Harley Davidson 2013 Annual Report Download - page 66

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66
The following table summarizes the Motorcycles segment’s 2011 Kansas City Restructuring Plan and 2011 New
Castalloy Restructuring Plan reserve activity and balances as recorded in accrued liabilities for the year ended December 31 (in
thousands):
2013
Kansas City New Castalloy Consolidated
Employee
Severance
and
Termination
Costs Other Total
Employee
Severance
and
Termination
Costs Accelerated
Depreciation Other Total Total
Balance, beginning of
period $ 2,259 $ — $2,259 $ 9,306 $ — $ 145 $ 9,451 $ 11,710
Restructuring expense — — — 1,480 2,093 1,709 5,282 5,282
Utilized - cash (1,290) — (1,290) (5,369) — — (5,369)(6,659)
Utilized - non-cash — — — — (2,093)(1,721)(3,814)(3,814)
Non-cash reserve release (969) — (969) (5,369) — — (5,369)(6,338)
Balance, end of period $ — $ — $ — $ 48 $ — $ 133 $ 181 $ 181
2012
Kansas City New Castalloy Consolidated
Employee
Severance
and
Termination
Costs Other Total
Employee
Severance
and
Termination
Costs Accelerated
Depreciation Other Total Total
Balance, beginning of
period $ 4,123 $ — $ 4,123 $ 8,428 $ — $ 305 $ 8,733 $ 12,856
Restructuring expense — — — 3,180 8,212 1,427 12,819 12,819
Utilized - cash — — — (2,302) — (1,587)(3,889)(3,889)
Utilized - non-cash — — — — (8,212) — (8,212)(8,212)
Non-cash reserve release (1,864) — (1,864) — — — — (1,864)
Balance, end of period $ 2,259 $ — $ 2,259 $ 9,306 $ — $ 145 $ 9,451 $ 11,710
2010 Restructuring Plan
In September 2010, the Company’s unionized employees in Wisconsin ratified three separate new seven-year labor
agreements which took effect in April 2012 when the prior contracts expired. The new contracts are similar to the labor
agreement ratified at the Company’s York, Pennsylvania production facility in December 2009 and allow for similar flexibility
and increased production efficiency and the addition of a flexible workforce component.
The actions to implement the new ratified labor agreements (2010 Restructuring Plan) resulted in approximately 250
fewer full-time hourly unionized employees in its Milwaukee-area facilities than would have been required under the previous
contract and approximately 75 fewer full-time hourly unionized employees in its Tomahawk, Wisconsin facility than would
have been required under the previous contract.
Under the 2010 Restructuring Plan, restructuring expenses consisted of employee severance and termination costs and
other related costs. On a cumulative basis, the Company has incurred $59.2 million of restructuring and impairment expenses
under the 2010 Restructuring Plan as of December 31, 2013, of which approximately 45% were non-cash.