Restructuring

In the fourth quarter of fiscal year 2014, the Company made a strategic decision to reduce its investment in the long-haul optical market, realign its product groupings and align spending to current demand levels. As a result of these actions, the Company recorded restructuring charges of $1.0 million in the nine months of fiscal year 2015. The Company recorded no restructuring charges in the third quarter of fiscal year 2015. Restructuring related liabilities are included in “Accrued liabilities” within the condensed consolidated balance sheets as of October 26, 2014 and January 26, 2014, respectively.

The following table summarizes the restructuring activity for the nine months ended October 26, 2014:



(in thousands)	One-time employee termination benefits			Contract commitments			Total
Balance at January 26, 2014	1,387			1,245			2,632
Charges	378			623			1,001
Cash payments	(1,719		)	(1,686		)	(3,405		)
Reclassifications	—			(115		)	(115		)
Balance at October 26, 2014	$	46		$	67		$	113

Restructuring charges are presented in “Restructuring charge” within the condensed consolidated statements of income. The Company does not expect to incur additional costs related to this restructuring event.