RESTRUCTURING AND SEVERANCE CHARGES

3 Months Ended

Jan. 01, 2012

RESTRUCTURING AND SEVERANCE CHARGES

13. RESTRUCTURING AND SEVERANCE CHARGES

In 2009, we approved consolidation plans that resulted in the closure of our manufacturing facility in Scottsdale, Arizona (“Scottsdale”), which ceased production during the quarter ended April 3, 2011. The Scottsdale facility occupied a 135,000 square foot leased facility. Employee severance is expected to be paid through 2013. Contract termination costs relate primarily to remaining obligations under facility and equipment leases and are expected to be paid through 2016. The following table reflects the restructuring activities for the Scottsdale facility and the accrued liabilities in the consolidated balance sheets at the dates below (amounts in thousands):

	Employee Severance			Contract Termination Costs			Total
Balance at October 2, 2011	$	355		$	6,482		$	6,837
Cash expenditures		(159	)		(365	)		(524	)
Balance at January 1, 2012	$	196		$	6,117		$	6,313

At October 2, 2011, we had recorded severance accruals of $2.7 million from reductions in force at our various facilities other than Scottsdale. We recorded additional provisions, primarily related to activities at Microsemi – CMPG, for severance and retention payments totaling $7.2 million for the quarter ended January 1, 2012. Severance covered approximately 200 individuals in manufacturing, engineering and sales. Substantially all accrued amounts are expected to be paid within twelve months.

The following table reflects the restructuring activities and the accrued liabilities in the consolidated balance sheets at the dates below (amounts in thousands):

	Employee Severance
Balance at October 2, 2011	$	2,724
Provisions		7,225
Cash expenditures		(2,741	)
Other non-cash settlement		(1,388	)
Balance at January 1, 2012	$	5,820