XML 65 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Other Expense
12 Months Ended
Dec. 31, 2011
Other Expense Disclosure, Nonoperating [Abstract]  
Other Expense
Other Expense

Other expense for the year ended December 31, consists of the following:

 
2009
 
2010
 
2011
New plant/facility consolidation costs
$
2,726

 
$

 
$

Net pension gain
(1,882
)
 

 

Product recall
5,992

 

 

Administrative consolidation costs
4,080

 
2,176

 
792

Costs associated with purchase of a distributor

 

 
300

Other expense
$
10,916

 
$
2,176

 
$
1,092


 
During 2009, we incurred $2.7 million in charges related to the consolidation of certain domestic distribution activities in a new leased consolidated distribution center in Atlanta, Georgia.
 
During 2009, we elected to freeze benefit accruals under the defined benefit pension plan for United States employees, effective May 14, 2009.  As a result, we recorded a net pension gain of $1.9 million in the first quarter of 2009 associated with the elimination of future benefit accruals under the pension plan (see Note 9).
 
During 2009, we announced a voluntary recall of certain model numbers of the PRO5 & PRO6 series battery handpieces and certain lots of the MC5057 Universal Cable used with certain of CONMED Linvatec’s powered handpieces.  Current models of products are not affected.  The cost of this recall is expected to be approximately $6.0 million and we have recorded this cost in 2009.  We have performed repairs on $5.7 million of the total $6.0 million of expected costs.
 
During 2009, we elected to consolidate the administrative offices and operations of the CONMED Endoscopic Technologies division from its offices in Chelmsford, Massachusetts to our Corporate headquarters in Utica, New York.  The sales force and product portfolio remain unchanged and CONMED Endoscopic Technologies continues to operate as a separate division of the Company.  We incurred a total of $4.9 million in charges of which $4.1 million have been recorded in other expense and include charges relating to severance, lease impairment costs, write down of fixed assets and other transition costs.  The remaining $0.8 million in costs relate to the write-down of inventory and is included in cost of goods sold.  During 2010, we recorded a lease impairment charge of $0.7 million related to our Chelmsford, Massachusetts facility.

During 2010, we consolidated certain administrative functions in our CONMED Linvatec division and incurred $1.5 million in severance related restructuring costs.
 
During 2011, we consolidated certain administrative functions in our Utica, New York facility and incurred $0.8 million in related costs consisting principally of severance charges.

During 2011, we purchased the Company's former distributor in the Nordic region of Europe. We incurred $0.3 million in charges associated with this purchase.