RESTRUCTURING CHARGES

3 Months Ended

Jun. 26, 2020

In order to support the Company’s strategy and build a sustainable organization, and after considering that the economic recovery from the pandemic will be slower than anticipated, the Company has identified and is engaging in certain structural changes. These restructuring actions will eliminate non-core activities primarily within the Company’s corporate function, align the Company’s cost structure with its reorganizing and optimizing of its operations model along its two reporting segments, and further sharpen its focus to winning business in end markets where it has competitive advantages and deep domain expertise. During the three-month period ended June 26, 2020, the Company recognized approximately $9.7 million of restructuring charges, most of which related to employee severance.

During the first quarter of fiscal year 2020 in connection with geopolitical developments and uncertainties at the time, primarily impacting one customer in China, the Company experienced a reduction in demand for products assembled for that customer. As a result, the Company accelerated its strategic decision to reduce its exposure to certain high-volatility products in both China and India. The Company also initiated targeted activities to restructure its business to further reduce and streamline its cost structure. During the three-month period ended June 28, 2019, the Company recognized $56.2 million of restructuring

charges, comprised of approximately $30.8 million of cash charges predominantly for employee severance, and $25.4 million of non-cash charges related to impairment of equipment and inventory.

The following table summarizes the provisions, respective payments, and remaining accrued balance as of June 26, 2020 for charges incurred during the three-month period ended June 26, 2020:


	Severance		Long-Lived Asset Impairment		Other Exit Costs		Total
	(In thousands)
Balance as of March 31, 2020	$	19,502	$	—	$	3,900	$	23,402
Provision for charges incurred during the three-month period ended June 26, 2020	6,538		3,508		(364)		9,682
Cash payments for charges incurred in the fiscal year 2020 and prior	(11,187)		—		(197)		(11,384)
Cash payments for charges incurred during the three-month period ended June 26, 2020	(1,273)		—		—		(1,273)
Non-cash charges incurred during the three-month period ended June 26, 2020	—		(3,508)		971		(2,537)

Balance as of June 26, 2020	13,580		—		4,310		17,890
Less: Current portion (classified as other current liabilities)	13,580		—		4,310		17,890
Accrued restructuring costs, net of current portion (classified as other liabilities)	$	—	$	—	$	—	$	—