Note 10 - Restructuring Charges

9 Months Ended

Sep. 30, 2011

Restructuring and Related Activities Disclosure [Text Block]

10.   Restructuring Charges

The Company implemented restructuring plans during the Transition Period and during fiscal years 2010 and 2009.  The goals of these plans were to bring its operational expenses to appropriate levels relative to its historical net revenues, while simultaneously implementing extensive company-wide expense-control programs.  All expenses, including adjustments, associated with the Company’s restructuring plans are included in “Restructuring charges” and/or “Income from discontinued operations, net of taxes” in the Condensed Statements of Operations.

In the three-month and nine-month periods ended September 30, 2011, the Company recorded ($32,000) and $6,000 restructuring accrual adjustments related to the Transition Period’s restructuring plan for severance and benefits, respectively.  To date, the Company has recorded a total of $3.9 million associated with this plan, of which $3.7 million related to severance and benefit charges for affected employees who were notified of their impending employment termination date and $0.2 million related to a termination fee for vacating a facility in California.  The Company does not expect to record additional restructuring charges related to this plan in the future.

In the three-month and nine-month periods ended October 1, 2010, the Company recorded restructuring charges of $0.9 million and $3.7 million, respectively, related to the Company’s Transition Period restructuring plan for severance and benefits. In the nine-month period ended October 1, 2010, the Company incurred the previously mentioned $3.9 million of charges plus $0.7 million related to the Company’s fiscal 2010 restructuring plan for severance and benefits and restructuring accrual adjustments of $(0.1) million related to a previous acquisition-related restructuring plan and fiscal 2009 restructuring plan due to the estimated loss on the Company’s facilities.

The activity in the restructuring accrual for all outstanding plans was as follows for the nine-month period ended September 30, 2011:

	Severance and Benefits			Other Charges			Total
	(in thousands)
Accrual balance at December 31, 2010	$	881		$	350		$	1,231
Accrual adjustments		6			-			6
Cash paid		(845	)		(232	)		(1,077	)
Accrual balance at September 30, 2011	$	42		$	118		$	160

The Company anticipates that this remaining restructuring accrual balance at September 30, 2011, which was reflected in “Accrued and other liabilities” in the Condensed Balance Sheets, will be paid out by December 31, 2011.

The activity in the restructuring accrual for all outstanding plans was as follows for the nine-month period ended October 1, 2010:

	Severance and Benefits			Other Charges			Total
	(in thousands)
Accrual balance at January 1, 2010	$	383		$	1,043		$	1,426
Transition Period Restructuring Plan Charges (1)		3,797			150			3,947
Fiscal 2010 Restructuring Plan Charges (2)		693			-			693
Accrual adjustments		-			(104	)		(104	)
Cash paid		(4,456	)		(722	)		(5,178	)
Accrual balance at October 1, 2010	$	417		$	367		$	784

(1) The total Transition Period restructuring plan charges included $0.5 million classified as discontinued operations that were reflected in “Income from discontinued operations, net of taxes” in the Condensed Statements of Operations.

(2) The charges for fiscal 2010 restructuring plan included $1,000 classified as discontinued operations in the nine-month period ended October 1, 2010, which was reflected in “Income from discontinued operations, net of taxes” in the Condensed Statements of Operations.