RESTRUCTURING AND OTHER CHARGES

6 Months Ended

Jun. 29, 2014

RESTRUCTURING AND OTHER CHARGES

In December 2011, our management approved and initiated a cost reduction plan ("2011 Restructuring Plan") as part of our broader cost reduction initiatives. During 2012 and 2013, we completed the first four phases of our cost reduction plan, which included the consolidation of our manufacturing and research and development facilities, including contract termination costs related to two vacant facilities; moving a portion of our outsourced spare parts logistics operations in-house; and workforce reductions. We incurred a total of $10.5 million in restructuring and other charges under the 2011 Restructuring Plan through the end of fiscal year 2013, and an additional $0.1 million in the second quarter of fiscal year 2014. We plan to make payments related to these contract termination costs through fiscal year 2015.

During the three and six months ended June 29, 2014, we incurred $0.1 million in restructuring charges related to workforce reductions. During the three and six months ended June 30, 2013, we incurred $0.4 million and $2.7 million, respectively, in restructuring charges related to employee severance and other costs, including approximately $0.6 million in severance expense for our former chief executive officer which was recorded in the second quarter of fiscal year 2013.

The following table summarizes changes in the restructuring accrual for the three and six months ended June 29, 2014 (in thousands):



	Three Months Ended June 29, 2014									Six Months Ended June 29, 2014
	Employee Severance Costs			Contract Termination Costs			Total			Employee Severance Costs			Contract Termination Costs			Total
Beginning balance	$	—		$	844		$	844		$	—		$	1,103		$	1,103
Restructuring charges	111			—			111			111			—			111
Payments	(111		)	(286		)	(397		)	(111		)	(528		)	(639		)
Reserve adjustments	—			1			1			—			(16		)	(16		)
Ending balance	$	—		$	559		$	559		$	—		$	559		$	559

As of June 29, 2014, $0.5 million of the restructuring accrual was classified as short-term and recorded within other current liabilities in the condensed consolidated balance sheets, and the remaining $0.1 million of the restructuring accrual was classified as long-term and recorded within other liabilities in the condensed consolidated balance sheets.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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