Restructuring Costs

12 Months Ended

Dec. 31, 2019

Restructuring And Related Activities [Abstract]

Restructuring Costs

Note 19 – Restructuring Costs

In February 2017, the Company announced its plan to transfer its wafer fabrication operation at KFAB to other Company-owned wafer fabrication plants and external foundries. The Company ceased production operations at KFAB late in third quarter 2017, and vacated and returned the premises to the landlord in November 2017. Employees were provided retention and standard severance packages.  During 2018 and 2017, the Company received $3.7 million and $6.5 million, respectively of insurance proceeds as a result of the fires sustained at the KFAB facility during 2016.  The $3.7 million received in 2018 and $2.0 million received in 2017 were recorded in Other Income. The remaining $4.5 million received in 2017 was recorded in Cost of Goods Sold.  There are outstanding insurance claims. Also during 2017, the Company recorded $1.9 million of asset impairment related to the shut-down of KFAB.

The table below sets forth the restructuring costs, recorded in restructuring expense in the Condensed Consolidated Statements of Operations, incurred during the twelve months ended December 31, 2018 and 2017:

	Twelve Months Ended December 31,
	2018			2017
Early supply contract termination	$	-		$	1,985
Cost of equipment relocation, shutdown cost and other		220			3,591
Asset retirement obligation		-			1,403
Retention costs		(14	)		3,158
	$	206		$	10,137

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

							Equipment
							Relocation,
	Early Contract						Shutdown
	Termination			Retention Costs			Cost and Other			Total
Beginning balance, January 1, 2017	$	-		$	-		$	-		$	-
Costs accrued		1,985			3,158			3,591			8,734
Restructuring costs paid		(1,985	)		(2,499	)		(2,946	)		(7,430	)
Balance at December 31, 2017		-			659			645			1,304
Costs accrued		-			(14	)		526			512
Restructuring costs paid		-			(645	)		(1,171	)		(1,816	)
Balance at December 31, 2018	$	-		$	-		$	-		$	-

Based on continued negotiations with the landlord, we recorded an additional $1.4 million of asset retirement obligations related the KFAB restructuring.  This asset retirement obligation is for the estimated amounts to be paid to contractors to remediate the KFAB facility upon vacating the property.   The table below sets forth the asset retirement obligation related to the KFAB restructuring:

Asset retirement obligation, January 1, 2017	$	486
Accrual of additional asset retirement obligation		1,403
Amount paid		(1,500	)
Asset retirement obligation, December 31, 2017		389
Accrual of additional asset retirement obligation		-
Amount paid		(389	)
Asset retirement obligation, December 31, 2018	$	-

In connection with the asset retirement obligation, as of December 31, 2018, the offsetting asset has been fully amortized.