11. Restructuring and Other

We incurred restructuring and integration charges, which were primarily associated with the Cretaprint and Prism acquisitions during the nine months ended September 30, 2012 and primarily associated with our Prism, Entrac, and Streamline acquisitions during the nine months ended September 30, 2011, which have been expensed in accordance with ASC 805 and ASC 420, Exit or Disposal Cost Obligations. We have also incurred restructuring charges related to head count reductions, facility downsizing, and relocations. These charges primarily relate to cost reduction actions undertaken to lower our quarterly operating expense run rate in the Fiery operating segment as well as targeted reductions in the Productivity Software operating segment. The restructuring plans are accounted for in accordance with ASC 420 and ASC 820.

We recognized restructuring and other charges of $2.3 and $4.5 million for the three and nine months ended September 30, 2012, respectively, and $0.6 and $2.3 million for the three and nine months ended September 30, 2011, respectively, primarily consisting of restructuring, severance, retention, integration, and charges to downsize or relocate our facilities. Restructuring and severance charges of $1.5 and $2.5 million related to head count reductions of 59 and 103 for the three and nine months ended September 30, 2012, respectively, and $0.3 and $1.6 million related to head count reductions of 12 and 41 for the three and nine months ended September 30, 2011, respectively. Severance costs include severance payments, related employee benefits, and outplacement or relocation costs.

Integration expenses of $0.3 and $1.0 million were incurred during the three and nine months ended September 30, 2012, primarily related to the Cretaprint and Prism acquisitions, and $0.3 and $0.4 million for the three and nine months ended September 30, 2011, primarily related to the Prism, Entrac, and Streamline acquisitions. Retention expenses of $0.2 and $0.7 million were accrued during the three and nine months ended September 30, 2012, respectively, associated with the Cretaprint acquisition. Facilities reduction costs of $0.3 million were incurred during the three and nine months ended September 30, 2012 primarily related to facilities downsizing and relocations in the Americas primarily related to the Fiery operating segment. Facilities reduction costs of $0.3 million were incurred during the nine months ended September 30, 2011 primarily related to the Streamline acquisition and facilities relocations.

Restructuring and other reserve activities for the nine months ended September 30, 2012 and 2011 are summarized as follows (in thousands):


	2012			2011
Reserve balance at January 1,	$	1,870		$	1,795
Restructuring charges		2,203			1,130
Other charges		2,327			1,186
Non-cash acquisition-related compensation costs and restructuring		(678	)		(55	)
Cash payments		(3,513	)		(2,610	)

Reserve balance at September 30,	$	2,209		$	1,446