Note 2: Restructuring and Other Items

Restructuring and other items consisted of:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
($ in millions)	2012			2011			2012			2011
Restructuring and related charges:
Severance and post-employment benefits	$	(0.2	)	$	0.3		$	(0.2	)	$	1.7
Impairments and asset write-offs		0.3			0.4			0.4			0.7
Other restructuring charges		0.2			0.6			0.5			0.8
Total restructuring and related charges		0.3			1.3			0.7			3.2

Impairment charge		3.4			-			3.4			-
Development income		(3.8	)		-			(3.8	)		-
Acquisition-related contingencies		0.2			(0.7	)		0.4			(0.7	)
Special separation benefits		-			2.1			-			2.1
Foreign exchange and other		0.4			0.4			(0.4	)		0.2

Total restructuring and other items	$	0.5		$	3.1		$	0.3		$	4.8

Restructuring and Related Charges

Total restructuring and related charges incurred during the three and six months ended June 30, 2012 and 2011 were associated with the restructuring plan announced in December 2010. These charges consist of costs associated with the 2011 closure of a plant in the United States and a reduction of operations at a manufacturing facility in England. We currently expect to incur additional charges related to the 2010 plan of approximately $1.2 million during the remainder of 2012, the majority of which represents cash expenditures for severance and other costs to complete the planned actions.

The following table presents activity related to our restructuring obligations during the six months ended June 30, 2012:

($ in millions)	Severance and benefits			Other Costs			Total
Balance, December 31, 2011	$	6.2		$	0.6		$	6.8
Charges		(0.2	)		0.9			0.7
Cash payments		(1.7	)		(0.8	)		(2.5	)
Non-cash adjustment		-			(0.4	)		(0.4	)
Balance, June 30, 2012	$	4.3		$	0.3		$	4.6

Other Items

During the second quarter of 2012, as a result of continuing delays and lower-than-expected demand, we updated the sales projections related to one of our product lines in our Pharmaceutical Delivery Systems segment ("Delivery Systems"). The revised projections triggered an impairment review of the associated assets. Our review concluded that the estimated fair value of the product no longer exceeded the carrying value of the related assembly equipment and intangible asset and, therefore, an impairment charge of $3.4 million was recorded during the second quarter of 2012. We estimated the fair value of the asset group using an income approach based on discounted cash flows.

Development income recorded in the second quarter of 2012 was attributable to services provided to, and the reimbursement of certain costs from, a Delivery Systems' customer.

The liability for contingent consideration related to our 2010 acquisition of technology used in our SmartDose™ electronic patch injector system ("SmartDose contingent consideration") increased by $0.2 million and $0.4 million during the three and six months ended June 30, 2012, respectively, due to accretion expense.

During the second quarter of 2011, we reduced the contingent consideration liability related to the July 2009 acquisition of the eris™ safety syringe system ("eris contingent consideration") by $0.8 million, bringing the liability to zero at June 30, 2011. Partially offsetting this reduction was accretion expense related to our SmartDose contingent consideration.

In addition, during the second quarter of 2011, we incurred $2.1 million in special separation benefits related to the retirement of our former President and Chief Operating Officer. These costs consisted primarily of stock-based compensation expense. The respective equity compensation arrangements were amended to allow certain of his awards to continue to vest over the original vesting period instead of being forfeited upon separation, resulting in a revaluation of the awards and acceleration of expense.