Severance, impairment and other associated costs

9 Months Ended

Sep. 27, 2013

Severance, impairment and other associated costs [Abstract]

Severance, impairment and other associated costs

(12) Severance, impairment and other associated costs

The changes in the accrual related to severance, impairment and other associated costs during the nine months ended September 27, 2013 were as follows (in millions):

Balance accrued at December 28, 2012	$	0.7
Net expense		2.8
Cash payments		(1.2	)
Non-cash charges		(1.3	)
Balance accrued at September 27, 2013	$	1.0

During the nine months ended September 27, 2013 and September 28, 2012, we incurred costs of $2.8 million and $5.9 million, respectively, associated with restructuring actions and the impairment of fixed assets.

During the first nine months of 2013, the total charges of $2.8 million included $1.2 million of severance costs.  The severance costs consisted of $0.7 million related to a restructuring action initiated and completed during the third quarter to lower overhead costs and reorganize certain indirect labor functions in China and $0.5 million related to the program we announced in the second quarter of 2013 to reduce operating expenses, including costs associated with centralization of certain administrative departments and reductions in our engineering resources in our Wireless segment.  Additionally, the charges included the impairment of $1.6 million of fixed assets that were acquired and developed in connection with a project in our Network segment.  In the third quarter of 2013, we decided not to make any further investments in this project and wrote off the permanently idled equipment.

During the first nine months of 2012, the total charges of $5.9 million included $3.7 million for severance, lease termination and other costs associated with our restructuring program initiated in the fourth quarter of 2010 to reduce and reorganize the capacity of our manufacturing plants in China as we shift manufacturing to lower cost facilities.  Additionally, $1.1 million related to global workforce reductions, primarily in Europe; $0.2 million related to severance and $0.7 million for the write-down of fixed assets no longer in use as a result of the shutdown of our Korea manufacturing operations and relocation of this manufacturing to facilities in China; and $0.2 million of additional costs associated with our withdrawal from Wireless’ audio components business, which we initiated and substantially completed in 2011.

As of September 27, 2013, we had $1.0 million accrued for costs associated with our ongoing restructuring actions, of which a majority will be paid within one year.