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RESTRUCTURING CHARGES
 12 Months Ended
Dec. 31, 2013
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES
 
The following table summarizes the activity related to the accrual for restructuring charges detailed by event:

 
Q2'10
 
Q2'12
 
Q4'12
 
Q1'13
 
Q3'13
 
Total 2013 Activity
 
(in thousands)
Balance at January 1, 2013 - Restructuring Accrual
$
439

 
$
7,418

 
$
8,365

 
$
—

 
$
—

 
$
16,222

Charges (credits) - Employee termination costs, net of change in estimate
—

 
(13
)
 
(1,720
)
 
44,084

 
2,043

 
44,394

Charges - Other
—

 
—

 
—

 
453

 
—

 
453

Payments - Employee termination costs
(158
)
 
(6,508
)
 
(6,400
)
 
(21,873
)
 
(723
)
 
(35,662
)
Payments - Other
—

 
—

 
(229
)
 
(453
)
 
—

 
(682
)
Foreign exchange (gain) loss
—

 
—

 
(16
)
 
738

 
(6
)
 
716

Balance at December 31, 2013 - Restructuring Accrual
$
281

 
$
897

 
$
—

 
$
22,949

 
$
1,314

 
$
25,441

 
 
 
 
 
 
 
 
 
 
 
 
Non-cash charges (see discussion below)
$
—

 
$
—

 
$
68

 
$
5,111

 
$
—

 
$
5,179



 
Q3'08
 
Q2'10
 
Q2'12
 
Q4'12
 
Total 2012 Activity
 
(in thousands)
Balance at January 1, 2012 - Restructuring Accrual
$
301

 
$
1,846

 
$
—

 
$
—

 
$
2,147

Charges - Employee termination costs, net of change in estimate
—

 
924

 
11,724

 
10,843

 
23,491

Charges - Other
—

 
—

 
—

 
495

 
495

Payments - Employee termination costs
(301
)
 
(1,902
)
 
(4,486
)
 
(2,973
)
 
(9,662
)
Foreign exchange (gain) loss
—

 
(429
)
 
180

 
—

 
(249
)
Balance at December 31, 2012 - Restructuring Accrual
$
—

 
$
439

 
$
7,418

 
$
8,365

 
$
16,222


 
Q3'02
 
Q2'08
 
Q3'08
 
Q1'09
 
Q2'10
 
Total 2011 Activity
 
(in thousands)
Balance at January 1, 2011 - Restructuring Accrual
$
1,592

 
$
3

 
$
460

 
$
136

 
$
1,286

 
$
3,477

Charges (credits) - Employee termination costs, net of change in estimate
—

 
(3
)
 
—

 
—

 
21,659

 
21,656

Credits - Other
(1,592
)
 
—

 
—

 
—

 
—

 
(1,592
)
Payments - Employee termination costs
—

 
—

 
—

 
—

 
(21,461
)
 
(21,461
)
Payments - Other
—

 
—

 
—

 
(136
)
 
—

 
(136
)
Currency translation adjustment
—

 
—

 
15

 
—

 
1,165

 
1,180

Foreign exchange gain
—

 
—

 
(174
)
 
—

 
(803
)
 
(977
)
Balance at December 31, 2011 - Restructuring Accrual
$
—

 
$
—

 
$
301

 
$
—

 
$
1,846

 
$
2,147


 
The Company records restructuring liabilities related to workforce reductions when the accounting recognition criteria are met and consistent with management's approval and commitment to the restructuring plans in each particular quarter. The restructuring plans identify the number of employees to be terminated, job classifications and functions, location and the date the plan is expected to be completed.

2013 Restructuring Charges

Restructuring charges were recorded in the first and third quarters of 2013. The charge in the first quarter of 2013 was primarily related to workforce reductions at our subsidiaries in Rousset, France ("Rousset"), Nantes, France (“Nantes”), and Heilbronn, Germany ("Heilbronn"). The charge in the third quarter of 2013 related primarily to workforce reduction in the U.S. and Norway.

Rousset and Nantes

In 2013, each of Rousset and Nantes restructured operations to further align operating expenses with macroeconomic conditions and revenue outlooks, and to improve operational efficiency, competitiveness and business profitability. In connection with formulating this restructuring plan, during the first quarter of 2013, Rousset and Nantes each confidentially negotiated and developed “social plans” in coordination and consultation with their respective local Works Councils, subject to French law; these social plans set forth general parameters, terms and benefits for employee dismissals, both voluntary and involuntary. The restructuring charges related to Rousset and Nantes were $32.9 million, including net non-cash charges of $5.1 million. Total net non-cash charges comprised impairment charges of $6.7 million, which was partially offset by pension curtailment gain of $1.6 million, as discussed further below.

