Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges

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Restructuring Charges
3 Months Ended
Jun. 30, 2012
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 ended June 30, 2012 and 2011, is as follows (amounts in thousands):

 

 

 

Quarters Ended June 30,

 

 

 

2012

 

2011

 

Cost of relocating manufacturing equipment

 

$

146

 

$

747

 

Personnel reduction costs

 

1,118

 

278

 

 

 

$

1,264

 

$

1,025

 

 

Quarter Ended June 30, 2012

 

In 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 quarter ended June 30, 2012 relate to this plan and are primarily comprised of termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center.  The total termination benefits expected for this conversion are $2.6 million and are expected to be completed in the third quarter of fiscal year 2014. In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $0.2 million for relocation of equipment to China and Macedonia.

 

Quarter Ended June 30, 2011

 

Restructuring charges in the quarter ended June 30, 2011 were primarily comprised of manufacturing relocation costs of $0.7 million for relocation of equipment from Italy to Mexico and China. In addition, the Company incurred $0.3 million in personnel reduction costs due primarily to headcount reductions related to the Company’s initiative to reduce overhead within the Company as a whole.

 

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 June 30, 2012

 

Quarter Ended June 30, 2011

 

 

 

Personnel

 

Manufacturing

 

Personnel

 

Manufacturing

 

 

 

Reductions

 

Relocations

 

Reductions

 

Relocations

 

Beginning of period

 

$

11,474

 

$

 

$

1,827

 

$

 

Costs charged to expense

 

1,118

 

146

 

278

 

747

 

Costs paid or settled

 

(803

)

(146

)

(377

)

(747

)

Change in foreign exchange

 

(605

)

 

23

 

 

End of period

 

$

11,184

 

$

 

$

1,751

 

$