Restructuring

6 Months Ended

Oct. 03, 2020

Restructuring and Related Activities [Abstract]

During 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 restructuring actions, the Company has recorded cumulative restructuring related charges totaling $92.8 million as of the end of the second quarter of fiscal 2021, including accelerated depreciation of $47.4 million (to reflect changes in estimated useful lives of certain property and equipment), impairment charges of $15.9 million (to adjust the carrying value of certain property and equipment to reflect its fair value), employee termination benefits of $13.6 million and other exit costs of $15.9 million. The Company expects to record additional expenses of approximately $0.4 million for employee termination benefits and other exit costs as a result of these actions.

The following table summarizes the restructuring charges resulting from the 2019 restructuring event (in thousands):



	Three Months Ended October 3, 2020								Three Months Ended September 28, 2019
	Cost of Goods Sold		Other Operating Expense			Total			Cost of Goods Sold		Other Operating Expense		Total
One-time employee termination benefits (1)	$	—	$	(289	)	$	(289	)	$	—	$	1,364	$	1,364
Contract termination and other associated costs	—		233			233			1,034		1,214		2,248
Accelerated depreciation	—		—			—			5,578		—		5,578
Total	$	—	$	(56	)	$	(56	)	$	6,612	$	2,578	$	9,190

	Six Months Ended October 3, 2020								Six Months Ended September 28, 2019
	Cost of Goods Sold		Other Operating Expense			Total			Cost of Goods Sold		Other Operating Expense		Total
One-time employee termination benefits (1)	$	—	$	(43	)	$	(43	)	$	—	$	4,614	$	4,614
Contract termination and other associated costs	—		858			858			2,870		3,982		6,852
Accelerated depreciation	—		—			—			21,516		—		21,516
Total	$	—	$	815		$	815		$	24,386	$	8,596	$	32,982

(1) Includes reversal due to true-up of previously accrued restructuring charges.

The Company has entered into other individually immaterial restructuring plans. The Company's restructuring charges related to these plans was $0.7 million for the three and six months ended October 3, 2020 and $0.3 million and $0.4 million for the three and six months ended September 28, 2019, respectively.

The following table summarizes the activity related to the Company's restructuring liabilities for the six months ended October 3, 2020 (in thousands):



	One-Time Employee Termination Benefits			Contract Termination and Other Associated Costs			Total
Accrued restructuring balance as of March 28, 2020	$	1,728		$	270		$	1,998
Costs incurred and charged to expense	539			1,008			1,547
Cash payments	(1,089		)	(949		)	(2,038		)
Non-cash activity	—			(113		)	(113		)
Accrued restructuring balance as of October 3, 2020	$	1,178		$	216		$	1,394