U.S. Markets close in 1 hr 10 mins

Watson announces restructuring, sees severance, other costs $10M-$12M

Watson Pharmaceuticals disclosed in a regulatory filing that on January 3, the company announced plans to restructure operations at its Corona, California facility. In connection with the restructuring, manufacturing and related support functions at the site will be reduced and activities at the facility going forward will be focused only on the production of oral contraceptives. While the timing of the completion of the restructuring will depend on a number of factors, the company anticipates that the restructuring will be complete by the end of 2014. The company expects to incur pre-tax future cash expenditures associated with the planned closures, including the following: severance, retention, relocation and other employee related costs of approximately $10M to $12M; and product transfer costs of approximately $3M to $4M. The company also expects to incur non-cash accelerated depreciation charges as part of the restructuring.