RESTRUCTURING CHARGES - Note 5

3 Months Ended

Apr. 01, 2012

Restructuring Charges [Abstract]

Restructuring and Related Activities Disclosure

5. RESTRUCTURING CHARGES

In December 2011, we initiated a cost reduction plan, which included the transition of our operations in Canada to our German facility, moving our outsourced spare part logistics and call center operations in-house, workforce reductions, elimination of contractors, and renegotiating certain contracts.

The beginning restructuring reserve balance includes $0.9 million of contract termination costs established prior to 2011, which related to future rent obligations associated with two vacated leased facilities net of sublease income.

During the first quarter of 2012 we recorded $0.7 million related to the 2011 restructuring plan. To date, we have recorded $2.5 million related to this plan. We expect to incur an additional $1.0 million to $2.0 million in 2012.

The following table summarizes changes in the restructuring accrual for the three months ended April 1, 2012 and April 3, 2011:

	Three Months Ended April 1, 2012				Three Months Ended April 3, 2011
	Employee	Contract			Employee	Contract
	Severance	Termination	Other		Severance	Termination	Other
	Costs	Costs	Costs	Total	Costs	Costs	Costs	Total
	(thousands)				(thousands)
Beginning balance	$ 82	$ 2,661	$ -	$ 2,743	$ 94	$ 1,241	$ -	$ 1,335
Expensed	586	-	134	720	-	-	-	-
Payments	(461)	(509)	(134)	(1,104)	-	-	-	-
Reserve adjustments	53	(14)	-	39	(94)	29	-	(65)
Foreign currency changes	4	10	-	14	-	21	-	21
Ending balance	$ 264	$ 2,148	$ -	$ 2,412	$ -	$ 1,291	$ -	$ 1,291

As of April 1, 2012, $1.4 million of the restructuring balance was classified as short-term and recorded within accrued liabilities in the Condensed Consolidated Balance Sheets, and the remaining $1.0 million of the restructuring balance was classified as long-term and recorded within other liabilities in the Condensed Consolidated Balance Sheets.