RESTRUCTURING AND OTHER CHARGES

9 Months Ended

Sep. 29, 2013

RESTRUCTURING AND OTHER CHARGES

In December 2011, our management approved and initiated a cost reduction plan ("2011 Restructuring Plan") as part of our broader cost reduction initiatives. During 2012, we completed the first three phases of our cost reduction plan, which included the consolidation of our manufacturing and research and development facilities, moving a portion of our outsourced spare parts logistics operations in-house, and workforce reductions. The fourth phase of our cost reduction plan included additional workforce reductions across all areas of the Company and was substantially completed during 2013.

As of September 29, 2013, we have incurred $10.5 million in restructuring and other charges under the 2011 Restructuring Plan, of which $3.7 million was recorded during the first nine months of 2013, including $0.8 million in contract termination costs related to future rent obligations associated with two vacated leased facilities net of sublease income.

The following table summarizes changes in the restructuring accrual for the three and nine months ended September 29, 2013 (in thousands):



	Three Months Ended September 29, 2013												Nine Months Ended September 29, 2013
	Employee Severance Costs			Contract Termination Costs			Other Costs			Total			Employee Severance Costs			Contract Termination Costs			Other Costs			Total
Beginning balance	$	104		$	730		$	32		$	866		$	2,005		$	1,600		$	—		$	3,605
Charges	109			833			58			1,000			2,428			834			400			3,662
Payments	(122		)	(266		)	(90		)	(478		)	(4,326		)	(1,128		)	(376		)	(5,830		)
Foreign currency changes	4			3			—			7			(12		)	(6		)	(24		)	(42		)
Ending balance	$	95		$	1,300		$	—		$	1,395		$	95		$	1,300		$	—		$	1,395

During the three months ended September 29, 2013, we incurred $0.8 million in contract termination costs related to future rent obligations associated with two vacated leased facilities, net of sublease income, and $0.2 million in employee severance and other costs. We paid $0.2 million in employee severance and other costs and $0.3 million of contract termination costs in the three months ended September 29, 2013.

During the nine months ended September 29, 2013, we incurred $2.8 million in employee severance and other costs, which included recruiting costs for our new chief executive officer as well as severance expense for our former chief executive officer totaling approximately $0.6 million. We also incurred $0.8 million in contract termination costs related to future rent obligations associated with two vacated leased facilities, net of sublease income. During the nine months ended September 29, 2013, we paid $4.7 million in employee severance and other costs and $1.1 million in contract termination costs.

As of September 29, 2013, $1.0 million of the restructuring accrual was classified as short-term and recorded within other current liabilities in the Condensed Consolidated Balance Sheets, and the remaining $0.4 million of the restructuring accrual was classified as long-term and recorded within other liabilities in the Condensed Consolidated Balance Sheets.

- 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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