Restructuring and Impairments

3 Months Ended

Mar. 31, 2013

Note 10 – Restructuring and Impairments

During the three months ended March 31, 2013, the company recorded restructuring and impairment charges, net of releases, of $1.2 million. The detail of these charges is presented in the summary table below.

During the three months ended April 1, 2012, the company recorded restructuring and impairment charges, net of 2012 releases, of $2.4 million. The charges include $1.0 million of employee separation costs associated with the 2011 Infrastructure Realignment Program as well as $1.1 million in employee separation costs and $0.4 million in facility closure costs associated with the 2012 Infrastructure Realignment Program.

The 2013 Infrastructure Realignment Program includes costs to close the 8-inch line at our Salt Lake wafer fab facility and the transfer of manufacturing to our 8-inch lines in Korea and Mountaintop, as well as various other organizational changes. The 2012 Infrastructure Realignment Program includes costs for organizational changes in the company’s sales organization, manufacturing sites and manufacturing support organizations, the human resources function, executive management levels, and the MCCC and PCIA product lines as well as the termination of an IT systems lease and the final closure of a warehouse in Korea. 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 the PCIA and MCCC groups as well as a primarily voluntary retirement program at our Mountaintop, Pennsylvania location. 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 included costs associated with the previously 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 included charges for a smaller worldwide cost reduction plan to further right-size our company. The consolidation of the South Korea fabrication lines was completed in 2011. Also during 2011, the company decided to keep open the Mountain Top facility reversing the March 2009 announcement to close the site.

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 31, 2013.


	Accrual Balance at 12/30/2012		New Charges		Cash Paid			Reserve Release		Non-Cash Items		Accrual Balance at 3/31/2013

2010 Infrastructure Realignment Program:
Employee Separation Costs	$	0.2		—		(0.1	)		—		—	$	0.1

2011 Infrastructure Realignment Program:
Employee Separation Costs		0.6		—		(0.2	)		—		—		0.4

2012 Infrastructure Realignment Program:
Employee Separation Costs		2.8		0.1		(1.3	)		—		—		1.6
Lease Termination Costs		0.5		—		(0.3	)		—		—		0.2

2013 Infrastructure Realignment Program:
Employee Separation Costs		—		0.6		(0.4	)		—		—		0.2
Line closure costs		—		0.5		(0.5	)		—		—		—

	$	4.1		1.2		(2.8	)		0.0		0.0	$	2.5

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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