Restructuring Charge. That certain nonrecurring restructuring charge of the Company to be taken in the second and/or third fiscal quarters of the 1998 fiscal year, provided, the aggregate amount of such Restructuring Charge (whether taken in the second fiscal quarter, the third fiscal quarter, or both fiscal quarters) shall not exceed $40,000,000. Revolving Credit Loan Maturity Date. July 16, 2001. Revolving Credit Loans. Revolving credit loans made or to be made by the Banks to any Borrower pursuant to ss.2 and advances made on the Overdraft Facility pursuant to ss.2.
Restructuring Charge. In April 2001, the Company announced a restructuring program with aggressive actions to properly size its operations to current business conditions. These actions were designed to reduce costs and improve operating efficiencies. The program included, among other items, severance of employees, fringe benefits, outplacement fees, and the plant consolidation of two facilities. The restructuring, affected all three business groups, reduced the Company's current workforce by approximately 250 employees, representing 6% of the total workforce, and consolidates Xxxx Manufacturing's two production facilities in southwest Michigan. The restructuring program costs are shown as a separate item in the accompanying income statement and resulted in a charge to operations of $5,661 ($3,509 after taxes), or $0.12 per share. Excluding the charge, fully diluted earnings per share would have been $0.77 a share for the six months ended June 30, 2001. At June 30, 2001, the amount remaining in the accruals for the restructuring program was approximately $4.0 million. Approximately $4.0 million of the restructuring accrual will be utilized by December 31, 2001 and the remainder will be utilized by March 2003.
Restructuring Charge. The pro forma condensed combined statements of income do not reflect a planned merger-related restructuring charge of between $400 million and $500 million (after-tax) primarily for severance and costs related to excess or unused office space and other facilities since such restructuring charge is non-recurring. Although there can be no assurance that the restructuring charge will fall within the range provided, this range represents management's best estimate based on the currently available information.
Restructuring Charge. During the third and fourth quarters of 2000, the Company implemented a workforce reduction that reduced headcount by approximately 90. Employees affected were primarily in general and administrative functions, with the largest number of affected employees coming from the Maintenance Products Segment. The workforce reduction included severance and related costs for certain employees. Total severance and related costs were $2.5 million pre-tax, which are included as selling, general and administrative expenses in the consolidated statements of operations. Approximately 56% of these costs were paid through the end of the fourth quarter of 2000. During the second quarter of 1999, the Company undertook a restructuring of the Electrical/Electronics businesses, which included severance and related costs for certain employees. Approximately 22 employees accepted severance packages. Total severance and related costs were $0.6 million, which are included in selling, general and administrative costs on the Consolidated Statement of Operations. All of these costs were paid through the end of the fourth quarter of 1999. Severance expenses are included in selling, general and administrative expenses line item in the Consolidated Statements of Operations. As of December 31, 2000 accrued severance totaled $1.1 million which will be paid through the year 2009. The table below summarizes this future obligation:
Restructuring Charge. In response to changes in customers' manufacturing capital software spending patterns during fiscal year 1999, we undertook a restructuring program that, among other things, more closely aligned costs with sales expectations. The program included the consolidation of certain facilities and an approximate reduction of 230 positions across a broad cross-section of QAD. The restructuring plan, which resulted in a fiscal year 1999 charge of $4.3 million was continued in fiscal year 2000 with an additional $1.2 million charge in the quarter ended July 31, 1999. The fiscal 2000 charge was comprised of $0.9 million in employee reduction costs and $0.3 million of facility consolidation costs, while the fiscal 1999 charge was comprised of $1.0 million in employee reduction costs and $3.3 million of facility consolidation costs. As of January 31, 2000, $4.8 million of the total $5.5 million restructuring charge was utilized and we expect to pay the remaining balance by January 31, 2002. The liability was increased by $0.1 million during the year ended January 31, 2000 to reflect changes in estimates used in determining the January 31, 1999 balance. 4. COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS -------- -------- Accounts receivable, net Accounts receivable....................................... $104,857 $103,368 Less allowance for doubtful accounts and sales adjustments........................................... (6,290) (8,024) -------- -------- $ 98,567 $ 95,344 ======== ======== Other current assets Prepaid expenses.......................................... $ 3,244 $ 5,896 Deferred income taxes..................................... 2,837 3,772 Other..................................................... 9,442 10,012 -------- -------- $ 15,523 $ 19,680 ======== ======== Property and equipment, net Land and buildings........................................ $ 8,420 $ 8,208 Computer equipment and software........................... 41,781 36,687 Furniture and office equipment............................ 13,548 12,948 Leasehold improvements.................................... 4,770 4,323 Equipment under capital lease............................. 984 1,879 -------- -------- 69,993 64,183 Less accumulated depreciation and amortization.......... (37,264) (27,348) -------- -------- $ 32,729 $ 36,835 ======== ======== Capitalized software development costs, net Capitalized software development cost..................... $ 15,595 $ 12,533 Less accumulated amortization......
