RESTRUCTURING AND SEVERANCE CHARGES

6 Months Ended

Apr. 01, 2012

12. RESTRUCTURING 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 within the next twelve months. Contract 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			Contract Termination Costs			Total
Balance at October 2, 2011	$	355		$	6,482		$	6,837
Cash expenditures		(211	)		(801	)		(1,012	)

Balance at April 1, 2012	$	144		$	5,681		$	5,825

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 $7.3 million during the six months ended April 1, 2012 and also assumed a fair value of $10.0 million in pre-acquisition liabilities recorded by Microsemi – CMPG. Severance covered approximately 200 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.


	Employee Severance			Contract Termination Costs			Total
Balance at October 2, 2011	$	2,382		$	342		$	2,724
Assumed from acquisition		8,465			1,582			10,047
Provisions		6,840			504			7,344
Cash expenditures		(15,041	)		(374	)		(15,415	)
Other non-cash settlement		28			5			33

Balance at April 1, 2012	$	2,674		$	2,059		$	4,733

- 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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