Restructuring and Other Related Activities

3 Months Ended

Apr. 03, 2016

Restructuring Cost and Reserve

Restructuring and Related Activities Disclosure

Restructuring and Other

The Company recorded the following in Restructuring and other:

	Three months ended
	April 3, 2016			March 29, 2015
	(In thousands)
Restructuring costs:
2014 Restructuring Plan	$	(203	)	$	4,250
2015 Restructuring Plan	228			—
Total restructuring costs	25			4,250
Other costs	22			36,291
Total restructuring and other	$	47		$	40,541

Restructuring Costs.

2014 Restructuring Plan. During 2014, the Company implemented a restructuring plan which primarily consisted of reductions in workforce in certain functions of the organization in the U.S. and certain foreign countries, and losses on excess lease obligations and asset disposals, related to redundant activities due to the acquisition of Fusion‑io, Inc. (“Fusion‑io”), as well as the realignment of certain projects (the “2014 Restructuring Plan”). All expenses, including adjustments, associated with the 2014 Restructuring Plan are included in Restructuring and other in the Condensed Consolidated Statements of Operations.

The following table sets forth an analysis of the components of the restructuring charges, adjustments and payments made against the reserve as of April 3, 2016:

	Other Charges
	(In thousands)
Accrual balance at January 3, 2016	$	1,802
Adjustments	(203		)
Cash payments	(270		)
Accrual balance at April 3, 2016	$	1,329

All of the remaining restructuring reserve relates to an excess lease obligation, which the Company anticipates will be paid over the remaining lease term through year 2021.

2015 Restructuring Plan. During the second quarter of 2015, the Company implemented a restructuring plan which consisted of global reductions in workforce in manufacturing operations, research and development, sales and marketing, and general and administrative functions, related to business conditions and a realignment of certain projects (the “2015 Restructuring Plan”). All expenses, including adjustments, associated with the 2015 Restructuring Plan are included in Restructuring and other in the Condensed Consolidated Statements of Operations.

The following table sets forth an analysis of the components of the restructuring charges, adjustments and payments made against the reserve as of April 3, 2016:

	Severance and Benefits
	(In thousands)
Accrual balance at January 3, 2016	$	1,394
Adjustments	228
Cash payments	(1,327		)
Non-cash items	(67		)
Accrual balance at April 3, 2016	$	228

The Company anticipates that the majority of the remaining restructuring reserve balance will be paid out in cash by the middle of 2016.

Other Costs. During the first quarter of 2016, the Company recognized other costs related to the final litigation settlement related to the Fusion‑io acquisition. During the first quarter of 2015, the Company recognized other costs of $36.3 million related primarily to legal settlements and also to the Fusion‑io post-merger integration expenses.