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Restructuring

12 Months Ended

Dec. 31, 2011

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:

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

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

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We 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 consolidated financial statements.

Costs associated with our workforce reduction primarily relate 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. As of December 31, 2011, substantially all restructuring charges have been incurred and paid. We incurred $19.0 million of these charges in 2011, of which $12.8 million were related to our workforce reduction and $6.2 million related to the consolidation of our facilities. During the fourth quarter of 2010, we incurred $75.2 million of these charges, of which $67.2 million were related to our workforce reduction and $8.0 million were related to the consolidation of our facilities.

The following table summarizes the activity of our restructuring liability:


(In millions)	Workforce Reduction			Facility Consolidation			Total
Restructuring reserve as of December 31, 2010	$	60.6		$	5.8		$	66.4
Expense		15.8			2.4			18.2
Payments		(81.8	)		(3.9	)		(85.7	)
Adjustments to previous estimates, net		(2.9	)		—			(2.9	)
Other adjustments		8.6			(3.2	)		5.4

Restructuring reserve as of December 31, 2011	$	0.3		$	1.1		$	1.4

- 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.

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