NOTE 13—RESTRUCTURING AND IMPAIRMENTS

The company assesses the need to record restructuring and impairment charges in accordance with the following Topics in the ASC; Exit and Disposal Cost Obligations, Compensation—Retirement Benefits, Compensation—Non Retirement Postemployment Benefits, and Property Plant and Equipment.

2008 Infrastructure Realignment Program

The 2008 Infrastructure Realignment Program includes costs related to several asset impairments for non-industry standard packaging capacity and simplification of our supply chain planning systems. The company also adjusted the workforce mix in our Maine fab as the company converted to a more automated and technologically advanced eight-inch wafer production process. In addition, headcount was reduced in certain sales and marketing activities to further streamline selling, general and administration costs.

The company has completed payment of the employee severance accruals related to the 2008 Infrastructure Realignment Program. Payouts associated with the 2008 lease impairment were made on a regular basis and were completed in the fourth quarter of 2011.

2009 Infrastructure Realignment Program

The 2009 Infrastructure Realignment Program includes costs associated with the previously planned closure of the Mountaintop, Pennsylvania manufacturing facility and the closure of the four-inch manufacturing line in Bucheon, South Korea. The 2009 Program also includes charges for a smaller worldwide cost reduction plan to further right-size our company and remain financially healthy.

The consolidation of the South Korea fabrication processes was completed in 2011. During 2011, the company decided to keep open the Mountain Top facility reversing the March 2009 announcement to close the site. The company determined the Mountain Top facility was essential to supporting the automotive customers’ current and future needs. As a result of this decision the reserves related to Mountain Top restructuring action were released and previously accrued employee stay-on bonuses were paid out prior to the end of 2011.

2010 Infrastructure Realignment Program

During 2010, the company recorded restructuring and impairment charges, net of releases, totaling $7.0 million. The charges are detailed in the table below.

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.

2011 Infrastructure Realignment Program

During 2011, the company recorded restructuring and impairment charges, net of releases, totaling $2.8 million. The charges are detailed in the table below.

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.

2012 Infrastructure Realignment Program

During 2012, the company recorded restructuring and impairment charges, net of releases, totaling $14.1 million. The charges are detailed in the table below.

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.

2013 Infrastructure Realignment Program

During 2013, the company recorded restructuring and impairment charges, net of releases, totaling $15.9 million. The charges are detailed in the table below.

The 2013 Infrastructure Realignment Program includes costs to close the 8-inch line at the company’s Salt Lake wafer fab facility and transfer the manufacturing to the 8-inch lines in Korea and Mountaintop, as well as organizational changes in the company’s mobile product group, manufacturing support organizations, executive management, and sales organizations



	Accrual Balance at 12/26/2010		New Charges		Cash Paid			Reserve Release			Non-Cash Items		Accrual Balance at 12/25/2011
2008 Infrastructure Realignment Program:
Employee Separation Costs	$	—	$	—	$	—		$	—		$	—	$	—
Lease Impairment Costs	$	0.7	$	—	$	(0.7	)	$	—		$	—	$	—
2009 Infrastructure Realignment Program:
Employee Separation Costs		8.1		1.9		(1.8	)		(8.2	)		—	$	—
Fab Closure Costs		—		0.7		(0.7	)		—			—		—
2010 Infrastructure Realignment Program:
Employee Separation Costs		2.2		3.6		(4.4	)		(0.4	)		—		1.0
2011 Infrastructure Realignment Program:
Employee Separation Costs	$	—		5.4		(3.5	)		(0.2	)		—	$	1.7

	$	11.0	$	11.6	$	(11.1	)	$	(8.8	)	$	—	$	2.7


	Accrual Balance at 12/25/2011		New Charges		Cash Paid			Reserve Release			Non-Cash Items			Accrual Balance at 12/30/2012
2010 Infrastructure Realignment Program:
Employee Separation Costs	$	1.0	$	—	$	(0.7	)	$	(0.1	)	$	—		$	0.2
2011 Infrastructure Realignment Program:
Employee Separation Costs		1.7		1.0		(1.7	)		(0.4	)		—			0.6
Asset Impairment Costs		—		0.1		—			—			(0.1	)		—
2012 Infrastructure Realignment Program:
Employee Separation Costs		—		12.5		(9.8	)		—			—			2.8
Facility Closure Costs		—		0.4		(0.4	)		—			—			—
Lease Termination Costs		—		0.6		(0.1	)		—			—			0.5

	$	2.7	$	14.6	$	(12.7	)	$	(0.5	)	$	(0.1	)	$	4.1


	Accrual Balance at 12/30/2012		New Charges		Cash Paid			Reserve Release			Non-Cash Items			Accrual Balance at 12/29/2013
2010 Infrastructure Realignment Program:
Employee Separation Costs	$	0.2	$	—	$	(0.2	)	$	—		$	—		$	—
2011 Infrastructure Realignment Program:
Employee Separation Costs		0.6		—		(0.3	)		—			—			0.3
2012 Infrastructure Realignment Program:
Employee Separation Costs		2.8		0.1		(2.5	)		(0.2	)		—			0.2
Lease Termination Costs		0.5		—		(0.3	)		(0.1	)		—			0.1
2013 Infrastructure Realignment Program:
Employee Separation Costs		—		11.0		(7.7	)		(0.1	)		—			3.2
Asset Impairment, Other		—		1.6		—			—			(1.6	)		—
Line closure costs		—		3.0		(3.0	)		—			—			—
Lease Termination Costs		—		0.6		(0.2	)		—			—			0.4

	$	4.1	$	16.3	$	(14.2	)	$	(0.4	)	$	(1.6	)	$	4.2