RESTRUCTURING CHARGES

12 Months Ended

Dec. 31, 2012

RESTRUCTURING CHARGES

3.    RESTRUCTURING CHARGES

September 2012 Program

For the year ended December 31, 2012, the Company recorded charges totaling $24.1 million related to the restructuring that the Company announced in September 2012 (the “September 2012 Program”), which primarily involved the Company exiting its owned manufacturing facility in France and its leased manufacturing facility in Maryland; rightsizing its organizations in France and Italy; and realigning its operations in Latin America, including consolidating Latin America and Canada into a single operating region, which became effective in the fourth quarter of 2012. Certain of the actions were subject to consultations with employees, works councils or unions, and government authorities, which have substantially been concluded as of December 31, 2012. Of the $24.1 million charge: (a) $20.7 million is recorded in restructuring charges; (b) $1.6 million is recorded as a reduction to net sales; (c) $1.2 million is recorded in cost of goods sold; and (d) $0.6 million is recorded in SG&A expenses. Included within the $20.7 million restructuring charges is a net pension curtailment gain of $1.5 million.

The Company expects to recognize approximately $1 million of additional charges in 2013 for a total of approximately $25 million in charges related to the September 2012 Program. The Company expects to pay cash of approximately $24 million related to the September 2012 Program, of which $3.8 million was paid in 2012 and the remainder is expected to be paid in 2013.

2009 Programs

In May 2009, the Company announced a worldwide restructuring (the “May 2009 Program”), which involved consolidating certain functions; reducing layers of management, where appropriate, to increase accountability and effectiveness; streamlining support functions to reflect the new organizational structure; and further consolidating the Company’s office facilities in New Jersey. In the first quarter of 2009, the Company also announced restructuring actions in the U.K., Mexico and Argentina (together with the May 2009 Program, the “2009 Programs”). The $0.3 million remaining balance under the 2009 Programs is expected to be paid out in 2013.

Details of the restructuring activity described above during 2012, 2011 and 2010 are as follows:

	Balance Beginning  of Year		(Income) Expenses, Net			Foreign Currency Translation		Utilized, Net						Balance End of  Year
								Cash			Noncash
2012
Employee severance and other personnel benefits:
September 2012 Program	$	—	$	18.4		$	0.4	$	(2.3	)	$	1.5		$	18.0
Other:
September 2012 Program		—		2.3			—		(0.6	)		(0.8	)		0.9
Lease exit		1.0		—			—		(0.7	)		—			0.3
Total restructuring charges	$	1.0	$	20.7		$	0.4	$	(3.6	)	$	0.7		$	19.2
2011
Employee severance and other personnel benefits:
2009 Programs	$	1.0	$	—		$	—	$	(1.0	)	$	—		$	—
Lease exit		1.6		—			—		(0.6	)		—			1.0
Total restructuring charges	$	2.6	$	—		$	—	$	(1.6	)	$	—		$	1.0
2010
Employee severance and other personnel benefits:
2008 Programs	$	0.3	$	—		$	—	$	(0.3	)	$	—		$	—
2009 Programs		7.6		(0.2	)		—		(6.4	)		—			1.0
		7.9		(0.2	)		—		(6.7	)		—			1.0
Lease exit		2.3		(0.1	)		—		(0.6	)		—			1.6
Total restructuring charges	$	10.2	$	(0.3	)	$	—	$	(7.3	)	$	—		$	2.6

As of December 31, 2012, 2011 and 2010, the unpaid balance of the restructuring charges were included in “Accrued expenses and other” and “Other long-term liabilities” in the Company’s Consolidated Balance Sheets.