Restructuring Charges

9 Months Ended

Sep. 30, 2012

Restructuring Charges [Abstract]

Restructuring Charges

NOTE M – Restructuring Charges

During June of 2012, CTS initiated certain restructuring actions to reorganize certain operations to further improve its cost structure. These actions will result in the elimination of approximately 250 positions. These actions are expected to be substantially complete by the fourth quarter of 2012. The following table displays the planned restructuring and restructuring-related charges associated with the realignment, as well as a summary of the actual costs incurred through September 30, 2012:

($ in millions) June 2012 Plan	Planned Costs		Actual incurred through September 30, 2012
Workforce reduction	$	2.1	$	1.9
Asset impairment charge		1.2		1.4
Other charge		0.1		0.1
Restructuring and impairment charges	$	3.4	$	3.4
Inventory write-down	$	0.6	$	0.7
Equipment relocation		0.5		0.2
Other charges		0.5		0.4
Restructuring-related charges	$	1.6	$	1.3
Total restructuring and restructuring-related charges		5.0		4.7

Of the restructuring and restructuring-related charges incurred, $1.6 million relates to the Components and Sensors segment and $3.1 million relates to the EMS segment. Restructuring and impairment charges are reported on a separate line on the Unaudited Consolidated Statements of Earnings. Restructuring-related charges are reported as a component of Cost of Goods Sold on the Unaudited Consolidated Statements of Earnings.

The following table displays the restructuring reserve activity related to the realignment for the period ended September 30, 2012:

($ in millions) June 2012 Plan
Restructuring liability at April 1, 2012	$	—
Restructuring and restructuring-related charges, excluding asset impairments and write-offs		2.6
Cost paid		(2.3	)
Restructuring liability at September 30, 2012	$	0.3

Included in the restructuring activities discussed above, CTS will consolidate its operations from the United Kingdom (“UK”) EMS manufacturing facility and the Tucson, AZ Components and Sensors facility into other facilities. The EMS operations at the UK EMS facility are currently being transferred to CTS’ EMS facilities located in Londonderry, New Hampshire and Matamoros, Mexico. The Components and Sensors operations at the Tucson, AZ facility are currently being transferred to CTS’ Components and Sensors facility located in Albuquerque, New Mexico.

During April of 2011, CTS initiated certain restructuring actions to reorganize certain operations to further improve its cost structure. These actions resulted in the elimination of approximately 30 positions. The following table displays the planned restructuring and restructuring-related charges associated with the realignment, as well as a summary of the actual costs incurred through September 30, 2012:

($ in millions) April 2011 Plan	Planned Costs		Actual incurred through September 30, 2012
Workforce reduction	$	0.8	$	0.7
Total restructuring and impairment charge	$	0.8	$	0.7

Of the restructuring charges incurred, $0.5 million relates to the Components and Sensors segment and $0.2 million relates to the EMS segment. Restructuring charges are reported on a separate line on the Unaudited Consolidated Statements of Earnings. These restructuring actions ended in second quarter 2011.

The following table displays the restructuring reserve activity related to the realignment for the period ended September 30, 2012:

($ in millions) April 2011 Plan
Restructuring liability at January 1, 2011	$	—
Restructuring and restructuring-related charges, excluding asset impairments and write-offs		0.7
Cost paid		(0.7	)
Restructuring liability at September 30, 2012	$	—