XML 71 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
RESTRUCTURING CHARGES AND SEVERANCE CHARGES
 12 Months Ended
Sep. 30, 2012
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES AND SEVERANCE CHARGES
RESTRUCTURING CHARGES AND SEVERANCE CHARGES 
In 2009, we approved consolidation plans that resulted in the closure of our manufacturing facility in Scottsdale, Arizona (“Scottsdale”), which ceased production during the quarter ended April 3, 2011. The Scottsdale facility occupied a 135,000 square foot leased facility. Employee severance is expected to be paid through 2013. Facility termination costs relate primarily to remaining obligations under facility and equipment leases and are expected to be paid through 2016. The following table reflects the restructuring activities for the Scottsdale facility and the accrued liabilities in the consolidated balance sheets at the dates below (amounts in thousands): 
 
Employee
Severance
Facility
Termination
Costs
Total
Balance at October 2, 2011
$
355

$
7,328

$
7,683

Cash expenditures
(238
)
(1,480
)
(1,718
)
Balance at September 30, 2012
$
117

$
5,848

$
5,965

 
At October 2, 2011, we had recorded severance accruals of $2.7 million from reductions in force at our various facilities other than Scottsdale. We recorded additional provisions, primarily related to activities at Microsemi - CMPG, for severance and retention payments totaling $8.7 million in 2012 and also assumed a fair value of $9.8 million in pre-acquisition liabilities recorded by Microsemi - CMPG. Severance covered approximately 300 individuals in manufacturing, engineering and sales. Employee severance is expected to be paid within the next twelve months. Contract termination costs relate primarily to remaining obligations under facility leases and are expected to be paid through 2020.
During the quarter ended July 1, 2012, we executed an agreement with a landlord that released us from a lease commitment and as a result, we reversed $1.3 million in provision for contract termination costs. Other associated costs related primarily to relocation costs that we incurred for the consolidation of several facilities in Northern California. The following table reflects the related restructuring activities and the accrued liabilities in the consolidated balance sheets at the dates below (amounts in thousands):
 
Employee
Severance
Contract Termination Costs
Other Associated Costs
Total
Balance at October 2, 2011
$
2,723

$
—

$
—

$
2,723

Assumed from acquisition
8,215

1,582

—

9,797

Provisions
9,063

561

1,522

11,146

Reversal of prior provision
(1,112
)
(1,260
)
(108
)
(2,480
)
Cash expenditures
(16,747
)
(601
)
(1,414
)
(18,762
)
Other non-cash settlement
(20
)
(92
)
—

(112
)
Balance at September 30, 2012
$
2,122

$
190

$
—

$
2,312