Avid 2011 Annual Report Download - page 87

82
Unrecognized tax benefits at January 1, 2009
Increases for tax positions taken during a prior period
Increases for tax positions taken during the current period
Decreases for tax positions taken during a prior period
Decreases related to settlements
Decreases related to the lapse of applicable statutes of limitations
Unrecognized tax benefits at December 31, 2009
Increases for tax positions taken during a prior period
Increases for tax positions taken during the current period
Decreases for tax positions taken during a prior period
Decreases related to settlements
Decreases related to the lapse of applicable statutes of limitations
Unrecognized tax benefits at December 31, 2010
Increases for tax positions taken during a prior period
Increases for tax positions taken during the current period
Decreases for tax positions taken during a prior period
Decreases related to settlements
Decreases related to the lapse of applicable statutes of limitations
Unrecognized tax benefits at December 31, 2011
$ 3,100
2,000
—
(2,600)
(200)
(300)
2,000
—
—
(100)
(100)
(400)
1,400
13,400
—
(700)
(900)
(400)
$ 12,800
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2011,
2010 and 2009, respectively, the Company had approximately $0.1 million, $0.3 million and $0.3 million of accrued interest
related to uncertain tax positions.
The tax years 2004 through 2010 remain open to examination by taxing authorities in the jurisdictions in which the Company
operates.
Q. RESTRUCTURING COSTS AND ACCRUALS
2011 Restructuring Plan
In October 2011, the Company committed to a restructuring plan (the “2011 Plan”) intended to improve operational efficiencies.
Actions under the 2011 Plan included the elimination of approximately 190 positions and the closure of the Company's facility in
Irwindale, CA. In connection with the restructuring, the Company intends to allocate additional resources to areas it believes
have better opportunity for growth. During 2011, the Company recorded $8.9 million related to severance costs and $0.5 million
for the closure of the Irwindale facility, which included non-cash amounts totaling $0.1 million for fixed asset write offs. Under
the 2011 Plan, the Company expects to incur total expenses related to termination benefits and facility costs of $9 million to $10
million, most of which represents cash expenditures. The Company expects to complete all actions under the 2011 Plan prior to
June 30, 2012.
2010 Restructuring Plans
In December 2010, the Company initiated a worldwide restructuring plan (the “2010 Plan”) designed to better align financial and
human resources in accordance with its strategic plans for the 2011 fiscal year. In connection with the restructuring, the Company
eliminated positions that are in lower growth geographies and markets and reinvested in more strategic areas with greater
opportunity for growth. The 2010 Plan also called for streamlining internal operations while making key investments in
organizational efficiencies and to close portions of certain office facilities. During the fourth quarter of 2010, the Company
recorded restructuring charges of $11.7 million related to severance costs for the elimination of 145 positions and $1.4 million for
the partial closure of a facility. During 2011, the Company revised its previously recorded estimates of severance costs resulting
in a restructuring benefit of $4.0 million and recorded a restructuring charge of $0.3 million for the revised estimate of the costs
associated with the partial facility closure. The severance revisions primarily resulted from the final severance negotiations for
certain European employees, as well as the transferring of certain employees into alternative positions at Avid. During 2011, the