Restructuring and Other Charges

3 Months Ended

Mar. 31, 2012

Restructuring and Related Activities [Abstract]

The following table summarizes the impact of the Company’s restructuring charges (accrual adjustments) on the condensed consolidated statements of income for three months ended March 31:



	2012			2011
Cost of sales – services	$	(669	)	$	6,074
Cost of sales – products	5			123
Selling and administrative expense	2,387			5,604
Total	$	1,723		$	11,801

The following table summarizes the Company’s net restructuring charges (accrual adjustments) within continuing operations for its Diebold North America (DNA) and Diebold International (DI) reporting segments for the three months ended March 31:



	2012		2011
DNA
Severance	$	1,107	$	(7	)
DI
Severance	128		11,605
Other (1)	488		203
Total	$	1,723	$	11,801


(1)	Other costs in the DI segment include legal fees, accelerated depreciation and lease termination fees.

Restructuring charges of $1,723 for the three months ended March 31, 2012 related to the Company’s global shared services plan, which entails expanding the Company's current information technology (IT) center in India, to create a global shared services center. Expanding the shared services center will require that the Company transfer global back-office work that currently resides in other geographies. Over the next two years, the Company anticipates approximately 200 IT and financial services-related jobs globally will be impacted by this decision and incurring additional restructuring costs of $1,500 in 2012 and up to $9,500 in future periods. As management concludes on certain aspects of the global shared services plan, the anticipated future costs related to this plan are subject to change.

Restructuring charges of $330 and $11,580 for the three months ended March 31, 2012 and 2011, respectively, related to the Company’s plan for the EMEA reorganization, which realigns resources and leveraged the existing shared services center. As of March 31, 2012, the Company anticipates additional restructuring costs in the range of $400 to $1,100 to be incurred during the remainder of 2012 related to this plan.

Other net restructuring (accrual adjustments) charges were $(330) and $221 for the three months ended March 31, 2012 and 2011. Included in service cost of sales is a benefit of $669 related to restructuring accrual adjustments for the three months ended March 31, 2012.

The following table summarizes the Company’s cumulative total restructuring costs for the significant plans:



	EMEA Reorganization		Global Shared Services
Costs incurred to date:
DNA	$	—	$	1,437
DI	19,780		286
Total costs incurred to date	$	19,780	$	1,723

The following table summarizes the Company’s restructuring accrual balances and related activity:



Balance at January 1, 2012	$	10,136
Liabilities incurred	1,723
Liabilities paid	(1,945		)
Balance at March 31, 2012	$	9,914

Other Charges

Other charges consist of items that the Company determines are non-routine in nature. Net non-routine expense of $924 and $5,771 were included in selling and administrative expense for the three months ended March 31, 2012 and 2011, respectively. Net non-routine expenses for 2012 and 2011 consisted primarily of legal and compliance costs related to the FCPA investigation.

- 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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