RESTRUCTURING

December 2016 Restructuring Plan

On December 2, 2016, the Company adopted, and the Company began implementing, a restructuring plan to reduce costs and focus on improving cash flow while positioning the Company to succeed in the next phase of industry growth. As part of the plan, the Board of Directors approved the closure of the Company’s Philippine-based Fab 2 manufacturing facility. In connection with the plan, which is expected to be completed by the end of fiscal 2017, the Company expects approximately 2,500 employees to be affected, primarily in the Philippines, representing approximately 25% of the Company’s global workforce. The Company expects to incur restructuring charges in connection with the plan totaling approximately $225 million to $275 million, consisting primarily of asset impairments, severance benefits, lease and related termination costs, and other associated costs. The Company expects approximately 30% of such total restructuring charges to be cash. The actual timing and costs of the plan may differ from the Company’s current expectations and estimates.

August 2016 Restructuring Plan

On August 9, 2016, the Company adopted and began implementing initiatives to realign the Company’s downstream investments, optimize the Company’s supply chain and reduce operating expenses, in response to expected near-term challenges primarily relating to the Company’s Power Plant Segment. In connection with the realignment, which is expected to be completed by the end of fiscal 2017, the Company expects approximately 1,200 employees to be affected, primarily in the Philippines, representing approximately 15% of the Company’s global workforce at the time. The Company expects to incur restructuring charges totaling approximately $35 million to $45 million, consisting primarily of severance benefits, asset impairments, lease and related termination costs, and other associated costs. The Company expects more than 50% of total charges to be cash. The actual timing and costs of the plan may differ from the Company’s current expectations and estimates due to a number of factors, including uncertainties related to required consultations with employee representatives as well as other local labor law requirements and mandatory processes in the relevant jurisdictions.

Legacy Restructuring Plans

During prior fiscal years, the Company implemented approved restructuring plans, related to all segments, to align with changes in the global solar market which included the consolidation of the Company's Philippine manufacturing operations as well as actions to accelerate operating cost reduction and improve overall operating efficiency. These restructuring activities were substantially complete as of January 1, 2017; however, the Company expects to continue to incur costs as it finalizes previous estimates and actions in connection with these plans, primarily due to other costs, such as legal services.

The following table summarizes the restructuring charges recognized in the Company's Consolidated Statements of Operations:



	Fiscal Year
(In thousands)	2016			2015		2014		Cumulative To Date
December 2016 Plan:
Non-cash impairment charges	$	148,791		$	—	$	—	$	148,791
Severance and benefits	$	15,901		$	—	$	—	$	15,901
Other costs¹	$	7,819		$	—	$	—	$	7,819
	$	172,511		$	—	$	—	$	172,511
August 2016 Plan:
Non-cash impairment charges	$	17,926		$	—	$	—	$	17,926
Severance and benefits	15,591			—		—		15,591
Lease and related termination costs	557			—		—		557
Other costs¹	$	364		$	—	$	—	364
	$	34,438		$	—	$	—	$	34,438
Legacy Restructuring Plans:
Non-cash impairment charges	$	—		$	5	$	719	$	61,320
Severance and benefits	350			2,710		10,535		61,949
Lease and related termination costs	(171		)	1,210		244		6,813
Other costs¹	62			2,466		725		13,599
	$	241		$	6,391	$	12,223	$	143,681
Total restructuring charges	$	207,190		$	6,391	$	12,223	$	350,630

¹Other costs primarily represent associated legal services and costs of relocating employees.

The following table summarizes the restructuring reserve activity during the fiscal year ended January 1, 2017:



	Fiscal Year
(In thousands)	2015		Charges (Benefits)			Payments			2016
December 2016 Plan:
Non-cash impairment charges	$	—	$	148,791		$	—		$	—
Severance and benefits	$	—	$	15,901		$	(7,790	)	$	8,111
Lease and related termination costs	$	—	$	—		$	—		$	—
Other costs¹	$	—	$	7,819		$	(1,887	)	$	5,932
	$	—	$	172,511		$	(9,677	)	$	14,043
August 2016 Plan:
Non-cash impairment charges	$	—	$	17,926		$	—		$	—
Severance and benefits	—		15,591			(12,143		)	3,448
Lease and related termination costs	—		557			(557		)	—
Other costs¹	—		364			(278		)	86
	$	—	34,438			$	(12,978	)	3,534
Legacy Restructuring Plans:
Non-cash impairment charges	$	—	$	—		$	—		$	—
Severance and benefits	395		350			(446		)	299
Lease and related termination costs	743		(171		)	(520		)	52
Other costs¹	685		62			(674		)	73
	1,823		241			(1,640		)	424
Total restructuring liability	$	1,823	$	207,190		$	(24,295	)	$	18,001


¹	Other costs primarily represent associated legal services and costs of relocating employees.