Restructuring, Impairments And Nonrecurring Charges

12 Months Ended

Dec. 31, 2011

Restructuring, Impairments And Nonrecurring Charges [Abstract]

Restructuring, Impairments And Nonrecurring Charges

(6)

Restructuring, Impairments and Nonrecurring Charges

As announced during the fourth quarter of 2008, the Company committed to a restructuring program, which included the closure of its Kenton, Ohio facility, significant reductions in the workforce in its Marion, Ohio facility and the integration of its Electronics Group subsidiaries. The purpose of the restructuring program is to reduce fixed costs, accelerate integration efficiencies, exit certain unprofitable product lines and significantly improve operating earnings on a sustained basis. As a result of these initiatives, the Company recorded restructuring charges of $231,000, and $2,296,000, in 2011 and 2010, respectively. All of the $231,000 recorded was within the Industrial Group. Of these costs, $623,000 related to equipment relocation costs, and $495,000 represented other costs, primarily related to mothball costs associated with closed or partially closed facilities. Partially offsetting this was an $887,000 gain on the sale of assets that had previously been impaired. Of the aggregate $55,309,000 of pre-tax costs for the total program, $16,692,000 will be cash expenditures, the majority of which has been spent at December 31, 2011.

A summary of the pre-tax restructuring charges is as follows (in thousands):


	Total Program		Costs Incurred 2011

Severance and benefit-related costs	$	4,038	$	(8	)
Asset impairments		12,634		(887	)
Deferred contract costs write-offs		17,798		—
Inventory related charges		7,895		—
Equipment relocation costs		2,714		623
Asset retirement obligations		1,501		—
Contract termination costs		3,209		—
Other		5,520		503


	$	55,309	$	231

A summary of restructuring activity and related reserves at December 31, 2011 is as follows (in thousands):


	Accrued Balance at Dec. 31, 2010		2011 Charge			Cash Payments or Asset Write-Offs			Accrued Balance at Dec. 31, 2011

Severance and benefit related costs	$	267	$	(8	)	$	(94	)	$	165
Asset impairments		—		(887	)		887			—
Equipment relocation costs		—		623			(623	)		—
Asset retirement obligations		1,173		—			(783	)		390
Contract termination costs		459		—			(459	)		—
Other		—		503			(503	)		—


	$	1,899	$	231		$	(1,575	)	$	555

A summary of total charges by reportable segment is as follows (in thousands):


	Industrial Group		Electronics Group		Total

Severance and benefit-related costs	$	2,554	$	1,484	$	4,038
Asset impairments		12,634		—		12,634
Deferred contract costs write-offs		—		17,798		17,798
Inventory related charges		—		7,895		7,895
Equipment relocation costs		2,692		22		2,714
Asset retirement obligations		1,501		—		1,501
Contract termination costs		1,868		1,341		3,209
Other		1,889		3,631		5,520


	$	23,138	$	32,171	$	55,309

- 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.

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