CY » Topics » Property and Equipment:

These excerpts taken from the CY 10-K filed Mar 3, 2008.

Property and Equipment:

        During fiscal 2005, the Company recorded an aggregate restructuring charge of $10.2 million, which consisted of:

    1.
    $6.2 million related to the write-down of excess property and equipment and $0.2 million of net disposal costs as a result of the internal reorganization; and

    2.
    $3.6 million related to the write-down of excess property and equipment and $0.2 million of net disposal costs due to the termination of the SMS operations.

        The Company recorded charges of $6.2 million related to the write-down of property and equipment that were removed from operations. These assets primarily consisted of manufacturing and test equipment located in the Company's manufacturing facility in Minnesota, manufacturing and test equipment and prototype tools previously used in operations by Silicon Light Machines, a subsidiary of Cypress, and equipment related to a design center in Europe that has been closed. As management had committed to plans to dispose of the assets by sale, the Company classified the assets as held for sale and recorded the assets at the lower of their carrying amount or fair value. Fair value was determined by market prices estimated by a third party that specializes in sales of used equipment. The assets were originally purchased based on internal forecast of growth in demand that subsequently did not materialize. Prior to the Fiscal 2005 Restructuring Plan, the Company did not determine the assets were impaired. The Company used a contra account to record the adjustment to reflect the assets held for sale at their new cost basis. The contra account was included in "Property, plant and equipment, net" in the Consolidated Balance Sheets, thereby adjusting the assets held for sale to fair value, and not as a liability within the restructuring reserves.

124


CYPRESS SEMICONDUCTOR CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 9. RESTRUCTURING (Continued)

        During fiscal 2006, the Company recorded an additional restructuring charge of $0.5 million as the proceeds received from the sale of the restructured assets were lower than the original estimated values. The Company completed the disposal of all restructured assets in fiscal 2006.

Property
and Equipment:



        During
fiscal 2005, the Company recorded an aggregate restructuring charge of $10.2 million, which consisted of:





    1.
    $6.2 million
    related to the write-down of excess property and equipment and $0.2 million of net disposal costs as a result of the internal reorganization; and


    2.
    $3.6 million
    related to the write-down of excess property and equipment and $0.2 million of net disposal costs due to the termination of the SMS operations.





        The
Company recorded charges of $6.2 million related to the write-down of property and equipment that were removed from operations. These assets primarily consisted of
manufacturing and test equipment located in the Company's manufacturing facility in Minnesota, manufacturing and test equipment and prototype tools previously used in operations by Silicon Light
Machines, a subsidiary of Cypress, and equipment related to a design center in Europe that has been closed. As management had committed to plans to dispose of the assets by sale, the Company
classified the assets as held for sale and recorded the assets at the lower of their carrying amount or fair value. Fair value was determined by market prices estimated by a third party that
specializes in sales of used equipment. The assets were originally purchased based on internal forecast of growth in demand that subsequently did not materialize. Prior to the Fiscal 2005
Restructuring Plan, the Company did not determine the assets were impaired. The Company used a contra account to record the adjustment to reflect the assets held for sale at their new cost basis. The
contra account was included in "Property, plant and equipment, net" in the Consolidated Balance Sheets, thereby adjusting the assets held for sale to fair value, and not as a liability within the
restructuring reserves.



124








CYPRESS SEMICONDUCTOR CORPORATION



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)




NOTE 9. RESTRUCTURING (Continued)



        During
fiscal 2006, the Company recorded an additional restructuring charge of $0.5 million as the proceeds received from the sale of the restructured assets were lower than the
original estimated values. The Company completed the disposal of all restructured assets in fiscal 2006.



This excerpt taken from the CY 10-K filed Mar 1, 2007.

Property and Equipment:

During fiscal 2005, the Company recorded an aggregate restructuring charge of $10.2 million in connection with the Fiscal 2005 Restructuring Plan, which consisted of:

 

  1. $6.2 million related to the write-down of excess property and equipment and $0.2 million of net disposal costs as a result of the internal reorganization; and
  2. $3.6 million related to the write-down of excess property and equipment and $0.2 million of net disposal costs due to the termination of the SMS operations.

 

104


Table of Contents

The Company recorded charges of $6.2 million related to the write-down of property and equipment that were removed from operations. These assets consisted primarily of manufacturing and test equipment located in the Company’s manufacturing facility in Minnesota, manufacturing and test equipment and prototype tools previously used in operations by SLM, a subsidiary of Cypress, and equipment related to a design center in Europe that has been closed. As management had committed to plans to dispose of the assets by sale, the Company classified the assets as held for sale and recorded the assets at the lower of their carrying amount or fair value. Fair value was determined by market prices estimated by a third party that specializes in sales of used equipment. The assets were originally purchased based on internal forecast of growth in demand that subsequently did not materialize. Prior to the Company’s restructuring announcement, the Company did not determine the assets were impaired. The Company used a contra account to record the adjustment to reflect the assets held for sale at their new cost basis. The contra account was included in “Property, plant and equipment, net” in the Consolidated Balance Sheets, thereby adjusting the assets held for sale to fair value, and not as a liability within the restructuring reserves.

