Restructuring Charges

6 Months Ended

Jun. 30, 2011

4. Restructuring Charges

During the fourth quarter of 2010, the Company initiated a restructuring plan that includes headcount reductions, consolidation of responsibilities and vacating leased facilities (“Restructuring Actions”), which has continued into 2011. Employees impacted by the Restructuring Actions were notified of their termination during the fourth quarter of 2010 and first and second quarters of 2011. In addition, the Company vacated certain of its leased facilities during the first and second quarters of 2011. As a result of the Restructuring Actions, we have recognized a restructuring charge to earnings of $8.7 million and $14.7 million and made cash payments of $7.6 million and $16.0 million during the three and six months ended June 30, 2011, respectively, related to severance, vacating leased facilities and related restructuring activities. The following tables show the activity in our restructuring reserve associated with the Restructuring Actions during the three and six months ended June 30, 2011.


Three Months Ended June 30, 2011
Balance at March 31, 2011	$	15,413
Additions to reserve charged to earnings		8,713
Non-cash reduction in restructuring reserve		(3,005	)
Payments		(7,568	)

Balance at June 30, 2011	$	13,553


Six Months Ended June 30, 2011
Balance at January 1, 2011	$	17,858
Additions to reserve charged to earnings		14,725
Non-cash reduction in restructuring reserve		(3,005	)
Payments		(16,025	)

Balance at June 30, 2011	$	13,553

The Company anticipates additional charges to earnings related to severance, vacating leased facilities and related restructuring activities in conjunction with the Restructuring Actions during 2011. These amounts have not been determined at this time. Restructuring charges that are charged to earnings are included in production and distribution expenses, selling and support expenses or general and administrative expenses on the consolidated statements of operations, as applicable.

- 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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