13. Restructuring and Others

Fiscal 2011 Restructuring Plan

            Beginning in the fourth quarter of fiscal 2011, the Company initiated a restructuring plan as part of a company-wide cost saving initiative aimed at reducing operating costs in light of global economic challenges and rapid changes in the China wireless and handset market. In the interest of reducing costs and improving efficiencies, the Company announced reduction of headcount in several locations and the closure of its assembly, test, mark and pack facility in Kuala Lumpur, Malaysia (the KL facility), which was completed in the first quarter of fiscal 2012. Total costs incurred under the fiscal 2011 restructuring plan were $22.6 million.

Fiscal 2009/10 Restructuring Plan

            In fiscal 2009 and 2010, the Company implemented certain restructuring measures including workforce reductions and the sale of its plant in Suzhou, China. The Company incurred restructuring expenses related to employee termination benefits and fixed asset relocation, depreciation and disposal. During the first quarter of fiscal 2012, there was a restructuring credit of $0.8 million as a result of the Company having prevailed in a labor-related lawsuit in conjunction with the 2009 restructuring activities in Thailand. Total costs incurred under the 2009/10 Restructuring Plan were $43.2 million.

Summary of Restructuring Plans

           The following tables present a summary of restructuring activities related to all of the Company’s restructuring plans described above:

(1) Non cash adjustments relate to gain on sale of equipment, asset impairment charges and foreign currency translations. 

The Company does not expect to incur further restructuring charges under the 2011 and 2009/10 Restructuring Plans.