Note 10 - Restructuring

9 Months Ended

Oct. 01, 2011

Restructuring and Related Activities Disclosure [Text Block]

10. Restructuring

During 2006 through 2009, the company announced the closures of its facilities in Ireland, Irving, Texas, Des Plaines and Elk Grove, Illinois and Swindon, U.K.  In addition, the company announced a reduction in workforce at its Des Plaines, Illinois corporate headquarters and restructurings of its European and Asian operations.  The closure of the Ireland facility is part of the company’s strategy to expand operations in the Asia-Pacific region in order to be closer to customers and take advantage of lower manufacturing costs.  This program is complete with no further payments expected.  The closure of the Irving, Texas and Des Plaines and Elk Grove, Illinois facilities are part of planned manufacturing transfers from Irving, Texas to Wuxi, China and Des Plaines and Elk Grove, Illinois to the Philippines and Mexico.  The European restructuring included the transfer of manufacturing from Dünsen, Germany to Piedras Negras, Mexico and the closure of its distribution facility in Utrecht, Netherlands.  The Asian restructuring includes the closure of its manufacturing facility in Taiwan and a consolidation of its Asian sales offices.  Together, these initiatives impacted approximately 946 employees and resulted in restructuring charges of $30.6 million, with $26.2 million recorded as cost of sales and $4.4 million as selling, general and administrative expenses. The total cost expected to be incurred for these restructuring programs is $53.8 million.  The company has incurred $53.8 million through October 1, 2011.

A summary of activity of this liability is as follows:

Littelfuse restructuring (in thousands)

Balance at December 27, 2008	$	12,093
Additions		11,196
Payments		(12,472	)
Exchange rate impact		100
Balance at January 2, 2010		10,917
Additions		1,687
Payments		(8,732	)
Exchange rate impact		(107	)
Balance at January 1, 2011		3,765
Additions		277
Payments		(938	)
Exchange rate impact		86
Balance at April 2, 2011		3,190
Additions		190
Payments		(1,177	)
Exchange rate impact		(9	)
Balance at July 2, 2011		2,194
Additions		54
Payments		(772	)
Exchange rate impact		(50	)
Balance at October 1, 2011	$	1,426