Restructuring and Other Items

9 Months Ended

Sep. 30, 2011

Restructuring and Other Items [Abstract]

Note 2: Restructuring and Other Items

Restructuring and other items consisted of:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions)	2011			2010			2011			2010
Restructuring and related charges:
Severance and post-employment benefits	$	(0.3	)	$	0.1		$	1.5		$	0.4
Impairments and asset write-offs		0.3			0.1			1.0			0.6
Other restructuring charges		1.0			-			1.8			0.2
Total restructuring and related charges		1.0			0.2			4.3			1.2

Acquisition-related contingencies		0.3			(1.8	)		(0.4	)		(1.8	)
Foreign exchange losses and other		0.6			0.2			0.8			1.7

Total restructuring and other items	$	1.9		$	(1.4	)	$	4.7		$	1.1

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 United States, 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. Under this plan, we expect to incur total restructuring and related charges of approximately $22.0 million to $24.0 million through the end of 2012, which consist of $15.0 million to $17.0 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 incurred $14.5 million of restructuring and related charges, as part of this plan, in December 2010 and $4.3 million during the nine months ended September 30, 2011. We currently expect to incur additional charges of approximately $3.0 million during the fourth quarter of 2011, and the remaining charges during 2012.

During the nine months ended September 30, 2010, we incurred $1.2 million in restructuring and related charges in connection with the 2009 restructuring program, which was completed in 2010.

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

($ in millions)	Severance and benefits			Other Costs			Total
Balance, December 31, 2010	$	10.2		$	-		$	10.2
Charges		1.5			1.8			3.3
Cash payments		(5.0	)		(2.0	)		(7.0	)
Non-cash adjustment		-			0.2			0.2
Balance, September 30, 2011	$	6.7		$	-		$	6.7

During the third quarter of 2011, as a result of the closure of a plant in the United States, we recorded a $0.2 million net curtailment gain related to our U.S. qualified and postretirement medical plans.

Other Items

During the three and nine months ended September 30, 2011, we increased the liability for contingent consideration related to our 2010 acquisition of technology used in our SmartDose™ electronic patch injector system by $0.2 million and $0.3 million, respectively. During the nine months ended September 30, 2011, we also reduced the liability for contingent consideration related to our July 2009 eris™ safety syringe system acquisition by $0.8 million. Subsequent to this reduction, and as of September 30, 2011, the liability balance for the eris™ safety syringe system acquisition is zero, which reflects our assessment that none of the contractual operating targets will be achieved over the earnout period, which ends in 2014.