Exit Activities and Reductions in Force

6 Months Ended

Jun. 30, 2011

Exit Activities and Reductions in Force [Abstract]


17.	Exit Activities and Reductions in Force

As part of our ongoing efforts to improve our manufacturing operations and manage costs, we regularly evaluate our staffing levels and facility requirements compared to business needs. The following table summarizes our exit activities and reduction in force initiatives associated with these activities. “Charges” represents the initial charge related to the exit activity. “Cash Payments” consists of the utilization of “Charges.” “Non-cash Amounts” for the six months ended June 30, 2010, consists of asset impairments.


	Employee			Contractual		Asset
	Separation Costs			Obligations		Impairments		Total
	(In thousands)

Accrual at December 31, 2010	$	670		$	—	$	—	$	670
Charges		23			—		—		23
Cash Payments		(589	)		—		—		(589	)

Accrual at June 30, 2011	$	104		$	—	$	—	$	104


	Employee			Contractual			Asset
	Separation Costs			Obligations			Impairments			Total
	(In thousands)

Accrual at December 31, 2009	$	3,938		$	2,813		$	—		$	6,751
Charges		2,045			41			282			2,368
Cash Payments		(893	)		(2,854	)		—			(3,747	)
Non-cash Amounts		—			—			(282	)		(282	)

Accrual at June 30, 2010	$	5,090		$	—		$	—		$	5,090

In June 2009, we communicated to our employees the decision to wind-down and exit our manufacturing operations in Singapore. We completed our exit as of December 31, 2010. This wind-down affected approximately 600 employees and enabled us to improve our cost structure by consolidating factories. The majority of the machinery and equipment was relocated to and utilized in other factories. In June 2011, we sold the facility in Singapore for $13.3 million in cash, net of goods and services tax, and recorded a gain of less than $0.1 million, with no net tax effect.

The liability for one-time involuntary termination benefits for employees that provided service beyond a minimum retention period was recognized over the service period. During the three and six months ended June 30, 2011, charges for termination benefits were not significant. During the three months ended June 30, 2010, we recorded charges for termination benefits of $1.1 million, of which $0.8 million and $0.3 million were recorded in cost of sales and selling, general and administrative expenses, respectively. During the six months ended June 30, 2010, we recorded charges for termination benefits of $2.0 million, of which $1.4 million and $0.6 million were recorded in cost of sales and selling, general and administrative expenses, respectively.

Contractual obligation costs, asset impairments and other costs are included in costs of goods sold. In January 2010, we made a final payment related to the early termination of our lease of one of our facilities that was vacated and relief from our existing $1.1 million asset retirement obligation related to the leased property. Asset impairments of $0.3 million during the six months ended June 30, 2010, relate to non-transferable machinery and equipment.

All amounts accrued at June 30, 2011, are classified in current liabilities.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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