Restructuring Activities

9 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

In the third quarter of 2013, the Company initiated a restructuring of its Systems segment, which impacted its results of operations for the three and nine months ended September 30, 2013. This restructuring involves the closing of certain manufacturing facilities and reducing headcount in those and other facilities. This restructuring is expected to be complete by December 31, 2013, and the Company expects to incur a total of $28.4 million of charges, including $7.3 million of cash expenditures.

In connection with the preparation and review of these financial statements required to be included in this Quarterly Report on Form 10-Q, we re-evaluated the realizability of our Systems segment inventory and recorded $18.2 million of charges related to excess and obsolete inventory. In addition, the Company wrote off $1.1 million of inventory through scrap expense, and wrote down $1.9 million of inventory to a lower of cost or market value as a result of the restructuring. The Company has reduced its employee headcount in its Systems segment by a total of 88 positions as of September 30, 2013, or approximately 31% of the total Systems full-time employee headcount. Also in connection with the preparation and review of the financial statements included in this Quarterly Report on Form 10-Q, at September 30, 2013, the Company had accrued $5.6 million related to severance costs resulting from the reductions. Of the amount expensed for the three months ended September 30, 2013, $3.7 million is included in cost of sales, with the remaining $1.8 million included in operating expenses.

During the three months ended September 30, 2013, the Company recognized the following pre-tax charges related to its Systems segment restructuring activity:



	Severance charges		Asset write-downs and other		Total
Cost of goods sold	$	3,729	$	21,351	$	25,080
Operating expenses	$	1,833	$	383	$	2,216
Consolidated total	$	5,562	$	21,734	$	27,296

During the fourth quarter, the Company expects to incur an additional $1.1 million in restructuring charges related to closing facilities and other items.

- 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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