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RESTRUCTURING INITIATIVE
 3 Months Ended
Mar. 31, 2013
RESTRUCTURING INITIATIVE  
RESTRUCTURING INITIATIVE

NOTE 15 – RESTRUCTURING INITIATIVE

 

On November 1, 2012, the Company announced a plan to optimize certain capacity in Europe (EOO).  Due to increased production efficiencies and to better position the Company for future growth in Europe, AptarGroup will transfer and consolidate production capacity involving twelve facilities.  Two facilities, one in Italy and one in Switzerland, are expected to close and will impact approximately 170 employees.  The locations involved in the operations optimization plan are facilities that are serving the beauty, personal care, food, beverage, and consumer health care markets.  The total costs associated with the plan are estimated to be approximately €14 million (approximately $18 million using current exchange rates) of which approximately €4 million (approximately $6 million using current exchange rates) relates to non-cash expenses and will be included in depreciation and amortization in the Consolidated Statements of Income.  As of March 31, 2013 we have recorded the following activity associated with our EOO plan:

 

 

 

Beginning

 

Net Charges for

 

 

 

 

 

Ending

 

 

 

Reserve at

 

the Three Months

 

 

 

 

 

Reserve at

 

 

 

12/31/12

 

Ended 3/31/13

 

Cash Paid

 

FX Impact

 

3/31/13

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

3,158

 

$

3,508

 

$

(978

)

$

(150

)

$

5,538

 

Other costs

 

--

 

559

 

(530

)

5

 

34

 

Totals

 

$

3,158

 

$

4,067

 

$

(1,508

)

$

(145

)

$

5,572

 

 

In addition to the above charges, $0.5 million of accelerated depreciation was incurred in the first quarter of 2013.  This amount is included within depreciation and amortization in the Condensed Consolidated Statements of Income.