Restructuring Costs

6 Months Ended

Jun. 30, 2012

Restructuring and Related Activities [Abstract]

RESTRUCTURING COSTS

In September 2011, we approved and committed to several initiatives to realign our manufacturing and research and development activities in order to foster growth and enhance profitability. These initiatives are designed to align research and development activities with the location of our customers and reduce product costs. Under this plan, we have reduced our global headcount by approximately 218 people or 13.0% of our total headcount, consolidated our facilities by terminating or exiting several leases, and recorded impairments for assets no longer in use due to the restructuring of our business.

Over the next 3 to 9 months, we will implement the remainder of the restructuring plan as we close facilities and relocate certain functions and expect to incur an additional $4.0 to $9.0 million of restructuring costs during this period. Estimated total expenses to be incurred under this plan are between $13.0 and $18.0 million including the amounts recognized in 2011 and those noted below. Of this total, approximately $5.0 to $6.0 million relates to severance costs, $2.5 million relates to asset impairments, and $5.5 to $9.5 million relates to costs to close facilities and relocate portions of our manufacturing.

The following table summarizes the components of our restructuring costs incurred under this plan (in thousands):



	Three months ended			Six months ended		Cumulative costs through
	June 30, 2012			June 30, 2012		June 30, 2012
Severance and related costs	$	74		447		$	4,068
Property and equipment impairments	(300		)	512		2,251
Facility closure costs	82			1,472		3,460
Total restructuring charges	$	(144	)	$	2,431	$	9,779

The gain on property and equipment in the current quarter is due to an adjustment of an estimate of lease impairments that was recognized in the first quarter of 2012.

The following table summarizes our restructuring liabilities under the plan (in thousands):



	Balances at December 31, 2011		Costs incurred and charged to expense		Cost paid or otherwise settled			Effect of change in exchange rates			Balances at June 30, 2012
Severance and related costs	$	800	$	447	$	(902	)	$	(20	)	$	325
Property and equipment impairments	—		512		(512		)	—			—
Facility closure costs	1,019		1,472		(1,698		)	—			793
Total restructuring liabilities	$	1,819	$	2,431	$	(3,112	)	$	(20	)	$	1,118

- 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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