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Restructuring and Related Activities | 9 Months Ended
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Oct. 01, 2016
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities | Note 4 – Restructuring and Related Activities The Company places a strong emphasis on controlling its costs and combats general price inflation by continuously improving its efficiency and operating performance. When the ongoing cost containment activities are not adequate, the Company takes actions to maintain its cost competitiveness. The Company incurred significant restructuring costs in its past to reduce its cost structure. Historically, the Company's primary cost reduction technique was through the transfer of production from high-labor-cost countries to lower-labor-cost countries. Since 2013, the Company's cost reduction programs have primarily focused on reducing fixed costs, including selling, general, and administrative expenses. In 2013, the Company announced various cost reduction programs. These programs were substantially implemented by the end of the first fiscal quarter of 2016, with some additional costs incurred in the second and third fiscal quarters of 2016. Many of the severance costs were recognized ratably over the required stay periods. In November 2016, the Company announced an extension of one of these programs. In 2015, the Company announced additional global cost reduction programs. These programs include a facility closure in the Netherlands. The cash costs of these programs, primarily severance, are expected to aggregate to approximately $30,000. Complete implementation of these programs is expected to occur before the end of 2017. The following table summarizes restructuring and related expenses which were recognized and reported on a separate line in the accompanying consolidated condensed statements of operations:
|  | Fiscal quarters ended |  |  | Nine fiscal months ended |
|  | October 1, 2016 |  |  | October 3, 2015 |  |  | October 1, 2016 |  |  | October 3, 2015 |
MOSFETs Enhanced Competitiveness Program |  | $ | 675 |  |  | $ | 1,445 |  |  | $ | 5,700 |  |  | $ | 3,737 |
Voluntary Separation / Retirement Program |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 77 |
Modules Production Transfer Program |  |  | (464 | ) |  |  | - |  |  |  | (464 | ) |  |  | - |
Global Cost Reduction Programs |  |  | 986 |  |  |  | 879 |  |  |  | 6,903 |  |  |  | 5,580 |
Total |  | $ | 1,197 |  |  | $ | 2,324 |  |  | $ | 12,139 |  |  | $ | 9,394 |
MOSFETs Enhanced Competitiveness Program Over a period of approximately 2 years and in a series of discrete steps, the manufacture of wafers for a substantial share of products was transferred into a more cost-efficient fab. As a consequence, certain other manufacturing currently occurring in-house was transferred to third-party foundries. This transfer of production was substantially completed by the end of the first fiscal quarter of 2016. Employees generally were required to remain with the Company during the production transfer period. Accordingly, the Company accrued these severance costs ratably over the respective employees' remaining service periods. The Company has incurred and may continue to incur other exit costs associated with the production transfer, including certain contract termination costs. As a result of a review of recent financial results and outlook for the Company's MOSFETs segment following the recent completion of production transfers, the Company has determined to implement further cost reductions for the MOSFETs segment. On November 7, 2016, the Company announced an extension of the MOSFETs Enhanced Competitiveness Program. The revised program includes various cost reduction initiatives, primarily the transfer of all remaining manufacturing operations at its Santa Clara, California facility to other Vishay facilities or third-party subcontractors. The production transfers will be completed in steps by the end of 2017. The Company expects to incur cash charges of approximately $4,000 to $8,000, primarily related to severance, to implement these steps. The Company expects to maintain its R&D and management presence in the Silicon Valley area, even after the cessation of manufacturing operations there. The following table summarizes the activity to date related to this program:
Expense recorded in 2013 |  | $ | 2,328 |
Cash paid |  |  | (267 | )
Balance at December 31, 2013 |  | $ | 2,061 |
Expense recorded in 2014 |  |  | 6,025 |
Cash paid |  |  | (856 | )
Balance at December 31, 2014 |  | $ | 7,230 |
Expense recorded in 2015 |  |  | 5,367 |
Cash paid |  |  | (426 | )
