RESTRUCTURING AND OTHER EXIT COSTS

3 Months Ended

Mar. 31, 2013

Restructuring and Related Activities [Abstract]

In late 2011, we developed a strategic restructuring program that was announced in January 2012. Costs of the two-year program include employee separation costs for severance related to the workforce reductions, contract exit and termination costs related to lease terminations, and other associated exit costs that include fees to third parties to assist with the program implementation and certain costs related to implementation of an ERP system that will replace select software applications.

Components of the restructuring and other exit costs consist of the following:



	Total Expected Costs		Total 2013 Expense		Cumulative To-Date Expense
Employee separation costs	$	6,177	$	—	$	6,177
Contract exit and termination costs	557		—		247
Other associated exit costs	3,300		25		3,325
Total	$	10,034	$	25	$	9,749

In March of 2013 we announced plans for a new digital print, kitting, and distribution center which is expected to be operational by the third quarter of 2013. To take full advantage of the enhanced capabilities and to support customer requirements, some operations from existing facilities will be transferred to the new center. While certain facilities will close at the end of their current lease term, the company will maintain local presence in the current manufacturing and distribution network to meet customer needs, but in a smaller footprint. Costs of the initiative include employee separation costs for severance and relocation expense as we move a portion of our operations to the new facility and other associated exit costs, primarily for equipment and inventory relocation.

Components of the restructuring and other exit costs consist of the following:



	Total Expected Costs		Total 2013 Expense		Cumulative To-Date Expense
Employee separation costs	$	875	$	601	$	601
Other associated exit costs	1,725		—		—
Total	$	2,600	$	601	$	601

Restructuring and other exit costs in 2012 also included costs from a completed restructuring plan that were required to be expensed as incurred. These amounts were not material.

Restructuring Liability

A summary of activity in the restructuring liability is as follows:



	Balance 2012		Accrued in 2013		Incurred in 2013			Balance 2013
Employee separation costs	$	1,350	$	601	$	(524	)	$	1,427
Contract exit and termination costs	21		—		(16		)	5
Total	$	1,371	$	601	$	(540	)	$	1,432

- 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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