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Other Charges, Net
12 Months Ended
Dec. 31, 2011
Other Charges, Net  
Other Charges, Net

Note 18—Other Charges, Net

        The components of other charges, net for the years ended December 31, 2011, 2010 and 2009, were as follows (in millions):

 
  2011   2010   2009  

Acquisition-related charges (Note 3)

  $ 1.2   $ 1.8   $ 0.8  

Transition-related charges incurred in connection with acquired businesses (Note 3)

    3.0     2.8      

Gain on bargain purchase

            (1.3 )

Professional fees incurred in connection with internal investigation (Note 14)

    4.3          

Restructuring charges

    1.0     0.2     0.2  

Loss on divestiture of business

        1.0      

Impairment charges

            0.7  

Other charges, net

    0.2          
               

 

  $ 9.7   $ 5.8   $ 0.4  
               

        In 2011, the Company initiated a plan to eliminate its atomic force microscopy operations in Berlin, Germany and consolidate them with the nano surfaces business at its facility in Santa Barbara, California. In connection with this plan, which is referred to in the table below as the Berlin program, the Company recorded restructuring charges of $1.3 million in the fourth quarter of 2011, consisting of $0.9 million of severance costs, $0.3 million provisions for excess and obsolete inventory and $0.1 million of fees in connection with implementing this plan. The restructuring charges relate entirely to the Scientific Instruments. The provision for excess inventory has been recorded as a component of cost of product revenue in the consolidated statement of income. The remaining charges are recorded as a component of other charges, net in the consolidated statement of income. The Company expects to record an additional $0.7 million in connection with this plan in 2012, consisting of $0.4 million of severance for employees that are required to provide services beyond a minimum retention period and $0.3 million of costs related to the relocation.

        In 2010, the Company recorded restructuring charges of $0.2 million, which related primarily to severance incurred in connection with the closing of a production facility in Herzogenrath, Germany and relocating the associated operations, which is referred to in the table below as the Herzogenrath program. These charges, which relate entirely to the Scientific Instruments segment, were recorded as a component of other charges, net in the consolidated statement of income. The Company does not expect to incur any additional costs related to this move and all of the related severance payments had been paid at December 31, 2010.

        The following table sets forth the changes in the reserves for restructuring charges (in millions):

 
  Total   Provisions
for Excess
Inventory
  Severance   Exit Costs  

Balance at December 31, 2009

  $   $   $   $  

Restructuring charges related to the Herzogenrath program

    0.2         0.2      

Cash payments

    (0.2 )       (0.2 )    

Foreign currency impact

                 
                   

Balance at December 31, 2010

                 

Restructuring charges related to the Berlin program

    1.3     0.3     0.9     0.1  

Cash payments

                 

Foreign currency impact

                 
                   

Balance at December 31, 2011

  $ 1.3   $ 0.3   $ 0.9   $ 0.1  
                   

        In 2009, the Company recorded an impairment charge of $0.7 million, which consisted of equipment used in the production of certain superconducting wire. The impairment loss was recorded because the Company determined that the carrying value of the assets exceeded the estimated undiscounted operating cash flows generated by the asset group. The amount of the impairment charge was determined by comparing the fair value of this asset group to its carrying value. The Company determined the fair value of the asset group by using an income approach methodology of valuation. The impairment charge was allocated to the Energy & Supercon Technologies segment and has been recorded as a component of other charges, net in the consolidated statements of income.