The Corporation focuses on being the low-cost provider of its products by reducing operating costs and implementing lean manufacturing initiatives, which have in part led to the involuntary termination of certain positions and the consolidation of facilities and product lines.

During the second quarter of 2012, the Corporation recorded restructuring costs by segment as follows:

		(In thousands)
	Three Months Ended
	June 30,2012
	Flow Control		Motion Control		Metal Treatment		Consolidated
Cost of sales	$	1,105	$	398	$	394	$	1,897
Selling expenses		312		-		-		312
General and administrative		842		86		4,847		5,775
Total	$	2,259	$	484	$	5,241	$	7,984

During the first six months of 2012, the Corporation recorded restructuring costs by segment as follows:

		(In thousands)
	Six Months Ended
	June 30,2012
	Flow Control		Motion Control		Metal Treatment		Consolidated
Cost of sales	$	1,285	$	2,136	$	394	$	3,815
Selling expenses		312		-		-		312
General and administrative		1,137		922		4,847		6,906
Total	$	2,734	$	3,058	$	5,241	$	11,033

The Flow Control segment recorded $2.3 million of restructuring charges in the second quarter of 2012 primarily for severance and benefits costs associated with headcount reductions to streamline operations. The segment recorded charges to Cost of sales of $1.1 million; charges to Selling expenses of $0.3 million; and charges to General and administrative expenses of $0.8 million.

In the first six months of 2012, the Flow Control segment recorded $2.7 million of restructuring charges primarily for severance and benefits costs associated with headcount reductions to streamline operations. The segment recorded charges to Cost of sales of $1.3 million; charges to Selling expenses of $0.3 million; and charges to General and administrative expenses of $1.1 million.

The Corporation expects to incur additional restructuring charges of $2 million related to our 2012 restructuring activities within the Flow Control segment.

The Motion Control segment recorded $0.5 million of restructuring charges in the second quarter of 2012 primarily for severance and benefits costs associated with headcount reductions to streamline operations. The segment recorded charges to Cost of sales of $0.4 million; and charges to General and administrative expenses of $0.1 million.

In the first six months of 2012, the Motion Control segment recorded $3.1 million of restructuring charges primarily for severance and benefits costs associated with headcount reductions to streamline operations. The segment recorded charges to Cost of sales of $2.1 million; and charges to General and administrative expenses of $0.9 million.

The Corporation expects to incur additional restructuring charges of $1 million related to our 2012 restructuring activities within the Motion Control segment.

The Metal Treatment segment recorded $5.2 million of restructuring charges in the second quarter and first six months of 2012. The segment recorded cash charges to Cost of sales of $0.4 million; and non-cash charges of $4.8 million to General and administrative expenses. The cash costs were primarily associated with severance and benefits costs related to headcount reductions, while the $4.8 million of non-cash costs were primarily related to fixed asset write-downs.

The Corporation expects to incur additional restructuring charges of $7 million, primarily in the fourth quarter of 2012, related to additional restructuring activities within the Metal Treatment segment.

The following table summarizes the cash components of the Corporation's restructuring plans. Accrued restructuring costs are included in Other current liabilities in the accompanying balance sheet.

		(In thousands)
	Severance and Benefits		Abandonment of facility costs		Total
December 31, 2011	$	-	$	-	$	-
Provisions		5,776		410		6,186
Payments		3,451		31		3,482
June 30, 2012	$	2,325	$	379	$	2,704

The Corporation expects to pay accrued cash restructuring costs primarily over the remainder of 2012.