Restructuring Charges

12 Months Ended

Dec. 31, 2012

10. Restructuring Charges

2012 Restructuring Plan

In 2012, we announced a restructuring plan to close vision centers, reduce costs and increase operational efficiencies. As a result, we incurred restructuring charges totaling $1.1 million for 2012, which included $327,000 of contract termination costs and vision center closing costs and $803,000 of employee separation benefits.

2011 Restructuring Plan

Restructuring charges in 2011 were $36,000, comprised primarily of adjustments to previous estimates for laser contract termination costs for previously closed vision centers, and additional severance costs. The restructuring charges in 2011 were principally the result of adjustments to previous estimates for laser contract termination costs for previously closed vision centers, and additional severance costs.

2010 Restructuring Plan

In 2010, we announced a restructuring plan to close vision centers, reduce costs and increase operational efficiencies. As a result, we incurred restructuring charges totaling $3.8 million for 2010, which included $3.6 million of contract termination costs and vision center closing costs and $195,000 of employee separation benefits.

Under all restructuring plans, the fair value measurements utilized internal discounted cash flow analysis in determining fair value, which is a Level 3 input under U.S. GAAP.

The following table summarizes the restructuring liability activities (dollars in thousands):


	Employee Separation					Contract Termination
	Employees		Dollars			Costs			Total
Balance at January 1, 2010			$	237		$	1,092		$	1,329
Liabilities recognized		30		195			3,595			3,790
Utilized				(325	)		(1,046	)		(1,371	)

Balance at December 31, 2010				107			3,641			3,748
Liabilities recognized		2		26			10			36
Utilized				(113	)		(1,353	)		(1,466	)

Balance at December 31, 2011				20			2,298			2,318
Liabilities recognized		14		803			327			1,130
Utilized				(219	)		(1,100	)		(1,319	)

Balance at December 31, 2012			$	604		$	1,525		$	2,129

At December 31, 2012 and 2011, we included current restructuring reserves of $1.8 million and $1.3 million, respectively, in “Accrued liabilities and other” in the Consolidated Balance Sheets. Long-term restructuring reserves, comprised of contract termination costs, were $327,000 and $1.0 million at December 31, 2012 and 2011, respectively, and were included in “Other long-term liabilities.”

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details