Restructuring and Other Related Charges

The following table provides a summary of restructuring and other related charges as presented in the Consolidated Statements of Operations (in thousands):



	Year Ended
	February 3, 2018		January 28, 2017		January 30, 2016
Cost of goods sold	$	—	$	—	$	10,292
Restructuring related charges	5,250		96,801		53,251
	$	5,250	$	96,801	$	63,543

The following table presents details of charges recorded by the Company related to the restructuring actions (in thousands):



	Year Ended
	February 3, 2018			January 28, 2017			January 30, 2016
Severance and related costs	$	8,247		$	32,650		$	43,926
Facilities and related costs	1,692			6,587			1,407
Loss on early contract termination	—			—			1,644
Other exit-related costs	2,082			5,452			534
	12,021			44,689			47,511
Release of reserves:
Severance	(1,612		)	(86		)	—
Facilities and related costs	(258		)	—			—
Other exit-related costs	(340		)	(383		)	—

Impairment and write-off of assets & restructuring (gain):
Prepaid deposit	—			45,000			—
Inventory	—			—			8,046
Technology licenses	174			629			1,250
Equipment and other	(489		)	6,952			6,736
Building sale	(4,246		)	—			—
	$	5,250		$	96,801		$	63,543

Fiscal 2018. The Company recorded $5.3 million of restructuring and other related charges in fiscal 2018 in continuation of the restructuring plan announced in November 2016 as described in Note 3 - Discontinued Operations. Total cumulative charges recorded through the end of fiscal 2018 related to this restructuring action were $95.6 million. As of February 3, 2018, the Company has substantially completed its restructuring actions that were contemplated in the original November 2016 announcement, and does not expect the remaining restructuring charges under this plan to be material.

Fiscal 2017. The Company recorded $96.8 million of restructuring and other related charges in fiscal 2017, which included costs associated with severance, asset impairment, lease termination fees and other costs.

The Company recorded restructuring and other related charges of $90.3 million in fiscal 2017 related to this restructuring plan announced in November 2016. The charges included $32.6 million of severance benefits, $5.5 million of other exit-related costs primarily related to contract cancellation penalties, $1.9 million of costs related to closing certain facilities, $45.0 million to fully impair a nonrefundable deposit due to the non-utilization of the related contract, and $5.4 million for the impairment of equipment and technology licenses.

In connection with the restructuring of its mobile platform business in September 2015, substantially all of the remaining activities expected to be completed in the first half of fiscal 2017 were completed. As a result, the Company recorded a charge of $1.9 million in fiscal 2017, which included $2.2 million primarily for the write off of all remaining mobile-related equipment that was previously classified as held for sale that was offset by a net credit of $0.3 million, mainly due to the release of a reserve related to the loss on contract termination previously recognized in fiscal 2016. Total cumulative charges recorded through the end of fiscal 2018 related to this restructuring action were $46.4 million, which included $28.1 million of severance benefits, a $1.3 million loss on early contract termination, $8.8 million for impairment of technology licenses and certain equipment, $0.2 million related to facility closures and an $8.0 million write down of inventory. The total cumulative charges were lower than the original estimate of $100 million to $130 million primarily due to the Company’s decision to retain approximately 140 mobile employees to support the remaining mobile business than it originally anticipated and certain equipment planned for disposal was subsequently determined to have alternative use. The Company also offered retention bonuses to another 128 mobile employees to remain through the ramp down of certain operations. Their benefit packages were recognized ratably over the employees’ remaining service periods through the first half of fiscal 2017.

In addition to the restructuring actions described in the preceding paragraph, the Company recorded charges of $4.6 million in the fiscal 2017, primarily for the remaining lease obligation, net of sublease income, upon vacating certain floors in one of its Israel facilities and ongoing operating expenses of vacated facilities related to restructuring actions in previous years.

Fiscal 2016. The Company recorded $63.5 million of restructuring and other related charges in fiscal 2016 as described in the following paragraphs.

