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Dispositions and Exit Activities

3 Months Ended

Apr. 01, 2012

Dispositions and Exit Activities [Abstract]

2.	DISPOSITIONS AND EXIT ACTIVITIES

RedBlack Communications, Inc.

On February 15, 2012, our senior management, as authorized by our Board of Directors, decided to divest our RedBlack Communications business. As a result of management’s ongoing review of our business portfolio, management had determined that RedBlack offers limited opportunities to achieve the operating margin thresholds of our business and decided to refocus our operations on profitable growth opportunities presented in the other product lines that comprise our business segments, Battery & Energy Products and Communications Systems. Since 2008, our RedBlack Communications business has incurred significant operating losses. We are actively seeking to sell our RedBlack business as a going concern and will be engaging appropriate professionals to assist in that effort. We anticipate that the actions taken to divest the RedBlack Communications business will result in the elimination of approximately 30 jobs and the transfer of the RedBlack facility located in Hollywood, Maryland. We expect the RedBlack divestiture to occur within the next twelve months. Commencing with the first quarter of 2012 and concluding with the ultimate closing of the transaction, the results of the RedBlack operations and related divestiture costs will be reported as a discontinued operation.

As a result, the presentation of results herein excludes the RedBlack operations from the results of continuing operations. The following amounts have been reported as discontinued operations for the three-month periods ended April 1, 2012 and April 3, 2011:


	Three-Month Periods Ended
	April 1, 2012			April 3, 2011
Net sales	$	1,186		$	541

Loss from discontinued operations		(12	)		(184	)
Provision for income taxes		11			12

Loss from discontinued operations, net of tax		(23	)		(196	)

We cannot at this time determine an estimate or a range of estimates of the extent of the restructuring charges we will incur in connection with the RedBlack divestiture.

Energy Services Business

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 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, 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-month periods ended April 1, 2012 and April 3, 2011:


	Three-Month Periods Ended
	April 1, 2012			April 3, 2011
Net sales	$	—		$	2,288

Loss from discontinued operations		(48	)		(1,657	)
Provision for income taxes		—			—

Loss from discontinued operations, net of tax		(48	)		(1,657	)

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


	Three-Month Periods Ended
	April 1, 2012		April 3, 2011
Inventory and fixed asset write-downs	$	—	$	469
Employee related, including termination benefits		—		266
Lease termination costs		—		—
Other costs		—		50

Total Exit Costs	$	—	$	785

Cash Component	$	—	$	318

- 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.

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