Restructuring Charges

3 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

The Company is in the process of a restructuring plan to make the Company more competitive by removing excess capacity, relocating production to lower cost locations, and eliminating unnecessary costs throughout the Company.

A summary of the expenses aggregated on the Condensed Consolidated Statements of Operations line item “Restructuring charges” in the quarters ended June 30, 2014 and 2013, is as follows (amounts in thousands):



	Quarters Ended June 30,
	2014		2013
Manufacturing relocation costs	$	1,684	$	475
Personnel reduction costs	146		4,135
Total restructuring charges	$	1,830	$	4,610

Quarter Ended June 30, 2014

The Company incurred $1.8 million in restructuring charges in the quarter ended June 30, 2014 including $0.1 million of personnel reduction costs due to a reduction in overhead in Europe and $1.7 million of manufacturing relocation costs primarily due to the shut-down of the Tantalum production line in Evora, Portugal.

Quarter Ended June 30, 2013

The Company incurred $4.6 million in restructuring charges in the quarter ended June 30, 2013 including $4.1 million related to personnel reduction costs which is primarily comprised of the following: $1.9 million related to the closure of a portion of our innovation center in the U.S., $1.1 million related to the reduction of the solid capacitor production workforce in Mexico, $0.7 million related to the Company’s initiative to reduce overhead and $0.4 million related to an additional Cassia Integrazione Guadagni Straordinaria (“CIGS”) plan in Italy. The additional expense related to CIGS is as a result of an agreement with the labor union which allowed the Company to place up to 170 employees, on a rotation basis, on the CIGS plan to save labor costs. CIGS is a temporary plan to save labor costs whereby a company may temporarily “lay off” employees while the government continues to pay their wages for a maximum of 12 months during the program. The employees who are in CIGS are not working, but are still employed by the Company. Only employees that are not classified as management or executive level personnel can participate in the CIGS program and upon termination of the plan, the affected employees return to work.

In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $0.5 million due to the consolidation of manufacturing facilities within Italy and relocation of manufacturing equipment to Evora, Portugal.

Reconciliation of restructuring liability

A reconciliation of the beginning and ending liability balances for restructuring charges included in the line items “Accrued expenses” and “Other non-current obligations” on the Condensed Consolidated Balance Sheets for the quarters ended June 30, 2014 and 2013 are as follows (amounts in thousands):



	Quarter Ended June 30, 2014						Quarter Ended June 30, 2013
	Personnel Reductions			Manufacturing Relocations			Personnel Reductions			Manufacturing Relocations
Beginning of period	$	6,217		$	—		$	13,509		$	567
Costs charged to expense	146			1,684			4,135			475
Costs paid or settled	(2,924		)	(1,684		)	(8,869		)	(1,042		)
Change in foreign exchange	(55		)	—			172			—
End of period	$	3,384		$	—		$	8,947		$	—

- 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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