This excerpt taken from the PWER 8-K filed May 28, 2009.
Costs Associated with Exit or Disposal Activities.
On May 22, 2009, the Board of Directors of Power-One, Inc. (the Company) authorized the Company to initiate an exit plan with respect to its business in the Dominican Republic. The plan is expected to be completed by the end of the first quarter 2010. Through implementation of this action, the Company expects to (i) realign global manufacturing and sourcing; (ii) improve operational performance; (iii) increase efficiencies in the supply chain and manufacturing process and (iv) improve its ability to respond to customer requirements in a cost effective manner. The Company expects to record severance and other charges of $13 to $15 million beginning in the second fiscal quarter of 2009 and through the first quarter of 2010. The Company expects that the portion of the charge that will result in future cash expenditures will be approximately $5 million for severance for terminated employees and approximately $4 to $5 million for other costs associated with the facility closure. The Company also expects to record non-cash charges of approximately $3 to $5 million related to asset and inventory charges.
See Press Release dated May 27, 2009 entitled Power-One Announces Closing of the Dominican Republic Facility, attached as Exhibit 99.1 to this Current Report.
This excerpt taken from the PWER 8-K filed May 24, 2007.
Item 2.05. Costs Associated with Exit or Disposal Activities.
On May 18, 2007, the Company committed to a restructuring plan for which it expects to record approximately $4 to $5 million in restructuring and impairment charges during the second quarter of 2007. The Company expects that the portion of the charge that will result in future cash expenditures will be approximately $1 million to $1.5 million for severance for terminated employees, approximately $2.5 million to $3 million for continuing lease obligations on closed facilities, the longest of which extends through 2014, and approximately $0.3 million for contract termination costs and other asssociated costs. The balance of these charges relate to non-cash asset impairments, primarily property and equipment and other assets. The expected charges result primarily from a plan to significantly downsize the Companys operations in North America, as certain functions move to other existing Power-One facilities in low-cost locations, and to reduce operations and overhead in other locations. The Company expects that the restructuring actions will be substantially complete mid-way through the third quarter ended September 30, 2007.
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