Note 7 Restructuring

9 Months Ended

Jul. 02, 2011

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

Costs associated with restructuring activities are accounted for in accordance with ASC Topic 420, Exit or Disposal Cost Obligations, or ASC Topic 712, Compensation - Nonretirement Postemployment Benefits, as applicable. Pursuant to ASC 712, restructuring costs related to employee severance are recorded when probable and estimable. For restructuring costs other than employee severance accounted under ASC 712, a liability is recognized in accordance with ASC 420 only when incurred.

During 2011, the Company changed its management structure and expects to incur employee severance and benefits costs of $2.2 million in cash and stock compensation expense. As of July 2, 2011, $0.8 million of cash remains payable and is expected to be paid by May 5, 2013.

Restructuring Plans — 2010 and prior

The Company initiated a restructuring plan in 2010 as a result of a business combination. Pursuant to this plan, the Company expects to incur costs up to $15.0 million to consolidate certain facilities and eliminate redundant employees, of which $9.8 million has been incurred to date. The amount of costs ultimately incurred will depend on the Company's ability to recover ongoing lease costs for vacant facilities by subleasing such facilities to third parties.

Due to completion of all actions under restructuring plans initiated prior to 2011 and immateriality of the remaining accrual balance related to such plans, these plans have been combined for disclosure purposes. The Company expects to incur restructuring costs in future periods associated primarily with vacant facilities until such time as those facilities have been sold or leased to third parties.

Below is a summary of restructuring costs associated with facility closures and other consolidation efforts that were implemented prior to 2011:

	Employee Termination Severance and Related Benefits			Leases and Facilities Shutdown and Consolidation Costs			Total
	(In thousands)
Balance at October 2, 2010	$	5,430		$	1,102		$	6,532
Charges to operations	970			3,498			4,468
Charges utilized	(2,596		)	(2,054		)	(4,650		)
Balance at January 1, 2011	3,804			2,546			6,350
Charges to operations	359			3,844			4,203
Charges utilized	(1,396		)	(4,821		)	(6,217		)
Balance at April 2, 2011	2,767			1,569			4,336
Charges to operations	544			3,621			4,165
Charges utilized	(1,153		)	(4,271		)	(5,424		)
Balance at July 2, 2011	$	2,158		$	919		$	3,077

Costs incurred with respect to facilities consist primarily of 1) costs to maintain vacant facilities that are owned until such facilities can be sold and 2) the portion of the Company's lease payments that have not been recovered due to the absence of sublease income for vacant leased properties. The Company expects to pay the majority of accrued restructuring costs by September 2012.