Note 5. Restructuring Charges

A summary of the expenses aggregated on the Condensed Consolidated Statements of Operations line item “Restructuring charges” in the quarters and nine months ended December 31, 2012 and 2011, are as follows (amounts in thousands):

	Quarters Ended December 31,				Nine Months Ended December 31,
	2012		2011		2012		2011
Cost of relocating manufacturing equipment	$	497	$	261	$	1,658	$	1,646
Personnel reduction costs	3,389		10,487		12,014		11,732
	$	3,886	$	10,748	$	13,672	$	13,378

Nine months ended December 31, 2012

In fiscal year 2010, the Company initiated the first phase of a plan to restructure Film and Electrolytic and to reduce overhead within the Company as a whole. Since that time the restructuring plan has been expanded to all business groups and includes implementing programs to make the Company more competitive by removing excess capacity, moving production to lower cost locations and eliminating unnecessary costs throughout the Company. In the nine months ended December 31, 2012 personnel reduction costs related to this plan were $12.0 million and are comprised of the following: $2.8 million in termination benefits associated with converting the Landsberg, Germany manufacturing facility into a technology center; $2.3 million in termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center; $1.5 million for reductions in production workforce in Mexico; $1.1 million for reductions in production workforce in Portugal; $2.3 million for reductions in administrative overhead primarily in the Corporate headquarters and $2.0 million for reductions in production workforce and administrative overhead across the entire Company. The total termination benefits paid for the conversion of the United Kingdom manufacturing facility are expected to be $2.6 million and the expected completion date is the third quarter of fiscal year 2014.

In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $1.7 million for relocation of equipment to Bulgaria, China, Macedonia and Mexico and for the consolidation of manufacturing operations within Italy.

Nine months ended December 31, 2011

In the nine months ended December 31, 2011, personnel reduction costs of $11.7 million were primarily comprised of the following: termination benefits of $6.1 million related to facility closures in Italy that commenced during fiscal year 2013; charges of $4.5 million also incurred in Italy to participate in a plan to save labor costs whereby a company may temporarily “lay off” employees while the government continues to pay their wages for a certain period of time; and, $1.2 million in personnel reduction costs primarily due to headcount reductions related to Tantalum operations in Mexico. These charges related to the Company’s efforts to restructure its manufacturing operations within Europe, primarily within Film and Electrolytic. Construction has commenced on a new manufacturing facility in Pontecchio, Italy, that will allow the closure and consolidation of multiple manufacturing operations located in Italy. In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $1.6 million for relocation of equipment to China and Mexico.

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 are as follows (amounts in thousands):

	Quarter Ended December 31, 2012						Quarter Ended December 31, 2011
	Personnel			Manufacturing			Personnel			Manufacturing
	Reductions			Relocations			Reductions			Relocations
Beginning of period	$	15,019		$	—		$	1,121		$	—
Costs charged to expense	3,389			497			10,487			261
Costs paid or settled	(4,139		)	(497		)	(617		)	(261		)
Change in foreign exchange	239			—			(390		)	—
End of period	$	14,508		$	—		$	10,601		$	—

	Nine Months Ended December 31, 2012						Nine Months Ended December 31, 2011
	Personnel			Manufacturing			Personnel			Manufacturing
	Reductions			Relocations			Reductions			Relocations
Beginning of period	$	11,474		$	—		$	1,827		$	—
Costs charged to expense	12,014			1,658			11,732			1,646
Costs paid or settled	(8,990		)	(1,658		)	(2,521		)	(1,646		)
Change in foreign exchange	10			—			(437		)	—
End of period	$	14,508		$	—		$	10,601		$	—