This excerpt taken from the IRF 10-Q filed May 8, 2009.
Fiscal year 2007 Initiatives
PCS Divestiture Initiative
During fiscal year 2007, in connection with the Divestiture, the Company terminated approximately 100 former PCS Business employees. The Company also terminated other operating and support personnel to streamline the organization in connection with the Divestiture.
The following illustrates the charges the Company recorded in the three and nine months ended March 29, 2009 and March 30, 2008 related to its PCS Divestiture restructuring initiative (in thousands):
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. Asset Impairment, Restructuring and Other Charges (Continued)
Other Impairment Charges
In addition to the Newport facility asset impairment of $48.9 million, during the second quarter of fiscal year 2009, the Company recorded an asset impairment of $1.9 million related to assets removed from service in its Tijuana, Mexico facility and certain contract manufacturing facilities. Since the decision to remove these assets from service was in response to a reduction in demand and not related to an exit activity, the associated asset impairment charge was recorded in cost of sales, not in asset impairment, restructuring and other charges.