Restructuring And Other Charges

9 Months Ended

Sep. 30, 2011

Restructuring And Other Charges [Abstract]

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.

Changes in restructuring liabilities during the nine months ended September 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 ⁽¹⁾		(1,156	)		3,877			647			3,368
Non-cash charges		—			(3,139	)		—			(3,139	)
Payments and other costs		(1,240	)		(738	)		(647	)		(2,625	)

Balance September 30, 2011⁽²⁾	$	1,581		$	—		$	—		$	1,581

⁽¹⁾	The reversal of employee-related liabilities is due to certain employees accepting other roles within the Company.

⁽²⁾	$0.5 million of the remaining employee-related liability is classified in Other liabilities as of September 30, 2011 in the Consolidated Balance Sheet.

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.

During the third quarter 2011, the Company received a $1.4 million reimbursement from the Ireland government related to severance payments made to the former employees of the Drogheda manufacturing facility in accordance with local statutory laws which is included in Payments and other costs above. A receivable for this reimbursement was recorded at the time the employee-related liabilities were accrued and was reflected as a reduction of the associated liabilities.

In the aggregate as of September 30, 2011, we have recorded expenses of $34.1 million relating to this rationalization, of which $27.8 million was recorded to Restructuring and other charges, net and $6.3 million was recorded to Costs of goods sold, Research and development (R&D) and Selling and administrative expenses. We do not anticipate any further expenses related to this rationalization.