In 2009, we announced that we were undertaking a series of initiatives designed to transform and enhance the way we operate as a global company. In order to enhance our responsiveness to changing market conditions, we are executing a strategic transformation program designed to create improved processes and systems to further enable us to invest in future growth in areas such as our global customer interactions and product development processes. This program is expected to continue into 2012 and will result in the reduction of at least 10 percent of the positions in the company. Total pre-tax costs of this program are expected to be between $300 million to $350 million primarily related to severance and benefit costs, including pension and retiree medical charges, incurred in connection with such workforce reductions. Most of the total pre-tax costs will be cash-related charges. Currently, we are targeting annualized pre-tax benefits, net of system and related investments, in the range of $250 million to $300 million by 2012. These costs and the related benefits will be recognized as different actions are approved and implemented.

During the six months ended June 30, 2011, we recorded pre-tax restructuring charges and asset impairments associated with this program of $33 million, which included $22 million for employee severance and benefit costs, a $4 million pension and retiree medical charge as workforce reductions caused the elimination of a significant amount of future service requiring us to recognize a portion of the prior service costs and actuarial losses and other exit costs of $5 million. Through June 30, 2011, the cumulative charges for this program are $284 million. The majority of the liability at June 30, 2011 is expected to be paid from cash generated from operations.

Activity in the reserves for the restructuring actions taken in connection with the 2009 program for the six months ended June 30, 2011 is as follows:

	Severance and benefits costs		Pension and Retiree Medical			Asset impairments, net	Other exit costs		Total

Balance at January 1, 2011	$	88,169	$	-	$	-	$	6,787	$	94,956
Expenses, net of reserve adjustments		22,327		4,439		1,179		5,329		33,274
Cash payments		(41,664)		-		-		(9,324)		(50,988)
Non-cash charges		-		(4,439)		(1,179)		-		(5,618)
Balance at June 30, 2011	$	68,832	$	-	$	-	$	2,792	$	71,624

In 2007, we announced a program to lower our cost structure, accelerate efforts to improve operational efficiencies, and transition our product line. The program included charges primarily associated with older equipment that we had stopped selling upon transition to the new generation of fully digital, networked, and remotely-downloadable equipment.

Activity in the reserves for the restructuring actions taken in connection with the 2007 program for the six months ended June 30, 2011 is as follows:

	Severance and benefits costs		Other exit costs		Total

Balance at January 1, 2011	$	13,470	$	4,774	$	18,244
Reserve adjustments		(1,702)		(554)		(2,256)
Cash payments		(442)		(538)		(980)
Balance at June 30, 2011	$	11,326	$	3,682	$	15,008