Restructuring Charges

6 Months Ended

Sep. 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 as of September 30, 2019 are summarized below (amounts in thousands):



		Total expected to be incurred				Incurred during quarter ended September 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	$	118	$	55	$	566	$	2,860
Axial electrolytic production relocation from Granna to Evora	Film and Electrolytic	729		4,242		46		638		719		4,242
MnO2 product line headcount reduction	Solid Capacitors	2,948		—		1,320		—		2,948		—

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⁽¹⁾ Total expected relocation and exit costs is less than cumulative relocation and exit costs incurred to date due to the expected recovery of costs related to the sale of tantalum that is expected to be reclaimed (“tantalum reclaim”) as part of the plant exit activities.

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



	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Personnel reduction costs	$	2,396	$	—	$	3,625	$	(84	)
Relocation and exit costs	524		—		1,503		(12		)
Restructuring charges	$	2,920	$	—	$	5,128	$	(96	)

Three Months Ended September 30, 2019

The Company incurred $2.9 million in restructuring charges in the three months ended September 30, 2019 comprised of $2.4 million in personnel reduction costs and $0.5 million in relocation and exit costs.

The personnel reduction costs of $2.4 million were primarily due to $1.3 million in severance charges related to headcount reductions in the Solid Capacitors reportable segment due to a decline in MnO2 sales, $0.7 million in corporate severance charges related to headcount reductions in TOKIN Japan, and $0.2 million in severance charges related to personnel reductions resulting from a reorganization of Film and Electrolytic's management structure.

The relocation and exit costs of $0.5 million primarily related to $0.6 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.

Six Months Ended September 30, 2019

The Company incurred $5.1 million in restructuring charges in the six months ended September 30, 2019 comprised of $3.6 million in personnel reduction costs and $1.5 million in relocation and exit costs.

The personnel reduction costs of $3.6 million were primarily due to $1.4 million in severance charges related to headcount reductions in the Solid Capacitors reportable segment due to a decline in MnO2 sales, $0.7 million in severance charges resulting from the closing of the Granna, Sweden manufacturing plant as axial electrolytic production was moved to the plant in Evora, Portugal, $0.7 million in corporate severance charges related to headcount reductions in TOKIN Japan, $0.6 million in severance charges resulting from the closing of the tantalum powder facility in Carson City, Nevada, and

$0.2 million in severance costs related to personnel reductions resulting from a reorganization of Film and Electrolytic's management structure.

The relocation and exit costs of $1.5 million primarily related to $1.9 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. Relocation and exit costs were benefited by a $0.5 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 and six months ended September 30, 2019 and 2018 is as follows (amounts in thousands):



	Three Months Ended September 30, 2019						Three Months Ended September 30, 2018
	Personnel Reductions			Relocation and Exit Costs			Personnel Reductions			Relocation and Exit Costs
Beginning of period	$	1,789		$	325		$	4,170		$	317
Costs charged to expense	2,396			524			—			—
Costs paid or settled	(2,661		)	(523		)	(1,313		)	—
Change in foreign exchange	(9		)	(1		)	(20		)	(7		)
End of period	$	1,515		$	325		$	2,837		$	310



	Six Months Ended September 30, 2019						Six Months Ended September 30, 2018
	Personnel Reductions			Relocation and Exit Costs			Personnel Reductions			Relocation and Exit Costs
Beginning of period	$	1,865		$	316		$	9,629		$	330
Costs charged to expense	3,625			1,503			(79		)	—
Costs paid or settled	(3,976		)	(1,502		)	(6,449		)	—
Change in foreign exchange	1			8			(264		)	(20		)
End of period	$	1,515		$	325		$	2,837		$	310