Restructuring And Other Related Charges

12 Months Ended

Dec. 31, 2011

Restructuring And Other Related Charges [Abstract]

(18)

RESTRUCTURING AND OTHER RELATED CHARGES:

During 2011, the Company recorded pre-tax restructuring and other related charges totaling $179 million. These costs were incurred to position the Company to provide superior products and services to its customers in a cost efficient manner, and in light of the uncertain macro-economic environment. Substantially all restructuring activities initiated in 2011 were completed by December 31, 2011. The Company expects substantially all cash payments associated with remaining termination benefits will be paid during 2012.

The Company did not incur significant restructuring and other related charges during the year ended December 31, 2010.

During 2009, the Company recorded pre-tax restructuring and other related charges totaling $239 million. Of the total 2009 restructuring costs incurred, $192 million was incurred pursuant to plans approved by the Company in April and August of 2009 and $46 million was incurred in connection with the Company's normal on-going restructuring actions. Substantially all planned restructuring activities related to the 2009 plans were completed during 2009 resulting in approximately $204 million of employee severance and related charges and $35 million of facility exit and other related charges.

The nature of the restructuring and related activities initiated in both 2011 and 2009 were broadly consistent throughout the Company's reportable segments and focused on improvements in operational efficiency through targeted workforce reductions and facility consolidations and closures.

In conjunction with the closing of facilities, certain inventory was written off as unusable in future operating locations. This inventory consisted primarily of component parts and raw materials, which were either redundant to inventory at the facilities being merged or were not economically feasible to relocate since the inventory was purchased to operate on equipment and tooling which was not being relocated. In addition, asset impairment charges have been recorded to reduce the carrying amounts of the long-lived assets that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets.

Restructuring and other related charges recorded for the year ended December 31 by segment, for years when charges were significant, are summarized in the table below ($ in millions):


Segment	2011		2009
Test & Measurement	$	18.8	$	67.7
Environmental		7.5		31.7
Life Sciences & Diagnostics		100.9		16.7
Dental		28.3		43.8
Industrial Technologies		23.8		52.7
Businesses contributed to Apex joint venture		—		17.1
Attributable to discontinued operations (see Note 3)		—		8.8

	$	179.3	$	238.5

The table below summarizes the accrual balance and utilization by type of restructuring cost associated with the 2011 actions ($ in millions):


	Costs Incurred		Paid / Settled			Balance as of December 31, 2011
Restructuring Charges:
Employee severance and related	$	159.9	$	(43.2	)	$	116.7
Facility exit and related		19.4		(11.9	)		7.5

Total restructuring	$	179.3	$	(55.1	)	$	124.2

The remaining December 31, 2010 accrual balance of $12 million associated with 2009 actions was paid during 2011.

The restructuring and other related charges incurred during 2011 include cash charges of $173 million and $6 million of non-cash charges. The restructuring and other related charges incurred during 2009 include cash charges of $228 million and $10 million of non-cash charges. These charges are reflected in the following captions in the accompanying Consolidated Statements of Earnings ($ in millions):


Statement of Earnings Caption	2011		2009
Cost of sales	$	67.9	$	116.7
Selling, general and administrative expenses		111.4		113.0
Attributable to discontinued operations		—		8.8

	$	179.3	$	238.5

- 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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