Note 10: Restructuring

2011 Restructuring Charges:

In May 2011, we committed to a business restructuring 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 current total global work force. We implemented this restructuring plan in the second quarter of 2011 and plan to complete it in the first quarter of 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. We recorded all of these charges in the year ended December 31, 2011 and substantially all of the severance-related and other associated costs were cash expenditures. These costs are recorded on our consolidated statement of operations as restructuring charges.

Restructuring costs of $5.4 million were recorded against the Intermec- branded service reportable segment with the remaining $0.5 million recorded in other costs that cannot be directly allocated to a specific segment.

2009 and 2010 Restructuring Charges:

In January and April 2009, we committed to business restructuring plans intended to reorganize our sales function and reduce our work force. The total pre-tax restructuring costs for these plans were $23.4 million, including employee termination costs of $20.3 million, and other transitional costs of $3.1 million. We recorded $20.6 and $2.8 million of the restructuring charges in 2009 and 2010, respectively. As of December 31, 2010, all restructuring related charges have been recorded, and substantially all of the severance-related and periodic transitional costs were cash expenditures. We made cash payments totaling $3.6 million for the year ended December 31, 2010, in connection with the restructuring plans announced in January and April 2009.

The reconciliation of accrued restructuring charges for the years ended December 31, 2011, 2010 and 2009 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 January 1, 2009	$	1.2		$	-		$	1.2		$	0.1		$	1.3
Restructuring charges for 2009 plan		8.5			10.7			19.2			1.4			20.6
Utilization of 2008 restructuring plan		(1.2	)		-			(1.2	)		-			(1.2	)
Utilization of 2009 restructuring plan		(5.9	)		(10.4	)		(16.3	)		(1.5	)		(17.8	)

Balance at December 31, 2009		2.6			0.3			2.9			-			2.9

Restructuring charges recorded in 2010		0.5			0.6			1.1			1.7			2.8
Utilization of 2009 restructuring plan		(2.4	)		(0.9	)		(3.3	)					(3.3	)
Utilization of 2010 restructuring plan											(0.3	)		(0.3	)

Balance at December 31, 2010		0.7			-			0.7			1.4			2.1

Restructuring charges recorded in 2011		5.3			0.1			5.4			0.5			5.9
Utilization of 2009 restructuring plan		-			-			-						-
Utilization of 2010 restructuring plan		-			-			-			(0.4	)		(0.4	)
Utilization of 2011 restructuring plan		(5.0	)		(0.1	)		(5.1	)		(0.5	)		(5.6	)

Balance at December 31, 2011	$	1.0		$	-		$	1.0		$	1.0		$	2.0