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						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Cost of sales – services	$	956		$	(1,331	)	$	91		$	7,298
Cost of sales – products	(2,064		)	630			(1,959		)	1,004
Selling and administrative expense	2,454			2,131			5,654			9,402
Research, development and engineering expense	1,116			7			1,116			19
Total	$	2,462		$	1,437		$	4,902		$	17,723

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



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2012			2011		2012			2011
DNA
Severance	$	3,313		$	391	$	4,870		$	1,186
Other	—			220		—			220
DI
Severance	(621		)	781		(329		)	15,230
Other (1)	(230		)	45		361			1,087
Total	$	2,462		$	1,437	$	4,902		$	17,723


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

Restructuring charges of $4,770 for the three and nine months ended September 30, 2012, related to the Company’s global realignment plan, including realignment of resources and certain international facilities to better support opportunities in target markets and leverage software-led services technology to support customers in efforts to optimize overall operational performance. As of September 30, 2012, the Company anticipates additional restructuring costs of $9,600 in 2012 and $2,000 in future periods related to this plan. As management concludes on certain aspects of the global realignment plan, the anticipated future costs related to this plan are subject to change.

Restructuring charges of $689 and $2,789 for the three and nine months ended September 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 September 30, 2012, the Company anticipates additional restructuring costs of $100 in 2012 and up to $8,000 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 $(2,840) and $(278) for the three months ended September 30, 2012 and 2011, respectively, and $(2,544) and $14,754 for the nine months ended September 30, 2012 and 2011, respectively, related to the Company's plan for the EMEA reorganization, which realigned resources and leveraged the exiting shared services center. The Company does not expect any material remaining costs related to this plan.

Other net restructuring (accrual adjustments) charges were $(157) and $1,715 for the three months ended September 30, 2012 and 2011, respectively, and $(113) and $2,969 for the nine months ended September 30, 2012 and 2011, respectively.

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



	Global Realignment		Global Shared Services		EMEA Reorganization
Costs incurred to date:
DNA	$	2,873	$	2,527	$	—
DI	1,897		262		16,906
Total costs incurred to date	$	4,770	$	2,789	$	16,906

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



Balance at January 1, 2012	$	10,136
Liabilities incurred	4,902
Liabilities paid	(5,347		)
Balance at September 30, 2012	$	9,691

Impairment and Other Charges

During the three months ended September 30, 2012, the Company recorded an impairment charge of $7,930 related to its 50 percent ownership in Shanghai Diebold King Safe Company, Ltd. (refer to note 9). During the nine months ended September 30, 2012, the Company recorded impairment charges 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 nine months ended September 30, 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 expenses of $1,913 and $13,064 were included in selling and administrative expense for the nine months ended September 30, 2012 and 2011, respectively. Net non-routine expenses for 2012 and 2011 consisted primarily of legal and compliance costs related to the global FCPA investigation.