Restructuring Costs

6 Months Ended

Jun. 30, 2017

Restructuring And Related Activities [Abstract]

Restructuring Costs

NOTE 11 – Restructuring Costs

In February 2017, the Company announced its plan to transfer its wafer fabrication operation in Lee’s Summit, MO, (“KFAB”) to other Company-owned wafer fabrication plants and external foundries. The Company expects to cease operations at KFAB late in third quarter 2017 and to vacate the premises no later than November 15, 2017. Employees have been offered retention and standard severance packages.  During the quarter ended March 2017, the Company received $6.0 million of insurance proceeds as a result of the fires sustained at the KFAB facility during 2016 of which $4.2 million is recorded in Cost of Goods Sold and $1.8 million is recorded in Other Income.

Total KFAB shutdown costs are expected to be approximately $10 million to $12 million, on a pretax basis, which will be expensed and paid throughout 2017. The table below sets forth the restructuring costs, recorded in restructuring expense in the Condensed Consolidated Statements of Operations, incurred during the three months and six months ended June 30, 2017:                                   

	Three Months Ended	Six Months Ended
Early supply contract termination	$           (246)	$          1,985
Cost of equipment relocation	72	72
Asset retirement obligation	234	234
Retention costs	1,778	1,778
	$          1,838	$          4,069

The table below sets forth the costs accrued related to the KFAB restructuring:

	Early Contract Termination	Retention Costs	Equipment Relocation	Asset Retirement Obligation Amortization	Total
Beginning balance, January 1, 2017	$                -	$                -	$                -	$                -	$                -
Costs accrued	1,985	1,778	72	234	4,069
Restructuring costs paid	(1,500)	-	(72)	-	(1,572)
Ending balance, June 30, 2017	$             485	$          1,778	$                -	$             234	$          2,497