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Subsequent Event
12 Months Ended
Dec. 28, 2012
Subsequent Event

18. Subsequent Event

On January 31, 2013, management initiated a restructuring plan that is designed to align expenses with revenue. Tellabs is discontinuing the development of the 9200 product and reducing operating expenses. Actions under this plan are expected to be substantially completed by the end of the second quarter of 2013. We expect to record pretax charges of approximately $38 million, primarily in the first quarter of 2013. The pretax charges will consist of $18 million for workforce reductions of approximately 300 employees, $16 million for facility- and asset-related charges, and $4 million for software license and other contract cancellations. Estimated cash payments under this plan are expected to be $25 million beginning in the first quarter of 2013 and continuing through the end of 2017.