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Restructuring And Asset Impairment Charges
12 Months Ended
Oct. 01, 2011
Restructuring And Asset Impairment Charges 
Restructuring And Asset Impairment Charges

 

 

10.          Restructuring and Asset Impairment Charges

 

Fiscal 2011 and fiscal 2010 restructuring and asset impairment charges: For fiscal 2011 and fiscal 2010, the Company did not incur any restructuring or impairment charges.

 

Fiscal 2009 restructuring and asset impairment charges: For fiscal 2009, we recorded pre-tax restructuring and asset impairment charges of $8.6 million, related to goodwill impairment in our EMEA reportable segment, the closure of our Ayer, Massachusetts ("Ayer") facility and the reduction of our workforce across our facilities in the United States and Juarez, Mexico ("Juarez"). The details of these fiscal 2009 restructuring actions are listed below:

 

Goodwill Impairment:  During the second quarter of fiscal 2009, the Company recorded a goodwill impairment charge of $5.7 million, writing off the entire carrying value of our goodwill related to our Kelso, Scotland ("Kelso") facility.  The impairment charge was driven by macroeconomic conditions that contributed to an overall reduction in demand for the Company's offerings from the Kelso facility.  These conditions led to an "interim triggering event", leading management to perform an interim goodwill impairment test.  This test resulted in the determination that the carrying value of the goodwill relating to Kelso was fully impaired and therefore an impairment charge of $5.7 million was recorded.  

 

Ayer Facility Closure:  During the third quarter of fiscal 2009, we closed our Ayer facility.  In fiscal 2009, we recorded pre-tax restructuring charges of $0.4 million, related to the disposal of certain assets and costs to exit this leased facility.     

   

Other Restructuring Charges. In fiscal 2009, we recorded pre-tax restructuring charges of $2.0 million related to severance at facilities in the United States as well as Juarez. These workforce reductions affected approximately 450 employees. We also recorded approximately $0.5 million of asset impairment charges at Corporate.

A detail of restructuring and asset impairment charges are provided below (in thousands):

 

 

Employee Termination and Severance Costs

Lease Obligations and Other Exit Costs

Non-cash Asset Impairments

Total

Accrued balance, September 27, 2008

     $       2,038

     $                -

     $                -

     $       2,038

 

 

 

 

 

Restructuring and asset impairments charges

               2,196

                  876

               5,748

               8,820

Adjustment to provisions

                 (249)

                        -

                        -

                 (249)

Amount utilized

             (3,941)

               (790)

            (5,748)

           (10,479)

Accrued balance, October 3, 2009

     $             44

     $             86

     $                -

     $           130

 

The remaining balance as of October 3, 2009 of $0.1 million was utilized in fiscal 2010 and no further accruals were recorded in fiscal 2011 or 2010.

 

For a detail of restructuring and asset impairment charges by reportable segment, see Note 13 – Reportable Segments, Geographic Information and Major Customers.