RESTRUCTURING

February 2018 Restructuring Plan

During the first quarter of fiscal 2018, we adopted a restructuring plan and began implementing initiatives to reduce operating expenses and cost of revenue overhead in light of the known shorter-term impact of U.S. tariffs imposed on PV solar cells and modules pursuant to Section 201 of the Trade Act of 1974 and our broader initiatives to control costs and improve cash flow. In connection with the plan, which is expected to be completed by mid-2019, we expect between 150 and 250 non-manufacturing employees to be affected, representing approximately 3% of our global workforce, with a portion of those employees exiting from us as part of a voluntary departure program. The changes to our workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate. We expect to incur restructuring charges totaling between $20 million to $30 million, consisting primarily of severance benefits (between $11 million and $16 million) and real estate lease termination and other associated costs (between $9 million and $14 million). We expect between $12 million and $20 million of the charges to be paid in cash. The actual timing and costs of the plan may differ from our current expectations and estimates. A substantial portion of such charges were incurred in fiscal 2018. Cumulative costs were $12.4 million as of December 30, 2018.

December 2016 Restructuring Plan

During the fourth quarter of fiscal 2016, we adopted a restructuring plan to reduce costs and focus on improving cash flow, primarily related to the closure of our Philippine-based Fab 2 manufacturing facility. There were $2.2 million of charges related to this plan recorded during fiscal 2018 and cumulative costs incurred were $195.0 million as of December 30, 2018. The restructuring activities were substantially complete as of July 1, 2018, and any remaining costs to be incurred are not expected to be material.

August 2016 Restructuring Plan

During the third quarter of fiscal 2016, we adopted a restructuring plan in response to expected near-term challenges primarily relating to realigning our Power Plant business unit. In connection with the realignment, we incurred restructuring charges consisting primarily of severance benefits, asset impairments, lease and related termination costs, and other associated costs. In fiscal 2018, we incurred net charges of $2.9 million. The realignment was substantially complete as of December 30, 2018, and we do not expect a significant number of employees to be affected by remaining actions. Cumulative costs incurred were $38.1 million as of December 30, 2018.

Legacy Restructuring Plans

Prior to fiscal 2016, we implemented approved restructuring plans, related to all segments, to align with changes in the global solar market, which included the consolidation of our Philippine manufacturing operations, as well as actions to accelerate operating cost reduction and improve overall operating efficiency. These restructuring activities were substantially complete as of the second quarter of 2017, and any remaining costs to be incurred are not expected to be material. Cumulative costs incurred were $143.7 million as of December 30, 2018.

The following table summarizes the comparative periods-to-date restructuring charges by plan recognized in our Consolidated Statements of Operations:



	Fiscal Year
(In thousands)	2018			2017			2016
February 2018 Restructuring Plan:
Severance and benefits	$	12,130		$	—		$	—
Other costs¹	257			—			—
Total February 2018 Restructuring Plan	12,387			—			—
December 2016 Plan:
Non-cash impairment charges	—			147			148,791
Severance and benefits	(799		)	5,643			15,901
Lease and related termination costs	6			707			—
Other costs¹	2,987			13,824			7,819
Total December 2016 Plan	2,194			20,321			172,511
August 2016 Plan:
Non-cash impairment charges	—			—			17,926
Severance and benefits	2,665			(242		)	15,591
Lease and related termination costs	—			2			557
Other costs¹	254			989			364
Total August 2016 Plan	2,919			749			34,438
Legacy Restructuring Plans:
Non-cash impairment charges	—			—			—
Severance and benefits	—			14			350
Lease and related termination costs	—			—			(171		)
Other costs¹	(3		)	(39		)	62
Total Legacy Plan	(3		)	(25		)	241
Total restructuring charges	$	17,497		$	21,045		$	207,190

¹Other costs primarily represent associated legal and advisory services, and costs of relocating employees.

The following table summarizes the restructuring reserve activities during the year ended December 30, 2018:



	Fiscal Year
(In thousands)	2017		Charges (Benefits)			(Payments) Recoveries			2018
February 2018 Restructuring Plan:
Severance and benefits	$	—	$	12,130		$	(6,681	)	$	5,449
Other costs¹	—		257			(257		)	—
Total February 2018 Restructuring Plan	—		12,387			(6,938		)	5,449
December 2016 Restructuring Plan:
Severance and benefits	1,862		(799		)	(1,063		)	—
Lease and related termination costs	—		6			(6		)	—
Other costs¹	54		2,987			(3,041		)	—
Total December 2016 Restructuring Plan	1,916		2,194			(4,110		)	—
August 2016 Restructuring Plan:
Severance and benefits	1,735		2,665			(3,788		)	612
Other costs¹	39		254			(230		)	63
Total August 2016 Restructuring Plan	1,774		2,919			(4,018		)	675

Legacy Restructuring Plans	196		(3		)	(7		)	186
Total restructuring reserve activities	$	3,886	$	17,497		$	(15,073	)	$	6,310

¹Other costs primarily represent associated legal and advisory services, and costs of relocating employees.