SMTC Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Restructuring Charges

Note 9 - Restructuring Charges

6 Months Ended

Jun. 29, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

9.	Restructuring charges

For the six months ended June 29, 2014, no additional charges were incurred related to the 2012 Plan. Severance payments of $32 were made related to remaining employees from the Markham closure.

In the first quarter of 2014, additional restructuring charges of $670 were incurred as a result of the approved 2014 Plan whereby 290 full-time equivalent employees (“FTEs”) were impacted in the Mexican facility.

For the three months ended June 29, 2014, restructuring charges of $296 were recorded related to replacement of approximately 19 FTE positions in Markham that were replaced in Mexico as part of the 2014 Plan. In addition, approximately 50 FTEs were severed in Mexico which resulted in additional restructuring charges of $194. Remaining charges of $19 related to restructuring charges in Asia representing 13 FTEs.

The following table details the change in restructuring accrual for the period from December 29, 2013 to June 29, 2014, relating to the 2012 Plan and 2014 Plan:

	Severance			Facility exit costs			Total
2012 Plan
Balance as at December 29, 2013	$	105		$	525		$	630

Payments		(73	)		(525	)		(598	)

Balance as at March 30, 2014	$	32		$	—		$	32


Payments		(32	)		—			(32	)

Balance as at June 29, 2014	$	—		$	—		$	—

	Severance			Facility exit costs		Total
2014 Plan
Balance as at December 29, 2013	$	—		$	—	$	—
Charges		670			—		670
Payments		(670	)		—		(670	)

Balance as at March 30, 2014	$	—		$	—	$	—

Charges		509			—		509
Payments		(397	)		—		(397	)

Balance as at June 29, 2014	$	112		$	—	$	112

- 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