Note 9 - Restructuring

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

In September 2022, our management approved and implemented additional contract cancellations and headcount reductions under the Q2 2019 Sales Plan, an internal restructuring plan that our management approved and executed in April 2019. The Q2 2019 Sales Plan focused on a restructuring of the global sales organization through cancellation of certain contracts and a workforce reduction. With these actions, we incurred approximately $1.0 million of incremental restructuring costs in fiscal 2022. Under this plan, no restructuring expense was incurred during fiscal 2021, and we incurred restructuring expense of approximately $0.1 million during fiscal 2020. Under this plan, approximately $3.1 million of total expense has been incurred through December 31, 2022. All actions planned under the Q2 2019 Sales Plan have been implemented.

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 recorded a credit of approximately $0.1 million during fiscal 2022, and we incurred restructuring expense of approximately $0.2 million and $2.0 million, respectively, during fiscal 2021 and 2020. Approximately $2.1 million of total expense has been incurred through December 31, 2022 under the Q1 2020 Plan. All actions planned under the Q1 2020 Plan have been implemented.

In June 2017, our Board of Directors approved an internal restructuring plan (the "June 2017 Plan"), which included actions, among others, to reconfigure our use of certain leased properties. Under the June 2017 Plan, we incurred approximately $1.1 million of incremental restructuring costs in fiscal 2022 related to an impairment of the operating lease right-of-use asset for our partially vacated facility in San Jose, California. Including these charges, we incurred restructuring expense of approximately $1.6 million during fiscal 2022, and we incurred restructuring expense of approximately $0.7 million and $1.9 million, respectively, during fiscal 2021 and 2020. Under this plan, we have incurred approximately $23.3 million of total expense through December 31, 2022. All actions planned under the June 2017 Plan have been implemented.

These expenses and credits were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accrued liabilities 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			Other (2)			Total
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
Restructuring charges		303			1,608			640			2,551
Costs paid or otherwise settled		(154	)		(2,846	)		—			(3,000	)
Accrued Restructuring at December 31, 2022	$	400		$	5,892		$	640		$	6,932

(1)	Includes employee relocation costs and outplacement costs
(2)	Includes termination fees on the cancellation of certain contracts