
3.	Restructuring

In November 2010, we announced a number of strategic, operational, and organizational initiatives designed to provide a framework for the future growth of our business and realign our overall structure to become a more efficient and cost effective organization. As part of this initiative:


	•	We have out-licensed, terminated or are in the process of discontinuing certain research and development programs, including those in oncology and cardiovascular medicine, that are no longer a strategic fit for us.

	•	We have completed a 13% reduction in workforce spanning our sales, research and development, and administrative functions.

	•	We have vacated and recognized the sale of the San Diego, California facility as well as consolidated certain of our Massachusetts facilities. For a more detailed description of transactions affecting our facilities, please read Note 11, Property, Plant and Equipment to these condensed consolidated financial statements.

Costs associated with our workforce reduction are primarily related to employee severance and benefits. Facility consolidation costs are primarily comprised of charges associated with closing these facilities, related lease obligations and additional depreciation recognized when the expected useful lives of certain assets have been shortened due to the consolidation and closing of related facilities and the discontinuation of certain research and development programs. We expect that the total restructuring charges associated with these initiatives will not exceed $100.0 million and that substantially all of the remaining charges will be incurred and paid by the end of 2011. We incurred $18.4 million of these charges in the nine months ended September 30, 2011 and $75.2 million of these charges in the fourth quarter of 2010.

For the nine months ended September 30, 2011, we recognized restructuring charges totaling $6.1 million, in relation to the consolidation of our facilities, inclusive of amounts related to additional depreciation. Charges recognized in relation to the consolidation of our facilities for the three months ended September 30, 2011 were not significant. For the three and nine months ended September 30, 2011, we recognized net restructuring charges of $1.8 million and $12.3 million, respectively, in relation to our workforce reduction initiatives.

The following table summarizes the activity of our restructuring liability:


	Workforce			Facility
(In millions)	Reduction			Consolidation			Total

Restructuring reserve as of December 31, 2010	$	60.6		$	5.8		$	66.4
Expense		15.2			2.4			17.6
Payments		(80.8	)		(3.1	)		(83.9	)
Adjustments to previous estimates, net		(2.9	)		—			(2.9	)
Other adjustments		8.6			(3.2	)		5.4

Restructuring reserve as of September 30, 2011	$	0.7		$	1.9		$	2.6