Restructuring and Other Related Activities

9 Months Ended

Sep. 28, 2014

Restructuring and Related Activities Disclosure [Text Block]

Restructuring and Other

During the three and nine months ended September 28, 2014, the Company recorded the following in Restructuring and other (in thousands):



	Three and nine months ended
	September 28, 2014
Restructuring costs	$	10,058
Other costs	14,926
Total restructuring and other	$	24,984

Restructuring Costs

During the three months ended September 28, 2014, the Company implemented a restructuring plan which primarily consisted of reductions in workforce in certain functions of the organization worldwide because of redundant activities due to the Fusion-io acquisition, as well as realignment of certain projects. A restructuring charge of $10.1 million was recorded during the three months ended September 28, 2014, of which $9.5 million related to severance and benefits for involuntary termination in all functions of approximately 134 employees, primarily in the U.S. The remaining $0.6 million was primarily for asset disposals and an excess lease obligation. All expenses, including adjustments, associated with the restructuring plan are included in Restructuring and other in the Company’s Condensed Consolidated Statements of Operations.

The following table sets forth an analysis of the components of the restructuring charge and payments made against the reserve as of September 28, 2014 (in thousands):



	Severance and Benefits			Other Charges			Total
Accrual balance at December 29, 2013	$	—		$	—		$	—
Charges	9,498			560			10,058
Cash payments	(4,460		)	—			(4,460		)
Non-cash items	—			(520		)	(520		)
Accrual balance at September 28, 2014	$	5,038		$	40		$	5,078

The Company anticipates that the remaining restructuring reserve balance will be paid out in cash through the second quarter of fiscal year 2015 in connection with employee transition programs.

Other Costs

During the three months ended September 28, 2014, the Company recognized other costs of $14.9 million related to its acquisition of Fusion-io. Acquisition costs of $8.9 million primarily consisted of expenses incurred for legal, banker, accounting and tax fees. The remaining costs incurred were primarily related to litigation and integration expenses.

- 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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