Note 6 - Restructuring

3 Months Ended

Apr. 02, 2022

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Under the Q1 2020 Plan, which is described in the 2021 10-K, we recorded a credit adjustment of approximately $0.1 million during the first quarter of fiscal 2022 and we recorded no expense during the first quarter of fiscal 2021. Approximately $2.1 million of total expense has been incurred through April 2, 2022 under the Q1 2020 Plan. Substantially all actions planned under the Q1 2020 Plan have been implemented.

Under the June 2017 Plan, which is described in the 2021 10-K, we incurred restructuring expense related to our partially vacated facility in San Jose, California of approximately $0.2 million during the first quarter of both fiscal 2022 and 2021. We have incurred approximately $21.8 million of total expense through April 2, 2022 under the June 2017 Plan, and all planned actions have been implemented. We expect the total cost of the June 2017 Plan to be approximately $22.0 million to $23.5 million as ROU asset amortization expenses related to our partially vacated facility in San Jose, California will be incurred over the remaining lease term.

These expenses were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accrued expenses and in Other long-term liabilities on our Consolidated Balance Sheets. The following table displays the activity related to our restructuring plans:

(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Other (2)			Total
Accrued Restructuring at January 1, 2022	$	251		$	7,130		$	—		$	7,381
Restructuring charges		(97	)		151			—			54
Costs paid or otherwise settled		(138	)		(445	)		—			(583	)
Accrued Restructuring at April 2, 2022	$	16		$	6,836		$	—		$	6,852
Accrued Restructuring at January 2, 2021	$	246		$	8,233		$	664		$	9,143
Restructuring charges		—			176			—			176
Costs paid or otherwise settled		(9	)		(439	)		(656	)		(1,104	)
Accrued Restructuring at April 3, 2021	$	237		$	7,970		$	8		$	8,215

(1)	Includes employee relocation and outplacement costs
(2)	Includes termination fees on the cancellation of certain contracts under previous restructuring plans