Special Charges

12 Months Ended

Sep. 30, 2011

Special Charges

Special Charges

NOTE 9. SPECIAL CHARGES

Over the past several years, we have placed a focus on improving our cost structure and business processes through various means including consolidation of certain manufacturing and select back office operations, customer rationalizations and various other organizational changes.  The charges associated with these actions are summarized below.

2011 Actions

· During the second quarter of fiscal 2011, we recorded an additional special charge of $2.6 million related to our fiscal 2010 fourth quarter action.  The majority of the charge related to additional severance and other benefits provided to affected employees of that action as well as a write-down of assets held for sale.  During the third quarter of fiscal 2011, we recorded a benefit of $1.2 million primarily related to the net reversal of severance recorded in relation to our fourth quarter of fiscal 2010 restructuring action, partially offset by an additional write-down of assets held for sale.  The table below excludes the impacts of write-downs on assets held for sale.

2010 Actions

· During the fourth quarter of fiscal 2010, we announced plans to eliminate approximately 100 positions which resulted in a special charge of $4.3 million primarily related to severance and other benefits provided to affected employees.  The majority of the cash expenditures associated with the severance will be completed by the end of our 2011 fiscal year.  We also recorded a charge of $3.9 million related to write-downs associated with the planned disposal of two aircraft from our corporate aviation assets, which are jointly owned with Hillenbrand, Inc.  The loss was recognized net of management's estimate of amounts to be recovered.  The assets held for sale are recorded in other current assets in the Consolidated Balance Sheet.

· During the second quarter of fiscal 2010, we announced organizational changes including the elimination of approximately 160 positions across the Company. The result was a special charge of $5.0 million primarily related to severance and other benefits provided to affected employees. The majority of the cash expenditures associated with the severance was completed by the end of our 2011 fiscal year with the remainder to be paid in fiscal 2012.

2009 Actions

· During the second quarter of fiscal 2009, we announced a plan which impacted approximately 450 salaried, hourly and temporary employees. In total, the plan resulted in a charge of $11.9 million related to severance and early retirement packages. Additionally, postretirement health care costs and the waiver of an early retirement pension penalty offered in conjunction with a voluntary early retirement incentive and the associated curtailment charges resulted in additional charges of $4.2 million. Asset impairment, discontinued use of a building under an operating lease and other charges of approximately $4.4 million were also recorded in conjunction with these actions. The charge related to severance and early retirement packages and resulted in cash expenditures that were substantially completed as of September 30, 2010.

Severance activity related to these actions during fiscal 2011 was as follows:

	Beginning								Ending
	Balance								Balance
	September 30,								September 30,
	2010		Expenses		Cash Payments		Reversals		2011
Fiscal Year 2010
Q2 Action - Restructuring	$	1.5	$	-	$	1.1	$	-	$	0.4
Q4 Action - Restructuring		3.7		3.3		2.9		2.6		1.5
Total Fiscal Year 2010	$	5.2	$	3.3	$	4.0	$	2.6	$	1.9
Fiscal Year 2009
Q2 Action - Restructuring	$	0.4	$	-	$	0.4	$	-	$	-
Total	$	5.6	$	3.3	$	4.4	$	2.6	$	1.9