Note 5 - Restructuring Costs

12 Months Ended

Jun. 30, 2013

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

NOTE 5: RESTRUCTURING COSTS

On July 26, 2012, we announced a corporate restructuring of our executive management team in support of our previously announced decision to close or sell several underperforming or non-core assets and in conjunction with the departure of our chief operating officer. Total costs of $1,080 associated with this restructuring plan were recognized in restructuring costs in fiscal year 2013.

On January 31, 2012, we completed the sale of Merfin Systems. In conjunction with this sale, four positions were eliminated from our nonwoven materials segment. In June 2011, we announced our decision to close the Delta plant at the end of calendar 2012. The plant ceased production in November 2012, and, as a result, $8,934 ($0.23 per diluted share) in total restructuring costs were recognized in fiscal year 2013, as we reduced the carrying value of related spare parts and inventory by $2,698, recognized $5,462 in severance and employee benefit costs and recognized $774 in other miscellaneous costs, primarily related to shutting down the facility.

Included in the severance and employee benefits costs recognized in restructuring expense in 2013 were approximately $3,950 ($0.10 per diluted share) related to retention bonus payments that should have been recognized ratably over the requisite service period and would have resulted in approximately $2,600 ($0.07 per diluted share) being recognized ratably during fiscal 2012 in restructuring expense and accrued reserves. After evaluating the quantitative and qualitative aspects of the out-of-period adjustment, we determined that our previously issued quarterly and annual consolidated financial statements were not materially misstated and that the out-of-period adjustment is immaterial to our estimated full year 2013 results and to our earnings trends.

Restructuring expenses are included in “Restructuring costs” in our condensed consolidated statements of operations. The charges below reflect severance and employee benefits accrued over the retention period, relocation expenses and other miscellaneous expenses. Accrual balances are included in “Accrued expenses” in the balance sheet. The following table summarizes the expenses and accrual balances by reporting segment for 2013.

	Accrual Balance as of June 30, 2012		Reserve Adjustment			Impact of Foreign Currency			Payments / Impairment			Accrual Balance as of June 30, 2013		Program Charges to Date		Total Estimated Charges
2013 Restructuring Program
Severance and employee benefits	$	-	$	1,080		$	-		$	(1,080	)	$	-	$	1,080	$	1,080
Total 2013 Program		-		1,080			-			(1,080	)		-		1,080		1,080

2012 Restructuring Program
Severance and employee benefits	$	-	$	21		$	-		$	(21	)	$	-	$	130	$	130
Other miscellaneous costs		117		(117	)		-			-			-		8		8
Total 2012 Program		117		(96	)		-			(21	)		-		138		138

2011 Restructuring Program
Severance and employeebenefits		-		5,462			(28	)		(5,434	)		-		5,462		5,602
Spare parts and inventory		57		2,698			-			(2,755	)		-		2,755		2,755
Other miscellaneous costs		-		774			-			(774	)		-		774		794
Total 2011 Program		57		8,934			(28	)		(8,963	)		-		8,991		9,151

Total All Programs	$	174	$	9,918		$	(28	)	$	(10,064	)	$	-	$	10,209	$	10,369

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details

BUCKEYE TECHNOLOGIES INC 10-K