Note 2 - Restructuring and Other Charges

6 Months Ended

Jul. 04, 2015

Restructuring and Related Activities Disclosure [Text Block]

2. RESTRUCTURING AND OTHER CHARGES

RESTRUCTURING

In mid 2014, the Company implemented a strategic restructuring plan to better address growth opportunities in infrastructure markets and to lower operating costs. The strategy included expanding the Company’s presence in the infrastructure space and reducing fixed costs associated with certain legacy mobile activities through a resizing of staff and manufacturing capability.

During the three and six months ended, June 28, 2014, the Company implemented workforce reductions that eliminated approximately 60 and 100 positions, respectively, throughout the Company, and recorded restructuring charges of $687 and $2,138, respectively, for severance, related benefits and other costs. By the end of 2014 and inclusive of the aforementioned charges, approximately 150 positions were eliminated throughout the Company and a $4,199 workforce reduction charge was recorded to Restructuring charges.

In May 2015, as an extension of its strategic shift to Infrastructure and migration of its business model, the Company implemented a workforce reduction that eliminated approximately 25 positions throughout the Company and recorded approximately $611 of restructuring charges during the second quarter of 2015 covering severance, related benefits and other costs. The Company also recorded a $50 gain on the sale of an asset classified as held for sale, which was offset against restructuring charges in the second quarter of 2015. In addition, the remaining assets previously held for sale were re-classified to fixed assets during the quarter as it was determined that such assets would not be sold in the near future. There was no impact to the results of operations as a result of this re-classification for any period presented.

Activity and liability balances related to the restructurings were as follows:

	Workforce-related			Lease-related			Total
December 31, 2013 balance	$	245			-		$	245
Restructuring expense		4,002			197			4,199
Payments		(3,502	)		(38	)		(3,540	)
December 31, 2014 balance	$	745		$	159		$	904
Restructuring expense		611			-			611
Payments		(1,026	)		(79	)		(1,105	)
July 4, 2015 balance	$	330		$	80		$	410

During the second quarter of 2014, the Company reviewed and identified certain surplus manufacturing fixed assets and recorded a restructuring charge of $3,722 to write down certain assets to their current market value based on proceeds expected from their sale.

OTHER CHARGES

During the second quarter of 2014, the Company recorded a charge of $2,080 to Cost of sales for inventory write-downs on certain excess Mobile inventory.