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Restructuring and Integration Costs | 12 Months Ended
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Dec. 31, 2011
Restructuring and Integration Costs [Abstract] |
Restructuring and Integration Costs |
3. | Restructuring and Integration Costs
The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of and activity for years ended December 31, 2011 and 2010, consisted of the following (in thousands):
|  | Workforce Reduction |  |  | Other Exit Costs |  |  | Total |
Exit activity liability at December 31, 2009 |  | $ | 8,774 |  |  | $ | 1,971 |  |  | $ | 10,745 |
Restructuring and integration costs: |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2010 |  |  | 1,824 |  |  |  | 1,678 |  |  |  | 3,502 |
Non-cash usage, including asset write-downs |  |  | - |  |  |  | (181 | ) |  |  | (181 | )
Cash payments |  |  | (4,378 | ) |  |  | (1,033 | ) |  |  | (5,411 | )
Exit activity liability at December 31, 2010 |  | $ | 6,220 |  |  | $ | 2,435 |  |  | $ | 8,655 |
Amounts provided for during 2011 |  |  | 430 |  |  |  | 914 |  |  |  | 1,344 |
Non-cash usage, including asset write-downs |  |  | - |  |  |  | (736 | ) |  |  | (736 | )
Cash payments |  |  | (4,743 | ) |  |  | (959 | ) |  |  | (5,702 | )
Exit activity liability at December 31, 2011 |  | $ | 1,907 |  |  | $ | 1,654 |  |  | $ | 3,561 |
Restructuring Costs Voluntary Separation Program During 2008 as part of an initiative to improve the effectiveness and efficiency of operations, and to reduce costs in light of economic conditions, we implemented certain organizational changes and offered eligible employees a voluntary separation package. The restructuring accrual relates to severance and other retiree benefit enhancements to be paid through 2016. Of the original restructuring charge of $8 million, we have $1.5 million remaining as of December 31, 2011 that is expected to be paid in the amounts of $0.8 million in 2012, $0.4 million in 2013 and $0.3 million for the period 2014-2016. Activity, by segment, for the years ended December 31, 2010 and 2011 related to the voluntary separation program, consisted of the following (in thousands):
|  | Engine Management |  |  | Temperature Control |  |  | Other |  |  | Total |
Exit activity liability at December 31, 2009 |  | $ | 1,395 |  |  | $ | 385 |  |  | $ | 1,422 |  |  | $ | 3,202 |
Restructuring costs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2010 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Cash payments |  |  | (425 | ) |  |  | (64 | ) |  |  | (507 | ) |  |  | (996 | )
Exit activity liability at December 31, 2010 |  | $ | 970 |  |  | $ | 321 |  |  | $ | 915 |  |  | $ | 2,206 |
Restructuring costs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2011 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Cash payments |  |  | (209 | ) |  |  | (69 | ) |  |  | (402 | ) |  |  | (680 | )
Exit activity liability at December 31, 2011 |  | $ | 761 |  |  | $ | 252 |  |  | $ | 513 |  |  | $ | 1,526 |
Integration Expenses Overhead Cost Reduction Program Beginning in 2007 in connection with our efforts to improve our operating efficiency and reduce costs, we announced our intention to focus on company-wide overhead and operating expense cost reduction activities, such as closing excess facilities and reducing redundancies. Integration expenses under this program to date relate primarily to the integration of operations to our facilities in Mexico, the closure and consolidation of our distribution operations in Reno, Nevada, the closure of our production operations in Edwardsville, Kansas, Wilson, North Carolina, Corona, California and Hong Kong, China. We expect that all payments related to the current liability will be made within twelve months. Activity for the years ended December 31, 2010 and 2011 related to our overhead cost reduction program consisted of the following (in thousands):
|  | Workforce Reduction |  |  | Other Exit Costs |  |  | Total |
Exit activity liability at December 31, 2009 |  | $ | 1,347 |  |  | $ | - |  |  | $ | 1,347 |
Integration costs: |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2010 |  |  | 1,815 |  |  |  | 1,509 |  |  |  | 3,324 |
Non-cash usage, including asset write-downs |  |  | - |  |  |  | (181 | ) |  |  | (181 | )
Cash payments |  |  | (2,309 | ) |  |  | (642 | ) |  |  | (2,951 | )
Exit activity liability at December 31, 2010 |  | $ | 853 |  |  | $ | 686 |  |  | $ | 1,539 |
Integration costs: |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2011 |  |  | 293 |  |  |  | 719 |  |  |  | 1,012 |
Non-cash usage, including asset write-downs |  |  | - |  |  |  | (736 | ) |  |  | (736 | )
Cash payments |  |  | (892 | ) |  |  | (669 | ) |  |  | (1,561 | )
Exit activity liability at December 31, 2011 |  | $ | 254 |  |  | $ | - |  |  | $ | 254 |
