Adaptec 2006 Annual Report Download - page 89
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Table of Contents
Excess facility costs
(in thousands) 2006 2005 2003 2001 Total
Balance at December 28, 2003 $ — $ — $ 6,339 $ 9,674 $ 16,013
Reversals and adjustments — — (119) — (119)
New charges — — — 3,570 3,570
Cash payments — — (2,325) (3,404) (5,729)
Balance at December 26, 2004 — — 3,895 9,840 13,735
New charges — 5,288 — — 5,288
Cash payments — (417) (884) (2,974) (4,275)
Balance at December 31, 2005 — 4,871 3,011 6,866 14,748
Reversals and adjustments — 776 (2,300) 776 (748)
New charges 2,338 — — — 2,338
Cash payments (227) (1,379) (162) (2,546) (4,314)
Balance at December 31, 2006 $ 2,111 $ 4,268 $ 549 $ 5,096 $ 12,024
Severance costs
(in thousands) 2006 2005 2003 2001 Total
Balance at December 26, 2004 $ — $ — $ — $ — $ —
New charges 7,675 — — 7,675
Cash payments (7,190) — — (7,190)
Balance at December 31, 2005 — 485 — — 485
Reversals and adjustments — (350) — — (350)
New charges 2,968 1,562 — — 4,530
Cash payments (2,432) (1,600) — — (4,032)
Balance at December 31, 2006 $ 536 $ 97 $ — $ — $ 633
2006
In the third quarter of 2006, the Company closed its Ottawa development site in order to reduce operating expenses, vacating the excess space by the end of the
fourth quarter of 2006. Approximately 35 positions were eliminated, primarily from research and development, resulting in one-time termination benefit and
relocation costs of $2.2 million, and $1.6 million for excess facilities. The Company also eliminated 10 positions from research and development in its Portland
development site, resulting in restructuring charges of $1.4 million comprised of $0.8 million in severance, $0.3 million in excess facilities, $0.1 million for
contract termination and $0.2 million in asset impairment. During the fourth quarter of 2006 the remaining portion of the Ottawa facility was vacated, resulting in
a restructuring charge of $0.4 million.
To date, the Company has made payments relating to the 2006 plan of $3.0 million. As of December 31, 2006, $0.5 million severance costs remained to be paid
in 2007 and payments related to the excess facilities will extend to 2010.
2005
During 2005, the Company completed various restructuring activities aimed at streamlining production and reducing its operating expenses. In the first quarter of
2005, the Company recorded restructuring charges of $0.9 million in severance costs related to the termination of
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Source: PMC SIERRA INC, 10-K, March 01, 2007 Powered by Morningstar® Document Research℠