In September 2015, the Company announced a significant restructuring of its mobile platform business in order to focus the mobile product line on more profitable opportunities and align its expenses with corporate targets. The Company implemented actions to significantly downsize the mobile platform organization to refocus its technology to other emerging opportunities. As a result of these actions, the Company recorded restructuring and other related charges of $44.4 million in fiscal 2016 related to this restructuring. The charge primarily included severance benefits for 825 employees who were notified of their termination, a loss on early contract termination, the impairment of technology licenses and certain equipment, and the write down of inventory. Substantially all of the affected employees departed by the end of fiscal 2016.

In May 2015, the Company decided to further reduce its research and development operations in Israel and close certain other design centers, primarily located in Europe and the U.S. in connection with its ongoing effort to streamline its business. As a result, the Company recorded a total $16.3 million charge in fiscal 2016 comprised of $15.1 million for severance related to the termination of 358 employees who were notified of their termination and $1.2 million for a lease obligation related to a facility that the Company vacated in July 2015. Substantially all of the activities associated with these actions were completed and all affected employees departed before the end of fiscal 2016.

In March 2015, the Company exercised the early buyout option under an existing operating lease for corporate equipment that it planned to sell as part of a cost reduction action. The Company actively sought a buyer and classified the equipment as held for sale within prepaid and current assets on the consolidated balance sheet. It also ceased depreciation on the asset and recorded impairment charges of $1.4 million through the second quarter ended August 1, 2015. In October 2015, the Company sold the corporate equipment for net proceeds of $9.3 million, which approximated the carrying value and resulted in no gain or loss recognized upon the sale of the asset.

In addition to the restructuring actions described in the preceding paragraphs, the Company recorded $1.4 million of additional charges primarily associated with ongoing operating expenses of vacated facilities related to restructuring actions in previous fiscal years and maintenance costs for the corporate equipment sold in October 2015.

The following table sets forth a reconciliation of the beginning and ending restructuring liability balances by each major type of costs associated with the restructuring charges (in thousands):



	November 2016 Restructuring									Mobile & Other Prior Restructuring
	Severance and related costs			Facilities and related costs			Other exit-related costs			Severance and related costs			Facilities and related costs			Other exit-related costs			Total
Balance at January 30, 2016	$	—		$	—		$	—		$	1,155		$	1,043		$	1,644		$	3,842
Restructuring charges - continuing operations	32,635			1,872			5,452			15			4,715			—			44,689
Release of reserves - continuing operations	—			—			—			(86		)	—			(383		)	(469		)
Restructuring charges - discontinued operations	8,385			—			—			—			—			—			8,385
Net cash payments	(24,065		)	(110		)	(829		)	(1,082		)	(5,112		)	(1,261		)	(32,459		)
Exchange rate adjustment	45			1			2			(2		)	65			—			111
Balance at January 28, 2017	17,000			1,763			4,625			—			711			—			24,099
Restructuring charges - continuing operations	8,247			1,692			2,082			—			—			—			12,021
Release of reserves - continuing operations	(1,612		)	(258		)	(340		)	—			—			—			(2,210		)
Restructuring charges - discontinued operations	7,015			9			3,560			—			—			—			10,584
Net cash payments	(29,996		)	(2,744		)	(11,364		)	—			(711		)	—			(44,815		)
Other	—			—			1,992			—			—			—			1,992
Balance at February 3, 2018	654			462			555			—			—			—			1,671
Less: non-current portion	—			(59		)	—			—			—			—			(59		)
Current portion	$	654		$	403		$	555		$	—		$	—		$	—		$	1,612

The remaining severance represents termination benefits determined to have been established under a substantive ongoing benefit arrangement for which payment was considered probable due to the timing of notification to certain additional employee groups after the end of fiscal 2018 and is expected to be paid in fiscal 2019. Severance charges of $7.0 million and $8.4 million for fiscal 2018 and fiscal 2017, respectively, relate to discontinued operations and have been included in income (loss) from discontinued operations, net of tax, in the Company's consolidated statements of operations. Other exit-related costs of $3.6 million for fiscal 2018 relate to discontinued operations and have been included in income (loss) from discontinued operations in the Company's consolidated statements of operations. The balance at February 3, 2018 for facility and related costs includes remaining payments under lease obligations related to vacated space that are expected to be paid through fiscal 2020. Other exit-related costs are expected to be paid in fiscal 2019.