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Restructuring And Other Charges

6 Months Ended

Jul. 01, 2011

Restructuring And Other Charges [Abstract]

2. Restructuring and Other Charges

On January 25, 2010, management initiated a restructuring plan to enable us to shift investment from TDM (Time Division Multiplexing) to Ethernet and IP (Internet Protocol) products, move our supply chain closer to suppliers, and reduce general and administrative expenses. Restructuring expense for the second quarter of 2011 was $0.1 million for severance-related charges. Restructuring expense for the first six months of 2011 was $0.6 million for severance-related charges. The cumulative pretax restructuring charges for this plan are $9.6 million, which consists of $7.0 million for workforce reductions and $2.6 million for facility- and asset-related charges. By segment, total charges to date under this plan are $6.1 million for Broadband, $3.2 million for Transport, and $0.3 million for Services. Total cash payments under this plan are expected to be $7.0 million, of which $5.9 million has been paid through the second quarter of 2011. Restructuring actions under this plan were completed in the first quarter of 2011.

On July 6, 2009, management initiated a restructuring plan as we aligned costs with customer spending and market conditions at that time. We recorded a $0.1 million reduction to restructuring expense for the second quarter of 2011 for severance-related charges. Restructuring expense for the first six months of 2011 was $0.6 million for severance-related charges. The cumulative pretax restructuring charges for this plan are $7.0 million, which consists of $6.6 million in severance charges for workforce reductions and $0.4 million for facility- and asset-related charges. By segment, total charges to date under this plan are $2.6 million for Broadband, $2.1 million for Transport, and $2.3 million for Services. Total cash payments under this plan are expected to be $6.7 million for workforce reductions, of which $5.9 million has been paid through the second quarter of 2011. Restructuring actions under this plan were completed in the first quarter of 2011.

Reductions of $0.2 million to restructuring expense for previous restructuring plans in the first six months of 2011 are facility-related. These net reductions are due to changes in estimates to previous restructuring plans.

The balance for restructuring plans relates to net lease obligations that expire through 2015 and cash severance that we expect to pay through the third quarter of 2012.

The following table summarizes restructuring and other charges recorded for the plans mentioned above, as well as adjustments to reserves recorded for prior restructurings:


	Second Quarter					Six Months
	7/1/11		7/2/10			7/1/11			7/2/10
Severance and other termination benefits	$	—	$	(0.5	)	$	1.2		$	7.1
Facility- and asset-related charges		—		—			(0.2	)		2.4

Total restructuring and other charges	$	—	$	(0.5	)	$	1.0		$	9.5

The following table summarizes restructuring and other charges activity by segment for the second quarter and first six months of 2011 and the status of the reserves at July 1, 2011:


			Second Quarter Activity
	Balance at 4/1/11		Restructuring Expense			Cash Payments			Balance at 7/1/11
2010 Restructuring Plan
Broadband	$	1.4	$	0.1		$	(0.9	)	$	0.6
Transport		0.9		—			(0.5	)		0.4
Services		0.2		—			(0.1	)		0.1


Subtotal 2010 Restructuring Plan		2.5		0.1			(1.5	)		1.1


Previous Restructuring Plans
Broadband		5.1		—			(0.7	)		4.4
Transport		0.5		(0.1	)		—			0.4
Services		0.8		—			(0.4	)		0.4

Subtotal Previous Restructuring Plans		6.4		(0.1	)		(1.1	)		5.2


Total Restructuring Plans	$	8.9	$	—		$	(2.6	)	$	6.3


			Six Months Activity
	Balance at 12/31/10		Restructuring Expense			Cash Payments			Balance at 7/1/11
2010 Restructuring Plan
Broadband	$	1.4	$	0.4		$	(1.2	)	$	0.6
Transport		1.0		—			(0.6	)		0.4
Services		—		0.2			(0.1	)		0.1


Subtotal 2010 Restructuring Plan		2.4		0.6			(1.9	)		1.1


Previous Restructuring Plans
Broadband		6.4		0.1			(2.1	)		4.4
Transport		1.5		(0.2	)		(0.9	)		0.4
Services		0.5		0.5			(0.6	)		0.4

Subtotal Previous Restructuring Plans		8.4		0.4			(3.6	)		5.2


Total Restructuring Plans	$	10.8	$	1.0		$	(5.5	)	$	6.3

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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