Adaptec 2009 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2009 Adaptec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

NOTE 5. RESTRUCTURING AND OTHER COSTS
The activity related to excess facility and severance accruals under the Company’s restructuring plans
during the three years ended December 27, 2009, by year of plan, were as follows:
Excess Facility Costs
(in thousands) 2007 2006 2005 2003 2001 Total
Balance at December 31, 2006 .................. $ — $2,111 $ 4,268 $ 549 $ 5,096 $12,024
Reversals and adjustments ...................... 23 (441) — (549) 128 (839)
New charges ................................ 2,768 — 450 — 850 4,068
Cash payments ............................... (860) (1,081) (1,389) — (2,130) (5,460)
Balance at December 30, 2007 .................. 1,931 589 3,329 — 3,944 9,793
Reversals and adjustments ...................... (393) (51) — — (747) (1,191)
New charges ................................ 230 130 1,085 — — 1,445
Cash payments ............................... (938) (490) (1,366) — (1,322) (4,116)
Balance at December 28, 2008 .................. 830 178 3,048 — 1,875 5,931
Reversals and adjustments ...................... 28 15 — — 88 131
New charges ................................ 25 117 700 — — 842
Cash payments ............................... (357) (216) (1,404) — (933) (2,910)
Balance at December 27, 2009 .................. $ 526 $ 94 $2,344 $ — $ 1,030 $ 3,994
Severance Costs
(in thousands) 2007 2006 2005 2003 2001 Total
Balance at December 31, 2006 .................. $ — $ 536 $ 97 $— $ — $ 633
Reversals and adjustments ...................... 144 (409) (59) — — (324)
New charges ................................ 9,863 — — — — 9,863
Cash payments ............................... (8,889) (127) (38) — — (9,054)
Balance at December 30, 2007 .................. 1,118 — — — — 1,118
Reversals and adjustments ...................... (378) — — — — (378)
New charges ................................ 696 — — — — 696
Cash payments ............................... (1,429) — — — — (1,429)
Balance at December 28, 2008 .................. 7 — — — — 7
Reversals and adjustments ...................... 1 — — — — 1
New charges ................................ — — — — — —
Cash payments ............................... (8) — — — — (8)
Balance at December 27, 2009 .................. $ — $ — $ — $— $ — $ —
2007
In the first quarter of 2007, the Company initiated a cost-reduction plan that involved staff reductions of 175
employees at various sites and the closure of design centers in Saskatoon, Saskatchewan and Winnipeg,
Manitoba. The Company also vacated excess office space at its Santa Clara facility. PMC continued to lower
costs in the fourth quarter of 2007 by reducing headcount by 18 employees primarily at the Burnaby facility.
In 2008, the Company recorded a net reduction of its accrual for excess facilities by $0.2 million, as the
Company fulfilled a portion of these obligations and made payments of $0.9 million related to the 2007 plan. In
2009, the Company made payments of $0.4 million related to the 2007 plan.
72