SanDisk 2014 Annual Report Download - page 181

SANDISK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 11. Restructuring and Other
During the fiscal year ended December 28, 2014, the Company recorded the following in
Restructuring and other (in thousands):
Restructuring costs ........................................................ $ 12,050
Other costs ............................................................. 20,941
Total restructuring and other .............................................. $ 32,991
Restructuring Costs. During the six months ended December 28, 2014, the Company implemented a
restructuring plan which primarily consisted of reductions in workforce in certain functions of the
organization, primarily in the U.S. and certain foreign countries, because of redundant activities due to the
Fusion-io acquisition, as well as realignment of certain projects. A restructuring charge of $12.0 million was
recorded during the fiscal year ended December 28, 2014, of which $11.4 million related to severance and
benefits for involuntary termination of personnel in manufacturing operations, research and development,
sales and marketing, and general and administrative functions of approximately 143 employees. The
remaining $0.6 million was primarily for asset disposals and an excess lease obligation. All expenses,
including adjustments, associated with the restructuring plan are included in Restructuring and other in the
Company’s Consolidated Statements of Operations.
The following table sets forth an analysis of the components of the restructuring charge and payments
made against the reserve as of December 28, 2014 (in thousands):
Severance Other
and Benefits Charges Total
Accrual balance at December 29, 2013 ...................... $ — $ — $ —
Charges ........................................ 11,437 585 12,022
Adjustments ..................................... 33 (5) 28
Cash payments ................................... (6,699) (25) (6,724)
Non-cash items ................................... — (515) (515)
Accrual balance at December 28, 2014 ...................... $ 4,771 $ 40 $ 4,811
The Company anticipates that the remaining restructuring reserve balance will be paid out in cash
through the second quarter of fiscal year 2015 in connection with the Company’s employee transition
program.
Other Costs. During the fiscal year ended December 28, 2014, the Company recognized other costs of
$20.9 million related to its acquisition of Fusion-io. Direct acquisition-related costs of $9.1 million
primarily consisted of expenses incurred for legal, banker, accounting and tax fees. The remaining costs
incurred were primarily related to certain employee change of control charges, employee retention bonus
payments and litigation and integration expenses.
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Annual Report