The Company has acquisition related restructuring plans and non-acquisition related restructuring plans and bases its restructuring accounting and disclosures on the applicable accounting guidance. As a result, charges to net earnings were made in the periods in which restructuring plan liabilities were incurred.
Acquisition related restructuring plan
In fiscal 2010, the Company acquired the stock of OEB Traction Batteries and certain operating assets and liabilities of the reserve power battery business of Accu Holding AG and its Swedish sales subsidiary (all collectively referred to as "Oerlikon"). The Company completed the process of closing the two manufacturing facilities of Oerlikon during the third quarter of fiscal 2011, which resulted in the reduction of approximately 100 employees. The Company recorded restructuring charges related to this plan of $4,526 in fiscal 2010 through fiscal 2012. This plan has been completed as of March 31, 2012.
A roll-forward of the acquisition related restructuring reserve is as follows:
| Employee Severance |
Plant Closure and Other |
Total | ||||||||||
|
Balance at March 31, 2009 |
$ | — | $ | — | $ | — | ||||||
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Accrued |
1,269 | — | 1,269 | |||||||||
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Costs incurred |
— | — | — | |||||||||
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Foreign currency impact and other |
23 | — | 23 | |||||||||
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Balance at March 31, 2010 |
$ | 1,292 | $ | — | $ | 1,292 | ||||||
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Accrued |
108 | 2,438 | 2,546 | |||||||||
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Costs incurred |
(1,107 | ) | (2,313 | ) | (3,420 | ) | ||||||
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Foreign currency impact and other |
(36 | ) | 21 | (15 | ) | |||||||
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Balance at March 31, 2011 |
$ | 257 | $ | 146 | $ | 403 | ||||||
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Accrued |
81 | 630 | 711 | |||||||||
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Costs incurred |
(338 | ) | (776 | ) | (1,114 | ) | ||||||
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Balance at March 31, 2012 |
$ | — | $ | — | $ | — | ||||||
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Non-acquisition related restructuring plans
In February and May 2009, the Company announced a plan to restructure certain of its European and American operations, which resulted in a reduction of approximately 470 employees upon completion across its operations. These actions were primarily in Europe and included charges for employee-related severance payments and asset impairments, the most significant of which was the closure of its leased Italian manufacturing facility and the opening of a new Italian distribution center. The Company recorded restructuring charges of $31,894 in fiscal 2009 through fiscal 2011, with $105 of additional charges offset by a favorable accrual adjustment of $246 during fiscal 2012. The Company incurred $2,270 of costs against the accrual during fiscal 2012. This plan has been completed as of March 31, 2012.
During fiscal 2011, the Company announced a further restructuring of its European operations, which will result in the reduction of approximately 60 employees upon completion across its operations. The Company estimates that the total charges for these actions will amount to approximately $5,200, primarily from cash expenses for employee severance-related payments and site closure costs. Based on commitments incurred to date, the Company recorded restructuring charges of $3,830 in fiscal 2011, with $1,783 of additional charges, offset by a favorable accrual adjustment of $435 related to the fiscal 2011 plan recorded in fiscal 2012. The Company incurred $1,316 of costs against the accrual during fiscal 2011, with an additional $3,263 of costs incurred during fiscal 2012. As of March 31, 2012, the reserve balance associated with these actions is $556. The Company does not expect to be committed to significant additional restructuring charges in fiscal 2013 related to these actions.
During fiscal 2012, the Company announced restructuring plans related to its operations in Europe, primarily consisting of the transfer of manufacturing of select products between certain of its manufacturing operations and restructuring of its selling, general and administrative operations, which is expected to result in the reduction of approximately 80 employees upon completion. The Company estimates that the total charges for these actions will amount to approximately $4,200, primarily from cash expenses for employee severance-related payments. During fiscal 2012, the Company recorded restructuring charges of $3,070 and incurred $2,433 of costs against the accrual. As of March 31, 2012, the reserve balance associated with these actions is $630. The Company expects to be committed to an additional $1,100 of restructuring charges in fiscal 2013 related to these actions.
A roll-forward of the non-acquisition related restructuring reserve is as follows:
| Employee Severance |
Plant Closure and Other |
Total | ||||||||||
|
Balance at March 31, 2009 |
$ | 10,289 | $ | — | $ | 10,289 | ||||||
|
Accrued |
10,107 | 2,263 | 12,370 | |||||||||
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Costs incurred |
(13,276 | ) | (2,263 | ) | (15,539 | ) | ||||||
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Foreign currency impact and other |
362 | — | 362 | |||||||||
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Balance at March 31, 2010 |
$ | 7,482 | $ | — | $ | 7,482 | ||||||
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Accrued |
4,267 | — | 4,267 | |||||||||
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Costs incurred |
(6,945 | ) | — | (6,945 | ) | |||||||
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Foreign currency impact and other |
116 | — | 116 | |||||||||
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Balance at March 31, 2011 |
$ | 4,920 | $ | — | $ | 4,920 | ||||||
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Accrual adjustment |
(681 | ) | — | (681 | ) | |||||||
|
Accrued |
4,958 | — | 4,958 | |||||||||
|
Costs incurred |
(7,966 | ) | — | (7,966 | ) | |||||||
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Foreign currency impact and other |
(45 | ) | — | (45 | ) | |||||||
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Balance at March 31, 2012 |
$ | 1,186 | $ | — | $ | 1,186 | ||||||
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