Restructuring and Other Charges

3 Months Ended

Mar. 31, 2014

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:



	2014			2013
Cost of sales – services	$	700		$	2,624
Cost of sales – products	14			139
Selling and administrative expense	4,465			5,887
Research, development and engineering expense	(42		)	853
Total	$	5,137		$	9,503

The following table summarizes the Company’s restructuring charges (accrual adjustments) by reporting segment for the three months ended March 31:



	2014		2013
Severance
North America (NA)	$	2,138	$	9,528
Asia Pacific (AP)	255		—
Europe, Middle East and Africa (EMEA)	597		(98		)
Latin America (LA)	1,242		—
Brazil	905		12
Total Severance	5,137		9,442

Other
EMEA	—		61
Total Other	—		61
Total	$	5,137	$	9,503

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 focuses on globalizing the Company's service organization and creating a unified center-led global organization for research and development, as well as transforming the Company's general and administrative cost structure. Restructuring charges of $5,137 and $9,503 for the three months ended March 31, 2014 and 2013, respectively, related to the Company's multi-year realignment plan. Restructuring charges for the three months ended March 31, 2014 primarily related to a business process outsourcing initiative. As of March 31, 2014, the Company anticipates additional restructuring costs of $9,000 to $12,000 to be incurred through the end of 2014, primarily within NA and EMEA. As management finalizes certain aspects of the realignment plan, the anticipated future costs related to this plan are subject to change. As of March 31, 2014, cumulative total restructuring costs for the multi-year realignment plan were $62,470, $2,814, $5,481, $1,694 and $8,603 in NA, AP, EMEA, LA and Brazil, respectively.

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



	2014			2013
Balance at January 1	$	35,289		$	11,844
Liabilities incurred	5,137			9,503
Liabilities paid/settled	(23,425		)	(5,994		)
Balance at March 31	$	17,001		$	15,353

Other Charges

Other charges consist of items that the Company has determined are non-routine in nature and are not expected to recur in future operations. Net non-routine expenses of $1,074 and $8,194 impacted the three months ended March 31, 2014 and 2013, 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.

- 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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