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Restructuring
6 Months Ended
Jul. 03, 2022
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING
January 2021 Restructuring Plan

During the first quarter of fiscal 2021, we adopted a restructuring plan to realign and optimize workforce requirements concurrent with the planned closure of our manufacturing facility in Hillsboro, Oregon. In connection with the restructuring plan, which included actions implemented in the first quarter of fiscal 2021, a majority of our approximately 170 primarily manufacturing employees exited the business. We expected to incur restructuring charges totaling approximately $7.0 million to $9.0 million, consisting primarily of severance benefits (between $4.0 million and $5.0 million) and real estate lease termination costs (between $3.0 million and $4.0 million).

In connection with the closure, in April 2021, we signed agreements with two independent third parties to sell certain assets and liabilities, as well as retain and engage certain employees at the facility in providing R&D services. The proceeds for the assets and sale of R&D services reduced our previously anticipated restructuring charges by approximately $1.2 million. The R&D services agreement ended during the second quarter of fiscal 2022.
As of July 3, 2022, we had incurred cumulative costs of approximately $3.3 million in restructuring charges, primarily relating to the payment of severance benefits. The 2021 restructuring plan is substantially completed, with the only remaining activities on the plan relating to severance payments for certain employees retained.

December 2019 Restructuring Plan

During the fourth quarter of fiscal 2019, we adopted a restructuring plan to realign and optimize workforce requirements in light of changes to our business, including the Spin-Off. In connection with the restructuring plan, which included actions implemented in the fourth quarter of 2019, we expected between 145 and 160 non-manufacturing employees, representing approximately 3% of our global workforce, to exit over a period of approximately 12 to 18 months. Between 65 and 70 of these employees were expected in the legacy SunPower Technologies business unit and corporate, most of whom exited our company following the Spin-Off, and the remainder of which exited upon completion of transition services. As the legacy SunPower Energy Services business unit refined its focus on distributed generation, storage, and energy services, 80 to 90 employees exited during the fourth fiscal quarter of 2019 and the first half of 2020. As of July 3, 2022, we had incurred cumulative costs of approximately $6.1 million in restructuring charges consisting primarily of severance and retention benefits. The 2019 restructuring plan was completed during the second quarter of fiscal 2022.

The following table summarizes the comparative periods-to-date restructuring charges by plan recognized in our condensed consolidated statements of operations:

Three Months EndedSix Months Ended
(In thousands)July 3, 2022July 4, 2021July 3, 2022July 4, 2021Cumulative To Date
January 2021 Restructuring Plan:
Severance and benefits$(303)$(63)$(266)$3,608 $3,251 
Other costs1
— 22 35 43 
Total January 2021 Restructuring Plan(303)(41)(265)3,643 3,294 
December 2019 Restructuring Plan:
Severance and benefits(236)847 (53)819 5,971 
Other costs1
— — — 112 159 
Total December 2019 Restructuring Plan(236)847 (53)931 6,130 
Other restructuring2
45 451 — 69,092 
Total restructuring charges (credits)$(494)$808 $133 $4,574 $78,516 

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

2 Other restructuring charges during the three and six months ended July 3, 2022 included $0.0 million and $0.5 million, respectively, of severance costs for certain employees as a result of our announcement to exit the Light Commercial business which began in the first quarter of fiscal 2022.
The following table summarizes the restructuring reserve activities during the six months ended July 3, 2022:

Six months ended
(In thousands)January 2, 2022Charges (Benefits)(Payments) RecoveriesJuly 3, 2022
January 2021 Restructuring Plan:
Severance and benefits$764 $(266)$(230)$268 
Other costs1
— (1)— 
Total January 2021 Restructuring Plan764 (265)(231)268 
December 2019 Restructuring Plan:
Severance and benefits1,373 (53)(1,320)— 
Other costs1
— — — — 
Total December 2019 Restructuring Plan1,373 (53)(1,320)— 
Other restructuring2
— 451 (451)— 
Total restructuring reserve activities$2,137 $133 $(2,002)$268 

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

2 Other restructuring charges during the six months ended July 3, 2022 included $0.5 million of severance costs for certain employees as a result of our announcement to exit the Light Commercial business which began in the first quarter of fiscal 2022.