5. Restructuring and other charges

6 Months Ended

Jun. 30, 2011

Restructuring and Related Activities Disclosure [Text Block]

5. Restructuring and other charges

In May 2011, we undertook a plan to close our New Britain, CT service facility.  The New Britain facility primarily serviced our first generation legacy impact printers for GTECH.  We no longer needed to maintain this facility since these printers have been replaced by our thermal lottery printers.  As of June 30, 2011, all New Britain activities were successfully transferred. These restructuring activities reduced the number of employees and closed a facility which caused the Company to incur costs for employee termination benefits related to these employee reductions as well as lease termination costs and the disposal of fixed assets.  During the three months ended June 30, 2011, the Company recorded a restructuring charge of $184,000, in accordance with FASB Accounting Standards Codification (“ASC”) 420-10-25-4 “Exit or Disposal Cost Obligations.”  This charge has been included within business consolidation and restructuring expensesin the accompanying condensed consolidated statements of income.

The following table summarizes the activity recorded in accrued restructuring expenses during the three months ended June 30, 2011 and is included in accrued liabilities in the accompanying condensed consolidated balance sheets.

	Three months ended
(In thousands)	June 30, 2011
Accrual balance, beginning of period	$	-
Severance charges		134
Non-cancelable lease payments		26
Cash payments		-
Accrual balance, end of period	$	160