Restructuring Expense

The Company recognized consolidated pre-tax restructuring expense of $3.4 million, $1.0 million, and $2.1 million in fiscal years 2012, 2011, and 2010, respectively. Restructuring plans which were active during fiscal year 2012 are discussed in the sections below.

The EMS Gaylord restructuring plan and the Furniture segment office furniture manufacturing consolidation plan, which were substantially complete prior to fiscal year 2012, are included in the summary table on the following page under the Other Restructuring Plan caption. Due to a decline in the market value of the EMS Gaylord facility, the Company recognized a pre-tax impairment loss, in thousands, of $572 during fiscal year 2012.

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 Consolidated Statements of Income.

Fremont Restructuring Plan:

During the second quarter of fiscal year 2012, the Company completed a plan to exit a small leased EMS assembly facility located in Fremont, California. This plan had been approved in the fourth quarter of fiscal year 2011. The Company is contractually obligated on the lease of this facility until August 2013. The Company expects total pre-tax restructuring charges, exclusive of future costs if the Company is unable to sub-lease the facility, to be approximately $1.1 million, including $0.2 million related to severance and other employee transition costs, and $0.9 million related to lease and other exit costs.

European Consolidation Plan:

During the second quarter of fiscal year 2012, the Company completed a plan to expand its European automotive electronics capabilities and to establish a European Medical Center of Expertise near Poznan, Poland. This plan had been approved in the fourth quarter of fiscal year 2008. The plan was executed in stages as follows:


•	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 which was included in the Other General Income line on the Company's Consolidated Statements of Income.


•	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 completed the consolidation of its EMS facility located in Wales, United Kingdom into the new facility. Production in Wales ceased and was transferred to the Poland facility in the second quarter of fiscal year 2012. The lease for the Wales facility terminated in the third quarter of fiscal year 2012.

Total pre-tax restructuring charges, excluding the gain on the sale of the former facility and construction of the new facility, related to the consolidation activities were approximately, in millions, $23.0 consisting of $20.8 of severance and other employee costs, $0.4 of property and equipment asset impairment, $0.4 of lease exit costs, and $1.4 of other exit costs.

Summary of All Plans



	Accrued June 30, 2011 ⁽³⁾		Fiscal Year Ended June 30, 2012												Accrued June 30, 2012 ⁽³⁾		Total Charges Incurred Since Plan Announcement ⁽⁴⁾		Total Expected Plan Costs ⁽⁴⁾
(Amounts in Thousands)	Accrued June 30, 2011 ⁽³⁾		Amounts Charged Cash		Amounts Charged (Income) Non-cash			Amounts Utilized/ Cash Paid			Adjustments				Accrued June 30, 2012 ⁽³⁾		Total Charges Incurred Since Plan Announcement ⁽⁴⁾		Total Expected Plan Costs ⁽⁴⁾
EMS Segment
FY 2011 Fremont Restructuring Plan
Transition and Other Employee Costs	$	264	$	—	$	15		$	(236	)	$	(43	)		$	—	$	236	$	236
Plant Closure and Other Exit Costs	—		830		—			(561		)	—				269		850		890
Total	$	264	$	830	$	15		$	(797	)	$	(43	)		$	269	$	1,086	$	1,126
FY 2008 European Consolidation Plan
Transition and Other Employee Costs	$	7,694	$	937	$	—		$	(8,506	)	$	(125	)	⁽⁵⁾	$	—	$	20,831	$	20,831
Asset Write-downs (Gain on Sale)	—		—		(148		)	148			—				—		374		374
Plant Closure and Other Exit Costs	—		1,156					(1,156		)	—				—		1,814		1,814
Total	$	7,694	$	2,093	$	(148	)	$	(9,514	)	$	(125	)		$	—	$	23,019	$	23,019
Total EMS Segment	$	7,958	$	2,923	$	(133	)	$	(10,311	)	$	(168	)		$	269	$	24,105	$	24,145
Unallocated Corporate
Other Restructuring Plan ⁽¹⁾	—		99		572			(671		)	—				—		1,436		1,557
Consolidated Total of All Plans	$	7,958	$	3,022	$	439		$	(10,982	)	$	(168	)		$	269	$	25,541	$	25,702



