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Restructuring
 9 Months Ended
Sep. 27, 2020
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING
December 2019 Restructuring Plan

During the fourth quarter of fiscal 2019, we adopted a restructuring plan to realign and optimize workforce requirements in light of recent changes to our business, including the previously announced planned Spin-Off of Maxeon Solar. In connection with the restructuring plan, which includes actions implemented in the fourth quarter of 2019 and is expected to be substantially completed by the end of 2022, we expect between 145 and 160 non-manufacturing employees, representing approximately 3% of our global workforce, to exit over a period of approximately 12 to 18 months. Between 65 and 70 of these employees in the legacy SunPower Technologies business unit and corporate have largely been informed, most of whom exited our company following the Spin-Off, and the remainder of which will exit upon completion of transition services. As the legacy SunPower Energy Services business unit refines its focus on distributed generation, storage, and energy services, 80 to 90 employees exited during the fourth fiscal quarter of 2019 and the first half of 2020. We expected to incur restructuring charges totaling approximately $16 million to $22 million, consisting primarily of severance benefits (between $8 million and $11 million) and retention benefits (between $8 million and $11 million) primarily associated with the retention of employees impacted by the Spin-Off transaction and certain key research and development employees. A substantial portion of such charges was incurred in the fourth quarter of fiscal 2019 and expected to be incurred throughout fiscal 2020, and we expect between $14 million and $19 million of the charges to be cash. As of September 27, 2020, we have incurred cumulative costs of approximately $10.2 million in restructuring charges.
February 2018 Restructuring Plan

During the first quarter of fiscal 2018, we adopted a restructuring plan and began implementing initiatives to reduce operating expenses and cost of revenue overhead in light of the known shorter-term impact of U.S. tariffs imposed on PV solar cells and modules pursuant to Section 201 of the Trade Act of 1974 and our broader initiatives to control costs and improve cash flow. In connection with the plan, we expected between 150 and 250 non-manufacturing employees to be affected, representing approximately 3% of our global workforce, with a portion of those employees exiting from us as part of a voluntary departure program. The changes to our workforce varied by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate. We expected to incur restructuring charges totaling between $20 million to $30 million, consisting primarily of severance benefits (between $11 million and $16 million) and real estate lease termination and other associated costs (between $9 million and $14 million). We expected between $12 million and $20 million of the charges to be paid in cash. This restructuring plan is substantially complete, and any remaining costs to be incurred are not expected to be material.

Legacy Restructuring Plans

Prior to fiscal 2018, we implemented approved restructuring plans, related to all segments, to reduce costs and focus on improving cash flow, to realign our legacy power plant business unit, to align with changes in the global solar market, as well as actions to accelerate operating cost reduction and improve overall operating efficiency. These restructuring activities were substantially complete as of December 30, 2018, and any remaining costs to be incurred are not expected to be material.

The following table summarizes the comparative periods-to-date restructuring charges by plan recognized in our condensed consolidated statements of operations:

Three Months EndedNine Months Ended
(In thousands)September 27, 2020September 29, 2019September 27, 2020September 29, 2019Cumulative To Date
December 2019 Restructuring Plan:
Severance and benefit charges$(104)$— $2,784 $— $10,139 
Other costs1
— — — — 41 
Total December 2019 Restructuring Plan(104)— 2,784 — 10,180 
February 2018 Restructuring Plan:
Non-cash asset impairment charges— 3,527 — 5,874 5,874 
Severance and benefit credits— (12)— (46)6,210 
Lease and related termination credits— 213 (26)213 528 
Other costs (credits)1
7 490 45 581 1,000 
Total February 2018 Restructuring Plan7 4,218 19 6,622 $13,612 
Legacy Restructuring Plan:
Legacy restructuring plan charges (credits)— 34 (65)4 55,064 
Total restructuring charges (credits)$(97)$4,252 $2,738 $6,626 $78,856 
1 Other costs primarily represent associated legal and advisory services, and costs of relocating employees.
The following table summarizes the restructuring reserve activities during the nine months ended September 27, 2020:
Nine Months Ended
(In thousands)December 29, 2019Charges (Benefits)(Payments) RecoveriesSeptember 27, 2020
December 2019 Restructuring Plan:
Severance and benefits$5,822 $2,784 $(5,000)$3,606 
Total December 2019 Restructuring Plan5,822 2,784 (5,000)3,606 
February 2018 Restructuring Plan:
Severance and benefits76 — (6)70 
Lease and related termination costs— (26)26 — 
Other costs1
— 45 (45)— 
Total February 2018 Restructuring Plan76 19 (25)70 
Legacy Restructuring Plans187 (65)8 130 
Total restructuring reserve activities$6,085 $2,738 $(5,017)$3,806 
1 Other costs primarily represent associated legal and advisory services, and costs of relocating employees.