On July 25, 2011, management initiated a restructuring plan that will enable us to align our cost structure to current business conditions. We expect to record pretax charges through the second quarter of 2012 of approximately $22 million. The pretax charges will consist of $14 million for workforce reductions of approximately 330 employees and $8 million for facility- and asset-related charges. Restructuring expense for the third quarter of 2011 was $18.7 million, which consists of $14.3 million for workforce reductions and $4.4 million for facility- and asset-related charges. By segment, total charges to date under this plan are $10.1 million for Broadband, $4.7 million for Transport and $3.9 million for Services. Estimated cash payments under this plan are expected to be $18 million through the end of 2012. Other than the cash payments, actions under this plan are expected to be substantially completed by the end of the second quarter of 2012.

On January 25, 2010, management initiated a restructuring plan to enable us to shift investment from TDM (Time Division Multiplexing) to Ethernet and IP (Internet Protocol) products, move our supply chain closer to suppliers, and reduce general and administrative expenses. Restructuring expense for the third quarter of 2011 was $0.2 million and for the first nine months of 2011 was $0.8 million for severance-related charges. The cumulative pretax restructuring charges for this plan are $9.8 million, which consists of $7.2 million for workforce reductions and $2.6 million for facility- and asset-related charges. By segment, total charges to date under this plan are $6.2 million for Broadband, $3.3 million for Transport, and $0.3 million for Services. Total cash payments under this plan are expected to be $7.2 million, of which $6.7 million has been paid through the third quarter of 2011. Other than the cash payments, restructuring actions under this plan were completed in the first quarter of 2011.

On July 6, 2009, management initiated a restructuring plan as we aligned costs with customer spending and market conditions at that time. Restructuring expense for the first nine months of 2011 was $0.6 million for severance-related charges. The cumulative pretax restructuring charges for this plan are $7.0 million, which consists of $6.6 million in severance charges for workforce reductions and $0.4 million for facility- and asset-related charges. By segment, total charges to date under this plan are $2.6 million for Broadband, $2.1 million for Transport, and $2.3 million for Services. Total cash payments under this plan are expected to be $6.7 million for workforce reductions, of which $6.0 million has been paid through the third quarter of 2011. Other than the cash payments, restructuring actions under this plan were completed in the first quarter of 2011.

Restructuring expense for previous restructuring plans for the third quarter of 2011 was $0.6 million for facility- and asset-related charges. Restructuring expense for previous restructuring plans for the first nine months of 2011 was $0.4 million for facility-related charges. These net expenses are due to changes in estimates to previous restructuring plans.

The balance for restructuring plans relates to net lease obligations that expire through 2015 and cash severance that we expect to pay through the end of 2012.

The following table summarizes restructuring and other charges recorded for the plans mentioned above, as well as adjustments to reserves recorded for prior restructurings:

The following table summarizes restructuring and other charges activity by segment for the third quarter and first nine months of 2011 and the status of the reserves at September 30, 2011:


			Third Quarter Activity
	Balance at 7/1/11		Restructuring Expense		Cash Payments			Other Activities¹			Balance at 9/30/11
2011 Restructuring Plan
Broadband	$	—	$	10.1	$	(1.1	)	$	(0.8	)	$	8.2
Transport		—		4.7		(0.5	)		(0.3	)		3.9
Services		—		3.9		(1.0	)		—			2.9

Subtotal 2011 Restructuring Plan		—		18.7		(2.6	)		(1.1	)		15.0


2010 Restructuring Plan
Broadband		0.6		0.1		(0.4	)		—			0.3
Transport		0.4		0.1		(0.4	)		—			0.1
Services		0.1		—		—			—			0.1

Subtotal 2010 Restructuring Plan		1.1		0.2		(0.8	)		—			0.5


Previous Restructuring Plans
Broadband		4.4		0.5		(0.6	)		(0.1	)		4.2
Transport		0.4		0.1		(0.2	)		—			0.3
Services		0.4		—		(0.1	)		(0.1	)		0.2

Subtotal Previous Restructuring Plans		5.2		0.6		(0.9	)		(0.2	)		4.7


Total Restructuring Plans	$	6.3	$	19.5	$	(4.3	)	$	(1.3	)	$	20.2


			Nine Months Activity
	Balance at 12/31/10		Restructuring Expense			Cash Payments			Other Activities¹			Balance at 9/30/11
2011 Restructuring Plan
Broadband	$	—	$	10.1		$	(1.1	)	$	(0.8	)	$	8.2
Transport		—		4.7			(0.5	)		(0.3	)		3.9
Services		—		3.9			(1.0	)		—			2.9

Subtotal 2011 Restructuring Plan		—		18.7			(2.6	)		(1.1	)		15.0


2010 Restructuring Plan
Broadband		1.4		0.5			(1.6	)		—			0.3
Transport		1.0		0.1			(1.0	)		—			0.1
Services		—		0.2			(0.1	)		—			0.1

Subtotal 2010 Restructuring Plan		2.4		0.8			(2.7	)		—			0.5


Previous Restructuring Plans
Broadband		6.4		0.6			(2.7	)		(0.1	)		4.2
Transport		1.5		(0.1	)		(1.1	)		—			0.3
Services		0.5		0.5			(0.7	)		(0.1	)		0.2

Subtotal Previous Restructuring Plans		8.4		1.0			(4.5	)		(0.2	)		4.7


Total Restructuring Plans	$	10.8	$	20.5		$	(9.8	)	$	(1.3	)	$	20.2

¹ Other activities include the effects of currency translation, write-downs of property, plant and equipment to be disposed, as well as other changes in the reserve that do not flow through restructuring expense.