			Fiscal Year Ended June 30, 2011
(Amounts in Thousands)	Accrued June 30, 2010 ⁽³⁾		Amounts Charged Cash		Amounts Charged Non-cash		Amounts Utilized/ Cash Paid			Adjustments			Accrued June 30, 2011 ⁽³⁾
EMS Segment
FY 2011 Fremont Restructuring Plan
Transition and Other Employee Costs	$	—	$	246	$	18	$	—		$	—		$	264
Plant Closure and Other Exit Costs	—		20		—		(20		)	—			—
Total	$	—	$	266	$	18	$	(20	)	$	—		$	264
FY 2008 European Consolidation Plan
Transition and Other Employee Costs	$	9,181	$	619	$	—	$	(2,776	)	$	670	⁽⁵⁾	$	7,694
Plant Closure and Other Exit Costs	—		2		—		(2		)	—			—
Total	$	9,181	$	621	$	—	$	(2,778	)	$	670		$	7,694
Total EMS Segment	$	9,181	$	887	$	18	$	(2,798	)	$	670		$	7,958
Unallocated Corporate
Other Restructuring Plan ⁽¹⁾	—		104		—		(104		)	—			—
Consolidated Total of All Plans	$	9,181	$	991	$	18	$	(2,902	)	$	670		$	7,958



	Accrued June 30, 2009 ⁽³⁾		Fiscal Year Ended June 30, 2010												Accrued June 30, 2010 ⁽³⁾
(Amounts in Thousands)	Accrued June 30, 2009 ⁽³⁾		Amounts Charged (Income) Cash			Amounts Charged Non-cash		Amounts Utilized/ Cash Paid			Adjustments				Accrued June 30, 2010 ⁽³⁾
EMS Segment
FY 2008 European Consolidation Plan
Transition and Other Employee Costs	$	12,288	$	1,673		$	—	$	(3,681	)	$	(1,099	)	⁽⁵⁾	$	9,181
Asset Write-downs	—		—			176		(176		)	—				—
Plant Closure and Other Exit Costs	—		200			—		(200		)	—				—
Total EMS Segment	$	12,288	$	1,873		$	176	$	(4,057	)	$	(1,099	)		$	9,181
Furniture Segment
Other Restructuring Plan ⁽²⁾	—		(83		)	—		83			—				—
Unallocated Corporate
Other Restructuring Plan ⁽²⁾	—		85			—		(85		)	—				—
Consolidated Total of All Plans	$	12,288	$	1,875		$	176	$	(4,059	)	$	(1,099	)		$	9,181


(1)	The Other Restructuring Plan with charges during fiscal years 2012 and 2011 is the Unallocated Corporate Gaylord restructuring plan initiated in fiscal year 2007.


(2)	Other Restructuring Plans with charges during fiscal year 2010 include the Furniture segment office furniture manufacturing consolidation plan initiated in fiscal year 2009 and the Unallocated Corporate Gaylord restructuring plan initiated in fiscal year 2007.


(3)	Accrued restructuring at June 30, 2012 was $0.3 million recorded in current liabilities. At June 30, 2011 accrued restructuring was $8.0 million recorded in current liabilities. At June 30, 2010 accrued restructuring was $9.2 million consisting of $2.5 million recorded in current liabilities and $6.7 million recorded in other long-term liabilities.


(4)	These columns include restructuring plans that were active during fiscal year 2012, including the EMS segment European Consolidation Plan initiated in fiscal year 2008, the EMS segment Fremont Restructuring Plan initiated in fiscal year 2011, and the Unallocated Corporate Gaylord restructuring plan initiated in fiscal year 2007.


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