RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES

Restructuring Charges

The following table summarizes the impact of the Company’s restructuring charges (accrual adjustments) on the condensed consolidated statements of income:



	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012			2011		2012			2011
Cost of sales – services	$	(196	)	$	2,555	$	(865	)	$	8,629
Cost of sales – products	100			251		105			374
Selling and administrative expense	813			1,667		3,200			7,271
Research, development and engineering expense	—			12		—			12
Total	$	717		$	4,485	$	2,440		$	16,286

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



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
DNA
Severance	$	450	$	802	$	1,557	$	795
DI
Severance	164		2,844		292		14,449
Other (1)	103		839		591		1,042
Total	$	717	$	4,485	$	2,440	$	16,286


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

Restructuring charges of $377 and $2,100 for the three and six months ended June 30, 2012, respectively, 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 that provides centralized IT and financial services for the Company. Expanding the shared services center requires transferring IT and financial services-related jobs residing in other geographies. As of June 30, 2012, the Company anticipates additional restructuring costs of $1,200 in 2012 and up to $8,300 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 (accrual adjustments) charges of $(34) and $3,452 for the three months ended June 30, 2012 and 2011, respectively, and $296 and $15,032 for the six months ended June 30, 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 June 30, 2012, the Company anticipates additional restructuring costs of $2,600 during the remainder of 2012 and an additional $400 into 2013 related to this plan.

Other net restructuring charges were $374 and $1,033 for the three months ended June 30, 2012 and 2011, respectively, and $44 and $1,254 for the six months ended June 30, 2012 and 2011, respectively.

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



	Global Shared Services		EMEA Reorganization
Costs incurred to date:
DNA	$	1,930	$	—
DI	170		19,746
Total costs incurred to date	$	2,100	$	19,746

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



Balance at January 1, 2012	$	10,136
Liabilities incurred	2,440
Liabilities paid	(3,587		)
Balance at June 30, 2012	$	8,989

Impairment and Other Charges

In the second quarter of 2012, the Company recorded an impairment charge within DNA of $6,701 related to a portion of its global enterprise resource planning (ERP) system. Previously capitalized software and software-related costs were impaired due to changes in the ERP implementation plan related to configuration and design. In the second quarter of 2011, the Company recorded $2,962 of software intangible asset impairment charges within DNA.

Other charges consist of items that the Company determines are non-routine in nature. Net non-routine expense of $1,267 and $10,479 were included in selling and administrative expense for the six months ended June 30, 2012 and 2011, respectively. Net non-routine expenses for 2012 and 2011 consisted primarily of legal and compliance costs related to the FCPA investigation.