XML 27 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Restructuring
 9 Months Ended
Oct. 03, 2021
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING
January 2021 Restructuring Plan

During the first quarter of fiscal 2021, we adopted a restructuring plan to realign and optimize workforce requirements concurrent with the planned closure of our manufacturing facility in Hillsboro, Oregon. In connection with the restructuring plan, which included actions to be implemented in the first quarter of 2021 and expected to be completed by the third quarter of 2021, we expected the majority of our approximately 170 primarily manufacturing employees to exit over a period of three to six months. We expected to incur restructuring charges totaling approximately $7.0 million to $9.0 million, consisting primarily of severance benefits (between $4.0 million and $5.0 million) and real estate lease termination costs (between $3.0 million and $4.0 million).

In connection with the closure, in April 2021, we signed agreements with two independent third parties to sell certain assets and liabilities, as well as retain and engage certain employees at the facility providing R&D services. The proceeds for the assets and sale of R&D services, together with the assumption of certain liabilities, reduced our previously anticipated restructuring charges by approximately $1.2 million.

As of October 3, 2021, we had incurred cumulative costs of approximately $3.6 million in restructuring charges, primarily relating to the payment of severance benefits. Remaining activities on this January 2021 restructuring plan primarily relate to payroll for some employees expected to be incurred through 2022 concurrent with the end of the R&D services agreement.

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 changes to our business, including the Spin-Off. In connection with the restructuring plan, which included actions implemented in the fourth quarter of 2019, we expected 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 were expected in the legacy SunPower Technologies business unit and corporate, and most of whom exited our company following the Spin-Off, and the remainder of which exited upon completion of transition services. As the legacy SunPower Energy Services business unit refined 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. As of October 3, 2021, we had incurred cumulative costs of approximately $11.0 million in restructuring charges consisting primarily of severance and retention benefits. The 2019 restructuring plan is substantially completed.
The following table summarizes the comparative periods-to-date restructuring charges by plan recognized in our unaudited condensed consolidated statements of operations:

Three Months EndedNine Months Ended
(In thousands)October 3, 2021September 27, 2020October 3, 2021September 27, 2020Cumulative To Date
January 2021 Restructuring Plan:
Severance and benefits$(75)$— $3,533 $— $3,533 
Other costs1
1 — 36 — 36 
Total January 2021 Restructuring Plan2
(74)— 3,569 — 3,569 
December 2019 Restructuring Plan:
Severance and benefits(26)(104)793 2,784 10,826 
Other costs1
— — 112 — 159 
Total December 2019 Restructuring Plan(26)(104)905 2,784 10,985 
Other Legacy Restructuring Plans(130)7 (130)(46)68,512 
Total restructuring charges (credits)$(230)$(97)$4,344 $2,738 $83,066 

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

2 A portion of the costs related to the plan were primarily comprised of real estate lease termination costs, amounting to $2.5 million, and were classified as cost of revenues within our unaudited condensed consolidated statements of operations for the nine months ended October 3, 2021.

The following table summarizes the restructuring reserve activities during the nine months ended October 3, 2021:

Nine months ended
(In thousands)January 3, 2021Charges (Benefits)(Payments) RecoveriesOctober 3, 2021
January 2021 Restructuring Plan:
Severance and benefits$— $3,533 $(1,938)$1,595 
Other costs1
— 36 (36)— 
Total January 2021 Restructuring Plan— 3,569 (1,974)1,595 
December 2019 Restructuring Plan:
Severance and benefits2,608 793 (2,458)943 
Other costs1
— 112 (112)— 
Total December 2019 Restructuring Plan2,608 905 (2,570)943 
Other Legacy Restructuring Plans200 (130)(70)— 
Total restructuring reserve activities$2,808 $4,344 $(4,614)$2,538 

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