v3.20.2
Restructuring
 9 Months Ended
Oct. 31, 2020
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
The Company continuously evaluates its existing operations to increase operational efficiency, decrease costs and increase profitability. In November 2019, as part of the integration of the acquired Avera business, the Company initiated a restructuring plan intended to further achieve the aforementioned goals. The Company expects to complete these restructuring actions by the end of fiscal 2021.

During the second quarter ended August 1, 2020, the Company made changes to the scope of its server processor product line in response to changes in the associated market. The Company transitioned its product offering from standard server processors to the broad server market to focus only on customized server processors for a few targeted customers. This change in strategy required the Company to assess whether the carrying value of the associated assets would be recoverable. As a result of the assessment, the Company determined the carrying amount of certain impacted assets were not recoverable, which resulted in recognition of $119.0 million of restructuring related charges associated with the server processor product during the second quarter ended August 1, 2020. The charges included $50.3 million in impairment of acquired intangibles, $36.0 million in purchased IP licenses and $32.7 million in equipment and inventory impairment and other related restructuring charges. The Company expects to complete these restructuring actions by the end of fiscal 2022.

The following table provides a summary of restructuring related charges, including the impairments described above, as presented in the unaudited condensed consolidated statements of operations (in thousands):

Three Months EndedNine Months Ended
October 31,
2020		November 2,
2019		October 31,
2020		November 2,
2019
Cost of goods sold$— $— $9,594 $— 
Restructuring related charges 19,312 14,802 161,189 37,070 
$19,312 $14,802 $170,783 $37,070 


The following table presents details related to the restructuring related charges as presented in the unaudited condensed consolidated statements of operations (in thousands):
Three Months EndedNine Months Ended
October 31,
2020		November 2,
2019		October 31,
2020		November 2,
2019
Severance and related costs$12,300 $6,874 $40,125 $15,501 
Facilities and related costs5,741 7,546 11,825 18,590 
Other exit-related costs1,651 535 119,858 3,991 
19,692 14,955 171,808 38,082 
Release of reserves:
Severance(367)(12)(908)(12)
Facilities and related costs(10)(141)(114)(873)
Other exit-related costs(3)— (3)(127)
$19,312 $14,802 $170,783 $37,070 
The following table sets forth a reconciliation of the beginning and ending restructuring liability balances by each major type of cost associated with the restructuring charges (in thousands):

Severance and Related CostsFacilities and Related CostsOther Exit-Related CostsTotal
Balance at February 1, 2020$13,228 $653 $547 $14,428 
   Restructuring charges (1)40,125 3,391 6,622 50,138 
   Release of reserves(367)(114)(3)(484)
   Net cash payments(35,321)(3,866)(3,310)(42,497)
   Exchange rate adjustment(13)— — (13)
Balance at October 31, 2020 (1)
17,652 64 3,856 21,572 
Less: non-current portion— 64 589 653 
Current portion$17,652 $— $3,267 $20,919 

(1) Impairment charges of $112.1 million, recognized in the second quarter ended August 1, 2020, associated with the server processor product line were recorded directly to the unaudited condensed consolidated statement of operations and were not included in the above liabilities.
The remaining accrued severance and related costs are expected to be paid in fiscal 2022. The remaining other exit-related costs includes impairment charges associated with the future maintenance support for the sever processor product line that are expected to be paid through fiscal 2024.