9. RESTRUCTURING CHARGES

Historically, the Company has initiated a series of restructuring activities intended to realign the Company's global capacity and infrastructure with demand by its customers so as to optimize the operational efficiency, which included reducing excess workforce and capacity, and consolidating and relocating certain manufacturing, design and administrative facilities to lower-cost regions.

The restructuring costs include employee severance, costs related to leased facilities, owned facilities that are no longer in use and are to be disposed of, leased equipment that is no longer in use and will be disposed of, and other costs associated with the exit of certain contractual agreements due to facility closures. The overall intent of these activities is that the Company shifts its manufacturing capacity to locations with higher efficiencies and, in most instances, lower costs, and better utilize its overall existing manufacturing capacity. This would enhance the Company's ability to provide cost-effective manufacturing service offerings, which in turn may enhance its ability to retain and expand the Company's existing relationships with customers and attract new business.

Fiscal Year 2011

The Company did not undertake any restructuring activities during fiscal year 2011 and has completed essentially all activities associated with previously announced plans.

The following table summarizes the provisions, respective payments, and remaining accrued balance as of March 31, 2011 for charges incurred in fiscal year 2010 and prior periods:


			Long-Lived
			Asset		Other
	Severance		Impairment		Exit Costs		Total
	(In thousands)
Balance as of March 31, 2009	$	101,213	$	—	$	60,254	$	161,467
Activities during the fiscal year 2010:
Provisions for charges incurred during the year		41,193		43,112		23,223		107,528
Cash payments for charges incurred in fiscal year 2010		(29,661)		—		(21,021)		(50,682)
Cash payments for charges incurred in fiscal year 2009		(61,926)		—		(3,828)		(65,754)
Cash payments for charges incurred in fiscal year 2008 and prior		(22,603)		—		(17,135)		(39,738)
Non-cash charges incurred during the year		—		(43,112)		(5,464)		(48,576)
Balance as of March 31, 2010		28,216		—		36,029		64,245
Activities during the fiscal year 2011
Cash payments for charges incurred in fiscal year 2010		(10,574)		—		(1,032)		(11,606)
Cash payments for charges incurred in fiscal year 2009 and prior		(10,046)		—		(13,271)		(23,317)
Balance as of March 31, 2011		7,596		—		21,726		29,322
Less: Current portion (classified as other current liabilities)		7,557				9,264		16,821
Accrued facility closure costs, net of current portion (classified as
other liabilities)	$	39	$	—	$	12,462	$	12,501

As of March 31, 2011 and 2010, accrued costs related to restructuring charges incurred during fiscal year 2010 were approximately $2.1 million and $13.7 million, respectively, the entire amount of which was classified as current.

As of March 31, 2011 and 2010, accrued restructuring costs for charges incurred during fiscal year 2009 and prior were approximately $27.2 million and $50.6 million, respectively, of which approximately $12.5 million and $22.2 million, respectively, was classified as a long-term obligation.

As of March 31, 2011 and 2010, assets that were no longer in use and held for sale as a result of restructuring activities totaled approximately $27.1 million and $46.9 million, respectively, representing manufacturing facilities that have been closed as part of the Company's facility consolidations. These assets are recorded at the lesser of carrying value or fair value, which is based on comparable sales from prevailing market data. For assets held for sale, depreciation ceases and an impairment loss is recognized if the carrying amount of the asset exceeds its fair value less cost to sell. Assets held for sale are included in other current assets in the consolidated balance sheets.

Fiscal Year 2010

The Company recognized restructuring charges of approximately $107.5 million during fiscal year 2010 primarily to rationalize the Company's global manufacturing capacity and infrastructure due to the recent macroeconomic crisis which significantly impacted our customers' businesses. The Company's restructuring activities were intended to improve its operational efficiencies by reducing excess workforce and capacity. In addition to the cost reductions, these activities resulted in a further shift of manufacturing capacity to locations with higher efficiencies and, in most instances, lower costs. The costs associated with these restructuring activities included employee severance, costs related to owned and leased facilities and equipment that is no longer in use and is to be disposed of, and other costs associated with the exit of certain contractual arrangements due to facility closures. The Company classified approximately $92.4 million of these charges as cost of sales and approximately $15.1 million of these charges as selling, general and administrative expenses during fiscal year 2010.

