Restructuring And Impairments

9 Months Ended

Sep. 25, 2011

Restructuring And Impairments

Restructuring And Impairments

Note 10 – Restructuring and Impairments

During the three and nine months ended September 25, 2011, the company recorded restructuring and impairment charges, net of releases, of $4.1 million and $9.5 million, respectively. The detail of these charges is presented in the summary table below.

During the three and nine months ended September 26, 2010, the company recorded restructuring and impairment charges, net of releases, of $1.3 and $3.7 million, respectively. In the third quarter of 2010, the charges include $0.8 million of employee separation costs and $0.4 million of fab closure costs associated with the 2009 Infrastructure Realignment Program as well as $0.1 million in employee separation costs associated with the 2010 Infrastructure Realignment Program.

The 2011 Infrastructure Realignment Program includes costs for organizational changes in the company's supply chain management group, the website technology group, the quality organization, and other administrative groups. The 2011 program also includes costs to further improve the company's manufacturing strategy and changes in both the PCIA and MCCC groups. The 2010 Infrastructure Realignment Program includes costs to simplify and realign some activities within the MCCC segment, costs for the continued refinement of the company's manufacturing strategy, and costs associated with centralizing the company's accounting functions. The 2009 Infrastructure Realignment Program includes costs associated with the planned closure of the Mountaintop, Pennsylvania manufacturing facility and the four-inch manufacturing line in Bucheon, South Korea, both of which were announced in the first quarter of 2009. The 2009 Program also includes charges for a smaller worldwide cost reduction plan to further right-size our company and remain financially healthy.

The following table presents a summary of the activity in the company's accrual for restructuring and impairment costs for the quarterly periods ended March 27, 2011, June 26, 2011, and September 25, 2011.

	Accrual Balance at 12/26/2010		New Charges		Cash Paid			Reserve Release		Non-Cash Items		Accrual Balance at 3/27/2011
2008 Infrastructure Realignment Program:
Lease Impairment Costs		0.7		—		(0.2	)		—		—		0.5
2009 Infrastructure Realignment Program:
Employee Separation Costs		8.1		0.6		(0.3	)		—		—		8.4
Fab Closure Costs		—		0.2		(0.2	)		—		—		—
2010 Infrastructure Realignment Program:
Employee Separation Costs		2.2		1.0		(1.5	)		—		—		1.7
2011 Infrastructure Realignment Program:
Employee Separation Costs		—		0.7		(0.7	)		—		—		—
	$	11.0	$	2.5	$	(2.9	)	$	—	$	—	$	10.6

	Accrual Balance at 3/27/2011		New Charges		Cash Paid			Reserve Release			Non-Cash Items		Accrual Balance at 6/26/2011
2008 Infrastructure Realignment Program:
Lease Impairment Costs		0.5		—		(0.2	)		—			—		0.3
2009 Infrastructure Realignment Program:
Employee Separation Costs		8.4		0.5		—			(0.1	)		—		8.8
Fab Closure Costs		—		0.3		(0.3	)		—			—		—
2010 Infrastructure Realignment Program:
Employee Separation Costs		1.7		0.9		(0.3	)		—			—		2.3
2011 Infrastructure Realignment Program:
Employee Separation Costs		—		1.3		(0.7	)		—			—		0.6
	$	10.6	$	3.0	$	(1.5	)	$	(0.1	)	$	—	$	12.0

	Accrual Balance at 6/26/2011		New Charges		Cash Paid			Reserve Release		Non-Cash Items		Accrual Balance at 9/25/2011
2008 Infrastructure Realignment Program:
Employee Separation Costs
Lease Impairment Costs		0.3		—		(0.2	)		—		—		0.1
2009 Infrastructure Realignment Program:
Employee Separation Costs		8.8		0.6		—			—		—		9.4
Fab Closure Costs		0.0		0.1		(0.1	)		—		—		0.0
2010 Infrastructure Realignment Program:
Employee Separation Costs		2.3		1.7		(0.9	)		—		—		3.1
2011 Infrastructure Realignment Program:
Employee Separation Costs		0.6		1.7		(1.4	)		—		—		0.9
	$	12.0	$	4.1	$	(2.6	)	$	—	$	—	$	13.5

Payouts associated with the 2008 lease impairment will be made on a regular basis and will be complete by the fourth quarter of 2011. The consolidation of the South Korea fabrication processes and the planned closure of the Mountaintop facility are expected to be completed by the end of 2012.