7 .	Restructuring charges

March 24, 2017,

we initiated restructuring activities (the “Fiscal

2018

Plan”) in order to realign resources with our core target markets, such as the IoT market. We expect the Fiscal

2018

Plan to be completed by the end of fiscal

2018.

Our restructuring activities include targeted reductions in labor costs

through headcount reductions, facilities closure, and impairment of mask sets and certain purchased IP. We expect to reduce our workforce by between

200

and

250

employees by the end of fiscal

2018,

a majority of which are from our research and development group for the Connected Smart TV Platforms market. The changes to our workforce

may

vary by country based on local legal requirements, as appropriate. Restructuring liabilities are reported within accrued liabilities in the accompanying condensed consolidated balance sheets.

During the

three

and

nine

months ended

October 28, 2017,

we communicated a plan of termination to several employees, which consisted of headcount

reductions in our worldwide operations.

A summary of the recent activities of our restructuring plan is as follows (in thousands):

	Severance
Charges for the three months ended April 29, 2017	$	243
Cash payments		(5	)
Accrued balance as of April 29, 2017		238
Charges for the three months ended July 29, 2017		1,723
Cash payments		(364	)
Accrued balance as of July 29, 2017		1,597
Charges for the three months ended October 28, 2017		563
Cash payments		(573	)
Accrued balance as of October 28, 2017	$	1,587
Total cost incurred to date as of October 28, 2017	$	2,529

In addition,

we recorded impairment charges for purchased IP and mask sets of

$6.7

million and

$9.7

million for the

three

and

nine

months ended

October 28, 2017,

respectively, as we

longer intend to use these IP and mask sets.

The following table presents the impairment charges in the accompanying condensed consolidated statements of operations (in thousands):

	Three Months Ended October 28 , 201 7		Nine Months Ended October 28 , 201 7
Cost of revenue	$	1,200	$	1,200
Operating expenses		5,463		8,469
Total	$	6,663	$	9,669

Our

restructuring measures could negatively impact our revenue and results of operations in the future as a result of less employees developing future products and working to sell our products.