Restructuring, Impairments and Other Costs

6 Months Ended

Jun. 28, 2015

Restructuring, Impairments and Other Costs

Note 10 – Restructuring, Impairments and Other Costs

During the three months ended June 28, 2015 and June 29, 2014, we recorded restructuring, impairment and other costs, net of releases, of $4.2 million and $4.7 million, respectively. During the six months ended June 28, 2015 and June 29, 2014, we recorded restructuring, impairment and other costs, net of releases, of $8.9 million and $10.8 million, respectively. The detail of the charges for the three and six months ended June 28, 2015 is presented in the summary table 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 $2.0 million in restructuring costs, an additional $2.0 million in accelerated depreciation costs, and an additional $18.0 million in site closure costs to complete this program by the fourth quarter of fiscal year 2015.

	Accrual Balance at December 28, 2014		Restructuring Charges			Other Charges		Reserve Release			Cash Paid			Non-Cash Items			Accrual Balance at March 29, 2015
	(In millions)
2014 Infrastructure Realignment Program:
Employee separation costs	$	28.7	$	2.2		$	—	$	(0.2	)	$	(2.1	)	$	(0.6	)	$	28.0
Asset disposal (gain) loss		—		(0.5	)		—		—			0.5			—			—
Factory closure costs		0.4		0.2			—		—			—			(0.2	)		0.4
Qualification costs		1.1		—			3.0		—			(3.0	)		—			1.1
	$	30.2	$	1.9		$	3.0	$	(0.2	)	$	(4.6	)	$	(0.8	)	$	29.5
	Accrual Balance at March 29, 2015		Restructuring Charges			Other Charges		Reserve Release			Cash Paid			Non-Cash Items			Accrual Balance at June 28, 2015
	(In millions)
2014 Infrastructure Realignment Program:
Employee separation costs	$	28.0	$	1.1		$	—	$	(0.5	)	$	(2.3	)	$	(0.2	)	$	26.1
Asset disposal (gain) loss		—		0.3			—		—			(0.3	)		—			—
Factory closure costs		0.4		1.0			—		—			(1.2	)		0.2			0.4
Qualification costs		1.1		—			2.3		—			(3.4	)		—			—
	$	29.5	$	2.4		$	2.3	$	(0.5	)	$	(7.2	)	$	—		$	26.5