Restructuring Charge. The pro forma financial data do not reflect a planned merger-related restructuring charge of between $400 million and $500 million (after-tax) primarily for severance and costs related to excess or unused office space and other facilities since such restructuring charge is non-recurring. Although there can be no assurance that the restructuring charge will fall within the range provided, this range represents management's best estimate based on the currently available information.
Restructuring Charge. As a result of operating problems and inefficiencies at the NASS division, the Company's Board of Directors approved a plan, in June 1997, to substantially restructure the NASS operations. In conjunction with this plan, the Company recorded a charge to pre-tax earnings totaling approximately $2,700,000 ($1,000,000 in cost of sales and $1,700,000 in selling, general and administrative costs). The charge is comprised of a reduction (approximately $900,000) in the net book value of certain assets, primarily machinery, equipment and tooling, to their estimated fair value, net of estimated selling costs, accrual of certain costs which the Company expects to incur in terminating contractual obligations, but for which no future economic benefit will be received (approximately $1,600,000) and other costs (approximately $200,000). During the year ending June 30, 1998, the restructuring plan was substantially completed and approximately $950,000 had been charged against the accrual for terminating contractual obligations and approximately $30,000 had been charged against the accrual for other costs. As of June 30, 1998, approximately $830,000 of the restructuring accrual remained and is expected to be paid during fiscal 1999.
Restructuring Charge. During the fourth quarter of fiscal 1996, the Company recorded a restructuring charge of $14,145,000 ($8,700,000 after-tax or $.95 per share). The restructuring charge related primarily to the consolidation and closing of Textile Service plants, the reduction of selected product lines in the Manufacturing and Marketing segment and the sale or contraction of certain Canadian operations. These costs included (i) writedowns to the carrying values of plants closed, idle facilities and other assets, (ii) related inventory adjustments and (iii) the accrual of severance costs associated with the elimination of approximately 450 positions. The restructuring charge was composed of $2,566,000 in cash expenditures and $11,579,000 in reduction of asset carrying values. As of January 25, 1997, $13,286,000 had been charged to the restructuring reserve and the remaining reserve of $859,000 is expected to be utilized during fiscal 1998.
Restructuring Charge. During the second quarter of 1998, the Company's Fluid Technology unit recognized restructuring charges of $25.7 in other operating expenses (income) for the closure of its Cincinnati, Ohio pump manufacturing facility. These charges relate primarily to the write-down of assets, severance and closure costs associated with the shut down of the facility. On a pre-tax basis these charges have a cash impact of approximately $14. 8
Restructuring Charge. Each of the undersigned Lenders hereby consents -------------------- and agrees that, for the purposes of determining compliance with subsections 10.1 and 10.2 of the Credit Agreement, Consolidated Net Income for the fiscal quarter ending on April 3, 1999 shall be calculated without regard to the Restructuring Charge.
