Subsequent Events

6 Months Ended

Oct. 04, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

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. EnerSys expects to incur a pre-tax charge of approximately $82,000 under this plan when completed, the majority of which is expected to be recorded by the end of fiscal 2021, of which $20,000 is expected to be a non-cash charge from inventory and equipment write-offs. Cash charges include severance, clean up and decommissioning related to the facility, contractual releases and legal expenses.

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 ongoing pandemic.

In connection with this restructuring plan, which is estimated to be substantially complete in fiscal 2022, EnerSys estimates that there will be a reduction of approximately 200 employees.

On November 10, 2020, the Board of Directors approved a quarterly cash dividend of $0.175 per share of common stock to be paid on December 31, 2020, to stockholders of record as of December 18, 2020.