Reynosa Integration Program During 2008, we closed our Long Island City, New York and Puerto Rico manufacturing facilities and integrated these operations in Reynosa, Mexico. In connection with the shutdown of the manufacturing operations at Long Island City, we incurred severance costs and costs associated with equipment removal, capital expenditures and environmental clean-up. As of December 31, 2011, the reserve balance related to environmental clean-up at Long Island City of $1.7 million is included in other exit costs. In connection with the shutdown of the manufacturing operations at Long Island City, we entered into an agreement with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America and its Local 365 (“UAW”). As part of the agreement, we agreed to withdraw from the multi-employer pension plan covering our UAW employees at the Long Island City facility and incurred a withdrawal liability from the plan. The pension plan withdrawal liability is related to trust asset under-performance and was payable quarterly for 20 years at $0.3 million per year, which commenced in December 2008. In June 2011, we settled our pension withdrawal liability for $2.8 million and recorded a gain of $0.3 million in connection with the settlement. Activity for the years ended December 31, 2010 and 2011 related to the Reynosa integration program, consisted of the following (in thousands):
|  | Workforce Reduction |  |  | Other Exit Costs |  |  | Total |
Exit activity liability at December 31, 2009 |  | $ | 3,693 |  |  | $ | 1,971 |  |  | $ | 5,664 |
Integration costs: |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2010 |  |  | 9 |  |  |  | 38 |  |  |  | 47 |
Cash payments |  |  | (541 | ) |  |  | (260 | ) |  |  | (801 | )
Exit activity liability at December 31, 2010 |  | $ | 3,161 |  |  | $ | 1,749 |  |  | $ | 4,910 |
Integration costs: |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2011 |  |  | (196 | ) |  |  | 70 |  |  |  | (126 | )
Cash payments |  |  | (2,906 | ) |  |  | (165 | ) |  |  | (3,071 | )
Exit activity liability at December 31, 2011 |  | $ | 59 |  |  | $ | 1,654 |  |  | $ | 1,713 |
Engine Controls Relocation During April 2011, we acquired the Engine Controls business of BLD Products, Ltd., a subsidiary of Qualitor Inc. As a result of our acquisition, we will incur integration costs within our Engine Management Segment related to employee severance and the relocation of certain machinery and equipment to our Reynosa, Mexico manufacturing facility. We expect that all related payments will be made within twelve months. Activity for the year ended December 31, 2011 related to the engine controls relocation program, consisted of the following (in thousands):
|  | Workforce Reduction |  |  | Other Exit Costs |  |  | Total |
Exit activity liability at December 31, 2010 |  | $ | - |  |  | $ | - |  |  | $ | - |
Integration costs: |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2011 |  |  | 333 |  |  |  | 125 |  |  |  | 458 |
Cash payments |  |  | (265 | ) |  |  | (125 | ) |  |  | (390 | )
Exit activity liability at December 31, 2011 |  | $ | 68 |  |  | $ | - |  |  | $ | 68 |
Wire and Cable Relocation As a result of our acquisition during 2009 of a wire and cable business and the relocation of certain machinery and equipment to our Reynosa, Mexico manufacturing facility, integration costs were incurred related to employee severance and equipment relocation. As of December 31, 2010, all such costs have been fully paid.
|  | Workforce Reduction |  |  | Other Exit Costs |  |  | Total |
Exit activity liability at December 31, 2009 |  | $ | 532 |  |  | $ | - |  |  | $ | 532 |
Integration costs: |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2010 |  |  | - |  |  |  | 131 |  |  |  | 131 |
Cash payments |  |  | (532 | ) |  |  | (131 | ) |  |  | (663 | )
Exit activity liability at December 31, 2010 |  | $ | - |  |  | $ | - |  |  | $ | - |
Integration activity, by segment, for the years ended December 31, 2010 and 2011 related to our aggregate integration programs consisted of the following (in thousands):
|  | Engine Management |  |  | Temperature Control |  |  | Other |  |  | Total |
Exit activity liability at December 31, 2009 |  | $ | 7,017 |  |  | $ | 364 |  |  | $ | 162 |  |  | $ | 7,543 |
Integration costs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2010 |  |  | 1,931 |  |  |  | 1,571 |  |  |  | - |  |  |  | 3,502 |
Non-cash usage, including asset write-downs |  |  | (99 | ) |  |  | (82 | ) |  |  | - |  |  |  | (181 | )
Cash payments |  |  | (3,269 | ) |  |  | (984 | ) |  |  | (162 | ) |  |  | (4,415 | )
Exit activity liability at December 31, 2010 |  | $ | 5,580 |  |  | $ | 869 |  |  | $ | - |  |  | $ | 6,449 |
Integration costs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amounts provided for during 2011 |  |  | 1,102 |  |  |  | 242 |  |  |  | - |  |  |  | 1,344 |
Non-cash usage, including asset write-downs |  |  | (736 | ) |  |  | - |  |  |  | - |  |  |  | (736 | )
Cash payments |  |  | (4,078 | ) |  |  | (944 | ) |  |  | - |  |  |  | (5,022 | )
Exit activity liability at December 31, 2011 |  | $ | 1,868 |  |  | $ | 167 |  |  | $ | - |  |  | $ | 2,035 |
Assets Held for Sale As of December 31, 2011, we have reported $0.2 million as assets held for sale on our consolidated balance sheet related to the net book value of vacant land located in the U.K. Following plant closures resulting from integration activities, this facility had been vacant, and in July 2011, we signed an agreement to sell the property pending the procurement of satisfactory planning permission. We expect there will be a gain on the sale of the property and will record the resulting gain in other income (expense), net included in operating income in the consolidated statement of operations, upon completion of such sale.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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