Exit Activities and Reductions in Force

9 Months Ended

Sep. 30, 2011

Restructuring and Related Activities [Abstract]

Exit Activities and Reductions in Force

Exit Activities and Reductions in Force

As part of our ongoing efforts to improve our manufacturing operations and manage costs, we regularly evaluate our staffing levels and facility requirements compared to business needs. The following table summarizes our exit activities and reduction in force initiatives associated with these efforts. “Charges” represents the initial charge related to the exit activity. “Cash Payments” consists of the utilization of “Charges.” “Non-cash Amounts” consists of asset impairments and pension plan curtailments and settlements.

	Employee Separation Costs			Contractual Obligations		Asset Impairments		Total
	(In thousands)
Accrual at December 31, 2010	$	670		$	—	$	—	$	670
Charges	4,811			—		—		4,811
Cash Payments	(4,518		)	—		—		(4,518		)
Non-cash Amounts	(936		)	—		—		(936		)
Accrual at September 30, 2011	$	27		$	—	$	—	$	27

	Employee Separation Costs			Contractual Obligations			Asset Impairments			Total
	(In thousands)
Accrual at December 31, 2009	$	3,938		$	2,813		$	—		$	6,751
Charges	2,466			41			282			2,789
Cash Payments	(3,274		)	(2,854		)	—			(6,128		)
Non-cash Amounts	—			—			(282		)	(282		)
Accrual at September 30, 2010	$	3,130		$	—		$	—		$	3,130

Philippines Manufacturing Operations

During the three months ended September 30, 2011, we reduced our workforce by approximately 500 employees at our manufacturing operations in the Philippines. We recorded $4.8 million in charges for one-time termination benefits including $0.9 million in curtailment and settlement charges, of which $4.4 million and $0.4 million were charged to cost of sales and selling, general and administrative expenses, respectively. All amounts were paid prior to September 30, 2011.

Singapore Manufacturing Operations

In June 2009, we communicated to our employees the decision to wind-down and exit our manufacturing operations in Singapore. We completed our exit as of December 31, 2010. This wind-down affected approximately 600 employees and enabled us to improve our cost structure by consolidating factories. The majority of the machinery and equipment was relocated to, and utilized in, other factories. In June 2011, we sold the facility in Singapore for $13.3 million in cash, net of goods and services tax, and recorded a gain of less than $0.1 million, with no net tax effect.

The liability for one-time involuntary termination benefits for employees that provided service beyond a minimum retention period was recognized over the service period. During the three and nine months ended September 30, 2011, charges for termination benefits were not significant. During the three months ended September 30, 2010, we recorded charges for termination benefits of $0.4 million, of which $0.3 million and $0.1 million were recorded in cost of sales and selling, general and administrative expenses, respectively. During the nine months ended September 30, 2010, we recorded charges for termination benefits of $2.5 million, of which $1.7 million and $0.8 million were recorded in cost of sales and selling, general and administrative expenses, respectively.

Contractual obligation costs, asset impairments and other costs are included in costs of goods sold. In January 2010, we made a final payment related to the early termination of our lease of one of our facilities that was vacated and relief from our existing $1.1 million asset retirement obligation related to the leased property. Asset impairments of $0.3 million during the nine months ended September 30, 2010, relate to non-transferable machinery and equipment. All amounts accrued at September 30, 2011 are classified in current liabilities.