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Restructuring

9 Months Ended

Sep. 30, 2012

4. Restructuring

The Company implemented several restructuring initiatives in prior years in connection with the closure or consolidation of facilities in North America, Europe, South America, Australia and Asia. The Company also implemented a restructuring initiative that involved the reorganization of the Company’s operating structure. The Company commenced these initiatives prior to December 31, 2010 and continued to execute these initiatives through September 30, 2012. The majority of the costs associated with these initiatives were incurred shortly after the original implementation. However, the Company continues to incur costs on some of the initiatives related principally to the liquidation of the respective facilities. The total expense incurred related to these actions amounted to $(241) and $566 for the nine months ended September 30, 2011 and 2012, respectively. As of September 30, 2012, there is a liability of $80 associated with these initiatives recorded on the Company’s condensed consolidated balance sheet.

In the first quarter of 2011, the Company initiated the closure of a facility in North America and announced the decision to establish a centralized shared services function in Europe. The estimated total costs of these initiatives amount to $11,000 and are expected to be completed in 2013. The Company has recognized $10,993 of costs related to these initiatives. The following tables summarize the activity for these initiatives for the nine months ended September 30, 2011 and 2012:


	Employee			Other
	Separation			Exit			Asset
	Costs			Costs			Impairments			Total
Balance at January 1, 2011	$	—		$	—		$	—		$	—
Expense		2,278			4,721			—			6,999
Cash payments		—			(3,465	)		—			(3,465	)

Balance at September 30, 2011	$	2,278		$	1,256		$	—		$	3,534


	Employee			Other
	Separation			Exit			Asset
	Costs			Costs			Impairments			Total
Balance at January 1, 2012	$	3,443		$	848		$	—		$	4,291
Expense		(392	)		2,413			147			2,168
Cash payments		(3,046	)		(3,261	)		—			(6,307	)
Utilization of reserve		—			—			(147	)		(147	)

Balance at September 30, 2012	$	5		$	—		$	—		$	5

An other postretirement benefit curtailment gain of $1,539 for the nine months ended September 30, 2012 resulted from the closure of a U.S. facility and was recorded as a reduction to restructuring expense.

In the second quarter of 2011, the Company initiated the reorganization of the Company’s French body sealing operations in relation to the joint venture agreement with FMEA. The estimated total cost of this initiative is $44,300 and is expected to be completed in 2012. The Company has recognized $44,237 of costs related to this initiative. The following tables summarize the activity for this initiative for the nine months ended September 30, 2011 and 2012:


	Employee			Other
	Separation			Exit			Asset
	Costs			Costs			Impairments		Total
Balance at January 1, 2011	$	—		$	—		$	—	$	—
Expense		33,431			4,160			—		37,591
Reorganization iniative transfer		1,877			—			—		1,877
Cash payments and foreign exchange translation		(3,927	)		(4,160	)		—		(8,087	)

Balance at September 30, 2011	$	31,381		$	—		$	—	$	31,381


	Employee			Other
	Separation			Exit			Asset
	Costs			Costs			Impairments		Total
Balance at January 1, 2012	$	23,228		$	—		$	—	$	23,228
Expense		423			1,360			—		1,783
Cash payments and foreign exchange translation		(22,060	)		(1,360	)		—		(23,420	)

Balance at September 30, 2012	$	1,591		$	—		$	—	$	1,591

In the third quarter of 2011, the Company initiated the transfer of a sealing business from one of its German facilities to other sealing operations in Eastern Europe. After discussions with several stakeholders it was determined the completion of this initiative would not be achieved. As a result, $1,644 of restructuring expense was reversed in the nine months ended September 30, 2012.

In the first quarter of 2012, the Company initiated the closure of a facility in North America and a restructuring liability of $4,886 was recorded. During the second quarter of 2012, the Company was able to negotiate a new contract with the union, therefore enabling the facility to remain open. As a result, $4,725 of restructuring expense was reversed in the nine months ended September 30, 2012.

During 2012, the Company initiated the restructuring of facilities in Europe to change the Company’s European footprint to improve the Company’s operating performance. The estimated total cost of this initiative is $20,300 and is expected to be completed in 2013. The following table summarizes the activity for this initiative for the nine months ended September 30, 2012:


	Employee			Other
	Separation			Exit			Asset
	Costs			Costs			Impairments		Total
Balance at January 1, 2012	$	—		$	—		$	—	$	—
Expense		14,053			210			—		14,263
Cash payments and foreign exchange translation		(3,368	)		(210	)		—		(3,578	)

Balance at September 30, 2012	$	10,685		$	—		$	—	$	10,685

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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