NOTE 10—RESTRUCTURING CHARGES

The Company incurred restructuring charges of $662, $3,333, and $922 for the years ended September 26, 2014, September 27, 2013, and September 28, 2012, respectively.

2014 Restructuring Charges

In third quarter of 2013, the Company consolidated its two assembly and integration facilities in the United States into a single facility, as discussed below. In 2014 the Company recorded $40 in accretion of interest expense related to the liability recorded in the third quarter of 2013 for this action. Additionally, in the fourth quarter of 2014 the Company evaluated the liability associated with this action that was recorded in the third quarter of 2013 related to the estimated present value of the remaining lease payments on the vacated facility and revised the assumption for sublease income as a result of not being able to sublease the facility as of September 26, 2014. This revision to the sublease assumption resulted in an additional restructuring charge of $622. The Company continues to actively seek a sub-lease tenant for this facility.

2013 Restructuring Charges

In 2013, the Company recorded $3,333 in net restructuring charges. In the first quarter of 2013, the Company recorded $194 in restructuring charges related to severance benefits estimated for the termination of certain employees who performed manufacturing and general and administrative functions at the Company’s facility in Finland. In the third quarter of 2013, the Company consolidated its two assembly and integration facilities in the United States into a single facility. This action resulted in a net restructuring charge of $2,407 and a liability of $2,649 related to the estimated present value of the remaining lease payments on the vacated facility less an assumption for sublease income. The $2,649 liability was comprised of $546 of existing lease related liabilities and restructuring charges of $2,103. The remaining $304 of net restructuring charges related to reductions in the carrying amounts of leasehold improvements and other property, plant, and equipment disposed of as part of the consolidation. In the fourth quarter of 2013, the Company recorded $732 in net restructuring charges, of which $720 related to the consolidation of its general and administrative, purchasing, and sales functions in Finland. The charge was comprised of $479 for severance benefits and other expenses incurred and $241 for reductions in the carrying amounts of property, plant, and equipment disposed of as part of the consolidation.

2012 Restructuring Charges

In 2012, the Company recorded $922 in net restructuring charges. In the second quarter of 2012, the Company recorded $518 in net restructuring charges, including $575 in charges related to severance benefits estimated for the termination of certain employees who performed manufacturing, engineering, sales, marketing, and general and administrative functions for the Company. During the second quarter, the Company also determined that severance benefits related to previously recorded charges would be less than initially estimated, resulting in a $57 reduction in operating expenses and the liability. During the fourth quarter of 2012, the Company recorded $404 in net restructuring charges related to severance benefits for certain employees, primarily in the sales and marketing functions of the Company.

The changes in the restructuring amounts included in accrued compensation, other current liabilities, and other long-term liabilities were as follows:


	Accrued Compensation			Other Current Liabilities			Other Long-term Liabilities
Balance as of September 30, 2011	$	1,717		$	184		$	—
Additional charges		979			—			—
Revisions to original estimate		(57	)		—			—
Cash paid		(2,056	)		(116	)		—

Balance as of September 28, 2012	$	583		$	68		$	—
Additional charges		597			868			1,322
Reclassification from existing vacation liabilities		49			—			—
Reclassification from existing deferred rent liabilities		—			—			546
Reclassifications from other long-term liabilities to other current liabilities		—			217			(217	)
Cash paid		(746	)		(330	)		—

Balance as of September 27, 2013	$	483		$	823		$	1,651
Additional charges		—			147			475
Accretion of interest expense		—			40			—
Reclassifications from other long-term liabilities to other current liabilities		—			464			(464	)
Cash paid		(467	)		(769	)		—

Balance as of September 26, 2014	$	16		$	705		$	1,662

During fiscal years 2014, 2013, and 2012 the Company paid cash of $1,236, $1,076, and $2,172, respectively, related to severance, contractual liabilities and lease termination costs. The remaining amounts in accrued compensation are expected to be paid in the first quarter of fiscal 2015. Amounts in other current liabilities and other long-term liabilities are expected to be paid in fiscal 2015 through 2018.