Impairment and Restructuring Charges

9 Months Ended

Dec. 31, 2012

Impairment and Restructuring Charges [Abstract]

Impairment and Restructuring Charges

Note 6: Impairment and Restructuring Charges

During the first quarter of fiscal 2013, the Company announced its intention to restructure its Europe segment.  The Company expects actions will include exiting certain non-core product lines based on its global product strategy, reducing manufacturing costs, implementing headcount reductions, and disposing of or selling certain assets.  The restructuring is designed to align the cost structure of the segment with the segment's strategic focus on the commercial vehicle, off-highway and engine product markets, while improving gross margin and return on average capital employed.

Since the commencement of the Europe segment restructuring, the Company has recorded $24.1 of asset impairment charges, $6.6 of employee severance costs and $0.7 of repositioning expenses that primarily relate to equipment transfer costs.

Restructuring and repositioning expenses relative to the Europe segment restructuring program were as follows:

	Three months ended December 31,				Nine months ended December 31,
	2012		2011		2012		2011
Employee severance and related benefits	$	1.0	$	-	$	6.6	$	-
Repositioning costs		0.4		-		0.7		-
Total restructuring and repositioning expenses	$	1.4	$	-	$	7.3	$	-

Changes in accrued severance were as follows:

	Three months ended December 31, 2012			Nine months ended December 31, 2012
Beginning balance	$	4.7		$	-
Additions		1.0			6.6
Payments		(0.9	)		(1.9	)
Effect of exchange rate changes		0.2			0.3
Balance, December 31, 2012	$	5.0		$	5.0

During the three and nine months ended December 31, 2012, the Company recorded asset impairment charges of $8.3 and $25.1, respectively.  During the three and nine months ended December 31, 2011, the Company recorded a loss on disposal of assets of $2.2.  The fiscal 2013 charges primarily relate to facilities held for sale in the Europe and North America segments to reduce their carrying value to estimated fair value, less cost to sell.  At December 31, 2012 and March 31, 2012, assets held for sale of $12.5 and $2.5, respectively, were included in other noncurrent assets.  These consist of facilities that the Company is marketing for sale.  Upon designation as held for sale, the carrying value of the asset was measured at the lower of its carrying value or its estimated fair value, less cost to sell.