Restructuring and Other Charges

12 Months Ended

Dec. 28, 2013

Restructuring and Related Activities [Abstract]

During fiscal 2013, Cadence initiated a restructuring plan, or the 2013 Restructuring Plan, to better align its resources with its business strategy. In connection with the 2013 Restructuring Plan, Cadence recorded restructuring and other charges of $17.6 million related to estimated severance payments, severance-related benefits and costs for outplacement services.

Severance and termination benefits related to the 2013 Restructuring Plan of approximately $6.9 million were paid to employees before December 28, 2013. The balance of the accrued severance and termination benefits payments of approximately $10.7 million is expected to be paid primarily during fiscal 2014. Amounts expected to be paid during fiscal 2014 are included in accounts payable and accrued liabilities in Cadence's consolidated balance sheet as of December 28, 2013.

Cadence has initiated various other restructuring plans in the past in an effort to operate more efficiently. The prior restructuring plans were primarily comprised of severance and termination benefits related to headcount reductions and lease loss estimates related to facilities vacated under the restructuring plans.

As of December 28, 2013, the total amount accrued for facility-related lease loss charges resulting from Cadence's restructuring plans was $3.6 million. The maximum lease loss could be as high as $6.3 million and will be influenced by rental rates and the ability to find and maintain tenants to sublease the vacated facilities. The cash payments related to these facilities, net of sublease income, if any, will be made through 2025.

The remaining accrual for Cadence's restructuring plans is recorded in the consolidated balance sheet as follows:



	As of
	December 28, 2013
	(In thousands)
Accounts payable and accrued liabilities	$	10,139
Other long-term liabilities	4,085
Total accrued as of December 28, 2013	$	14,224

The following table presents activity for Cadence's restructuring plans during fiscal 2013, 2012 and 2011:



	Severance and Benefits			Excess Facilities			Other			Total
	(In thousands)
Balance, January 1, 2011	$	9,198		$	5,868		$	5		$	15,071
Restructuring and other charges (credits), net	(944		)	1,304			—			360
Non-cash charges	—			137			—			137
Cash payments	(8,385		)	(2,219		)	—			(10,604		)
Effect of foreign currency translation	177			(114		)	—			63
Balance, December 31, 2011	$	46		$	4,976		$	5		$	5,027
Restructuring and other charges (credits), net	(29		)	147			(5		)	113
Cash payments	(17		)	(906		)	—			(923		)
Effect of foreign currency translation	—			126			—			126
Balance, December 29, 2012	$	—		$	4,343		$	—		$	4,343
Restructuring and other charges, net	17,589			101			309			17,999
Non-cash charges (credits)	—			—			(309		)	(309		)
Cash payments	(6,944		)	(951		)	—			(7,895		)
Effect of foreign currency translation	27			59			—			86
Balance, December 28, 2013	$	10,672		$	3,552		$	—		$	14,224

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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