Impairment and Restructuring Charges

12 Months Ended

Mar. 31, 2013

Impairment and Restructuring Charges [Abstract]

Impairment and Restructuring Charges

Note 5: Impairment and Restructuring Charges

During fiscal 2013, the Company announced its intention to restructure its Europe segment. The Company's actions included 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 Company is continuing to evaluate additional restructuring actions. 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 products markets, while improving gross margin and return on average capital employed.

Since the commencement of the Europe segment restructuring, the Company recorded $24.1 million of asset impairment charges, $14.9 million of employee severance costs, primarily related to headcount reductions at the segment headquarters and a manufacturing facility, and $2.1 million of repositioning expenses, primarily related to equipment transfer costs.

The Company accrues severance in accordance with its written plans, procedures and relevant statutory requirements. Changes in accrued severance were as follows:

Year ended March 31	2013
Beginning balance	$	-
Additions		14.9
Payments		(3.3	)
Balance, March 31, 2013	$	11.6

During the year ended March 31, 2013, asset impairment charges for the total Company were $25.9 million. The impairment 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. During the year ended March 31, 2012, the Company recorded a loss on disposal of assets and asset impairment charges of $2.5 million within the Europe segment. During the year ended March 31, 2011 the Company recorded asset impairment charges of $3.5 million, which included $2.2 million of assets in the Europe segment related to a program cancellation and assets no longer in use, $1.0 million within the North America segment for facilities held for sale to reduce their carrying value to the estimated fair value less cost to sell and $0.3 million within the Asia segment related to a program cancellation.

At March 31, 2013 and 2012, assets held for sale of $11.4 million and $2.5 million, 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. During fiscal 2011, the Company sold three held for sale facilities in the North America and Europe segments for net proceeds of $8.8 million and recognized a gain on these sales of $3.3 million.