Restructuring

2012 Restructuring Charges

On June 12, 2012, after revising our 2012 business forecast to reflect current economic and other expectations, we committed to a business restructuring plan ("2012 Plan") to better align our cost structure with our current and anticipated needs by lowering costs primarily in North America and Europe. These reductions were primarily intended to lower our service and supply chain overhead and general and administrative support costs, with lesser impacts to research and development and sales and marketing. Under this restructuring plan we expected to reduce our workforce, primarily in the United States and Europe, by approximately 160 employees, representing approximately 7% of our total global workforce. As of December 31, 2012, we have reduced the workforce by 140 employees as part of the restructuring. We anticipate that the final reduction of the workforce, once completed, will be approximately 145 employees.

The total restructuring costs for this plan were expected to be $6.4 million, including employee termination costs of $5.9 million and $0.5 million of other associated costs. We recorded $5.9 million of these charges in the second quarter of 2012. In the third and fourth quarter we did not incur any additional charges, and we reversed $1.1 million of these charges taken in the second quarter, due to lower severance payouts, as well as ultimately retaining certain employees who were initially part of the workforce reduction plan. Therefore, the net expense related only to the 2012 Plan is $4.8 million. The net restructuring expense of $4.4 million reflected in our financial statements for the year ended December 31, 2012 also includes a reversal of $0.3 million made to the May 2011 restructuring plan.

As of December 31, 2012, we have recorded all of the charges related to the 2012 Plan. The costs have been recorded in our consolidated statement of operations in restructuring charges. We expect that the remaining severance-related payments will be cash expenditures.

2011 Restructuring Charges

In May 2011, we committed to a business restructuring plan (the "2011 Plan") intended to reduce our operating cost structure over the remainder of 2011. These reductions were intended primarily to improve our services cost structure and margins. Under this business restructuring plan, we reduced our non-U.S. work force in our service depot and support operations, which represented approximately 2% of our then-current total global work force. We implemented the 2011 Plan in the second quarter of 2011 and completed it in mid-2012.

The total restructuring costs for this plan were $5.9 million, including employee termination costs of $5.4 million and $0.5 million of other associated costs. As of December 31, 2011, we recorded all of the charges related to the 2011 Plan. The costs have been recorded in our consolidated statement of operations in restructuring charges. Substantially all of the severance-related payments were cash expenditures.

2010 Restructuring Charges

In January and April 2009, we committed to business restructuring plans (the "2009 Plans") intended to reorganize our sales function and reduce our work force. In 2010, in connection with the 2009 Plans, we recorded $2.8 million of the restructuring charges and made cash payments totaling $3.6 million. As of December 31, 2010, all restructuring charges related to the 2009 Plans had been recorded. Substantially all of the severance-related and periodic transitional costs were cash expenditures.

The reconciliation of accrued restructuring charges for the years ended December 31, 2012, 2011 and 2010 is summarized in the table below (in millions):



	Accrued Employee Termination Costs per Contract			Accrued One-time Employee Termination Costs			Accrued Total Employee Termination Costs			Accrued Other Costs			Total Accrued Restructuring Charges
Balance at December 31, 2009	$	2.6		$	0.3		$	2.9		$	—		$	2.9
Restructuring charges accrued	0.5			0.6			1.1			1.7			2.8
Restructuring charges utilized	(2.4		)	(0.9		)	(3.3		)	(0.3		)	(3.6		)
Balance at December 31, 2010	0.7			—			0.7			1.4			2.1
Restructuring charges accrued	5.3			0.1			5.4			0.5			5.9
Restructuring charges utilized	(5.0		)	(0.1		)	(5.1		)	(0.9		)	(6.0		)
Balance at December 31, 2011	1.0			—			1.0			1.0			2.0
Restructuring charges accrued	4.8			—			4.8			—			4.8
Restructuring charges utilized	(5.3		)	—			(5.3		)	(0.2		)	(5.5		)
Reversal of prior-year restructuring charges	(0.3		)	—			(0.3		)	—			(0.3		)
Balance at December 31, 2012	$	0.2		$	—		$	0.2		$	0.8		$	1.0