Substantially all of the affected employees ceased active service as of December 31, 2013. There were no significant changes to the plan and no material modifications or changes were made after implementation began.

The Company vacated a building in Rousset, France in September 2013. Due to ongoing restructuring activities, the Company evaluated the carrying value of this building and a building located in Greece which is also no longer used in operations. Based on this evaluation, the Company determined that the Rousset and Greece buildings with carrying amounts of $10.1 million and $2.7 million, respectively, were impaired and wrote them down to their estimated fair value of $5.0 million and $1.1 million, respectively. Total impairment charges of $6.7 million were recorded as restructuring expense. Fair value was based on independent third-party appraisal or estimated selling price.

As a result of these workforce reductions, the Company recognized pension curtailment gain of $1.6 million in the fourth quarter of 2013 upon termination of the affected employees. Such amount was recorded as a credit to the total restructuring expense in 2013.

Heilbronn

In 2013, Heilbronn, and a related site in Ulm, Germany, restructured operations to further align operating expenses with macroeconomic conditions and revenue outlooks, and to improve operational efficiency, competitiveness and business profitability. In connection with formulating this restructuring plan, initial discussions with local Works Councils in Heilbronn and Ulm began in the first quarter of 2013. The restructuring charges related to Heilbronn were $15.8 million.

The Company anticipates all affected employees will cease active service on or before the end of the fourth quarter of 2014. The Company is not expecting significant changes to the plan or material modifications or changes after implementation.

The restructuring charges recorded in the first quarter of 2013 also included $0.9 million relating to U.S. and other countries.

U.S. and Norway

Restructuring charges recorded in 2013 were primarily related to workforce reductions in the U.S. and Norway amounting to $2.0 million. The workforce reductions were designed to further align operating expenses with macroeconomic conditions and revenue outlook, and to improve operational efficiency, competitiveness and business profitability. Restructuring charges related to these workforce reductions either were paid to affected employees after their dismissal dates in 2013 or, to the extent affected employees' dismissal dates are expected to occur in 2014, the Company anticipates payments in respect of these restructuring charges will be made after the actual scheduled dismissal date for those employees.
 
There have been no significant changes to the plan, and no material modifications or changes have been made after the implementation began.

2012 Restructuring Charges

Restructuring charges were recorded in the second and fourth quarters of 2012. The charge in the second quarter of 2012 related primarily to workforce reductions at the Company's subsidiaries in Heilbronn and in the U.S. The charge in the fourth quarter of 2012 related primarily to workforce reductions in the U.S. and at certain European and Asian subsidiaries.

Heilbronn

In connection with formulating a workforce-reduction plan in Heilbronn, initial discussions with the local Works Council began in the first quarter of 2012. The workforce reduction was intended to improve Heilbronn's operating efficiency, competitiveness and business profitability. The restructuring charges recorded in 2012 related to Heilbronn were $8.5 million.

Substantially all of the affected employees ceased active service as of December 31, 2013. There were no significant changes to the plan and no material modifications or changes were made after implementation began.

U.S. and other locations

With respect to the restructuring charge recorded in the second quarter of 2012, the Company started formulating the underlying restructuring plan during the second quarter. With respect to the restructuring charge recorded in the fourth quarter of 2012, the Company started formulating the underlying restructuring plan during the third quarter. These workforce reductions were designed to further align the Company's global operating expenses with macroeconomic conditions and revenue outlooks, and to improve operational efficiency, competitiveness and business profitability. The restructuring charges recorded in 2012 related to U.S. and other locations were $14.6 million, including $0.5 million related to a building lease termination.

All affected employees have ceased active service. There were no significant changes to the plans and no material modifications or changes were made after implementation began.

2011 Restructuring Charges

Restructuring charges recorded in 2011 totaling $21.7 million were related to workforce reductions at the Company's subsidiary in Rousset. The reductions were part of an operational restructuring intended to reflect changes to, and significant deterioration in, Rousset's ASICs business and to improve competitiveness. Also, the Company recorded a restructuring credit of $1.6 million in 2011 in connection with the resolution of a litigation matter related to the Company's earlier sale of a manufacturing facility in Irving, Texas.

In connection with formulating the workforce-reduction plan, during the first quarter of 2011, Rousset confidentially negotiated and developed a “social plan” in coordination and consultation with the local Works Council, subject to French law. The social plan set forth general parameters, terms and benefits for employee dismissals, both voluntary and involuntary.

All affected employees have ceased active service. There were no significant changes to the plan and no material modifications or changes to the plan after implementation began.