RESTRUCTURING ACTIVITIES

12 Months Ended

Dec. 31, 2013

11. RESTRUCTURING ACTIVITIES

The Corporation did not have any material restructuring initiatives in 2013.

2012 Restructuring Initiative

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 year ended 2012, the Corporation recorded restructuring costs by segment as follows:



(In thousands)	Flow Control		Controls		Surface Technologies		Consolidated
Cost of sales	$	1,377	$	2,351	$	7,050	$	10,778
Selling expenses	430		—		—		430
General and administrative	1,883		1,075		5,035		7,993
Total	$	3,690	$	3,426	$	12,085	$	19,201

During 2012, the Corporation committed to a plan to restructure existing operations through a reduction in workforce and consolidation of operating locations. The plan impacted all three of the Corporation’s reportable segments and resulted in costs incurred of $19 million. In the Flow Control and Controls segments, restructuring costs of $4 million and $3 million, respectively, were primarily for severance and benefit costs associated with headcount reductions. In the Surface Technologies segment, restructuring costs of $7 million were primarily for severance and benefits costs and $5 million of non-cash costs for a fixed asset write-down due to the cease use of an operating facility.

The Corporation has completed its restructuring activities under the 2012 restructuring plan.

During the year ended 2011, the Corporation, in its Flow Control segment, incurred $0.2 million of severance and benefit costs related to headcount reductions within General and administrative expenses.

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	7,326			6,887			14,213
Payments	(6,306		)	(781		)	(7,087		)
Adjustments	—			—			—
December 31, 2012	$	1,020		$	6,106		$	7,126
Provisions	—			—			—
Payments	(774		)	(5,519		)	(6,293		)
Adjustments	$	(246	)	$	(587	)	$	(833	)
December 31, 2013	$	—		$	—		$	—

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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