Restructuring Costs

12 Months Ended

Jan. 25, 2015

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 restructuring costs, associated with the resulting workforce reductions and contract cancellations which are included in “Restructuring” on the consolidated statement of operations.

Activity under the restructuring plan is 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
Charges	662			623			1,285
Cash payments	(1,767		)	(1,753		)	(3,520		)
Reclassifications	—			(115		)	(115		)
Balance at January 25, 2015	$	282		$	—		$	282

These restructuring liabilities are presented in “Accrued liabilities” in the consolidated balance sheets. The restructuring actions also resulted in $4.9 million of additional contract commitment cancellation charges. Of this amount $1.7 million is included in “Cost of sales” and $3.2 million is included in “Product development and engineering” on the consolidated statements of operations. In connection with the restructuring activities, $15.0 million of inventory was determined not to be recoverable and was written off as a charge to “Cost of sales - lower of cost or market write-down” in fiscal 2014. Additionally, certain property, plant and equipment, intangible assets and goodwill were determined to be impaired. See Notes 7 and 8. In the first quarter of fiscal year 2015, the Company incurred additional costs to relocate personnel and consolidate operations. The Company completed the restructuring activities in the first quarter of fiscal 2015.

During the fiscal year ended January 25, 2015, the Company implemented a strategic decision to reduce its investment in the defense and microwave communications infrastructure market and to further reduce investment in the optical long-haul market. This decision resulted in the impairment of certain property, plant and equipment and intangible assets. See Notes 7 and 8. As a result of this strategy, the Company also recorded charges associated with contract commitment cancellations totaling $3.0 million that are included in "Cost of sales" on the consolidated statements of operations.

- 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.

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