Aldila, the designer of golf shafts, said it expects the total estimated cost of closing its Tijuana production facility will be $212,000, according to a filing with the Securities & Exchange Commission.
Aldila noted that on August 21, it had announced plans to close its Tijuana, Mexico
production facility. At that time the company was unable to make a good
faith determination of the estimated amount of the costs it expected to
incur in connection with this closure.
Of the $220,000 amount, approximately $110,000 is for one-time employee termination costs, including estimated severance payments required under Mexican labor law, calculated based upon the estimated date of employment termination, and related income taxes.
An additional $68,000 is for contract termination costs relating to the remaining lease payments under the Company's operating lease for the Mexican building. Other costs include approximately $27,000 incurred for the disposition of machinery and equipment in Mexico and $7,000 in costs to relocate other machinery and equipment from Mexico to the United States. In addition to these plant closure expenses, the company has previously announced it accrued a tax charge of approximately $744,000 in the period ended September 30, 2009 for payment of United States income taxes on earnings which will be repatriated from Mexico in connection with this plant closure. These earnings have not previously been subject to United States income taxes.
The company does not anticipate additional material costs relating to this plant closure in future periods.
Production at the Company's Tijuana, Mexico facility ceased on or about August 20, 2009. The company anticipates vacating the premises on or before January 31, 2010.
