Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges

v2.4.0.6
Restructuring Charges
6 Months Ended
Sep. 30, 2012
Restructuring Charges  
Restructuring Charges

Note 5. 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, 2012 and 2011, is as follows (amounts in thousands):

 

 

 

Quarters Ended September 30,

 

Six Months Ended September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Cost of relocating manufacturing equipment

 

$

1,015

 

$

638

 

$

1,161

 

$

1,385

 

Personnel reduction costs

 

7,507

 

967

 

8,625

 

1,245

 

 

 

$

8,522

 

$

1,605

 

$

9,786

 

$

2,630

 

 

Six month period Ended September 30, 2012

 

In fiscal year 2010, the Company initiated the first phase of a plan to restructure 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, 2012 related to this plan are primarily comprised of the following: $2.8 million in termination benefits associated with converting the Landsberg, Germany manufacturing facility into a technology center and $1.7 million in termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center.  The total termination benefits expected for the conversion of the Weymouth manufacturing facility are $2.6 million; the expected completion is the third quarter of fiscal year 2014. The Company also incurred $3.9 million for reductions in production workforce across the entire Company and reducing administrative overhead within the Company as a whole.  In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $1.2 million for relocation of equipment to Bulgaria, China, Macedonia and Mexico and for the consolidation of manufacturing operations within Italy.

 

Six month period ended September 30, 2011

 

Restructuring charges in the six month period ended September 30, 2011 were 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”).

 

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):

 

 

 

Quarters Ended September 30, 2012

 

Quarters Ended September 30, 2011

 

 

 

Personnel

 

Manufacturing

 

Personnel

 

Manufacturing

 

 

 

Reductions

 

Relocations

 

Reductions

 

Relocations

 

Beginning of period

 

$

11,184

 

$

 

$

1,751

 

$

 

Costs charged to expense

 

7,507

 

1,015

 

967

 

638

 

Costs paid or settled

 

(4,048

)

(1,015

)

(1,529

)

(638

)

Change in foreign exchange

 

376

 

 

(68

)

 

End of period

 

$

15,019

 

$

 

$

1,121

 

$

 

 

 

 

Six Months Ended September 30, 2012

 

Six Months Ended September 30, 2011

 

 

 

Personnel

 

Manufacturing

 

Personnel

 

Manufacturing

 

 

 

Reductions

 

Relocations

 

Reductions

 

Relocations

 

Beginning of period

 

$

11,474

 

$

 

$

1,827

 

$

 

Costs charged to expense

 

8,625

 

1,161

 

1,245

 

1,385

 

Costs paid or settled

 

(4,851

)

(1,161

)

(1,906

)

(1,385

)

Change in foreign exchange

 

(229

)

 

(45

)

 

End of period

 

$

15,019

 

$

 

$

1,121

 

$