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Restructuring And Relocation Costs
9 Months Ended
Jun. 30, 2013
Restructuring And Relocation Costs [Abstract]  
Restructuring And Relocation Costs

K.  RESTRUCTURING AND RELOCATION COSTS

 

During the first nine months of fiscal year 2013 we recorded restructuring and relocation charges of $1.7 million.   These charges were related to our Electrical Power Products business segment.

 

Our operations in the United Kingdom have been negatively impacted by market conditions and competitive pressures in the international markets in which they operate.  We reorganized certain non-core operations and eliminated certain positions to align our workforce in the United Kingdom with current market conditions and recorded $1.1 million related to severance therefor. 

 

Additionally, we have incurred and paid approximately $0.6 million in the nine months ended June 30, 2013 related to relocation efforts in connection with the construction of our new facility in Houston, Texas and one near Edmonton, Alberta, Canada.  We anticipate the construction of these two facilities will be completed in late summer 2013 and we will relocate our operations and personnel from their current leased facilities.  We expect to incur and expense additional relocation costs of approximately $2.0 million to $2.5 million in the next three to six months, which have not been recorded.

 

Additionally, we are attempting to sublease the current facility we occupy in Canada which has a lease that expires in July 2023.  There are no assurances that we will be able to obtain a sublease that will cover our existing lease cost of $1.2 million per year.  We will record an estimated loss on sublease, if any, in the fourth quarter of fiscal year 2013.  The lease on our Houston facility which we will be vacating expires on October 31, 2013.  We anticipate the additional non-cash depreciation costs related to the two new facilities to exceed the existing lease costs by approximately $2.2 million on an annual basis going forward.