Severance, impairment and other associated costs

12 Months Ended

Dec. 26, 2014

Restructuring and Related Activities [Abstract]

Severance, impairment and other associated costs

Year Ended December 26, 2014

During the year ended December 26, 2014, the total charges of $3.9 million primarily consisted of severance costs related to various operating expense reduction programs initiated by the Company to make progress towards our targeted operating expense model. These costs included $1.4 million related to actions we initiated in the third quarter of 2014 to consolidate and relocate certain general and administrative functions to lower cost locations, as well as $0.6 million of severance costs related to the shut-down of our Korean engineering facility in our Wireless segment announced during the fourth quarter of 2014. We expect both of these actions to be completed by the first quarter of 2015. In addition, we incurred $1.7 million related to a program initiated in the second quarter of 2013 associated with consolidation of certain general and administrative functions, elimination of certain positions within our executive management team, and workforce reductions in our Wireless segment and $0.2 million of severance costs related to a program we initiated in the third quarter of 2013 to lower overhead and reorganize certain indirect labor functions in China. These programs have been substantially completed as of December 26, 2014.

Year Ended December 27, 2013

During the year ended December 27, 2013, the total charges of $3.3 million included $1.1 million of severance costs, which consisted of $0.6 million related to a restructuring action initiated and completed during the third quarter to lower overhead costs and reorganize certain indirect labor functions in China and $0.5 million related to the program we announced in the second quarter of 2013 to reduce operating expenses, including costs associated with centralization of certain administrative departments and reductions in our engineering resources in our Wireless segment. Additionally, we recorded total impairment charges of $2.2 million, including the impairment of $1.6 million of fixed assets that were acquired and developed in connection with a project in our Network segment that we decided to abandon in the third quarter of 2013, as well as $0.6 million related to two trade names in our Wireless and Network segments. Refer to Note 4, Intangible assets, net, for further details.

The change in the accrual related to severance, impairment and other associated costs for the years ended December 26, 2014 and December 27, 2013 was as follows (in thousands):



Balance accrued at December 28, 2012	$	733
Net expense	3,342
Cash payments	(1,634		)
Non-cash charges	(1,948		)
Balance accrued at December 27, 2013	493
Net expense	3,937
Cash payments	(2,631		)
Non-cash charges	(39		)
Balance accrued at December 26, 2014	$	1,760

- 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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