Sensata Technologies Holding N.V. - FORM 10-Q - XML - IDEA: XBRL DOCUMENT - October 24, 2011

7. Restructuring Costs

Our restructuring programs are described below.

MSP Plan

On January 28, 2011, we acquired MSP from Honeywell International Inc. On January 31, 2011, we announced a plan ("MSP Plan") to close the manufacturing facilities in Freeport, Illinois and Brno, Czech Republic. Restructuring charges related to these actions will consist primarily of severance and other costs recognized through the expected service period of the affected employees. The actions are expected to affect 195 employees and cost approximately $4,857 based on the exchange rate on September 30, 2011 and will be allocated to the sensors segment. As of September 30, 2011, two employees have been severed in connection with this plan. We anticipate these actions will be completed and payments will be made through the end of 2012.

The following table outlines the changes to the restructuring liability associated with the MSP Plan since December 31, 2010:

2008 Plan

During fiscal years 2009 and 2008, in response to global economic conditions, we announced various actions ("2008 Plan") to reduce the workforce in several business centers and manufacturing facilities throughout the world and to move certain manufacturing operations to low-cost countries. As of September 30, 2011, 1,980 employees have been severed in connection with this plan, which will ultimately affect 1,982 employees. The remaining actions have been completed as of the date of this report. We do not expect to incur additional charges in the future. The liability as of September 30, 2011 was $93, which is due to the remaining severance, for which we expect to make payments through 2011, and due to the contractual obligations, for which we expect payments will be completed in 2014.

In connection with the 2008 Plan, we have incurred cumulative costs to date, excluding the impact of changes in foreign currency exchange rates, of $40,286, consisting of $28,121 in severance costs, $9,716 in pension-related costs and $2,449 in facility exit and other costs. Of the cumulative costs incurred, $1,750 and $4,515 has been allocated to the sensors and controls segments, respectively, and $34,021 has been allocated to corporate.

Other

In September 2011, we reduced our workforce in certain of our manufacturing facilities. In connection with this action we have incurred cumulative costs of $323, consisting of $204 in pension-related costs and $119 in severance costs.

In July 2007, we acquired Airpax Holdings, Inc. ("Airpax Acquisition"). In 2007 and 2008, we announced a series of plans ("Airpax Plan") to close certain facilities, to relocate certain manufacturing lines to other sites, and to terminate certain employees. The liability as of September 30, 2011 was $526, which is related to facility exit costs, for which we expect payments will be completed in 2012. We do not expect to incur additional costs in the future.

In December 2006, we acquired First Technology Automotive and Special Products from Honeywell International Inc. ("First Technology Automotive Acquisition"). In January 2007, we announced plans ("FTAS Plan") to close or downsize certain facilities and relocate the related manufacturing to other sites. The liability as of September 30, 2011 was $121, which is due primarily to contractual lease-related obligations, for which we expect payments will be completed through 2014. We have not incurred additional costs related to this plan in the nine months ended September 30, 2011 and do not expect to incur additional costs in the future.

Summary of Restructuring Programs

The following tables outline amounts recorded within the condensed consolidated statement of operations associated with our restructuring programs and other restructuring activities, and where these amounts were recognized for the three and nine months ended September 30, 2011 and 2010. The "Other" restructuring expense of $153 during the nine months ended September 30, 2011 represents net charges for the Airpax Plan, the FTAS plan and other restructuring actions in the third quarter of 2011. The "Other" restructuring expense of $869 during the nine months ended September 30, 2010 represents net charges for the FTAS plan and the termination of a limited number of employees located in various business centers and facilities throughout the world, and not the initiation of a larger restructuring program.