Restructuring
In fiscal 2011, we informed approximately 55 employees of our plans to reorganize certain aspects of our business under a strategic restructuring program. As a result of this action, we offered severance benefits to the affected employees. We recognized total severance and other associated costs of $0.4 million and $2.5 million for these affected employees in fiscal 2012 and fiscal 2011, respectively. In addition, we recognized $0.4 million in facilities and contract termination costs in fiscal 2012. We also recognized $0.4 million and $0.2 million in fixed asset write-off costs related to this restructuring program in fiscal 2012 and 2011, respectively. These expenses were recognized in restructuring charges, net, in the accompanying consolidated statements of operations.
In fiscal 2010, we informed approximately 60 general and administrative employees of our plans to reorganize certain aspects of our global business infrastructure. As a result of this action, we offered severance benefits to the affected employees. The majority of these employees were required to render service through November 15, 2010 to receive these severance benefits. We recognized the total severance and other associated costs of approximately $3.9 million for these employees on a ratable basis through termination dates for each employee. These expenses were recognized in restructuring charges, net, in the accompanying consolidated statements of operations.
In fiscal 2010, we also recorded $3.4 million of impairment within the restructuring charges line item in the accompanying consolidated statements of operations related to one of our buildings held in the UK. See Note 3 “Composition of Certain Financial Statement Captions” for further information.
Changes in our restructuring accruals in fiscal 2012 and 2011, which were included within accrued liabilities on our consolidated balance sheets as of September 28, 2012 and September 30, 2011, respectively, were as follows:
|
| | | | | | | | | | | | | | | |
| Severance | Facilities and contract termination costs | Fixed assets write-off | Other associated costs | Total |
| (in thousands) |
Balance at September 24, 2010 | $ | 2,804 |
| $ | — |
| $ | — |
| $ | 230 |
| $ | 3,034 |
|
Restructuring charges | 3,185 |
| — |
| 199 |
| 22 |
| 3,406 |
|
Cash payments | (3,716 | ) | — |
| — |
| (131 | ) | (3,847 | ) |
Non-cash charges | (23 | ) | — |
| (199 | ) | (1 | ) | (223 | ) |
Balance at September 30, 2011 | $ | 2,250 |
| $ | — |
| $ | — |
| $ | 120 |
| $ | 2,370 |
|
Restructuring charges | 318 |
| 352 |
| 424 |
| 97 |
| 1,191 |
|
Cash payments | (2,572 | ) | (185 | ) | — |
| (201 | ) | (2,958 | ) |
Non-cash charges | 4 |
| 164 |
| (424 | ) | (14 | ) | (270 | ) |
Balance at September 28, 2012 | $ | — |
| $ | 331 |
| $ | — |
| $ | 2 |
| $ | 333 |
|
