Restructuring Costs

12 Months Ended

Jan. 26, 2014

Restructuring and Related Activities [Abstract]

Restructuring

In the fourth quarter of fiscal year 2014, the Company made a strategic decision to reduce its investment in the long haul optical market, realign its product groupings, and align spending to current demand levels. As a result of these actions, the Company incurred liabilities, included in “Accrued liabilities” on the consolidated balance sheet as of January 26, 2014, associated with the resulting workforce reductions and contract cancellations which are summarized in the following table:



(in thousands)	One-time employee termination benefits			Contract commitments		Total
Balance at January 27, 2013	$	—		$	—	$	—
Charges	1,841			1,245		3,086
Cash payments	(454		)	—		(454		)
Balance at January 26, 2014	$	1,387		$	1,245	$	2,632

These restructuring charges are presented in “Restructuring” in the consolidated statements of operations. The Company expects to complete the restructuring activities in the first quarter of fiscal year 2015. In the first quarter of fiscal year 2015, the Company expects to incur additional costs to relocate personnel and consolidate operations. These costs are not expected to be significant.

In addition to the above charges that are classified as restructuring costs, the Company recorded the following charges in the fourth quarter of fiscal year 2014:



Impairment of finite and indefinite-lived intangibles
(in thousands)	Finite-lived intangible assets		Indefinite-lived intangible assets		Total
Intangible asset impairments	$	29,938	$	—	$	29,938
Goodwill impairment	—		116,686		116,686
Total	$	29,938	$	116,686	$	146,624



Other charges
(in thousands)	Cost of sales		Selling general and administrative		Product development and engineering		Total
Inventory write-downs	$	15,047	$	—	$	—	$	15,047
Long-lived asset impairments	4,341		314		4,541		9,196
Contract commitments	1,729		—		3,197		4,926
Total other charges	$	21,117	$	314	$	7,738	$	29,169

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details