Dispositions and Exit Activities

6 Months Ended

Jul. 03, 2011

Dispositions and Exit Activities [Abstract]

On March 8, 2011, our senior management, as authorized by our Board of Directors, decided to exit our Energy Services business, which included standby power and systems design, installation and maintenance activities. As a result of management’s ongoing review of our business segments and products, and taking into account the lack of growth and profitability potential of the Energy Services segment as well as its sizeable operating losses over the last several years, we determined it was appropriate to refocus our operations on profitable growth opportunities presented in our other segments, Battery & Energy Products and Communications Systems. In the fourth quarter of 2010, we recorded a non-cash impairment charge of $13,793 to write-off the goodwill and intangible assets and certain fixed assets associated with the standby power portion of our Energy Services business.

The actions taken to exit our Energy Services segment resulted in the elimination of approximately 40 jobs and the closing of five facilities, primarily in California, Florida and Texas, over several months. As of the end of the second quarter of 2011, all exit activities with respect to our Energy Services segment were completed. As a result, the presentation of results herein excludes the Energy Services segment from the results of continuing operations. The following amounts have been reported as discontinued operations for the three- and six-month periods ended July 3, 2011 and June 27, 2010:


	Three-Month Periods Ended						Six-Month Periods Ended
	July 3,			June 27,			July 3,			June 27,
	2011			2010			2011			2010
Net sales	$	1,607		$	3,377		$	3,895		$	5,415

Loss from discontinued operations		(2,139	)		(579	)		(3,796	)		(1,512	)
Benefit from income taxes		—			16			—			4

Loss from discontinued operations, net of tax		(2,139	)		(563	)		(3,796	)		(1,508	)

Included in the Loss from discontinued operations described above, we recorded the following exit charges:


	Three-Months Ended		Six-Months Ended
	July 3, 2011		July 3, 2011
Inventory and fixed asset write-downs	$	472	$	941
Employee related, including termination benefits		437		703
Lease termination costs		250		250
Other costs		980		1,030

Total Exit Costs	$	2,139	$	2,924

Cash Component	$	1,666	$	1,984

- 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+ Details