Restructuring Expense

The Company recognized consolidated pre-tax restructuring expense of $0.1 million in both the three months ended September 30, 2011 and 2010. Restructuring plans which were active during the first quarter of fiscal year 2012 are discussed below. The EMS Gaylord restructuring plan, which was substantially complete and did not have significant expense during the first quarter of fiscal year 2012 is included in the summary table on the following page under the Other Restructuring Plan caption.

The Company utilizes available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring charges are included in the Restructuring Expense line item on the Company's Condensed Consolidated Statements of Income.

Fremont Restructuring Plan:

During the fourth quarter of fiscal year 2011, the Company approved a plan to exit a small leased EMS assembly facility located in Fremont, California. A majority of the business will be transferred to an existing Jasper, Indiana EMS facility by mid-fiscal year 2012. The Company expects total pre-tax restructuring charges to be approximately $0.8 million, including $0.3 million related to severance and other employee transition costs, and approximately $0.5 million related to lease and other exit costs.

European Consolidation Plan:

During the fourth quarter of fiscal year 2008, the Company approved a plan to expand its European automotive electronics capabilities and to establish a European Medical Center of Expertise near Poznan, Poland. The plan is being executed in stages with a projected final completion date of mid-fiscal year 2012. As part of the plan:


•	The Company successfully completed the move of production from Longford, Ireland, into a former Poznan, Poland facility during the fiscal year 2009 second quarter.


•	Construction of a new, larger facility in Poland was completed in the fourth quarter of fiscal year 2009.


•	The Company sold the former Poland facility and land during fiscal year 2010 and recorded a $6.7 million pre-tax gain.


•	The former Poland facility was leased back until the transfer of the remaining production to the new facility was completed in fiscal year 2011.

•

The Company is in the process of completing the consolidation of its EMS facility located in Wales, United Kingdom into the new facility, which is expected to improve the Company's margins in the very competitive EMS market. Production in Wales is expected to cease and be transferred to the Poland facility in the second quarter of fiscal year 2012. The lease for the Wales facility will terminate in the third quarter of fiscal year 2012.

The Company currently estimates that the total pre-tax charges, excluding the gain on the sale of the former facility and construction of the new facility, related to the consolidation activities will be approximately, in millions, $21.6 consisting of $20.2 of severance and other employee costs, $0.5 of property and equipment asset impairment, $0.4 of lease exit costs, and $0.5 of other exit costs.



Summary of All Plans
	Accrued June 30, 2011 ⁽²⁾		Three Months Ended September 30, 2011											Accrued September 30, 2011⁽²⁾		Total Charges Incurred Since Plan Announcement		Total Expected Plan Costs
(Amounts in Thousands)	Accrued June 30, 2011 ⁽²⁾		Amounts Charged Cash		Amounts Charged Non-cash		Amounts Utilized/ Cash Paid			Adjustments				Accrued September 30, 2011⁽²⁾		Total Charges Incurred Since Plan Announcement		Total Expected Plan Costs
EMS Segment
FY 2011 Fremont Restructuring Plan
Transition and Other Employee Costs	$	264	$	—	$	—	$	(49	)	$	—			$	215	$	264	$	264
Plant Closure and Other Exit Costs	—		11		—		(11		)	—				—		31		564
Total	$	264	$	11	$	—	$	(60	)	$	—			$	215	$	295	$	828
FY 2008 European Consolidation Plan
Transition and Other Employee Costs	$	7,694	$	81	$	—	$	(2,518	)	$	(161	)	⁽³⁾	$	5,096	$	19,975	$	20,206
Asset Write-downs	—		—		—		—			—				—		522		522
Plant Closure and Other Exit Costs	—		2		—		(2		)	—				—		660		882
Total	$	7,694	$	83	$	—	$	(2,520	)	$	(161	)		$	5,096	$	21,157	$	21,610
Total EMS Segment	$	7,958	$	94	$	—	$	(2,580	)	$	(161	)		$	5,311	$	21,452	$	22,438
Unallocated Corporate
Other Restructuring Plan ⁽¹⁾	—		19		—		(19		)	—				—		784		875
Consolidated Total of All Plans	$	7,958	$	113	$	—	$	(2,599	)	$	(161	)		$	5,311	$	22,236	$	23,313


(1)	Other Restructuring Plan represents the Gaylord restructuring plan initiated in fiscal year 2007.


(2)	Accrued restructuring at September 30, 2011 and June 30, 2011 of $5.3 million and $8.0 million, respectively, was recorded in current liabilities.


(3)	The effect of changes in foreign currency exchange rates within the EMS segment primarily due to revaluation of the restructuring liability is included in this amount.