Restructuring and Cost Reduction Programs

9 Months Ended

Sep. 30, 2011

Restructuring and Cost Reduction Programs [Abstract]

Restructuring and Cost Reduction Programs

12. Restructuring and Cost Reduction Programs

During the nine months of 2011, we continued to wind down our restructuring programs. Current period activity primarily relates to facility closing and exit costs in Limoges, France; Castanheira do Ribatejo, Portugal; and Frankfurt, Germany.

For the nine months ended September 30, 2011 and 2010, total charges resulting from these activities were $4.4 million and $47.4 million, respectively, of which $0.4 million and $3.3 million, respectively, were recorded in cost of sales as they related to accelerated depreciation on assets to be disposed, and the remaining $4.0 million and $44.1 million, respectively, were reported as restructuring and impairment charges. Restructuring and impairment charges for the nine months ended September 30, 2011, consisted of gross charges of $6.5 million, partially offset by a gain on the sale of a building of $1.1 million and a reduction of accrued rent previously included in restructuring charges of $1.4 million.

We have summarized the activities and accruals related to our restructuring and cost reduction programs below:

	Employee						Asset
	Severance			Other Costs			Impairment			Total
	(Dollars in thousands)
Balance at December 31, 2010	$	2,429		$	5,863		$	—		$	8,292
Restructuring charges		2,191			1,850			3			4,044
Cash payments		(3,694	)		(3,702	)		—			(7,396	)
Currency translation adjustment		62			67			—			129
Non-cash items		(27	)		(85	)		(3	)		(115	)
Balance at September 30, 2011	$	961		$	3,993		$	—		$	4,954

We expect to make cash payments to settle the remaining liability for employee termination benefits and other costs over the next twelve months, except where legal or contractual restrictions prevent us from doing so.