Restructuring:

During 2011, the Company's Board of Directors adopted a restructuring plan to more efficiently implement the Company's product development strategy and to better align the Company's corporate strategy with the Company's sales resources (the “2011 restructuring plan”). In connection with the 2011 restructuring plan, the Company will reduce and refocus its headcount at certain of its research and development facilities, including Pennsylvania and Shanghai, China, and streamline its supply chain activities at its headquarters for reduced operational costs, improved predictability and flexibility. Part of the 2011 restructuring plan includes extending silicon development capabilities, planning and logistics activities by locating personnel in Manila, Philippines. The 2011 restructuring plan will be substantially implemented during 2011, with a total projected restructuring charge of approximately $6.0 million through fiscal 2012, of which $4.0 million was recorded in the first six months of fiscal 2011.

During fiscal 2009, we initiated a restructuring plan ("2009 restructuring plan") to lower operating expenses primarily by reducing headcount, reducing occupancy in certain leased facilities and to transfer inventory management, order fulfillment, and direct sales logistics from our headquarters in Oregon to a third party contractor in Singapore. In addition, the Company established an operations center in Singapore to transfer some of its supply chain activities from the Company’s headquarters in Oregon. As part of the 2011 restructuring plan we updated our estimate of the remaining severance and lease loss reserve for the 2009 restructuring plan. This resulted in a credit to Restructuring charges for the first six months of 2011 of $0.8 million, primarily for re-occupying certain leased facilities.

At July 2, 2011, our Condensed Consolidated Balance Sheet included an accrual of $1.3 million related to severance and related expenses under the provisions of the 2011 restructuring plan. In addition, our Condensed Consolidated Balance Sheet included an accrual of $0.2 million related to operating lease commitments under the provisions of the restructuring plan we initiated in 2005.

The following table displays the activity related to all restructuring plans described above (in thousands):



	Balance at January 1, 2011		Charged to expense during six months ended July 2, 2011		Paid or settled			Adjustments to reserve			Balance at July 2, 2011
Severance and related costs	$	175	$	3,907	$	(2,337	)	$	(417	)	$	1,328
Lease loss reserve	1,014		6		(152		)	(634		)	234
Other	13		373		(373		)	(13		)	—
Total restructuring plans	$	1,202	$	4,286	$	(2,862	)	$	(1,064	)	$	1,562

Total Restructuring charges included in our Condensed Consolidated Statements of Operations were as follows (in thousands):



	Three Months Ended					Six Months Ended
	July 2, 2011		July 3, 2010			July 2, 2011			July 3, 2010
Severance and related costs	$	1,171	$	(131	)	$	3,490		$	(64	)
Lease loss reserve	—		11			(628		)	26
Other	216		—			360			—
Total restructuring charges	$	1,387	$	(120	)	$	3,222		$	(38	)

We cannot be certain as to the actual amount of any remaining restructuring charges, changes in original estimates or the timing of their recognition for financial reporting purposes.