The components of the restructuring charges during fiscal year 2010 were as follows:

		First		Second		Third		Fourth
		Quarter		Quarter		Quarter		Quarter		Total
		(In thousands)
Americas:
Severance	$	7,234	$	1,765	$	2,223	$	5,214	$	16,436
Long-lived asset impairment		1,004		2,154		1,326		—		4,484
Other exit costs		1,742		2,687		(240)		—		4,189
Total restructuring charges		9,980		6,606		3,309		5,214		25,109

Asia:
Severance		7,579		801		1,659		1,964		12,003
Long-lived asset impairment		21,482		1,558		1,589		4,694		29,323
Other exit costs		5,519		(947)		426		(1,191)		3,807
Total restructuring charges		34,580		1,412		3,674		5,467		45,133

Europe:
Severance		4,556		4,573		2,733		892		12,754
Long-lived asset impairment		9,305		—		—		—		9,305
Other exit costs		6,418		—		70		8,739		15,227
Total restructuring charges		20,279		4,573		2,803		9,631		37,286

Total
Severance		19,369		7,139		6,615		8,070		41,193
Long-lived asset impairment		31,791		3,712		2,915		4,694		43,112
Other exit costs		13,679		1,740		256		7,548		23,223

Total restructuring charges	$	64,839	$	12,591	$	9,786	$	20,312	$	107,528

During fiscal year 2010, the Company recognized approximately $41.2 million of employee termination costs associated with the involuntary terminations of 5,727 identified employees in connection with the charges described above. The identified involuntary employee terminations by reportable geographic region amounted to approximately 2,086, 2,740, and 901 for Asia, the Americas and Europe, respectively. Approximately $35.2 million of these charges were classified as a component of cost of sales.

During fiscal year 2010, the Company recognized approximately $43.1 million of non-cash charges for the write-down of property and equipment to management's estimate of fair value associated with various manufacturing and administrative facility closures. Approximately $33.4 million of this amount was classified as a component of cost of sales. The restructuring charges recognized during fiscal year 2010 also included approximately $23.2 million for other exit costs, all of which were classified as a component of cost of sales. Other exit costs were primarily comprised of contractual obligations associated with facility and equipment lease terminations of $19.8 million, facility abandonment and refurbishment costs of $3.2 million, and approximately $0.2 million of other costs.

Fiscal Year 2009

The Company recognized restructuring charges of approximately $179.8 million during fiscal year 2009 primarily to rationalize the Company's global manufacturing capacity and infrastructure as a result of weak macroeconomic conditions. The global economic crisis and decline in the Company's customers' products across all of the industries it serves, caused the Company's OEM customers to reduce their manufacturing and supply chain outsourcing and had negatively impacted the Company's capacity utilization levels. The Company's restructuring activities were intended to improve the operational efficiencies by reducing excess workforce and capacity. In addition to the cost reductions, these activities resulted in a further shift of manufacturing capacity to locations with higher efficiencies and, in most instances, lower costs. The costs associated with these restructuring activities included employee severance, costs related to owned and leased facilities and equipment that is no longer in use and is to be disposed of, and other costs associated with the exit of certain contractual arrangements due to facility closures. The Company classified approximately $155.1 million of these charges as cost of sales and approximately $24.7 million of these charges as selling, general and administrative expenses during fiscal year 2009.

The components of the restructuring charges during the first and fourth quarters of fiscal year 2009 were as follows:

		First		Second		Third		Fourth
		Quarter		Quarter		Quarter		Quarter		Total
		(In thousands)
Americas:
Severance	$	10,540	$	—	$	—	$	28,878	$	39,418
Long-lived asset impairment		—		—		—		11,699		11,699
Other exit costs		—		—		—		5,559		5,559
Total restructuring charges		10,540		—		—		46,136		56,676

Asia:
Severance		12,496		—		—		32,893		45,389
Long-lived asset impairment		121		—		—		40,239		40,360
Other exit costs		775		—		—		10,425		11,200
Total restructuring charges		13,392		—		—		83,557		96,949

Europe:
Severance		5,283		—		—		18,866		24,149
Long-lived asset impairment		—		—		—		1,174		1,174
Other exit costs		—		—		—		837		837
Total restructuring charges		5,283		—		—		20,877		26,160

Total
Severance		28,319		—		—		80,637		108,956
Long-lived asset impairment		121		—		—		53,112		53,233
Other exit costs		775		—		—		16,821		17,596
Total restructuring charges	$	29,215	$	—	$	—	$	150,570	$	179,785

During fiscal year 2009, the Company recognized approximately $109.0 million of employee termination costs associated with the involuntary terminations of 14,970 identified employees in connection with the charges described above. The identified involuntary employee terminations by reportable geographic region amounted to approximately 7,623, 4,832, and 2,515 for Asia, the Americas and Europe, respectively. Approximately $88.8 million of these charges were classified as a component of cost of sales.

During fiscal year 2009, the Company recognized approximately $53.2 million of non-cash charges for the write-down of property and equipment to management's estimate of fair value associated with various manufacturing and administrative facility closures. Approximately $51.4 million of this amount was classified as a component of cost of sales. The restructuring charges recognized during fiscal year 2009 also included approximately $17.6 million for other exit costs, of which $14.9 million was classified as a component of cost of sales. Other exit costs were primarily comprised of contractual obligations associated with facility and equipment lease terminations of $12.5 million, and customer disengagement, facility abandonment and refurbishment costs of $5.1 million. The customer disengagement costs related primarily to inventory and other asset impairment charges resulting from customer contracts that were terminated by the Company as a result of various facility closures.