Note 10 – Restructuring, Impairments and Other Costs

During the three months ended March 30, 2014, the company recorded restructuring, impairment and other costs, net of releases, of $6.1 million. The detail of these charges is presented in the summary tables below.

During the three months ended March 31, 2013, the company recorded restructuring, impairment and other costs, net of releases, of $1.2 million. The first quarter charges include $0.6 million of employee separation costs and $0.5 million of line closure costs associated with the 2013 Infrastructure Realignment Program as well as $0.1 million in employee separation costs associated with the 2012 Infrastructure Realignment Program.

The 2014 Infrastructure Realignment Program consists of product line and sales organizational changes, costs associated with streamlining operations creating greater manufacturing flexibility and having a more balanced internal versus external production mix, and other related costs mainly associated with qualification costs.

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, 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 following table presents a summary of the activity in the company’s accrual for restructuring, impairment and other costs of $3.3 million for the quarterly period ended March 30, 2014.


	Accrual Balance at 12/29/2013		Restructuring Charges		Other Charges		Reserve Release			Cash Paid			Non-Cash Items			Accrual Balance at 3/30/2014

2011 Infrastructure Realignment Program:
Employee separation costs	$	0.3		—		—		(0.2	)		(0.1	)		—		$	0.0

2012 Infrastructure Realignment Program:
Employee separation costs	$	0.2		—		—		—			(0.2	)		—		$	(0.0	)
Lease termination costs	$	0.1		—		—		—			—			—		$	0.1

2013 Infrastructure Realignment Program:
Employee separation costs	$	3.2		0.4		—		(0.1	)		(2.4	)		—		$	1.1
Asset impairment costs	$	—		0.5		—		—			—			(0.5	)	$	—
Line closure costs, other	$	—		0.9		—		—			(0.9	)		—		$	—
Lease termination costs	$	0.4		—		—		(0.2	)		(0.1	)		—		$	0.1

2014 Infrastructure Realignment Program:
Employee separation costs	$	—		2.8		—		—			(0.8	)		—		$	2.0
Asset impairment costs	$	—		0.1		—		—			—			(0.1	)	$	—
Qualification costs	$	—		—		1.9		—			(1.9	)		—		$	—

	$	4.2		4.7		1.9		(0.5	)		(6.4	)		(0.6	)	$	3.3