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 operations:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013		2012			2013		2012
Cost of sales – services	$	2,124	$	956		$	8,983	$	91
Cost of sales – products	212		(2,064		)	429		(1,959		)
Selling and administrative expense	1,859		2,454			9,375		5,654
Research, development and engineering expense	151		1,116			2,617		1,116
Total	$	4,346	$	2,462		$	21,404	$	4,902

The following table summarizes the Company’s net restructuring charges for its Diebold North America (DNA) and DI reporting segments:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013		2012			2013		2012
DNA
Severance	$	962	$	3,313		$	14,373	$	4,870
Other	224		—			224		—
DI
Severance	2,827		(621		)	6,334		(329		)
Other	333		(230		)	473		361
Total	$	4,346	$	2,462		$	21,404	$	4,902

During the first quarter of 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, creating a unified center-led global organization for research and development as well as transform the Company's general and administrative cost structure. All restructuring charges for the three and nine months ended September 30, 2013 and 2012 related to the Company's multi-year realignment plan. As of September 30, 2013, the Company anticipates additional restructuring costs of $94,000 to $121,000 to be incurred through the end of 2014, inclusive of $48,000 to $59,000 of non-cash voluntary early retirement program restructuring charges to be incurred in the fourth quarter 2013. As management finalizes certain aspects of the realignment plan, the anticipated future costs related to this plan are subject to change. As of September 30, 2013, cumulative total restructuring costs for the multi-year realignment plan were $26,179 and $13,955 in DNA and DI, respectively.

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



	2013			2012
Balance at January 1	$	11,844		$	10,136
Liabilities incurred	21,404			4,902
Liabilities paid	(27,239		)	(5,347		)
Balance at September 30	$	6,009		$	9,691

Impairment and Other Charges

During the third quarter of 2013, the Company recorded a $70,000 pre-tax, non-cash goodwill impairment charge related to its Brazil reporting unit (refer to note 9) within DI.

During the third quarter of 2012, the Company determined an investment related to its 50 percent ownership in Shanghai Diebold King Safe Company, Ltd. was partially impaired and recorded an impairment charge of $7,930, which was allocated to the DNA and DI segments. During 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.

Other charges consist of items that the Company determines are non-routine in nature. Net non-routine expenses of $56,364 and $1,913 impacted the nine months ended September 30, 2013 and 2012, respectively. Non-routine expenses within selling and administrative expense for the first nine months of 2013 included $28,000 of estimated pre-tax losses related to the potential outcome of the FCPA investigation in addition to related legal fees, a $17,245 pre-tax net charge related to settlement of the securities legal action (refer to note 13), and executive severance costs, including accelerated share-based compensation expense of $2,982 (pre-tax). Non-routine income for 2013 related to a pre-tax gain 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.