RESTRUCTURING AND OTHER CHARGES

3 Months Ended

Mar. 31, 2013

RESTRUCTURING AND OTHER CHARGES

In December 2011, our management approved and initiated a cost reduction plan ("2011 Restructuring Plan") as part of our broader cost reduction initiatives. During 2012, we completed the first three phases of our cost reduction plan, which included the consolidation of our manufacturing and research and development facilities, moving a portion of our outsourced spare parts logistics operations in-house, and workforce reductions. The fourth phase of our cost reduction plan broadens our workforce reductions across all areas of the Company and was substantially completed during the first quarter of 2013.

As of March 31, 2013, we have incurred $9.1 million in restructuring and other charges under the 2011 Restructuring Plan, of which $2.3 million was recorded during the first quarter of 2013. We expect to incur an additional $0.5 million to $1.0 million related to the 2011 Restructuring Plan in 2013.

During the three months ended March 31, 2013, we incurred $2.3 million in restructuring and other charges, which included recruiting costs for our new Chief Executive Officer as well as severance expense for our former Chief Executive Officer totaling approximately $$0.6 million. During the three months ended March 31, 2013 we paid $2.6 million in employee severance and other costs.

The following table summarizes changes in the restructuring accrual for the three months ended March 31, 2013 (in thousands):



	Three Months Ended March 31, 2013
	Employee Severance Costs			Contract Termination Costs			Other Costs⁽¹⁾			Total

Beginning balance	$	2,005		$	1,600		$	—		$	3,605
Expensed	1,970			—			288			2,258
Payments	(2,509		)	(20		)	(103		)	(2,632		)
Foreign currency changes	(18		)	(6		)	—			(24		)
Ending balance	$	1,448		$	1,574		$	185		$	3,207

As of March 31, 2013, $3.0 million of the restructuring accrual was classified as short-term and recorded within other current liabilities in the Condensed Consolidated Balance Sheets, and the remaining $0.2 million of the restructuring accrual was classified as long-term and recorded within other liabilities in the Condensed Consolidated Balance Sheets.

- 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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