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Restructuring

12 Months Ended

Dec. 31, 2012

5. 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 December 31, 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 $(9) and $652 for the years ended December 31, 2011 and 2012, respectively. As of December 31, 2012 there is a liability of $61 associated with these initiatives recorded on the Company’s 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 $11,200 and are expected to be completed in 2013. The following table summarizes the activity for these initiatives for the years ended December 31, 2011 and 2012:


	Employee Separation Costs			Other Exit Costs			Asset Impairments			Total
Expense	$	3,489		$	5,336		$	-		$	8,825
Cash payments		(46	)		(4,488	)		-			(4,534	)

Balance at December 31, 2011	$	3,443		$	848		$	-		$	4,291
Expense		(395	)		2,658			147			2,410
Cash payments		(3,048	)		(3,506	)		-			(6,554	)
Utilization of reserve		-			-			(147	)		(147	)

Balance at December 31, 2012	$	-		$	-		$	-		$	-

An other postretirement benefit curtailment gain of $1,539 for the year ended December 31, 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 $50,400 and is expected to be completed in 2013. The following table summarizes the activity for this initiative for the years ended December 31, 2011 and 2012:


	Employee Separation Costs			Other Exit Costs			Asset Impairments			Total
Expense	$	32,995		$	6,620		$	-		$	39,615
Reorganization initiative transfer		1,877			-			-			1,877
Cash payments and foreign exchange translation		(11,644	)		(6,620	)		-			(18,264	)

Balance at December 31, 2011	$	23,228		$	-		$	-		$	23,228
Expense		2,385			1,740			3,846			7,971
Cash payments and foreign exchange translation		(23,559	)		(1,740	)		-			(25,299	)
Utilization of reserve		-			-			(3,846	)		(3,846	)

Balance at December 31, 2012	$	2,054		$	-		$	-		$	2,054

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 year ended December 31, 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 year ended December 31, 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 $20,800 and is expected to be completed in 2013. The following table summarizes the activity for this initiative for the year ended December 31, 2012:


	Employee Separation Costs			Other Exit Costs			Asset Impairments			Total
Expense	$	19,330		$	1,260		$	162		$	20,752
Cash payments and foreign exchange translation		(5,823	)		(1,260	)		-			(7,083	)
Utilization of reserve		-			-			(162	)		(162	)

Balance at December 31, 2012	$	13,507		$	-		$	-		$	13,507

- 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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