Facility Restructuring Charge

9 Months Ended

Jun. 30, 2013

2. Facility Restructuring Charge

On March 12, 2013, NBTY initiated a restructuring plan to streamline its operations and improve the profitability and return on invested capital of its manufacturing/packaging and distribution facilities. The restructuring will involve the sale or closure of seven of NBTY's manufacturing/packaging and distribution facilities. Facilities that will be impacted by the restructuring include NBTY's distribution facilities in Carson, California; South Plainfield, New Jersey and Lyndhurst, New Jersey and manufacturing/packaging facilities in Carson, California; South Plainfield, New Jersey; Lyndhurst, New Jersey and Wilson, North Carolina.

The restructuring plan commenced in the second quarter of fiscal 2013 and is expected to be completed in fiscal 2014. The restructuring is expected to result in cumulative charges of approximately $35,000 to $41,000 before tax over that period, of which costs related to workforce reductions will range from $16,000 to $17,000; facility costs will range from $6,000 to $10,000 and non-cash charges consist primarily of incremental depreciation ranging from $13,000 to $14,000. All costs associated with this restructuring plan will be reflected in Corporate / Manufacturing.

Facility restructuring charges for the three months ended June 30, 2013 were $4,880 for excess depreciation, and $64 for other facility costs. Facility restructuring charges for the nine months ended June 30, 2013 were $16,901 for severance and employee related costs, $12,379 for excess depreciation, and $5,864 for other facility costs.

The following summarizes the restructuring cash charges recorded and reconciles these charges to accrued expenses:

	Workforce Reductions			Facility Costs			Total
Accrued expenses—October 1, 2012	$	—		$	—		$	—
Charges		16,901			5,864			22,765
Cash payments		(1,105	)		(533	)		(1,638	)
Other		—			(64	)		(64	)

Accrued expenses—June 30, 2013	$	15,796		$	5,267		$	21,063

- 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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