Note 16—Restructuring, Impairments and Other Costs

During the years ended December 28, 2014, December 29, 2013 and December 30, 2012, we recorded restructuring, impairment and other costs, net of releases, of $49.8 million, $15.9 million and $14.1 million, respectively. The detail of these charges is presented in the summary tables below.

2014 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 product qualification activities. In 2014, we announced our 2014 Manufacturing Footprint Consolidation Plan. We plan to eliminate our internal 5-inch and significantly reduce 6-inch wafer fabrication lines and rationalize our assembly and test capacity, resulting in the closure of our manufacturing and assembly facilities in West Jordan, Utah and Penang, Malaysia, as well as the remaining 5-inch wafer fabrication lines in Bucheon, South Korea.

In addition to the amounts recorded in the summary below, we expect to incur an additional $2.7 million in restructuring costs and an additional $10.2 million in accelerated depreciation costs to complete this program by the fourth quarter of fiscal year 2015.

Prior Year Infrastructure Realignment Programs

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

The 2012 Infrastructure Realignment Program includes costs for organizational changes in our 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 our supply chain management group, the website technology group, the quality organization, and other administrative groups. The 2011 program also includes costs to further improve our 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 our manufacturing strategy, and costs associated with centralizing our accounting functions.


	Accrual Balance at December 29, 2013		Restructuring Charges		Other Charges		Reserve Release			Cash Paid			Non-Cash Items			Accrual Balance at December 28, 2014
2011 Infrastructure Realignment Program:
Employee separation costs	$	0.3	$	—	$	—	$	(0.2	)	$	(0.1	)	$	—		$	—
2012 Infrastructure Realignment Program:																	—
Employee separation costs		0.2		—		—		—			(0.2	)		—			—
Lease termination costs		0.1		—		—		—			(0.1	)		—			—
2013 Infrastructure Realignment Program:
Employee separation costs		3.2		0.9		—		(0.4	)		(3.7	)		—			—
Asset impairment costs		—		0.5		—		—			—			(0.5	)		—
Line closure costs		—		2.5		—		—			(2.5	)		—			—
Lease termination costs		0.4		0.1		—		(0.2	)		(0.3	)		—			—
2014 Infrastructure Realignment Program:
Employee separation costs		—		35.3		—		(1.3	)		(5.3	)		—			28.7
Asset impairment costs		—		1.3		—		—			—			(1.3	)		—
Factory closure costs		—		1.2		—		—			(0.4	)		(0.4	)		0.4
Qualification costs		—		—		8.7		—			(7.6	)		—			1.1

	$	4.2	$	41.8	$	8.7	$	(2.1	)	$	(20.2	)	$	(2.2	)	$	30.2

	Accrual Balance at December 30, 2012		Restructuring Charges		Other Charges		Reserve Release			Cash Paid			Non-Cash Items			Accrual Balance at December 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		—		(0.2	)		(2.5	)		—			0.2
Lease termination costs		0.5		—		—		(0.1	)		(0.3	)		—			0.1
2013 Infrastructure Realignment Program:
Employee separation costs		—		11.0		—		(0.1	)		(7.7	)		—			3.2
Asset impairment costs		—		1.6		—		—			—			(1.6	)		—
Line closure costs		—		3.0		—		—			(3.0	)		—			—
Lease termination costs		—		0.6		—		—			(0.2	)		—			0.4

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


	Accrual Balance at December 25, 2011		Restructuring Charges		Other Charges		Reserve Release			Cash Paid			Non-Cash Items			Accrual Balance at December 30, 2012
2010 Infrastructure Realignment Program:
Employee separation costs	$	1.0	$	—	$	—	$	(0.1	)	$	(0.7	)	$	—		$	0.2
2011 Infrastructure Realignment Program:
Employee separation costs		1.7		1.0		—		(0.4	)		(1.7	)		—			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	$	—	$	(0.5	)	$	(12.7	)	$	(0.1	)	$	4.1