Restructuring and Related Charges

3 Months Ended

Mar. 29, 2013

Restructuring And Related Activities [Abstract]

NOTE 8: RESTRUCTURING AND RELATED CHARGES

Omneon Restructuring. The Company has restructuring accruals for excess lease facilities related to the closure of the Omneon headquarters in Sunnyvale, California. The accrual was based on future rent payments, net of expected sublease income, to be made through the end of the lease term in June 2013. The following table summarizes the activity in the Omneon restructuring accrual during the three months ended March 29, 2013 (in thousands):


	Excess Facilities
Balance at December 31, 2012	$	869
Cash payments		(455	)
Accretion		20

Balance at March 29, 2013		434

HFC Restructuring. As a result of the sale of the cable access HFC business in March 2013, the Company recorded a $0.4 million restructuring charge, which was recorded under “Income from discontinued operations”. The restructuring charge was for $0.3 million of severance and benefits related to involuntary termination of nine employees and $0.1 million of contract termination costs. Three of the terminated employees are required to work to the end of the term of the Aurora TSA, and, therefore, the Company records their severance ratably over the service period. The following table summarizes the activity in the HFC restructuring accrual during the three months ended March 29, 2013 (in thousands):


	Severance			Contract termination		Total
Balance at December 31, 2012	$	—		$	—	$	—
Restructuring charges in discontinued operations		243			124		367
Cash payments		(165	)		—		(165	)

Balance at March 29, 2013		78			124		202

The Company anticipates that the remaining restructuring accrual balance of $0.2 million will be paid out by the end of its third quarter of fiscal 2013. In addition, if Aurora elects to terminate any of the U.S. employees hired from the Company, on or before September 5, 2013, the Company has agreed to reimburse Aurora for the severance payments payable to such employees.

Harmonic Q1’13 Restructuring. The Company implemented a series of restructuring plans in the first quarter of fiscal 2013 to reduce costs and improve efficiencies. As a result, the Company recorded a restructuring charge of $0.6 million, of which $0.2 million is included in “Product cost of

revenue” and $0.4 million is included in “Operating expenses-restructuring and related charges” in the Consolidated Statements of Operations. The restructuring charge consisted of severance and benefits of $0.5 million related to the involuntary termination of thirty employees. In addition, the Company wrote–down, to its estimated net realizable value, leasehold improvements related to the Milpitas warehouse by $0.1 million. The following table summarizes the activity in the Harmonic Q1’13 restructuring accrual during the three months ended March 29, 2013 (in thousands):


	Severance			Impairment of Leasehold improvement			Total
Balance at December 31, 2012	$	—		$	—		$	—
Restructuring charges in continuing operations		464			101			565
Cash payments		(247	)		—			(247	)
Non-cash write-offs		—			(101	)		(101	)

Balance at March 29, 2013		217			—			217

The Company anticipates that the remaining restructuring accrual balance of $0.2 million will be paid out by the end of its third quarter of fiscal 2013.

- 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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