RESTRUCTURING AND OTHER CHARGES

9 Months Ended

Sep. 28, 2014

RESTRUCTURING AND OTHER CHARGES

In December 2011, our management approved and initiated a cost reduction plan ("2011 Restructuring Plan") as part of a broad-based cost reduction initiative. 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 $0.3 million and $0.4 million during the three and nine months ended September 28, 2014, respectively. We plan to make payments related to these employee severance and contract termination costs through fiscal year 2015.

During the three and nine months ended September 28, 2014, we incurred $0.4 million and $0.5 million, respectively, in restructuring charges related to workforce reductions. We also recorded a reduction in our restructuring accrual of $0.1 million related to a revised estimate of our future rent obligations for one of our vacant facilities.

During the three and nine months ended September 29, 2013, we incurred a total of $1.0 million and $3.7 million, respectively, in restructuring charges. We recorded approximately $0.2 million and $2.8 million during the three and nine months ended September 29, 2013, respectively, related to employee severance costs, which included recruiting costs for a new chief executive officer as well as severance expense for the former chief executive officer of $0.6 million which were recorded in the second quarter of fiscal year 2013. During the three and nine months ended September 29, 2013, we recorded approximately $0.8 million in contract termination costs related to future rent obligations associated with two vacated leased facilities, net of sublease income, which was recorded in the third quarter of fiscal year 2013.

The following table summarizes changes in the restructuring accrual for the three and nine months ended September 28, 2014 (in thousands):



	Three Months Ended September 28, 2014									Nine Months Ended September 28, 2014
	Employee Severance Costs			Contract Termination Costs			Total			Employee Severance Costs			Contract Termination Costs			Total
Beginning balance	$	—		$	559		$	559		$	—		$	1,103		$	1,103
Restructuring charges	415			(114		)	301			526			(114		)	412
Payments	(202		)	(102		)	(304		)	(313		)	(630		)	(943		)
Reserve adjustments	(12		)	(8		)	(20		)	(12		)	(24		)	(36		)
Ending balance	$	201		$	335		$	536		$	201		$	335		$	536

As of September 28, 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 balance of $34,000 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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