8-K/AFinancial Events

APPLIED MATERIALS INC /DE 8-K/A Report, Exit or Disposal Costs (Jul 21, 2010)

Filed July 21, 2010For Securities:AMAT

Summary

This Form 8-K/A filing from Applied Materials, Inc. (AMAT) amends a previous filing regarding a global restructuring plan (the Plan). Initially announced in November 2009, the Plan aimed to reduce the global workforce by approximately 1,300 to 1,500 positions by May 2011. The company has now revised its expectations based on changing business requirements. As a result of these adjustments, Applied Materials now anticipates reducing its workforce by approximately 1,000 positions. The total estimated charges associated with the Plan have also been reduced from an initial estimate to approximately $84 million in cash. This represents a favorable adjustment of $20 million, which the company will recognize in its third fiscal quarter ending August 1, 2010. Investors should note that this filing provides updated information on the scope and financial impact of the restructuring.

Key Highlights

  • 1Amendment to a previously filed 8-K concerning a global restructuring plan.
  • 2Revised workforce reduction target: approximately 1,000 positions, down from an initial estimate of 1,300-1,500.
  • 3Total estimated charges for the restructuring plan revised downwards to approximately $84 million.
  • 4The company expects to record a favorable adjustment of $20 million in its third fiscal quarter of 2010.
  • 5The previously stated completion timeline for the Plan remains May 2011.
  • 6The charges are expected to be paid in cash.
  • 7The filing includes a safe harbor statement regarding forward-looking statements and associated risks.

Frequently Asked Questions

This filing is an amendment to a previous 8-K report and provides updated information on Applied Materials' global restructuring plan. It revises the expected number of job reductions and the total estimated charges associated with the plan.

The company now expects to reduce its workforce by approximately 1,000 positions, which is fewer than the previously estimated 1,300 to 1,500. Additionally, the total expected charges for the plan have been reduced to approximately $84 million, down from an earlier estimate, resulting in a $20 million favorable adjustment to be recognized in the third fiscal quarter of 2010.

The company expects to complete the implementation of the restructuring plan by May 2011, consistent with the original timeline.

The revised plan is expected to result in total charges of approximately $84 million, paid in cash. This is a reduction from previous estimates, and the company will record a favorable adjustment of $20 million in its third fiscal quarter of 2010.