Restructuring Charges

3 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

The Company has implemented restructuring plans, which include programs to increase competitiveness by removing excess capacity, relocating production to lower cost locations, and eliminating unnecessary costs throughout the Company. Significant restructuring plans in progress or recently completed as of June 30, 2019 are summarized below (amounts in thousands):



		Total expected to be incurred		Incurred during quarter ended June 30, 2019			Cumulative incurred to date
Restructuring Plan	Segment	Personnel Reduction Costs	Relocation & Exit Costs	Personnel Reduction Costs	Relocation & Exit Costs		Personnel Reduction Costs	Relocation & Exit Costs
Tantalum powder facility relocation ⁽¹⁾	Solid Capacitors	897	2,098	448	(552	)	448	2,805
Axial electrolytic production relocation from Granna to Evora	Film and Electrolytic	673	3,964	673	1,308		673	3,603
Reorganization of MnO2 product line	Solid Capacitors	3,128	—	43	—		1,628	—

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⁽¹⁾ The current quarter credit for manufacturing relocation and exit costs is due to the recovery of costs related to the sale of tantalum that has been reclaimed (“tantalum reclaim”) as part of the plant exit activities. Tantalum reclaim in future periods is expected to further reduce the cumulative incurred costs.

A summary of the expenses aggregated in the Condensed Consolidated Statements of Operations line item “Restructuring charges” in the three months ended June 30, 2019 and 2018, is as follows (amounts in thousands):



	Three Months Ended June 30,
	2019		2018
Personnel reduction costs	$	1,229	$	(84	)
Relocation and exit costs	979		(12		)
Restructuring charges	$	2,208	$	(96	)

Three Months Ended June 30, 2019

The Company incurred $2.2 million in restructuring charges in the three months ended June 30, 2019 comprised of $1.2 million in personnel reduction costs and $1.0 million in manufacturing relocation and exit costs.

The personnel reduction costs of $1.2 million were primarily due to $0.7 million in costs in the Film and Electrolytic segment related to severance charges resulting from the closing of the Granna, Sweden manufacturing plant as axial electrolytic production is being moved to the plant in Evora, Portugal and $0.5 million in costs in the Solid Capacitors segment related to severance charges resulting from the closing of the tantalum powder facility in Carson City, Nevada as tantalum powder production is moving to the plant in Matamoros, Mexico.

The manufacturing relocation and exit costs of $1.0 million primarily related to $1.3 million in costs resulting from the relocation of axial electrolytic production equipment from the Company's plant in Granna, Sweden to its plant in Evora, Portugal. Manufacturing relocation and exit costs were benefited by a $0.6 million credit from tantalum reclaim.

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 three months ended June 30, 2019 and 2018 is as follows (amounts in thousands):



	Three Months Ended June 30, 2019						Three Months Ended June 30, 2018
	Personnel Reductions			Manufacturing Relocations			Personnel Reductions			Manufacturing Relocations
Beginning of period	$	1,865		$	316		$	9,629		$	330
Costs charged to expense	1,229			979			(84		)	(12		)
Costs paid or settled	(1,315		)	(979		)	(5,131		)	12
Change in foreign exchange	10			9			(244		)	(13		)
End of period	$	1,789		$	325		$	4,170		$	317