This excerpt taken from the RFMD 10-Q filed Feb 5, 2009.

On January 19, 2009, RF Micro Devices, Inc. (the “Company”) determined that it would record an estimated non-cash charge of up to $700 million to reflect an impairment of its goodwill and intangible assets, record a non-cash charge of approximately $40-$50 million to reflect an impairment of its property and equipment, and increase its inventory reserve by approximately $24 million in the Company’s fiscal third quarter ended December 27, 2008.  The Company subsequently disclosed such information in a timely filed Current Report on Form 8-K under the heading “Item 2.06. Material Impairments.” 

In conjunction with the preparation of its financial statements for the quarter ended December 27, 2008, the Company subsequently determined that it would be appropriate to include the previously disclosed non-cash charges for certain property and equipment as part of a restructuring related to the Company’s decision to close and consolidate certain fabrication facilities and to reduce its associated workforce due to lower current and forecasted demand for the Company’s products attributable primarily to the global economic slowdown.  As a result, the Company anticipates that it will record total charges of approximately $59.6 million consisting of:  (i) one-time employee termination benefits of $1.2 million; (ii) charges for impaired assets (including property and equipment and leasehold improvements) of $46.1 million; and (iii) lease and other contract termination costs of $12.3 million.  With respect to the total charges expected to be incurred pursuant to the restructuring, approximately $46.1 million relates to non-cash charges, approximately $0.3 million relates to cash expenditures during the third quarter of fiscal 2009, and approximately $13.2 million relates to future cash expenditures related to lease terminations and one-time employee benefits. 


The Company recorded restructuring charges of approximately $53.3 million during the period ended December 27, 2008 and expects to incur an additional $0.6 million in charges during the Company’s fourth quarter of fiscal 2009.  The Company will continue to evaluate the global macroeconomic environment and determine appropriate actions over the next several quarters.



































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