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Restructuring Plans and Other Exit Charges | 12 Months Ended
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Mar. 31, 2021
Restructuring and Related Activities [Abstract] |
Restructuring, Exit and Other Charges | Restructuring, Exit and Other Charges Restructuring Programs The Company had committed to various restructuring plans aimed at improving operational efficiencies across its lines of business. A substantial portion of these programs are complete, with an estimated $7,424 remaining to be incurred by the end of fiscal 2022, mainly relating to programs that were started in fiscal 2021, the details of which are as follows: During fiscal 2021, the Company announced restructuring programs in the Energy Systems segment relating to its recent acquisitions of Alpha and NorthStar, as part of its targeted synergy plans. The Company also announced a restructuring program to improve global operational efficiencies in its Motive Power segment. The charges, in both segments were primarily cash charges relating to severance payments and amounted to $3,187 to approximately 47 employees in the Energy Systems segment and $4,012 to approximately 32 employees in the Motive Power segment. In addition there was a $169 charge related to the Specialty segment. During fiscal 2020, the Company announced restructuring programs to improve efficiencies across all its lines of business. The charges were primarily severance payments to approximately 160 employees. The Company completed these actions in fiscal 2021. Restructuring and exit charges for fiscal 2021, 2020 and 2019 by reportable segments are as follows:
|  | Fiscal year ended March 31, 2021
|  | Energy Systems |  | Motive Power |  | Specialty |  | Total
Restructuring charges |  | $ | 3,187 |  |  | $ | 4,012 |  |  | $ | 169 |  |  | $ | 7,368 |
Exit charges |  | — |  |  | 32,786 |  |  | 220 |  |  | 33,006 |
Restructuring and other exit charges |  | $ | 3,187 |  |  | $ | 36,798 |  |  | $ | 389 |  |  | $ | 40,374 |
|  | Fiscal year ended March 31, 2020
|  | Energy Systems |  | Motive Power |  | Specialty |  | Total
Restructuring charges |  | $ | 6,808 |  |  | $ | 1,860 |  |  | $ | 2,318 |  |  | $ | 10,986 |
Exit charges |  | 526 |  |  | 5,541 |  |  | 3,713 |  |  | 9,780 |
Restructuring and other exit charges |  | $ | 7,334 |  |  | $ | 7,401 |  |  | $ | 6,031 |  |  | $ | 20,766 |
|  | Fiscal year ended March 31, 2019
|  | Energy Systems |  | Motive Power |  | Specialty |  | Total
Restructuring charges |  | $ | 5,115 |  |  | $ | 4,795 |  |  | $ | 713 |  |  | $ | 10,623 |
Exit charges |  | 5,477 |  |  | 957 |  |  | 17,652 |  |  | 24,086 |
Restructuring and other exit charges |  | $ | 10,592 |  |  | $ | 5,752 |  |  | $ | 18,365 |  |  | $ | 34,709 |
A roll-forward of the restructuring reserve is as follows:
|  | Employee Severance |  | Other |  | Total
Balance at March 31, 2018 |  | $ | 2,893 |  |  | $ | 16 |  |  | $ | 2,909 |
Accrued |  | 6,554 |  |  | 1,639 |  |  | 8,193 |
Costs incurred |  | (6,893) |  |  | (1,086) |  |  | (7,979) |
Foreign currency impact and other |  | (198) |  |  | 27 |  |  | (171) |
Balance at March 31, 2019 |  | $ | 2,356 |  |  | $ | 596 |  |  | $ | 2,952 |
Accrued |  | 10,395 |  |  | 402 |  |  | 10,797 |
Costs incurred |  | (9,179) |  |  | (995) |  |  | (10,174) |
Foreign currency impact and other |  | (247) |  |  | (3) |  |  | (250) |
Balance at March 31, 2020 |  | $ | 3,325 |  |  | $ | — |  |  | $ | 3,325 |
Accrued |  | 6,537 |  |  | 831 |  |  | 7,368 |
Costs incurred |  | (7,550) |  |  | (831) |  |  | (8,381) |
Foreign currency impact and other |  | 283 |  |  | — |  |  | 283 |
Balance at March 31, 2021 |  | $ | 2,595 |  |  | $ | — |  |  | $ | 2,595 |
Exit Charges Fiscal 2021 Programs Hagen, Germany On November 10, 2020, the EnerSys’ Board of Directors approved a plan to substantially close its facility in Hagen, Germany, which produces flooded motive power batteries for forklifts. Management determined that future demand for the motive power batteries produced at this facility was not sufficient, given the conversion from flooded to maintenance free batteries by customers, the existing number of competitors in the market, as well as the near term decline in demand and increased uncertainty from the pandemic. The Company plans to retain the facility with limited sales, service and administrative functions along with related personnel for the foreseeable future. The Company currently estimates that the total charges for these actions will amount to approximately $60,000, the majority of which are expected to be recorded by the end of calendar 2021. Cash charges of approximately $40,000 are primarily for employee severance related payments, but also include payments for cleanup related to the facility, contractual releases and legal expenses. Non-cash charges from inventory and equipment write-offs are estimated to be $20,000. These actions will result in the reduction of approximately 200 employees. During fiscal 2021, the Company recorded cash charges relating to severance of $23,331 and non-cash charges of $7,946 primarily relating to fixed asset write-offs. Vijayawada, India During fiscal 2021, the Company committed to a plan to close its facility in Vijayawada, India to align with its strategic vision for the new line of business structure and footprint and recorded exit charges of $1,509, primarily relating to asset write-offs. Targovishte, Bulgaria During fiscal 2019, the Company committed to a plan to close its facility in Targovishte, Bulgaria, which produced diesel-electric submarine batteries. Management determined that the future demand for batteries of diesel-electric submarines was not sufficient given the number of competitors in the market. Of the estimated total charges of $26,000 for this plan, the Company had recorded charges amounting to $20,242 in fiscal 2019, relating to severance and inventory and fixed asset write-offs and an additional $5,123 relating to cash and non-cash charges during fiscal 2020. During fiscal 2021, in keeping with its strategy of exiting the manufacture of batteries for diesel-electric submarines, the Company completed further actions which resulted in $220 relating to cash and non-cash charges. Fiscal 2020 Programs During fiscal 2020, in keeping with its strategy of exiting the manufacture of batteries for diesel-electric submarines, the Company also sold certain licenses and assets for $2,031 and recorded a net gain of $892, which were reported as other exit charges in the Specialty segment. During fiscal 2020, the Company also wrote off $5,441 of assets at its Kentucky and Tennessee Motive Power plants, as a result of its strategic product mix shift from traditional flooded batteries to maintenance free lead acid and lithium batteries. Fiscal 2019 Programs During fiscal 2019, the Company recorded exit charges of $4,930 relating to the disposition of GAZ Geräte- und Akkumulatorenwerk Zwickau GmbH, a wholly-owned German subsidiary and $957 relating to dissolving a joint venture in Tunisia. These exit activities are a consequence of the Company's strategic decision to streamline its product portfolio and focus its efforts on new technologies. During fiscal 2019, as part of the aforementioned program to convert its India operations from mainly reserve power production to motive power production, the Company recorded a non-cash write off of reserve power inventories of $526, which was reported in cost of goods sold and a $660 noncash write-off related to reserve power fixed assets in restructuring charges. Richmond, Kentucky Plant Fire During fiscal 2021, the Company settled its claims with its insurance carrier relating to the fire that broke out in the battery formation area of the Company's Richmond, Kentucky motive power production facility in fiscal 2020. The total claims, for both property and business interruption of $46,117 were received through March 31, 2021. The final settlement of insurance recoveries and finalization of costs related to the replacement of property, plant and equipment, resulted in a net gain of $4,397, which was recorded as a reduction to operating expenses in the Consolidated Statements of Income. The details of charges and recoveries for fiscal 2021 and fiscal 2020 are as follows: In fiscal 2020, the Company recorded as a receivable, $17,037, consisting of write-offs for damages caused to its fixed assets and inventories, as well as for cleanup, asset replacement and other ancillary activities directly associated with the fire and received $12,000 related to its initial claims. During fiscal 2021, the Company recorded an additional $16,580 as a receivable for cleanup and received $21,617 from the insurance carrier. In addition to the property damage claim, the Company received $12,500 in business interruption claims, of which $5,000 was recorded in fiscal 2020 and $7,500 in fiscal 2021, and was credited to cost of goods sold, in the respective periods.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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