MaxLinear, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restructuring Activity

Restructuring Activity

3 Months Ended

Mar. 31, 2016

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 has terminated the employment of 87 Entropic employees since the acquisition closing date. The Company did not incur any associated employee separation charges for the three months ended March 31, 2016, as the Company did not have such terminations during the quarter.

Additionally, in connection with the restructuring plan, the Company ceased use of the former Entropic headquarters in 2015. During the three months ended March 31, 2016, the Company recognized lease charges of $2.0 million based on the adjustment to the net present value of the remaining lease obligation on the cease of use date as well as the execution of the final sublease. The Company believes all charges have been incurred related to restructuring as of March 31, 2016.

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



	Three Months Ended March 31, 2016
	(in thousands)
Lease related charges ⁽¹⁾	$	1,976
Other	130
	$	2,106

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⁽¹⁾	Includes $0.4 million in offsets to restructuring charges related to an Entropic lease that was restructured prior to the completion of the acquisition by MaxLinear. 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 March 31, 2016, which is included in accrued expenses and other current liabilities in the Consolidated Balance Sheets:



	Employee Separation Expenses			Lease Related Charges			Other			Total
	(in thousands)
Liability as of December 31, 2015	$	75		$	1,557		$	1		$	1,633
Restructuring charges ⁽¹⁾	—			1,976			130			2,106
Cash payments	(8		)	(1,323		)	(20		)	(1,351		)
Liability as of March 31, 2016	$	67		$	2,210		$	111		$	2,388

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⁽¹⁾	Includes $0.4 million in offsets to restructuring charges related to an Entropic lease that was restructured during to the completion of the acquisition by MaxLinear. The Company recorded an adjustment to the lease restructuring due to changes in market conditions.