Restructuring And Other Charges, Net

6 Months Ended

Jun. 30, 2012

Note 3. Restructuring and Other Charges, Net:

European Rationalization Plan

During the third quarter of 2009, the Company announced the rationalization of its European manufacturing facilities. 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 of 2010 and ceased manufacturing operations at the plant as of September 30, 2010. There are no additional charges expected for this plan.

Strategic Initiative

In the fourth quarter of 2011, the Company recorded a $9.8 million charge to cover a restructuring initiative which involved a reduction in workforce primarily related to a realignment of responsibilities in our Fragrances business unit. It also entailed the redeployment of creative resources in emerging markets and resulted in the elimination of 72 positions, across Fragrances, Flavors and corporate functions. The Company recorded an additional net charge of $1.7 million during the six months ended June 30, 2012, which relate to amounts recorded during the first quarter of 2012. The charge for the six-month period is principally attributable to changes in the actual employee positions being eliminated and adjustments to reflect the projected costs based on the final agreements with affected employees. There are no additional charges expected for this plan.

Changes in restructuring liabilities during the six months ended June 30, 2012 related to these plans were as follows:


	Employee-Related
(DOLLARS IN THOUSANDS)	Strategic Initiative			European Rationalization			Total
Balance December 31, 2011⁽¹⁾	$	9,781		$	993		$	10,774
Additional charges, net		1,668			—			1,668
Payments and other costs		(5,876	)		(377	)		(6,253	)

Balance June 30, 2012⁽¹⁾	$	5,573		$	616		$	6,189

⁽¹⁾	$0.2 million and $0.6 million of the remaining employee-related liability is classified in Other liabilities as of June 30, 2012 and December 31, 2011, respectively, in the Consolidated Balance Sheet.

- 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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