Impairment and Restructuring Charges

6 Months Ended

Sep. 30, 2012

Restructuring, Plant Closures and Other Related Costs [Abstract]

Restructuring, Plant Closures and Other Related Costs

Note 11: Impairment and Restructuring Charges

During the first quarter of fiscal 2013, the Company announced its intention to restructure its Europe segment.  The Company expects actions will include exiting certain non-core product lines based on its global product strategy, reducing manufacturing costs, implementing headcount reductions, and disposing of or selling certain assets.  The restructuring is designed to align the cost structure of the segment with the segment's strategic focus on the commercial vehicle, off-highway and engine product markets, while improving gross margin and return on average capital employed.

Since the commencement of the Europe segment restructuring, the Company has recorded $15,756 of asset impairment charges, $5,616 of employee severance costs and $261 of repositioning expenses.  The Company currently anticipates incurring additional restructuring and repositioning costs of approximately $10,000, with the majority of these costs being incurred through fiscal 2014.  Total future cash expenditures of approximately $15,000 are anticipated to be incurred related to this restructuring plan.

Restructuring and repositioning expenses relative to the Europe segment restructuring program were as follows:

	Three months ended September 30				Six months ended September 30
	2012		2011		2012		2011
Employee severance and related benefits	$	1,114	$	-	$	5,616	$	-
Repositioning costs		203		-		261		-
Total restructuring and repositioning expenses	$	1,317	$	-	$	5,877	$	-

Changes in accrued severance were as follows:

	Three months ended September 30, 2012			Six months ended September 30, 2012
Beginning balance	$	4,344		$	-
Additions		1,114			5,616
Payments		(815	)		(966	)
Effect of exchange rate changes		98			91
Balance, September 30, 2012	$	4,741		$	4,741

The Company recorded asset impairment charges of $16,748 during the quarter ended September 30, 2012 to reduce the carrying value of certain facilities held for sale in the North America and Europe segments to their estimated fair value, less costs to sell.  Assets held for sale of $6,646 and $2,450 at September 30, 2012 and March 31, 2012, respectively, included in other noncurrent assets, consist of facilities that the Company is currently marketing for sale.  Upon designation as held for sale, the carrying value of the asset was measured at the lower of its carrying value or its estimated fair value, less costs to sell.