Restructuring and Other Charges

9 Months Ended

Sep. 30, 2011

Restructuring and Other Charges [Abstract]

RESTRUCTURING AND OTHER CHARGES

NOTE 15: RESTRUCTURING AND OTHER CHARGES

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2011			2010		2011		2010
Cost of sales – products	$	630		$	305	$	1,004	$	787
Cost of sales – services		(1,331	)		35		7,298		(175	)
Selling and administrative expense		2,131			100		9,402		2,336
Research, development and engineering expense		7			43		19		(155	)
Total	$	1,437		$	483	$	17,723	$	2,793

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2011		2010			2011		2010
DNA
Severance	$	391	$	352		$	1,186	$	2,235
Other		220		(98	)		220		(215	)
DI
Severance		781		178			15,230		556
Other (1)		45		51			1,087		217
Total	$	1,437	$	483		$	17,723	$	2,793

(1) Net other restructuring charges in the DI segment include legal fees, accelerated depreciation, facility refurbishment and lease termination costs.

Restructuring (benefit) charges of $(278) and $14,754 for the three and nine months ended September 30, 2011 related to the Company’s plan for the EMEA reorganization, which realigns resources and further leverages the existing shared services center. As of September 30, 2011, the Company anticipates additional restructuring costs in the range of $10,000 to $13,000 to be incurred into 2012 related to its EMEA restructuring plan. As management concludes on certain aspects of the EMEA restructuring plan, the anticipated future costs related to this plan are subject to change.

Restructuring charges related to reductions in the Company’s global workforce were $767 and $424 for the three months ended September 30, 2011 and 2010, respectively, and $1,046 and $2,354 for the nine months ended September 30, 2011 and 2010, respectively. Restructuring charges in 2011 and 2010 included realignment of the organization and resources to better support opportunities in emerging growth markets, as well as consolidation of certain international facilities in efforts to optimize overall operational performance. The Company does not expect any material remaining costs related to this workforce reduction.

Restructuring charges related to the Company’s strategic global manufacturing realignment plans were $224 and $52 for the three months ended September 30, 2011 and 2010, respectively and $568 and $408 for the nine months ended September 30, 2011 and 2010, respectively.

Other restructuring charges were $724 and $1,355 for the three and nine months ended September 30, 2011. These charges related primarily to realignment in North America.

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

	EMEA Reorganization		Global Workforce Reductions		Global Manufacturing Realignment
Costs incurred to date:
DNA	$	—	$	21,483	$	11,579
DI		14,754		21,452		25,632
Total costs incurred to date	$	14,754	$	42,935	$	37,211

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

Balance as of January 1, 2011	$	3,340
Liabilities incurred		17,723
Liabilities paid		(13,667	)
Balance as of September 30, 2011	$	7,396

Other Charges and Expense Reimbursements

Other charges and expense reimbursements consist of items that the Company determines are non-routine in nature. Net non-routine expense of $2,585 and $2,592 impacted the three months ended September 30, 2011 and 2010, respectively. Net non-routine expense of $13,064 impacted the nine months ended September 30, 2011 compared to net non-routine income of $481 in the same period of 2010. Net non-routine expenses for 2011 consisted primarily of legal and compliance costs related to the FCPA investigation and were recorded in selling and administrative expense. Net non-routine income for 2010 consisted primarily of reimbursements from the Company’s director and officer (D&O) insurance carriers and was recorded in selling and administrative expense, partially offset by costs related to the FCPA investigation.