Restructuring Charges

9 Months Ended

Oct. 03, 2015

14.

Restructuring Charges

As previously disclosed, the Company established a new cost-savings initiative and, as part of this cost-savings initiative, in fiscal 2015, the Company undertook a plan of reduction in force which resulted in the elimination of certain positions, termination of employment for certain employees worldwide and planned office space consolidation in the three and nine months ended October 3, 2015. In fiscal 2014, the Company reviewed its organization and undertook a restructuring which resulted in the elimination of certain positions and the termination of employment for certain employees worldwide in the three and nine months ended September 27, 2014.

In connection with these plans, the Company recorded restructuring charges in connection with employee termination benefit costs and planned office space consolidation of $1,081 ($660 after tax) and $7,074 ($4,315 after tax) during the three and nine months ended October 3, 2015, respectively, and the Company recorded restructuring charges in connection with employee termination benefit costs of $713 ($430 after tax) and $10,867 ($6,629 after tax) during the three and nine months ended September 27, 2014, respectively. For the three and nine months ended October 3, 2015, these charges impacted cost of revenues by $(46) and $1,652, respectively, and selling, general and administrative expenses by $1,127 and $5,422, respectively. For the three and nine months ended September 27, 2014, these charges impacted cost of revenues by $(203) and $4,483, respectively, and selling, general and administrative expenses by $916 and $6,384, respectively. For the three and nine months ended October 3, 2015 and September 27, 2014, all restructuring charges were recorded to general corporate expense and therefore there was no impact to the segments.

For the nine months ended October 3, 2015, the reconciliation of the liability balance for these restructuring charges was as follows:


Balance as of January 3, 2015	$	2,570
Provision		7,074
Payments		(8,714	)

Balance as of October 3, 2015	$	930

The Company expects the liability as of October 3, 2015 to be paid in fiscal 2015. Pending further actions, primarily related to office space consolidation, the Company may record additional restructuring charges of up to $3,000 during the remainder of fiscal 2015 in connection with the 2015 restructuring plan.