Restructuring

3 Months Ended

Jun. 29, 2019

Restructuring and Related Activities [Abstract]

In the third quarter of fiscal 2019, the Company initiated restructuring actions to reduce operating expenses and improve its manufacturing cost structure, including the phased closure of a wafer fabrication facility in Florida and idling production at a wafer fabrication facility in Texas. As a result of these actions, the Company expects to record total restructuring charges of approximately $99.0 million, including accelerated depreciation of $52.0 million (to reflect changes in estimated useful lives of certain property and equipment), impairment charges of $16.0 million (to adjust the carrying value of certain property and equipment to reflect its fair value), employee termination benefits of $16.0 million, and other exit costs of $15.0 million. As of the end of the first quarter of fiscal 2020, the Company has recorded cumulative expenses of approximately $37.3 million, $16.0 million, $10.9 million and $4.6 million for accelerated depreciation, impairment charges, employee termination benefits and other exit costs, respectively, as a result of this restructuring action (which is expected to be substantially completed by the end of fiscal 2020).

During fiscal 2018, the Company initiated restructuring actions to improve operating efficiencies. As a result of these actions, the Company has recorded cumulative expenses of $46.3 million and $23.4 million for impairment charges and employee termination benefits, respectively. The Company believes these amounts approximate the total costs to be recognized as this restructuring action is substantially complete.

In addition, the Company recorded immaterial restructuring expenses in the three months ended June 29, 2019 and June 30, 2018, related to employee termination benefits and exited leased facilities associated with restructuring events initiated prior to fiscal 2018.

The Company does not allocate restructuring costs to its reportable segments.

The following table summarizes the restructuring activity primarily resulting from these restructuring events:



	Three months ended June 29, 2019						Three months ended June 30, 2018
	Cost of Goods Sold		Other Operating Expense		Total		Cost of Goods Sold		Other Operating Expense		Total
One-time employee termination benefits	$	—	$	3,395	$	3,395	$	—	$	2,638	$	2,638
Lease and other contract termination costs	1,835		2,801		4,636		—		164		164
Accelerated depreciation	15,938		—		15,938		—		—		—
Total	$	17,773	$	6,196	$	23,969	$	—	$	2,802	$	2,802

The following table presents a roll-forward of the Company's restructuring liabilities for the three months ended June 29, 2019:



	One-Time Employee Termination Benefits			Accelerated Depreciation			Lease and Other Contract Terminations			Total
Accrued restructuring balance as of March 30, 2019	$	6,988		$	—		$	1,626		$	8,614
Costs incurred and charged to expense	3,395			15,938			4,636			23,969
Transfer to right-of-use asset	—			—			(1,248		)	(1,248		)
Cash payments	(2,720		)	—			(2,519		)	(5,239		)
Non-cash activity	—			(15,938		)	(1,835		)	(17,773		)
Accrued restructuring balance as of June 29, 2019	$	7,663		$	—		$	660		$	8,323