NOTE 4 – RESTRUCTURING AND OTHER EXIT COSTS

All costs related to restructuring actions are included in restructuring and other exit costs in the accompanying Consolidated Statements of Income. Components include the following:

	2011			2010			2009

2011 Plans
Involuntary termination costs	$	5,480		$	-		$	-
Total 2012		5,480			-			-
2009 Plans
Involuntary termination costs		(521	)		(213	)		3,615
Contract exit and termination costs		154			1,025			361
Other associated exit costs		86			848			7,223
Total 2009		(281	)		1,660			11,199

2008 Plans
Involuntary termination costs		-			-			(453	)
Contract exit and termination costs		-			35			229
Other associated exit costs		(1	)		38			538
Total 2008		(1	)		73			314
Total	$	5,198		$	1,733		$	11,513

Under our current operating model, the majority of our manufacturing, warehousing, and distribution activities are managed under a shared-services model and are therefore not specific to a particular reportable segment. Additionally, we still maintain certain other corporate functions that also are not attributable to a specific reportable segment. As a result, none of our restructuring or exit activities are reported under any segment, and are all attributable to corporate and other shared services.

2011 Plans

In late 2011, we developed a strategic restructuring program that was announced in January 2012. The restructuring program is designed to better align our resources in support of our growing core solutions business and to reduce costs to offset the impact of declining revenue in our legacy operations. The restructuring program is expected to result in an estimated $45,000 in annual savings and the elimination of 12% to 15% of our workforce over the next six to nine months. Total costs of the restructuring program are expected to be approximately $7,000, of which $5,480 is for severance related to the workforce reduction and $1,520 is for contract termination and other associated costs, primarily for fees to a third party to assist with the program implementation and costs for the relocation of equipment and inventory.

Components of 2011 restructuring and other exit costs consist of the following:


	Total		Total		Cumulative
	Expected		2011		To-Date
	Costs		Expense		Expense

Involuntary termination costs	$	5,480	$	5,480	$	5,480
Contract termination costs		370		-		-
Other associated exit costs		1,150		-		-
Total	$	7,000	$	5,480	$	5,480

A summary of the 2011 accrual activity is as follows:

	Accrued		Incurred		Balance
	in 2011		in 2011		2011

Involuntary termination costs	$	5,480	$	-	$	5,480
Total	$	5,480	$	-	$	5,480

2009 Plans

In 2009, we launched a company-wide review of business practices and growth acceleration opportunities designed around the priorities of client satisfaction, cost reduction, and increased market coverage. As a result, we implemented a restructuring plan and numerous organizational improvements to simplify business, move closer to the customer, grow revenue, and improve overall efficiency of our business.

Restructuring costs primarily included: severance related to workforce reductions; contract termination and other exit costs from the strategic closure of production and distribution facilities and the subsequent relocation of equipment and inventory; and fees to the third-party that assisted with the development and implementation of the plan.

All of our plans were completed by the end of 2011. In 2011 and 2010, we reversed $567 and $492 of previously accrued severance and contract termination costs due to lower than expected costs.

Components of 2009 restructuring and other exit costs consist of the following:


	Total		Total			Cumulative
	Expected		2011			To-Date
	Costs		Expense			Expense

Involuntary termination costs	$	2,881	$	(521	)	$	2,881
Contract termination costs		1,700		154			1,540
Other associated exit costs		8,200		86			8,157
Total	$	12,781	$	(281	)	$	12,578

A summary of the 2009 accrual activity is as follows:

	Balance		Accrued		Incurred			Reversed			Balance		Accrued		Incurred			Reversed			Balance
	2009		in 2010		in 2010			in 2010			2010		in 2011		in 2011			in 2011			2011

Involuntary termination costs	$	3,412	$	63	$	(2,212	)	$	(385	)	$	878	$	-	$	(358	)	$	(520	)	$	-
Contract termination costs		361		1,079		(522	)		(107	)		811		124		(708	)		(47	)		180
Other associated exit costs		1,300		-		(1,300	)		-			-		-		-			-			-
Total	$	5,073	$	1,142	$	(4,034	)	$	(492	)	$	1,689	$	124	$	(1,066	)	$	(567	)	$	180

2008 Plans

Restructuring and other exit costs included in 2011, 2010 and 2009 primarily relate to contract termination costs that are required to be expensed as incurred and, in 2009, include a reversal of $583 for lower than expected involuntary termination costs. We do not expect any additional costs related to this restructuring plan.