2. Restructuring and Other Charges

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. The pretax charges for this plan will consist of approximately $16 million for workforce reductions of approximately 300 employees, $15 million for facility- and asset-related charges, and $4 million for software license and other contract cancellations. During the first quarter of 2013, we incurred restructuring expense for this plan of $32.8 million, which consists of $16.2 million for severance-related charges, $12.4 million for facility- and asset-related charges, and $4.2 million for other obligations. By segment, total charges to date under this plan are $0.9 million for Optical, $31.5 million for Data, and $0.4 million for Services. Estimated cash payments under this plan are expected to be $21.5 million of which $4.8 million has been paid through the first quarter of 2013. Other than the cash payments, actions under this plan are expected to be substantially completed by the end of the fourth quarter of 2013.

On October 24, 2012, management initiated a restructuring plan that is designed to further align expenses with revenue and current market conditions. In order to reduce costs and operating expenses, this plan includes moving certain functions to lower cost geographies. The pretax charges will consist of approximately $9 million for severance-related charges that will affect approximately 200 employees, and $2 million for facility- and asset-related charges. Restructuring expense for this plan for the first quarter of 2013 was $0.1 million, which consists of a credit of $0.2 million for severance-related charges and an expense of $0.3 million for facility- and asset-related charges. Cumulative restructuring charges for this plan are $9.5 million, which consists of $9.0 million for severance-related charges and $0.5 million for facility- and asset-related charges. By segment, total charges to date under this plan are $2.2 million for Optical, $3.8 million for Data, $0.8 million for Access, and $2.7 million for Services. Estimated cash payments under this plan are expected to be $9.3 million, of which $2.7 million has been paid through the first quarter of 2013. Other than the cash payments, actions under this plan are expected to be substantially completed by the end of the fourth quarter of 2013.

On January 30, 2012, management initiated a restructuring plan that aligns expenses with revenue. Tellabs stopped new development on the Tellabs^® SMARTCORE 9100 series for mobile packet core and consolidated research and development into fewer locations. Restructuring expense for this plan for the first quarter of 2013 was $1.5 million, which consists of a credit of $0.1 million for workforce adjustments and an expense of $1.6 million for facility- and asset-related charges. Cumulative restructuring charges for this plan are $110.3 million, which consists of $23.1 million for severance-related charges, $38.3 million for facility- and asset-related charges, $47.7 million for the accelerated amortization of abandoned intangible assets, and $1.2 million for other obligations. By segment, total charges to date under this plan are $4.4 million for Optical, $102.2 million for Data, $1.5 million for Access, and $2.2 million for Services. Estimated cash payments under this plan are expected to be $32.9 million, of which $24.6 million has been paid through the first quarter of 2013. Other than the cash payments, actions under this plan were completed in the first quarter of 2013.

Restructuring expense for previous restructuring plans in the first quarter of 2013 was $0.3 million, which consists of a credit of $0.1 million for severance-related adjustments and an expense of $0.4 million for facility- and asset-related charges.

The balance for restructuring plans relates to net lease obligations that expire through 2017 and cash severance that we expect to pay through the first quarter of 2015.

The following table summarizes restructuring and other charges recorded for the plans mentioned above, as well as adjustments to reserves recorded for prior restructurings:


	First Quarter
	3/29/13		3/30/12
Severance and other termination benefits	$	15.8	$	24.1
Facility and other exit costs		14.7		33.0
Other obligations		4.2		1.2
Accelerated amortization of intangible assets		—		47.7

Total restructuring and other charges	$	34.7	$	106.0

The following table summarizes restructuring and other charges activity by segment for the first quarter of 2013 and the status of the reserves at March 29, 2013:


	Balance at 12/28/12		Restructuring Expense			Cash Payments			Other Activities ¹			Balance at 3/29/13
2013 Restructuring Plan
Optical	$	—	$	0.9		$	(0.3	)	$	—		$	0.6
Data		—		31.5			(4.4	)		(11.7	)		15.4
Access		—		—			—			—			—
Services		—		0.4			(0.1	)		—			0.3

Subtotal 2013 Restructuring Plan		—		32.8			(4.8	)		(11.7	)		16.3


2012 Restructuring Plans
Optical		3.9		(0.4	)		(0.8	)		—			2.7
Data		8.6		2.2			(2.3	)		0.5			9.0
Access		1.5		(0.1	)		(0.3	)		—			1.1
Services		2.8		(0.1	)		(0.8	)		—			1.9

Subtotal 2012 Restructuring Plans		16.8		1.6			(4.2	)		0.5			14.7


Previous Restructuring Plans
Optical		0.6		—			(0.3	)		—			0.3
Data		3.1		0.3			(0.6	)		—			2.8
Access		1.4		—			(0.3	)		—			1.1
Services		—		—			—			—			—

Subtotal Previous Restructuring Plans		5.1		0.3			(1.2	)		—			4.2


Total All Restructuring Plans	$	21.9	$	34.7		$	(10.2	)	$	(11.2	)	$	35.2

¹ Other activities include accelerated depreciation of property, plant and equipment to be disposed, the effects of currency translation as well as other changes that do not flow through restructuring expense.