MANAGEMENT SEPARATION CHARGES AND SUBSEQUENT EVENT

9 Months Ended

Oct. 01, 2011

RESTRUCTURING, MANAGEMENT SEPARATION CHARGES AND IMPAIRMENT (RECOVERY)

RESTRUCTURING, MANAGEMENT SEPARATION CHARGES AND IMPAIRMENT (RECOVERY)

2. RESTRUCTURING, MANAGEMENT SEPARATION CHARGES, AND IMPAIRMENT RECOVERY

RESTRUCTURING

 In May 2011, the Company implemented a workforce reduction that eliminated approximately 40 positions, resulting in a Restructuring charge of $1,047 for severance and related benefits during the second quarter of 2011. The unpaid balance at October 1, 2011 was $83 and was recorded within Accrued restructuring costs.

MANAGEMENT SEPARATION CHARGES

During the first quarter of 2011, the Company recorded certain management separation charges of $838 and $2,111, inclusive of accelerated stock-based compensation of $568 and $116, within Research and development and Selling and administrative expenses, respectively. The management separation charges arose from the resignations of our former Chief Executive Officer (CEO) and another Executive Officer, and included contractual separation pay, accelerated vesting of certain equity awards, and certain other costs. The unpaid balance at October 1, 2011 was $17 and was recorded within Accrued liabilities.

IMPAIRMENT RECOVERY

 During the second quarter of 2010, the Company sold its wafer fabrication building in Kunshan, China for net proceeds of $1,717, resulting in the partial recovery of a related impairment charge. During 2008, the Company had written-off the value of its unfinished wafer fabrication building following an evaluation of alternatives in light of the then current circumstances, including: surplus industry production capacity, reduced demand experienced by the Company as well as the broader macroeconomic environment. As a result of its analysis of projected discounted cashflows, the Company recorded a $12,957 impairment charge in 2008 related to the China wafer fabrication facility.