Restructuring And Other Charges

6 Months Ended

Jun. 30, 2011

Note 3. Restructuring and Other Charges:

During the third quarter 2009, the Company announced the rationalization of its European manufacturing footprint. The rationalization consisted of the closure of the Fragrance Compound facility in Drogheda, Ireland and partial closure of the Fragrance Ingredient plant in Haverhill, UK.

The Company completed its negotiations with the Drogheda, Ireland employee representatives during the third quarter 2010 and ceased manufacturing operations at the plant as of September 30, 2010.

During the second quarter 2011, the Company executed a partial settlement of its pension obligations with the former employees of the Drogheda facility. As a result we recorded a charge of $3.9 million to cover settlements and special termination benefits during the quarter. This settlement was funded primarily through pension plan investment trust assets.

In total we have recorded expenses of $34.7 million relating to this rationalization, of which $28.4 million was recorded to Restructuring and other charges, net and $6.3 million recorded to Costs of goods sold and Research, Selling and Administrative expenses. We do not anticipate any further expenses related to this rationalization.

The balance of the restructuring and other charges liability is expected to be substantially utilized by the end of 2011 as obligations are satisfied. Changes in restructuring liabilities during the six months ended June 30, 2011 were as follows:


(DOLLARS IN THOUSANDS)	Employee- Related			Pension			Asset - Related and Other			Total
Balance December 31, 2010	$	3,977		$	—		$	—		$	3,977
Additional charges (reversals), net		(516	)		3,877			652			4,013
Non-cash charges		—			(3,139	)		—			(3,139	)
Payments and other costs		(2,390	)		(738	)		(652	)		(3,780	)

Balance June 30, 2011	$	1,071		$	—		$	—		$	1,071