Restructuring and Other Items

6 Months Ended

Jun. 30, 2011

Restructuring and Other Items [Abstract]

Restructuring and Other Items

Note 2:  Restructuring and Other Items

Restructuring and other items consisted of:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
($ in millions)	2011			2010		2011			2010
Restructuring and related charges:
Severance and post-employment benefits	$	0.3		$	-	$	1.7		$	0.4
Impairments and asset write-offs		0.4			0.3		0.7			0.4
Other restructuring charges		0.6			0.1		0.8			0.2
Total restructuring and related charges		1.3			0.4		3.2			1.0
Acquisition-related contingencies		(0.7	)		-		(0.7	)		-
Foreign exchange losses and other		0.4			0.8		0.2			1.5
Total restructuring and other items	$	1.0		$	1.2	$	2.7		$	2.5

Restructuring and Related Charges

In December 2010, our Board of Directors approved a restructuring plan designed to reduce our cost structure and improve operating efficiency. The plan involves the 2011 closure of a plant in the U.S., a longer-term reduction in operations at a manufacturing facility in England, and the elimination of certain operational and administrative positions at various other locations. We expect to incur total restructuring and related charges of approximately $22.0 million to $23.0 million through the end of 2012, which consists of $15.0 million to $16.0 million in cash expenditures for severance and costs associated with the plant closure and fixed asset relocation, and approximately $7.0 million in non-cash asset impairment and disposal charges. We have incurred $14.5 million of restructuring and related charges, as part of this plan, in December of 2010 and $3.2 million during the six months ended June 30, 2011. We currently expect to incur total charges of approximately $5.0 million during the full year 2011, and the remainder during 2012.

During the first six months of 2010, we incurred $1.0 million in restructuring and related charges in connection with the 2009 restructuring program.

The following table presents activity related to our restructuring obligations during the six months ended June 30, 2011:

($ in millions)	Severance and benefits			Other Costs			Total
Balance, December 31, 2010	$	10.2		$	-		$	10.2
Charges		1.7			0.8			2.5
Cash payments		(2.3	)		(0.8	)		(3.1	)
Foreign currency translation adjustments		(0.1	)		-			(0.1	)
Balance, June 30, 2011	$	9.5		$	-		$	9.5

Other Items

During the second quarter of 2011, we reduced the contingent consideration liability related to the July 2009 acquisition of the erisT safety syringe system by $0.8 million. The liability as of June 30, 2011 is now zero, which reflects our assessment that none of the contractual operating targets will be achieved over the earnout period ending in 2014. Partially offsetting this reduction was an increase in contingent consideration expense related to our 2010 acquisition of La Model, Ltd.