Restructuring Reserves

6 Months Ended

Jun. 30, 2011

Restructuring Reserves

Restructuring Reserves

7.  Restructuring Reserves

In an effort to maintain competitiveness across our businesses and the geographic areas in which we operate and to enhance the efficiency and cost effectiveness of our support operations, we periodically initiate certain restructuring activities which result in charges for costs associated with exit or disposal activities, severance and/or impairment of long-lived assets.  Many of these activities are associated with certain strategic divestitures or plant shut-downs executed in order to eliminate non-core products that lack a sustainable competitive advantage.  The region that has historically been most significantly impacted by these actions has been Europe.

To right-size our support structure in Europe and lower our operating costs in the region, we relocated our European regional headquarters in the second quarter 2011 from a building located in Louvain-la-Neuve, Belgium ("LLN"), which we own, to a multi-tenant building in which we lease office space in Zaventem, Belgium.  Accordingly, we have initiated a process to sell the LLN building and have reclassified this asset as held for sale.  In conjunction with this reclassification, we were required to perform an impairment test of this asset group.  For purposes of testing for impairment and using all available evidence as of March 31, 2011, we estimated the fair value of this asset group by weighting estimated sales proceeds and discounted cash flows that the asset group could be expected to generate through the time of an assumed sale using a Level 3 fair value measurement as defined by U.S. GAAP under the fair value hierarchy.  Our test concluded impairment existed on March 31, 2011 and, accordingly, we recorded a charge of $8 to other operating expense (income) to reduce the carrying value of this asset to its estimated fair value and reclassified the asset to prepaid expenses and other current assets.  Further and in addition to the above, we initiated a reduction in support personnel in this region which resulted in charges of $4 to selling, general and administrative for the six months ended June 30, 2011.  There were no charges related to this project during the second quarter.  A summary of the charges recorded to Unallocated and Other related to this restructuring action for the six months ended June 30, 2011 are as follows:

	Employment		Long-Lived
	Reductions		Assets		Total
Six Months Ended and cumulative through June 30, 2011:
Selling, general and administrative expenses	$	4	$	0	$	4
Other operating expense (income)		0		8		8
Total	$	4	$	8	$	12

A summary of all activity on the restructuring liability during the six months ended June 30, 2011 is as follows:

	Contract					Impairment of
	Termination		Employment			Long-Lived
	Payments		Reductions			Assets			Total
Balance at December 31, 2010	$	2	$	5		$	0		$	7
Charges taken		0		4			8			12
Amounts utilized		0		(4	)		0			(4	)
Non-cash reductions		0		0			(8	)		(8	)
Currency fluctuations		0		1			0			1
Balance at June 30, 2011	$	2	$	6		$	0		$	8

We expect $6 of restructuring liabilities as of June 30, 2011 to be utilized within the next twelve months.