Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges

v2.3.0.15
Restructuring Charges
6 Months Ended
Sep. 30, 2011
Restructuring Charges  
Restructuring Charges

Note 3. Restructuring Charges

 

A summary of the expenses aggregated on the Condensed Consolidated Statements of Operations line item “Restructuring charges” in the quarters and six months ended September 30, 2011 and 2010, is as follows (amounts in thousands):

 

 

 

Quarters Ended September 30,

 

Six Months Ended September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Manufacturing relocation costs

 

$

637

 

$

1,642

 

$

1,385

 

$

3,080

 

Personnel reduction costs

 

968

 

661

 

1,245

 

1,015

 

Restructuring charges

 

$

1,605

 

$

2,303

 

$

2,630

 

$

4,095

 

 

Six Months Ended September 30, 2011

 

In the second quarter of fiscal year 2010, the Company initiated the first phase of a plan to restructure the Film and Electrolytic Business Group (“Film and Electrolytic”) and to reduce overhead within the Company as a whole.  The restructuring plan includes implementing programs to make the Company more competitive, removing excess capacity, moving production to lower cost locations and eliminating unnecessary costs throughout the Company.  Restructuring charges in the six months ended September 30, 2011 relate to this plan and are primarily comprised of manufacturing relocation costs of $1.4 million for relocation of equipment to China and Mexico.  In addition, the Company incurred $1.2 million in personnel reduction costs primarily due to headcount reductions in the Mexican operations of the Tantalum Business Group (“Tantalum”).

 

Six Months Ended September 30, 2010

 

Restructuring expenses in the six month period ended September 30, 2010 are primarily comprised of manufacturing relocation costs of $3.1 million for relocation of equipment from various plants to Mexico or China as well as relocation of the European distribution center.  In addition, the Company incurred $1.0 million in personnel reduction costs due primarily to headcount reductions within Film and Electrolytic.

 

Reconciliation of restructuring liability

 

A reconciliation of the beginning and ending liability balances for restructuring charges included in the line items “Accrued expenses” and “Other non-current obligations” on the Condensed Consolidated Balance Sheets are as follows (amounts in thousands):

 

 

 

Quarter Ended September 30, 2011

 

Quarter Ended September 30, 2010

 

 

 

Personnel

 

Manufacturing

 

Personnel

 

Manufacturing

 

 

 

Reductions

 

Relocations

 

Reductions

 

Relocations

 

Beginning of period

 

$

1,751

 

$

—

 

$

6,696

 

$

—

 

Costs charged to expense

 

967

 

638

 

661

 

1,642

 

Costs paid or settled

 

(1,529

)

(638

)

(1,280

)

(1,642

)

Change in foreign exchange

 

(68

)

—

 

662

 

—

 

End of period

 

$

1,121

 

$

—

 

$

6,739

 

$

—

 

 

 

 

Six Months Ended September 30, 2011

 

Six Months Ended September 30, 2010

 

 

 

Personnel

 

Manufacturing

 

Personnel

 

Manufacturing

 

 

 

Reductions

 

Relocations

 

Reductions

 

Relocations

 

Beginning of period

 

$

1,825

 

$

—

 

$

8,398

 

$

—

 

Costs charged to expense

 

1,245

 

1,385

 

1,015

 

3,080

 

Costs paid or settled

 

(1,904

)

(1,385

)

(2,770

)

(3,080

)

Change in foreign exchange

 

(45

)

—

 

96

 

—

 

End of period

 

$

1,121

 

$

—

 

$

6,739

 

$

—