8-K/AFinancial Events

APPLIED MATERIALS INC /DE 8-K/A Report, Exit or Disposal Costs (Feb 3, 2009)

Filed February 3, 2009For Securities:AMAT

Summary

This 8-K/A filing from Applied Materials (AMAT) amends a previous report to provide crucial details on a restructuring program initiated in November 2008. The company now estimates total charges of approximately $133 million associated with workforce reductions, primarily for one-time termination benefits. These charges are expected to be recorded in the first fiscal quarter of 2009 and result in cash expenditures of roughly the same amount through October 2009. Investors should note that this restructuring is a response to uncertain global economic and industry conditions. While the company provides specific cost estimates in this amendment, it also includes a standard safe harbor statement acknowledging the risks and uncertainties that could impact actual results, including the successful implementation of the program and retention of key employees.

Key Highlights

  • 1Applied Materials (AMAT) is amending a prior 8-K filing to provide updated financial details on its restructuring program.
  • 2The company now estimates total charges of approximately $133 million related to the restructuring.
  • 3These charges primarily consist of one-time termination benefits for workforce reductions.
  • 4The restructuring costs are expected to be recorded in the fiscal first quarter ending January 25, 2009.
  • 5Cash expenditures for the restructuring are projected to be approximately $133 million, spread through October 2009.
  • 6The restructuring is attributed to uncertain global economic and industry conditions.
  • 7The filing includes a safe harbor statement highlighting potential risks that could affect actual outcomes.

Frequently Asked Questions

This filing amends a previous report to provide specific cost estimates and details regarding a restructuring program that involves workforce reductions. When the initial report was filed in November 2008, the company could not yet estimate these costs.

Applied Materials expects to incur total charges of approximately $133 million. These charges are mainly for one-time termination benefits related to workforce reductions and will lead to a similar amount in cash expenditures by October 2009.

The charges are expected to be recorded in the company's first fiscal quarter ended January 25, 2009. The cash expenditures associated with these charges are anticipated to occur through October 2009.

The company cites uncertain global economic and industry conditions as the primary drivers for implementing this restructuring program, which includes reducing its global workforce through various methods like attrition and voluntary separation.