3. Restructuring and Other Charges

On July 25, 2011, management initiated a restructuring plan to align our cost structure to business conditions at that time. 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 2011 was $19.7 million, which consists of $14.5 million for workforce reductions, $4.6 million for facility- and asset-related charges, and $0.6 million for other obligations. By segment, total charges to date under this plan are $10.4 million for Broadband, $5.3 million for Transport and $4.0 million for Services. Estimated cash payments under this plan are expected to be $17.0 million through the second quarter of 2013. 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 products, move our supply chain closer to suppliers, and reduce general and administrative expenses. Restructuring expense for 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 $6.9 million has been paid through 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. A net restructuring credit of $1.3 million for 2011 consists of $0.6 million for severance-related charges and a gain of $1.9 million for facility- and asset-related charges related to the sale of a facility. The cumulative pretax restructuring charges for this plan are $5.1 million, which consists of $6.6 million in severance charges for workforce reductions and a credit of $1.5 million for facility- and asset-related charges. By segment, total charges to date under this plan are $1.6 million for Broadband, $1.2 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 $6.1 million has been paid through 2011. Other than the cash payments, restructuring actions under this plan were completed in the first quarter of 2011.

On February 5, 2009, management initiated a restructuring plan as we aligned costs with customer spending and market conditions at that time. By segment, total charges to date under this plan were $0.8 million for Broadband, $0.8 million for Transport and $0.1 million for Services. The cost and cash payments under this plan were $1.7 million for workforce reductions of 49 employees. Restructuring actions under this plan were completed in the third quarter of 2009.

Restructuring expense for previous restructuring plans for 2011 was $1.1 million for facility- and asset-related charges. These expenses are due to changes in previous estimates related to certain lease obligations.

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 for prior restructurings:


	2011		2010		2009
Severance and other termination benefits	$	15.9	$	6.9	$	6.6
Facility and other exit costs		3.8		2.6		5.1
Other obligations		0.6		—		—
Total restructuring and other charges	$	20.3	$	9.5	$	11.7

The following table summarizes our restructuring and other charges activity by segment during 2011 and 2010 and the status at year-end:


	Balance at 12/31/10		Restructuring Expense			Cash Payments			Other Activities¹			Balance at 12/30/11
2011 Restructuring Plan
Broadband	$	—	$	10.4		$	(2.2	)	$	(0.8	)	$	7.4
Transport		—		5.3			(1.1	)		(0.6	)		3.6
Services		—		4.0			(2.3	)		(0.1	)		1.6
Subtotal 2011 Restructuring Plan		—		19.7			(5.6	)		(1.5	)		12.6
2010 Restructuring Plan
Broadband		1.4		0.5			(1.7	)		—			0.2
Transport		1.0		0.1			(1.0	)		—			0.1
Services		—		0.2			(0.2	)		—			—
Subtotal 2010 Restructuring Plan		2.4		0.8			(2.9	)		—			0.3
Previous Restructuring Plans
Broadband		6.4		0.4			(2.2	)		(0.1	)		4.5
Transport		1.5		(1.1	)		(0.2	)		(0.1	)		0.1
Services		0.5		0.5			(0.8	)		—			0.2
Subtotal Previous Restructuring Plans		8.4		(0.2	)		(3.2	)		(0.2	)		4.8
Total All Restructuring Plans	$	10.8	$	20.3		$	(11.7	)	$	(1.7	)	$	17.7


	Balance at 1/1/10		Restructuring Expense			Cash Payments			Other Activities¹			Balance at 12/31/10
2010 Restructuring Plan
Broadband	$	—	$	5.7		$	(3.2	)	$	(1.1	)	$	1.4
Transport		—		3.2			(0.7	)		(1.5	)		1.0
Services		—		0.1			(0.1	)		—			—
Subtotal 2010 Restructuring Plan		—		9.0			(4.0	)		(2.6	)		2.4
2009 Restructuring Plans
Broadband		1.1		0.9			(1.0	)		(0.1	)		0.9
Transport		1.0		0.3			(0.9	)		—			0.4
Services		1.5		(0.3	)		(0.7	)		—			0.5
Subtotal 2009 Restructuring Plans		3.6		0.9			(2.6	)		(0.1	)		1.8
Previous Restructuring Plans
Broadband		7.7		0.3			(2.5	)		—			5.5
Transport		5.7		(0.7	)		(3.9	)		—			1.1
Subtotal Previous Restructuring Plans		13.4		(0.4	)		(6.4	)		—			6.6
Total All Restructuring Plans	$	17.0	$	9.5		$	(13.0	)	$	(2.7	)	$	10.8

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