MaxLinear, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Restructuring Activity

Restructuring Activity

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

In connection with the Company's acquisition of Entropic, the Company entered into a restructuring plan to address matters primarily relating to the integration of the Company and Entropic businesses. In connection with this plan, the Company terminated the employment of 87 Entropic employees during the year ended December 31, 2015. The Company recognized associated employee separation charges of approximately $5.5 million in the year ended December 31, 2015 related to these terminations. Included in these employee separation charges is $1.5 million of stock compensation for accelerated stock options and RSUs vesting due to double trigger change of control agreements and other special agreements in effect with certain Entropic employees.

Additionally, in connection with the restructuring plan, the Company ceased use of the majority of Entropic's former headquarters. Accordingly, the Company recognized lease impairment charges of $2.7 million based on the adjustment to the net present value of the remaining lease obligation on the cease use date. The Company also recorded impairment charges of $5.2 million related to leasehold improvements on the unused premises.

The following table presents the activity related to the plan, which is included in restructuring charges in the Consolidated Statements of Operations:



	Year Ended December 31, 2015
	(in thousands)
Employee separation expenses	$	5,533
Lease related impairment ⁽¹⁾	8,163
Other	390
	$	14,086

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⁽¹⁾	Includes $1.2 million in restructuring charges related to an Entropic lease that was restructured prior to the completion of the acquisition. The Company recorded an adjustment to the lease restructuring due to changes in market conditions.

The following table presents a roll-forward of the Company's restructuring liability as of December 31, 2015, which is included in accrued expenses and other current liabilities in the Consolidated Balance Sheets:



	Employee Separation Expenses			Lease Related Impairment			Other			Total
	(in thousands)
Liability as of December 31, 2014	$	—		$	—		$	—		$	—
Restructuring charges ⁽¹⁾	5,533			8,163			390			14,086
Cash payments	(3,913		)	(1,082		)	(100		)	(5,095		)
Non-cash charges	(1,545		)	(5,524		)	(289		)	(7,358		)
Liability as of December 31, 2015	$	75		$	1,557		$	1		$	1,633

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⁽¹⁾	Includes $1.2 million in restructuring charges related to an Entropic lease that was restructured during to the completion of the acquisition. The Company recorded an adjustment to the lease restructuring due to changes in market conditions.