Restructuring and Other Expense

The components of our restructuring and other expense included in the Condensed Consolidated Statements of Operations were as follows:



	Three Months Ended		Nine Months Ended
(In millions)	September 30, 2011		September 30, 2011
Restructuring
Severance and related	$	2.4	$	3.7
Lease termination costs	1.1		1.5
Other	0.8		1.2
Total restructuring	$	4.3	$	6.4
Other
Pension settlement	0.9		1.9
Asset disposals	—		7.0
Acquisition and integration related costs	0.3		1.5
Total	$	5.5	$	16.8

2011 Manufacturing Redesign Restructuring Program

On January 13, 2011 the Board of Directors approved the 2011 manufacturing redesign restructuring program of up to $55 million to rationalize certain product lines and discontinue tape coating operations at our Weatherford, Oklahoma facility by April 2011 and subsequently close the facility. We signed a strategic agreement with TDK Corporation to jointly develop and manufacture magnetic tape technologies. Under the agreement, we are collaborating on the research and development of future tape formats in both companies' research centers in the United States and Japan, while consolidating tape coating operations to the TDK Yamanashi manufacturing facility. This program includes a total of approximately $50 million in restructuring and other charges, consisting of severance and related costs of approximately $3 million, asset impairments of approximately $31 million primarily related to the Weatherford facility, inventory write-offs of approximately $14 million and other charges of approximately $2 million.

As of June 30, 2011 the Weatherford facility met the held for sale criteria outlined in the accounting guidance for the sale of a long-lived asset. Accordingly, the book value of the building and property, $3.0 million, was transferred into other current assets on the Condensed Consolidated Balance Sheet and is no longer being depreciated.

During the three months ended September 30, 2011 we recorded site clean-up expenses of $0.8 million related to this program. During the nine months ended September 30, 2011 we recorded inventory write-offs of $1.0 million and site clean-up expenses of $0.8 million related to this program. Inventory write-offs are included in cost of goods sold in our Condensed Consolidated Statements of Operations. Since the inception of this program, we have recorded a total of $15.2 million of inventory write-offs, $31.2 million of asset impairment charges, $3.2 million of severance and related expenses and $0.8 million of site clean-up expenses.

Changes in the 2011 manufacturing redesign restructuring program accruals were as follows:



(In millions)	Severance and Related			Other			Total
Accrued balance at December 31, 2010	$	3.2		$	—		$	3.2
Charges	—			1.0			1.0
Usage	(0.4		)	(1.0		)	(1.4		)
Currency impacts	—			—			—
Accrued balance at March 31, 2011	$	2.8		$	—		$	2.8
Charges	—			—			—
Usage	(2.3		)	—			(2.3		)
Currency Impacts	—			—			—
Accrued balance at June 30, 2011	$	0.5		$	—		$	0.5
Charges	—			0.8			0.8
Usage	(0.3		)	(0.5		)	(0.8		)
Currency Impacts	—			—			—
Accrued balance at September 30, 2011	$	0.2		$	0.3		$	0.5

Other includes inventory write-offs of $1.0 million for the three months ended March 31, 2011. We expect the majority of the severance and related portion of this liability to be paid out during 2011.

2011 Corporate Strategy Restructuring Program

On January 31, 2011 the Board of Directors approved the 2011 corporate strategy restructuring program to rationalize certain product lines, increase efficiency and gain greater focus in support of our go-forward strategy. Major components of the program include charges associated with certain benefit plans, improvements to our global sourcing and distribution network, costs associated with further rationalization of our product lines and evolution of our skill sets to align with our announced strategy. This program includes a total of approximately $35 million in restructuring and other charges, consisting of severance and related expenses of approximately $14 million, charges associated with certain benefit plans of approximately $11 million, lease termination expenses of approximately $5 million and other charges of approximately $5 million.

During the three months ended September 30, 2011 we recorded a restructuring charge of $3.5 million as part of this program, which included $2.4 million for severance and related expenses and $1.1 million for lease modification costs. These costs were included in restructuring and other on our Condensed Consolidated Statements of Operations.

During the nine months ended September 30, 2011 we recorded restructuring charges of $5.6 million as part of this program, which included $3.7 million for severance and related expenses, $1.5 million for lease termination and modification costs and $0.4 million of other charges. These costs were included in restructuring and other on our Condensed Consolidated Statements of Operations. In addition, we also recorded inventory write-offs of $0.5 million related to the planned rationalization of certain product lines as part of this program, which are included in cost of goods sold in our Condensed Consolidated Statements of Operations. Since the inception of this program, we have recorded a total of $7.1 million of severance and related expenses, $1.5 million of lease termination and modification costs, $0.5 million of inventory write-offs, $0.4 million of other charges and $0.3 million related to a pension curtailment charge.

Changes in the 2011 corporate strategy restructuring program accruals were as follows:



(In millions)	Severance and Related			Lease Termination Costs			Other			Total
Accrued balance at December 31, 2010	$	3.4		$	—		$	—		$	3.4
Charges	0.6			0.2			0.3			1.1
Usage	(1.0		)	(0.2		)	(0.4		)	(1.6		)
Currency impacts	0.2			—			0.2			0.4
Accrued balance at March 31, 2011	$	3.2		$	—		$	0.1		$	3.3
Charges	0.7			0.2			0.6			1.5
Usage	(1.4		)	(0.2		)	(0.6		)	(2.2		)
Currency impacts	—			—			—			—
Accrued balance at June 30, 2011	$	2.5		$	—		$	0.1		$	2.6
Charges	2.4			1.1			—			3.5
Usage	(1.4		)	(0.4		)	—			(1.8		)
Currency impacts	(0.2		)	(0.1		)	—			(0.3		)
Accrued balance at September 30, 2011	$	3.3		$	0.6		$	0.1		$	4.0

Other includes inventory write-offs of $0.2 million and $0.3 million for the three months ended March 31, 2011 and June 30, 2011, respectively. We expect the majority of the severance and related portion of this liability to be paid out during 2011.

Other

Our Camarillo, California manufacturing facility ceased operations on December 31, 2008 and the facility, comprised of a building and property, was classified as held for sale. In an effort to increase the salability of the property, during the three months ended June 30, 2011 we demolished the building which resulted in a $7.0 million loss on disposal during the period. The land related to the facility continues to meet the criteria for held for sale accounting and, therefore, remains classified in other current assets on the Condensed Consolidated Balance Sheet as of September 30, 2011 at a book value of $0.2 million. On October 7, 2011 we entered into an agreement to sell the land for $10.5 million, contingent upon the change of certain zoning requirements for the land as well as other standard contingencies. The sale is expected to close in the fourth quarter of 2012 or early 2013.

We recorded acquisition and integration related costs as a result of our acquisition activities of $0.3 million and $1.5 million during the three and nine months ended September 30, 2011 within restructuring and other expense in the Condensed Consolidated Statements of Operations.

We recorded a pension settlement loss of $0.9 million and $1.9 million during the three and nine months ended September 30, 2011, respectively, within restructuring and other expense in the Condensed Consolidated Statements of Operations as a result of the downsizing associated with our domestic restructuring activities. See Note 9 herein for further information regarding the pension settlement.