N. Restructuring

At July 2, 2011, restructuring reserves totaled $96.0 million. A summary of the restructuring reserve activity from January 1, 2011 to July 2, 2011 is as follows (in millions):


	1/1/11		Net Additions		Usage			Currency		7/2/11
2011 Actions
Severance and related costs		$ —		$ 29.2		$ (4.8	)		$ 0.7		$ 25.1
Facility closure		—		2.0		(2.0	)		—		—
Other		—		1.0		(1.0	)		—		—

Subtotal 2011 actions		—		32.2		(7.8	)		0.7		25.1

Pre-2011 Actions
Severance and related costs		97.8		0.1		(31.9	)		2.3		68.3
Facility closure		2.3		1.8		(2.3	)		—		1.8
Other		1.1		0.3		(0.6	)		—		0.8

Subtotal Pre-2011 actions		101.2		2.2		(34.8	)		2.3		70.9

Total		$ 101.2		$ 34.4		$ (42.6	)		$ 3.0		$ 96.0

2011 Actions: In the first half of 2011, the Company continued to initiate restructuring activities associated with the Merger and other acquisitions, and recognized $29.3 million of restructuring charges related to activities initiated in the current year. Of those charges, $26.5 million relates to severance charges associated with the reduction of 633 employees, $1.8 million relates to facility closure costs, and $1.0 million represents other charges. For the three months ended July 2, 2011, the Company recognized $19.7 million of restructuring charges associated with the Merger and other acquisitions, of which $18.9 million relates to severance charges associated with the reduction of 358 employees, $0.3 million relates to facility closure costs, and $0.5 million represents other charges.

In addition, the Company has initiated cost reduction actions in the first half of 2011 that were not associated with the Merger or other acquisitions, resulting in severance and related charges of $2.7 million pertaining to the reduction of 83 employees, and facility closure costs of $0.2 million. Such restructuring actions initiated in the three months ended July 2, 2011 resulted in severance charges of $1.2 million associated with the reduction of 66 employees.

Of the $32.2 million recognized for these 2011 actions, $7.8 million has been utilized to date, with $25.1 million of reserves remaining as of July 2, 2011 with the majority expected to be utilized in 2011 and 2012.

Pre-2011 Actions: As more fully disclosed in Note O of the Company’s Annual Report on Form 10-K for the year ended January 1, 2011 the Company initiated restructuring activities associated with the Merger and acquisition of Stanley Solutions de Sécurité (“SSDS”). Charges recognized in the first half of 2011 associated with these prior year initiatives amounted to $2.8 million. Additionally, in the first half of 2011 the Company released $0.6 million of the reserve related to residual liabilities for prior year initiatives that were not associated with the Merger. The charge in the second quarter of 2011 was $0.2 million for these actions.

As of January 1, 2011, the reserve balance related to these pre-2011 actions totaled $101.2 million. Utilization of the reserve balance related to pre-2011 actions was $34.8 million in the first half of 2011. The vast majority of the remaining reserve balance of $70.9 million is expected to be utilized in 2011 with the remainder in 2012.

Segments: The $34.4 million of charges recognized in the first half of 2011 includes: $14.5 million pertaining to the CDIY segment; $14.0 million pertaining to the Security segment; and $5.9 million pertaining to the Industrial segment. The $21.1 million of charges recognized in the three months ended July 2, 2011 includes: $8.2 million pertaining to the CDIY segment; $12.5 million pertaining to the Security segment; and $0.4 million pertaining to the Industrial segment.

In addition to the restructuring charges described in the preceding paragraphs, the Company recognized $11.1 million of restructuring-related costs in the first half of 2011 pertaining to the Merger. Those costs are classified in Cost of Sales and include accelerated depreciation and other charges associated with facility closures.