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ADCT > SEC Filings for ADCT > Form 8-K on 23-Oct-2008All Recent SEC Filings

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Form 8-K for ADC TELECOMMUNICATIONS INC


23-Oct-2008

Costs Associated with Exit or Disposal Activities, Material Impairment


Item 2.05 Costs Associated with Exit or Disposal Activities.

On October 21, 2008, our Board of Directors committed the company to a restructuring plan with respect to each of our business segments. As a part of this restructuring, we have adopted a plan of sale for our German Professional Services business and placed this business into discontinued operations. We also have placed into discontinued operations the business associated with certain outdoor wireless coverage products. We also have included in the plan a restructuring of the operations of our Global Connectivity Systems business segment as well as our global go-to-market organization and general and administrative support functions. The restructuring plan is being implemented in an effort to accelerate and expand our ongoing cost leadership initiatives and is in response to a variety of internal and external factors, including, without limitation, general macro-economic uncertainties. Exclusive of employees who work for our Germany professional services business for which we have adopted a plan of sale, we expect approximately 300 to 350 employment positions will be eliminated in connection with the restructuring plan, the majority of those reductions being in North America.

As a result of the restructuring plan, we expect to incur a pre-tax charge of between $14 million to $26 million in the fourth quarter of 2008. The charge is expected to be comprised of approximately $5 million to $9 million of cash restructuring charges (mostly related to severance payments) to be paid during our 2009 fiscal year, approximately $6 million to $12 million of non-cash restructuring charges (including inventory and other write-offs), and approximately $3 million to $5 million for non-cash impairment charges (including fixed assets and intangibles). We expect to complete the restructuring plan during the first quarter of our 2009 fiscal year.

For more information on the restructuring plan, refer to the press release furnished as Exhibit 99.1 with this report.

The information in this Item 2.05 contains forward-looking statements about our restructuring plans based on management's current beliefs and expectations about future events. The statements are based upon currently available information and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include those identified in the section captioned "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended October 31, 2007, as may be updated in Item 1A of our subsequent Quarterly Reports on Form 10-Q or other filings we make with the SEC. Investors are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.



Item 2.06 Material Impairments.

The information set forth above in Item 2.05 of this report is hereby incorporated by reference into this Item 2.06.



Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release dated October 22, 2008.


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