14. RESTRUCTURING

In the fourth quarter of 2011, we implemented a restructuring plan to improve our financial performance. Related to these initiatives, we announced in December 2011 that we would transition the manufacture and distribution of RTMS products to a third party, reduce our workforce and contract certain facilities. As a result of these actions, we recorded restructuring charges within all reportable segments that were comprised of termination benefits, facility closure costs and inventory charges. Approximately $448,000 was recorded in cost of revenue in the Consolidated Statement of Operations and the remainder of $287,000 was recorded in operating expenses.

The following table shows the restructuring activity for 2011 (in thousands):


	Termination Benefits			Facility Costs and Contract Termination			Inventory Charges			Total

Balance at January 1, 2011	$	—		$	—		$	—		$	—
Charges		208			101			426			735
Settlements		(45	)		(36	)		(42	)		(123	)

Balance at December 31, 2011	$	163		$	65		$	384		$	612

We expect to settle the remaining liability in 2012. In addition, we expect to incur approximately $100,000 to $150,000 of restructuring charges in 2012 related to additional employee termination benefits and other costs.