Restructuring and Other Charges

3 Months Ended

Mar. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring Charges

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



	2013		2012
Cost of sales – services	$	2,624	$	(669	)
Cost of sales – products	139		5
Selling and administrative expense	5,887		2,387
Research, development and engineering expense	853		—
Total	$	9,503	$	1,723

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



	2013			2012
DNA
Severance	$	9,528		$	1,107
DI
Severance	(86		)	128
Other	61			488
Total	$	9,503		$	1,723

During the three months ended March 31, 2013, the Company announced a multi-year realignment plan. Certain aspects of this plan were previously disclosed under the Company's global realignment plan and global shared services plan. This multi-year realignment will focus on globalizing the Company's service organization, create a unified center-led global organization for research and development as well as transform the Company's general and administrative cost structure. Restructuring charges of $9,503 and $1,723 for the three months ended March 31, 2013 related to the Company's realignment plan. As of March 31, 2013, the Company anticipates additional restructuring costs of in the range of $15,000 to $30,000. As management concludes on certain aspects of the global realignment plan, the anticipated future costs related to this plan are subject to change. As of March 31, 2013, cumulative total restructuring costs for the realignment plan were $21,110 and $7,123 in DNA and DI, respectively.

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



	2013			2012
Balance at January 1	$	11,844		$	10,136
Liabilities incurred	9,503			1,723
Liabilities paid	(5,994		)	(1,945		)
Balance at March 31	$	15,353		$	9,914

Other Charges

Other charges consist of items that the Company determines are non-routine in nature. Net non-routine expenses of $7,494 and $924 impacted the three months ended March 31, 2013 and 2012, respectively. Net non-routine expenses for 2013 consisted primarily of executive severance costs, including accelerated share-based compensation expense of $2,982 and non-routine income related to a gain on assets of $2,191 from the sale of certain U.S. manufacturing operations to a long-time supplier. Net non-routine expenses for 2012 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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