Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Restructuring Charges

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Note 10 - Restructuring Charges
3 Months Ended
Mar. 29, 2020
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]
10
.
Restructuring Charges
 
Dongguan facility closure
 
In
September 2019,
the Company announced it plans to close its Dongguan manufacturing facility in China, concurrent with the expiration of the facility lease in
December 2019,
which was extended to
February 2020.
The closure was formally approved by the Board of Directors in
September 2019.
The closure of the Dongguan facility resulted in a reduced labor force by approximately
137
employees. The employee group was notified of the closure in the last week of
September 2019.
The closure of the Dongguan facility and majority of the cash outflows associated with the
$2,037
included within the restructuring liability was for severance and other exit costs which was substantially completed by the end of the
first
quarter of
2020.
Remaining activities include a small number of support staff performing administrative duties, professional services to be rendered with respect to the closure activities, taxes and duties to be settled in addition to severance payments. Substantially all of the costs are anticipated to be spent by the
third
quarter of
2020.
Manufacturing by the Company of certain products previously manufactured at the Dongguan facility has been transferred to the Company’s other manufacturing facilities. A restructuring charge of
$5,000
was recorded in the
twelve
months ended
December 29, 2019
relating to the announced planned closure.
 
During the
three
months ended
March 29, 2020,
restructuring recoveries were recorded of
$221
primarily related to shipments and cash payments received on previously provisioned Dongguan inventory.
 
Restructuring Liability
 
   
Termination benefits
and other exit costs
 
Balance as at December 29, 2019
  $
1,597
 
Involuntary employee termination benefits
   
100
 
Other exit cost provisions reversed unutilized
   
(166
)
Payments—Dongguan severance
   
(476
)
Payments- (U.S., Canada and Mexico)
   
(168
)
         
At March 29, 2020
  $
887