During fiscal 2006, the Company recorded an additional restructuring charge of $0.5 million as the proceeds received from the sale of the restructured assets were lower than the original estimated values. The Company completed the disposal of all restructured assets in fiscal 2006.

This excerpt taken from the CY 10-Q filed Nov 13, 2006.

Property and Equipment:

During the first quarter of fiscal 2006, the Company recorded an additional restructuring charge of $0.5 million as the proceeds received from the sale of the restructured assets were lower than the original estimated values. During the second quarter of fiscal 2006, the Company completed the disposal of all restructured assets.

This excerpt taken from the CY 10-Q filed May 12, 2006.

Property and Equipment:

During the first quarter of fiscal 2006, the Company recorded an additional restructuring charge of $0.5 million as the proceeds received from the sale of the restructured assets were lower than the original estimated values.

As of April 2, 2006, the Company had substantially completed the disposal of the restructured assets. The net book value of the remaining restructured assets to be disposed of was approximately $0.3 million as of April 2, 2006.

This excerpt taken from the CY 10-K filed Mar 17, 2006.

Property and Equipment:

The Company and the semiconductor industry experienced robust growth in 2000 and such growth had been projected to continue in 2001 and beyond. Consequently, the Company invested heavily in growing the production capacity to meet the projected expanded growth. When it became evident that the industry was experiencing a decline instead of growing, the Company took the restructuring actions in fiscal 2001, including a decision to sell the excess equipment. The decision to sell the excess capacity was based on the Company’s belief that by the time industry rebounded, the excess equipment would be obsolete due to constant technological innovations taking place in the industry.

The Company recorded initial charges of $113.4 million related to property and equipment that were removed from operations and reclassified as assets held for sale. During fiscal 2002, the Company identified additional

 

86


Table of Contents

CYPRESS SEMICONDUCTOR CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

property and equipment removed from operations and recorded a provision of $3.4 million. These assets included primarily production equipment. The assets were purchased based on industry forecast of growth in demand that subsequently did not materialize. Prior to the Company’s restructuring announcement, the Company did not determine the assets were impaired as assets to be held and used, as there was no indication of impairment. The charges for assets held for sale were recorded as a contra account netted against “Property, plant and equipment, net” in the Consolidated Balance Sheets and not as a liability within the restructuring reserves. This contra account was an adjustment made to reflect the restructured property and equipment at a new cost basis.

During fiscal 2002 and 2003, the Company recorded adjustments of $22.8 million and $1.6 million, respectively, related to placing back into service assets that had previously been recorded as assets held for sale (see discussion below). In addition, the Company recorded an adjustment of $8.4 million associated with the release of excess reserve.

As of the end of fiscal 2003, all property and equipment had been disposed of, scrapped or placed back into service.

This excerpt taken from the CY 10-Q filed Nov 14, 2005.

Property and Equipment:

 

The restructuring charge of $8.8 million recorded in the first quarter of fiscal 2005 consisted of:

 

  1. $5.2 million related to the write-down of excess property and equipment as a result of the internal reorganization; and

 

  2. $3.6 million related to the write-down of equipment due to the termination of the SMS operations (see “Termination of SMS Operations” below).

 

During the first quarter of fiscal 2005, the Company recorded charges of $5.2 million related to the write-down of property and equipment that were removed from operations, resulting in a new cost basis of $1.3 million. In addition, the Company recorded selling costs of $0.4 million. These assets consisted primarily of manufacturing and test equipment located in the Company’s manufacturing facility in Minnesota, as well as manufacturing and test equipment and prototype tools previously used in operations by Silicon Light Machines and SunPower, two subsidiaries of Cypress. As management has committed to plans to dispose of the assets by sale, the Company classified the assets as held for sale and recorded the assets at the lower of their carrying amount or fair value less costs to

 

13


Table of Contents

sell. Fair value was determined by market prices estimated by a third party that specializes in sales of used equipment. The assets were originally purchased based on internal forecast of growth in demand that subsequently did not materialize. Prior to the Company’s restructuring announcement, the Company did not determine the assets were impaired as assets to be held and used. The Company used a contra account to record the adjustment to reflect the assets held for sale at their new cost basis. The contra account was included within property and equipment in the Condensed Consolidated Balance Sheets, thereby adjusting the assets held for sale to fair value less costs to sell, and not as a liability within the restructuring reserves. The Company expects to complete the disposal of the restructured assets by the first quarter of fiscal 2006.

 

During the second quarter of fiscal 2005, the Company closed a design center in Europe and recorded a charge of $0.1 million related to the write-down of certain property and equipment that were removed from operations. During the third quarter of fiscal 2005, the Company recorded an additional charge of $0.9 million related to certain property and equipment that were removed from operations.

 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki