2017 Plan"), which included the sale of 100% of the equity of our Hyderabad, India subsidiary and the transfer of certain assets related to our Simplay Labs testing and certification business, a worldwide workforce reduction, and an initiative to reduce our infrastructure costs, including reconfiguring our use of certain leased properties. Under this plan, we incurred restructuring expense of approximately $0.7 million, $1.9 million, and $2.7 million, respectively, during fiscal 2021, 2020, and 2019. We have incurred approximately $21.6 million of total expense through January 1, 2022 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 $22.0 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 and credits were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accrued expenses and Other long-term liabilities on our Consolidated Balance Sheets.

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

(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Software Contracts & Engineering Tools (2)			Other (3)			Total
Accrued Restructuring at December 29, 2018	$	1,814		$	8,630		$	218		$	18		$	10,680
Restructuring charges		625			2,716			—			1,323			4,664
Costs paid or otherwise settled		(2,279	)		(4,761	)		(218	)		(476	)		(7,734	)
Accrued Restructuring at December 28, 2019	$	160		$	6,585		$	—		$	865		$	7,610
Restructuring charges		1,669			1,896			—			372			3,937
Costs paid or otherwise settled		(1,583	)		(248	)		—			(573	)		(2,404	)
Accrued Restructuring at January 2, 2021	$	246		$	8,233		$	—		$	664		$	9,143
Restructuring charges		250			690			—			—			940
Costs paid or otherwise settled		(245	)		(1,793	)		—			(664	)		(2,702	)
Accrued Restructuring at January 1, 2022	$	251		$	7,130		$	—		$	—		$	7,381

(1)	Includes employee relocation costs and outplacement costs, and accelerated stock compensation
(2)	Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer relationship management systems
(3)	Includes termination fees on the cancellation of certain contracts under the Q2 2019 Sales Plan