Cost Reduction Initiatives

9 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

Note 2. Cost Reduction Initiatives

In July 2012, the Company implemented its cost-reduction initiatives (the “Cost Reduction Initiatives”) in order to streamline and simplify the Company’s organizational structure and change the manner in which the Company approaches and operates its business. In the aggregate through September 30, 2013, the Company recognized total charges of $64,426,000 in connection with these initiatives, of which approximately two-thirds resulted in non-cash charges. In connection with Cost Reduction Initiatives, the Company expects to incur total pre-tax charges of approximately $68,000,000, and expects to realize total savings of approximately $60,000,000. The Company expects to incur estimated future charges of approximately $3,000,000 over the next three months. These estimates are based upon current information and expectations, however, the amount, nature, or timing of these charges could vary as the Company further develops and implements these initiatives.

During the three and nine months ended September 30, 2013, the Company recognized charges of $1,858,000 and $10,365,000 in connection with the Cost Reduction Initiatives. Amounts recognized in cost of sales during the three and nine months ended September 30, 2013 totaled $1,005,000 and $7,374,000, respectively, and amounts recognized in operating expenses totaled $853,000 and $2,991,000, respectively. During the three and nine months ended September 30, 2012, the Company recognized charges of $35,084,000 and $39,755,000 in connection with these initiatives. Amounts recognized in cost of sales during the three and nine months ended September 30, 2012 totaled $27,302,000 and $28,263,000, respectively, and amounts recognized in operating expenses totaled $7,782,000 and $11,492,000, respectively. See Note 17 for charges recognized by the Company’s operating segments.

The table below summarizes the total charges recognized during 2013, the liability balances, and the estimated future charges relating to the Cost Reduction Initiatives (in thousands). Amounts payable as of September 30, 2013 and December 31, 2012 are included in accrued employee compensation and benefits and accounts payable and accrued expenses in the accompanying consolidated condensed balance sheets.



	Cost Reduction Initiatives
	Workforce Reductions			Transition Costs			Asset Write-offs			Total
Restructuring payable balance, December 31, 2012	$	4,531		$	591		$	—		$	5,122
Charges to cost and expense	1,091			2,418			—			3,509
Non-cash items	—			(1,699		)	—			(1,699		)
Cash payments	(3,547		)	(717		)	—			(4,264		)
Restructuring payable balance, March 31, 2013	$	2,075		$	593		$	—		$	2,668
Charges to cost and expense	677			997			3,324			4,998
Non-cash items	—			(412		)	(3,324		)	(3,736		)
Cash payments	(1,652		)	(1,071		)	—			(2,723		)
Restructuring payable balance, June 30, 2013	$	1,100		$	107		$	—		$	1,207
Charges to cost and expense	602			1,256			—			1,858
Non-cash items	—			(675		)	—			(675		)
Cash payments	(669		)	(45		)	—			(714		)
Restructuring payable balance, September 30, 2013	$	1,033		$	643		$	—		$	1,676
Total future estimated charges as of September 30, 2013	$	700		$	2,300		$	—		$	3,000

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details