RESTRUCTURING AND OTHER SPECIAL CHARGES, NET

The following table presents the components of restructuring and other special charges, net:



	Years Ended March 31,
(In thousands)	2013			2012
Restructuring costs (benefits), net	$	(2,177	)	$	14,473
Other related costs	8,537			5,725
Asset impairment charges (Note 23)	1,729			4,250
Total restructuring and other special charges, net	$	8,089		$	24,448

Restructuring Costs (Benefits), Net

In May 2011, the Company announced the alignment of its then twelve regional distribution companies into four new divisions, and the consolidation of its regional company accounting and certain administrative functions into four newly created Business Support Centers (“BSCs”). Additionally, the Company initiated a related change in its legal entity structure on January 1, 2012 whereby each Airgas regional distribution company would merge, once converted to SAP, into a single limited liability company (“LLC”) of which the Company is the sole member. Prior to conversion to SAP, each of the Company’s twelve regional distribution companies operated its own accounting and administrative functions. Enabled by the Company’s conversion to a single information platform across all of its regional distribution businesses as part of the SAP implementation, the restructuring allows Airgas to more effectively utilize its resources across its regional distribution businesses and form an operating structure to leverage the full benefits of its new SAP platform. As a result of the realignment plan, the Company recorded an initial restructuring charge of $13.3 million during the three months ended June 30, 2011 for severance benefits expected to be paid under the Airgas, Inc. Severance Pay Plan to employees whose jobs were eliminated as a result of the realignment.

During the year ended March 31, 2013, the Company recorded $2.2 million in net restructuring benefits. In fiscal 2013, the Company re-evaluated its remaining severance liability related to the realignment and, as a result of this analysis, reduced its severance liability by $3.7 million. The reduction in the severance liability was driven by fewer than expected individuals meeting the requirements to receive severance benefits. This reduction was due to the retention of employees through relocation or acceptance of new positions, as well as former associates who chose not to remain with the Company through their anticipated separation dates. Offsetting the benefit from the reduction to the severance liability were additional restructuring costs of $1.5 million, primarily related to relocation and other costs.

During the year ended March 31, 2012, the Company recorded $14.5 million in restructuring costs. The majority of the costs for fiscal 2012 were related to the $13.3 million severance restructuring charge during the three months ended June 30, 2011.

The activity in the accrued liability balances associated with the restructuring plan was as follows for the years ended March 31, 2013 and 2012 :



(In thousands)	Severance Costs			Facility Exit and Other Costs			Total
Balance at March 31, 2011	$	—		$	—		$	—
Restructuring charges	13,330			1,143			14,473
Cash payments and other adjustments	(192		)	(153		)	(345		)
Balance at March 31, 2012	$	13,138		$	990		$	14,128
Restructuring charges	—			1,523			1,523
Cash payments	(4,756		)	(2,199		)	(6,955		)
Other adjustments	(3,700		)	—			(3,700		)
Balance at March 31, 2013	$	4,682		$	314		$	4,996

Of the $5.0 million in accrued restructuring costs at March 31, 2013, $2.5 million was included in accrued expenses and other current liabilities and $2.5 million was included in other non-current liabilities on the Company’s Consolidated Balance Sheet. The restructuring costs were not allocated to the Company’s business segments (see Note 21).

Other Related Costs

For the year ended March 31, 2013, the Company also incurred $8.5 million of other costs related to the divisional realignment and LLC restructuring. These costs primarily related to transition staffing for the BSCs, legal costs and other expenses associated with the Company’s organizational and legal entity changes. For the year ended March 31, 2012, the Company incurred $5.7 million of similar costs associated with the organizational and legal entity changes.

The divisional alignment was completed in March 2013 as the final regional distribution company implemented SAP and integrated and merged into the LLC. However, the payout of severance benefits under the plan is expected to continue through fiscal 2014 based on the payment of benefits over time (rather than in a lump sum), extended benefits earned by a number of associates through the Airgas, Inc. Severance Pay Plan and payments to associates at other distribution businesses yet to convert to SAP and/or merge into the LLC.

Asset Impairment Charges

The Company recorded special charges of $1.7 million and $4.3 million related to asset impairments during the years ended March 31, 2013 and 2012, respectively – see Note 23 for further information.