Foreign currency translation |  |  | 1 |
Balance at December 31, 2015 |  | $ | 12,172 |
Expense recorded in 2016 |  |  | 5,700 |
Cash paid |  |  | (13,492 | )
Foreign currency translation |  |  | 4 |
Balance at October 1, 2016 |  | $ | 4,384 |
Severance benefits are generally paid in a lump sum at cessation of employment. Other exit costs of $5,027 are included in the expenses incurred in 2016 in the table above. The entire amount of the liability is considered current and is included in other accrued expenses in the accompanying consolidated condensed balance sheets. Voluntary Separation / Retirement Program The voluntary separation / early retirement program was offered to employees worldwide who were eligible because they met job classification, age, and years-of-service criteria as of October 31, 2013. The program benefits varied by country and job classification, but generally included a cash loyalty bonus based on years of service. All employees eligible for the program have left the Company. These employees generally were not aligned with any particular segment. The effective separation / retirement date for most employees who accepted the offer was June 30, 2014 or earlier, with a few exceptions to allow for a transition period. The following table summarizes the activity to date related to this program:
Expense recorded in 2013 |  | $ | 486 |
Cash paid |  |  | (98 | )
Foreign currency translation |  |  | 3 |
Balance at December 31, 2013 |  | $ | 391 |
Expense recorded in 2014 |  |  | 12,792 |
Cash paid |  |  | (8,054 | )
Foreign currency translation |  |  | (455 | )
Balance at December 31, 2014 |  | $ | 4,674 |
Expense recorded in 2015 |  |  | 95 |
Cash paid |  |  | (3,166 | )
Foreign currency translation |  |  | (258 | )
Balance at December 31, 2015 |  | $ | 1,345 |
Cash paid |  |  | (716 | )
Foreign currency translation |  |  | 25 |
Balance at October 1, 2016 |  | $ | 654 |
The payment terms vary by country, but generally are paid in a lump sum at cessation of employment. Certain participants are being paid in installments. The entire amount of the liability is considered current and is included in other accrued expenses in the accompanying consolidated condensed balance sheets. Modules Production Transfer In an effort to reduce costs and streamline production of its module products within its Diodes segment, the Company committed to two smaller cost reduction programs related to the transfer of production of certain of its products. The following table summarizes the activity to date related to this program:
Expense recorded in 2014 |  | $ | 2,080 |
Cash paid |  |  | (464 | )
Foreign currency translation |  |  | (121 | )
Balance at December 31, 2014 |  | $ | 1,495 |
Cash paid |  |  | (718 | )
Foreign currency translation |  |  | (120 | )
Balance at December 31, 2015 |  | $ | 657 |
Change in estimate |  |  | (464 | )
Cash paid |  |  | (125 | )
Foreign currency translation |  |  | 18 |
Balance at October 1, 2016 |  | $ | 86 |
Severance benefits are generally paid in a lump sum at cessation of employment. The entire amount of the liability is considered current and is included in other accrued expenses in the accompanying consolidated condensed balance sheets. Global Cost Reduction Programs The global cost reduction programs announced in 2015 include a plan to reduce selling, general, and administrative costs company-wide, and targeted streamlining and consolidation of production for certain product lines within its Capacitors and Resistors & Inductors segments. The following table summarizes the activity to date related to this program:
Expense recorded in 2015 |  | $ | 13,753 |
Cash paid |  |  | (986 | )
Foreign currency translation |  |  | (150 | )
Balance at December 31, 2015 |  | $ | 12,617 |
Expense recorded in 2016 |  |  | 6,903 |
Cash paid |  |  | (12,918 | )
Foreign currency translation |  |  | 181 |
Balance at October 1, 2016 |  | $ | 6,783 |
The following table summarizes the expense recognized in 2016 by segment related to this program:
Diodes |  | $ | 788 |
Optoelectronic Components |  |  | 953 |
Resistors & Inductors |  |  | 3,163 |
Capacitors |  |  | 459 |
Unallocated Selling, General, and Administrative Expenses |  |  | 1,540 |
Total |  | $ | 6,903 |
Severance benefits are generally paid in a lump sum at cessation of employment. The current portion of the liability is $4,138 and is included in other accrued expenses in the accompanying consolidated condensed balance sheets. The non-current portion of the liability is included in other liabilities in the accompanying consolidated balance sheets.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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