Restructuring Plant Closure and Severance

12 Months Ended

Dec. 31, 2011

Restructuring - Plant Closure and Severance [Abstract]

Restructuring - Plant Closure and Severance

10. Restructuring – Plant Closure and Severance

2011 Restructuring Actions – Boron Segment

In November 2011, SemEquip granted a non-exclusive license for its hardware technology to a key customer. In connection with the license, SemEquip transferred its hardware related assets to the licensee and reduced its workforce which included production, research and development, and support staff in Billerica, Massachusetts. Accordingly, the Company recognized a restructuring charge of $0.9 million in 2011 primarily for severance and related compensation associated with the headcount reduction, most of which was paid in 2011.

 2010 Restructuring Actions – Advanced Ceramics Operations Segment

During the fourth quarter of 2010, the Company closed its hot press manufacturing operation in Costa Mesa, California as a result of reduced demand for ceramic body armor solutions and the high cost of doing business in the State, especially the high cost of electricity, which is integral to its manufacturing operations. The Company has consolidated all hot press operations into its existing manufacturing plant in Lexington, Kentucky. Accordingly, the Company recognized a restructuring charge of $3.5 million during the year ended December 31, 2010 to write down the value of long-lived assets associated with the closure of the hot press manufacturing operation in Costa Mesa, California.

2009 Restructuring Actions – ESK Ceramics Segment

In May 2009, the Company announced that, in accordance with the French legal process, its ESK Ceramics France subsidiary (“ESK France”) presented to the local employees' representatives a plan for closing its manufacturing plant in Bazet, France. The plant was closed in December 2009 and, as a result, ESK France reduced its workforce by 97 employees, primarily composed of manufacturing, production and additional support staff at the plant. This action was implemented as a cost-cutting measure to eliminate losses that were incurred at this facility due to the recent severe economic contraction and is consistent with Ceradyne's ongoing objective to lower the costs of its manufacturing operations. This manufacturing facility was an 88,000 square foot building owned by ESK France that had been used to support the production of various industrial ceramic products. We transferred production of these products to our German subsidiary, ESK Ceramics GmbH & Co. KG (“ESK Ceramics”) in Kempten, Germany. Affected employees were eligible for a severance package that included severance pay, continuation of benefits and outplacement services. Pre-tax charges relating to this corporate restructuring also included accelerated depreciation of fixed assets and various other costs to close the plant.

ESK Ceramics recorded pre-tax charges totaling $12.2 million in connection with the Bazet restructuring and plant closure, which comprised $10.3 million for severance, termination of contracts and other shutdown costs that was reported as Restructuring - plant closure and severance in Operating Expenses and $1.9 million for accelerated depreciation of fixed assets that was reported in Cost of Goods Sold in the year ended December 31, 2009. The severance charge was recognized as a postemployment benefit as the Company's obligation related to employees' rights to receive compensation for future absences was attributable to employees' services already rendered, the obligation relates to rights that legally vest, payment of the compensation is probable, and the amount could be reasonably estimated based on local statutory requirements. The Company also incurred other severance costs in connection with headcount reductions in the United States and Germany of $2.7 million during the year ended December 31, 2009.