Fiscal 2012 third quarter results included $2.7 million of net miscellaneous income compared with $0.9 million of net miscellaneous expense in the prior-year period. Net miscellaneous income/expense consists primarily of gains and losses resulting from the impact of exchange rates changes on foreign currency exposures, particularly those associated with the Mexican Peso.
The effective tax rate for the third quarter of fiscal 2012 was 35.8 percent compared with 35.2 percent for the prior-year period. The increase in the effective tax rate was due primarily to higher taxable income, nondeductible losses in Spain, and the expiration of the research and development tax credit which occurred at the end of calendar year 2011. The Company’s effective tax rate for fiscal 2012 is forecasted to be approximately 35 percent.
In the third quarter of fiscal 2012, the Company recorded a pre-tax special charge related to streamlining activities of $1.9 million, or $0.03 per diluted share. The special charge was associated with the previously announced planned closing of the Company’s Cochran, Georgia production facility. The closure of the facility, which began in the third quarter of fiscal 2012, is expected to be principally completed by the end of the first quarter of fiscal 2013. The Company expects to incur additional costs of approximately $7 million associated with the closure of the facility, which are forecasted to be recognized primarily during the fourth quarter of fiscal 2012. The total estimated pre-tax costs of $14 million associated with the facility closing consist primarily of severance and employee-related costs of $9 million, production transfer expenses of $2 million, and non-cash asset impairments of $3 million. Annualized pre-tax savings associated with the closure of the Cochran production facility are forecasted to be approximately $8 million and are expected to be realized beginning in the first quarter of fiscal 2013 following the completion of the transfer of production and closure of the facility.