Note 16—Restructuring and Thailand Flood Related Charges, Net of Insurance

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 2011, 2010 and 2009 primarily related to the closure of facilities, capacity reduction and reductions in workforce in certain facilities worldwide. These charges were recorded pursuant to plans developed and approved by management.

The following table summarizes the 2011 activity in the accrued restructuring balances related to the various restructuring activities initiated during 2011, 2010 and 2009:


	Balance as of											Foreign		Balance as of
	December 31,		Restructuring			Cash			Non-Cash			Exchange		December 31,
(in thousands)	2010		Charges			Payment			Activity			Adjustments		2011

2011 Restructuring:
Severance	$	—	$	2,386		$	(2,215	)	$	—		$	18	$	189
Lease facility costs		—		1,958			(294	)		—			—		1,664
Other exit costs		—		514			(159	)		(355	)		—		—

		—		4,858			(2,668	)		(355	)		18		1,853
2010 Restructuring:
Severance		1,767		(503	)		(1,317	)		—			87		34
Other exit costs		709		181			(872	)		—			2		20

		2,476		(322	)		(2,189	)		—			89		54
2009 Restructuring:
Lease facility costs		1,506		—			(1,161	)		—			57		402
Other exit costs		27		(21	)		(6	)		—			—		—

		1,533		(21	)		(1,167	)		—			57		402

Total	$	4,009	$	4,515		$	(6,024	)	$	(355	)	$	164	$	2,309

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.

The following table summarizes the 2010 activity in the accrued restructuring balances related to the various restructuring activities initiated during 2010 and 2009:


	Balance as of										Foreign			Balance as of
	December 31,		Restructuring		Cash			Non-Cash			Exchange			December 31,
(in thousands)	2009		Charges		Payment			Activity			Adjustments			2010

2010 Restructuring:
Severance	$	—	$	4,164	$	(2,401	)	$	—		$	4		$	1,767
Leased facility costs		—		494		(494	)		—			—			—
Other exit costs		—		1,167		(458	)		—			—			709

		—		5,825		(3,353	)		—			4			2,476
2009 Restructuring:
Severance		1,099		134		(1,235	)		—			2			—
Lease facility costs		2,472		99		(835	)		—			(230	)		1,506
Other exit costs		113		901		(882	)		(105	)		—			27

		3,684		1,134		(2,952	)		(105	)		(228	)		1,533

Total	$	3,684	$	6,959	$	(6,305	)	$	(105	)	$	(224	)	$	4,009

The components of the restructuring charges initiated during 2010 were as follows:


(in thousands)	Americas		Europe		Asia		Total

Severance costs	$	1,388	$	1,374	$	1,384	$	4,146
Facility lease costs		494		—		—		494
Other exit costs		369		137		679		1,185

	$	2,251	$	1,511	$	2,063	$	5,825

During 2010, the Company recognized $4.2 million of employee termination costs associated with the involuntary terminations of 751 employees in connection with reductions in workforce of certain facilities. The identified involuntary employee terminations by reportable geographic region amounted to approximately 286, 421 and 44 for the Americas, Asia and Europe, respectively. The Company also recorded approximately $0.5 million for facility lease obligations and approximately $1.2 million for other exit costs, including $0.2 million of asset impairments associated with the closure of certain leased facilities.

The components of the restructuring charges initiated during 2009 were as follows:


(in thousands)	Americas		Europe		Asia		Total

Severance costs	$	1,262	$	2,100	$	939	$	4,301
Facility lease costs		139		2,704		—		2,843
Other exit costs		920		144		30		1,094

	$	2,321	$	4,948	$	969	$	8,238

During 2009, the Company recognized $4.3 million of employee termination costs associated with the involuntary terminations of 655 employees in connection with reductions in workforce of certain facilities. The identified involuntary employee terminations by reportable geographic region amounted to approximately 327, 270 and 58 for the Americas, Asia and Europe, respectively. The Company also recorded approximately $2.8 million for facility lease obligations and approximately $1.1 million for other exit costs, including $0.2 million of asset impairments associated with the closure of certain leased facilities.

The Company's facilities in Ayudhaya, Thailand were flooded and remained closed from October 13, 2011 to December 20, 2011. As a result of the flooding and temporary closing of these facilities, the Company has recognized estimated property losses of $46.2 million and incurred $13.4 million of flood related costs. The Company carries property and business interruption insurance with a combined limit for real and personal property as well as business interruption insurance of approximately $300 million. As such, the Company has estimated recoveries from insurance for these property losses and flood related costs totaling $56.2 million. The Company cannot estimate the timing of the receipt of insurance proceeds it will ultimately realize, and there may be a substantial delay between the incurrence of losses and the recovery under its insurance policies

Because the situation in Thailand is still evolving, significant uncertainty remains regarding the ultimate financial impact the flooding will have on the Company.

As of December 31, 2011, Thailand flood related charges, net of insurance recoveries, were as follows (in thousands):

Inventory losses	$	39,919
Property, plant and equipment losses		6,233
Other flood related costs		13,362

		59,514
Estimated insurance recoveries recorded in prepaid expenses and other assets		(56,152	)

	$	3,362