Restructuring Charges

12 Months Ended

Dec. 31, 2013

Note 16—Restructuring Charges

The Company has undertaken initiatives to restructure its business operations with the intention of improving utilization and realizing cost savings in the future. These initiatives have included changing the number and location of production facilities, largely to align capacity and infrastructure with current and anticipated customer demand. This alignment includes transferring programs from higher cost geographies to lower cost geographies. The process of restructuring entails, among other activities, moving production between facilities, reducing staff levels, realigning our business processes and reorganizing our management.

The Company recognized restructuring charges during 2013, 2012 and 2011 primarily related to the closure of our Brazil and Singapore facilities, capacity reduction and reductions in workforce in certain facilities worldwide. These charges were recorded pursuant to plans developed and approved by management.


			Balance as of							Foreign		Balance as of
			December 31,		Restructuring		Cash		Non-Cash	Exchange		December 31,
(in thousands)			2012		Charges		Payment		Activity	Adjustments		2013
2013 Restructuring:
	Severance	$	—	$	2,202	$	(2,003)	$	—	(79)	$	120
	Lease facility costs		—		142		(139)		—	(3)		—
	Other exit costs		—		3,246		(1,245)		(1,224)	56		833
			—		5,590		(3,387)		(1,224)	(26)		953
2012 Restructuring:
	Severance		538		660		(1,262)		—	98		34
	Lease facility costs		—		798		(328)		(466)	(4)		—
	Other exit costs		166		138		(107)		—	(93)		104
			704		1,596		(1,697)		(466)	1		138
2011 Restructuring:
	Lease facility costs		13		(102)		87		—	2		—
			13		(102)		87		—	2		—
Total		$	717	$	7,084	$	(4,997)	$	(1,690)	(23)	$	1,091

The components of the restructuring charges initiated during 2013 were as follows:

(in thousands)		Americas		Asia		Total
Severance costs	$	2,202	$	—	$	2,202
Facility lease costs		142		—		142
Other exit costs		2,118		1,128		3,246
	$	4,462	$	1,128	$	5,590

During 2013, the Company recognized $2.2 million of employee termination costs associated with the involuntary terminations of 144 employees in connection with reductions in workforce of certain facilities in the Americas. The identified involuntary employee terminations were primarily in connection with the closure of the Campinas, Brazil facility. The Company also reported approximately $3.2 million for other exit costs, including $1.2 million of asset impairments, associated with the closure of the Campinas facility, and $0.1 million for facility lease obligations.

The following table summarizes the 2012 activity in the accrued restructuring balances related to the various restructuring activities initiated prior to December 31, 2012:

			Balance as of						Foreign		Balance as of
			December 31,		Restructuring		Cash		Exchange		December 31,
(in thousands)			2011		Charges		Payment		Adjustments		2012
2012 Restructuring:
	Severance	$	—	$	1,529	$	(998)	$	7	$	538
	Lease facility costs		—		55		(54)		(1)		-
	Other exit costs		—		209		(45)		2		166
			—		1,793		(1,097)		8		704
2011 Restructuring:
	Severance		189		408		(611)		14		—
	Lease facility costs		1,664		(153)		(1,474)		(24)		13
	Other exit costs		—		17		(17)		—		—
			1,853		272		(2,102)		(10)		13
2010 Restructuring:
	Severance		34		(4)		(30)		—		—
	Other exit costs		20		52		(72)		—		—
			54		48		(102)		—		—
2009 Restructuring:
	Lease facility costs		402		87		(489)		—		—
			402		87		(489)		—		—
Total		$	2,309	$	2,200	$	(3,790)	$	(2)	$	717

The components of the restructuring charges initiated during 2012 were as follows:

(in thousands)		Americas		Europe		Asia		Total
Severance costs	$	494	$	531	$	504	$	1,529
Facility lease costs		—		—		55		55
Other exit costs		—		176		33		209
	$	494	$	707	$	592	$	1,793

During 2012, the Company recognized $1.5 million of employee termination costs associated with the involuntary terminations of 139 employees in connection with reductions in workforce of certain facilities worldwide. The identified involuntary employee terminations by reportable geographic region amounted to approximately 68, 61 and 10 for the Americas, Asia and Europe, respectively.

The components of the restructuring charges initiated during 2011 were as follows:

(in thousands)		Americas		Europe		Asia		Total
Severance costs	$	421	$	1,829	$	136	$	2,386
Facility lease costs		—		1,335		623		1,958
Other exit costs		22		203		289		514
	$	443	$	3,367	$	1,048	$	4,858

During 2011, the Company recognized $2.4 million of employee termination costs associated with the involuntary terminations of 196 employees in connection with reductions in workforce of certain facilities worldwide. In Europe, these involuntary terminations were in connection with the closure of the Dublin, Ireland facility. The identified involuntary employee terminations by reportable geographic region amounted to approximately 107, 38 and 51 for the Americas, Asia and Europe, respectively. The Company also recorded approximately $2.0 million for facility lease obligations and approximately $0.5 million for other exit costs, including $0.4 million of asset impairments associated with the closure of certain leased facilities.

- 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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