Restructuring

9 Months Ended

Jan. 02, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURINGDuring 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 $93.1 million as of the end of the third 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 $13.8 million and other exit costs of $16.0 million. The Company expects to record additional expenses of approximately $0.1 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 January 2, 2021						Three Months Ended December 28, 2019
	Cost of Goods Sold		Other Operating Expense		Total		Cost of Goods Sold		Other Operating Expense		Total
One-time employee termination benefits (1)	$	—	$	141	$	141	$	—	$	1,677	$	1,677
Contract termination and other associated costs	—		154		154		3,437		809		4,246
Accelerated depreciation	—		—		—		4,324		—		4,324
Total	$	—	$	295	$	295	$	7,761	$	2,486	$	10,247

	Nine Months Ended January 2, 2021						Nine Months Ended December 28, 2019
	Cost of Goods Sold		Other Operating Expense		Total		Cost of Goods Sold		Other Operating Expense		Total
One-time employee termination benefits (1)	$	—	$	98	$	98	$	—	$	6,291	$	6,291
Contract termination and other associated costs	—		1,012		1,012		6,307		4,791		11,098
Accelerated depreciation	—		—		—		25,840		—		25,840
Total	$	—	$	1,110	$	1,110	$	32,147	$	11,082	$	43,229

(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 were $0.3 million and $1.0 million for the three and nine months ended January 2, 2021, respectively, and less than $0.1 million and $0.5 million for the three and nine months ended December 28, 2019, respectively.

The following table summarizes the activity related to the Company's restructuring liabilities for the nine months ended January 2, 2021 (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	873		1,220		2,093

Cash payments	(2,061)		(1,162)		(3,223)
Non-cash activity	—		(139)		(139)
Accrued restructuring balance as of January 2, 2021	$	540	$	189	$	729