RESTRUCTURING AND OTHER COSTS

Restructuring Costs

Restructuring costs of $3.1 million and $5.8 million for 2011 and 2010, respectively, are reflected in Restructuring and other costs in the statement of operations and the associated liabilities are recorded in accrued liabilities and other non-current liabilities in the consolidated balance sheet. These costs consist of employee severance benefits, payments due under operating contracts, and other restructuring costs.

During 2011 and 2010, the Company initiated several restructuring plans primarily related to the closure and/or consolidation of certain production and selling facilities in the Europe and South America to better leverage the Company’s resources by reducing costs and obtaining operational efficiencies.

Also in 2011, as a result of the impact of the Japan natural disaster, the Company initiated a restructuring plan related to the Orthodontic business during the second quarter. The restructuring plan addressed overhead costs related to the business and has reduced those costs as the Orthodontic business continues to be impacted by the lack of product supply. The Company recorded $1.7 million of charges for the year ended December 31, 2011 for this plan. In addition to the restructuring charges, for the year ended December 31, 2011, the Company incurred approximately $3.3 million of selling, general and administrative expenses related to costs of maintaining the critical Orthodontic business processes and structures during the lack of product supply. In addition to these Orthodontic restructuring plans, the Company incurred $1.9 million of costs related to other restructuring plans, offset by income of $0.5 million for adjustments to 2010 plans and 2009 and prior plans. These adjustments were primarily related to revised estimates of severance costs.

The 2011 restructuring plans and ongoing benefits associated with these plans were immaterial to the current period as well as future periods. The majority of the benefits of the 2010 and 2009 and prior period restructuring plans have been incorporated into the Company’s results. While certain restructuring plans continue to be executed, the future benefits of these on the Company’s results would be immaterial in the period realized.

At December 31, 2011, the Company’s restructuring accruals were as follows:



	Severances
(in thousands)	2009 and Prior Plans			2010 Plans			2011 Plan			Total

Balance at December 31, 2010	$	2,878		$	5,260		$	—		$	8,138
Provisions and adjustments	(442		)	(289		)	3,645			2,914
Amounts applied	(1,003		)	(2,961		)	(3,010		)	(6,974		)
Balance at December 31, 2011	$	1,433		$	2,010		$	635		$	4,078



	Lease/Contract Terminations
(in thousands)	2009 and Prior Plans			2010 Plans			Total

Balance at December 31, 2010	$	996		$	—		$	996
Provisions and adjustments	1			(114		)	(113		)
Amounts applied	(328		)	114			(214		)
Balance at December 31, 2011	$	669		$	—		$	669



	Other Restructuring Costs
(in thousands)	2009 and Prior Plans			2010 Plans			2011 Plans			Total

Balance at December 31, 2010	$	57		$	—		$	—		$	57
Provisions and adjustments	174			70			60			304
Amounts applied	(191		)	(70		)	(60		)	(321		)
Balance at December 31, 2011	$	40		$	—		$	—		$	40

The following table provides the cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment:



(in thousands)	December 31, 2010		Provisions and Adjustments			Amounts Applied			December 31, 2011

U.S., Germany and Certain Other European Regions Consumable Businesses	$	1,031	$	—		$	(328	)	$	703

France, U.K., Italy and Certain Other European Countries, CIS, Middle East, Africa, Pacific Rim Businesses	193		(49		)	(144		)	—

Canada/Latin America/Endodontics/ Orthodontics/Astra Tech	400		2,926			(2,633		)	693

Dental Laboratory Business/ Implants/Non-Dental	7,567		228			(4,404		)	3,391
Total	$	9,191	$	3,105		$	(7,509	)	$	4,787

Other Costs

In 2011, the Company recorded certain other costs of $32.7 million, which were primarily related to Astra Tech acquisition costs, legal settlement costs of $12.6 million and impairments of certain previously acquired technology. In 2010, the Company recorded certain other costs of $5.2 million, of which $3.7 million related to legal matters. The remaining portion consisted of impairments related to intangible assets and acquisition related costs.