12.RESTRUCTURING

In the fourth quarter of 2011 and second quarter of 2012, we implemented restructuring plans to improve our financial performance. 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. In 2012, approximately $430,000 was recorded in operating expenses in the Consolidated Statement of Operations, as a result of these restructuring plans and, in 2011, approximately $448,000 was recorded in cost of revenue and $287,000 was recorded in operating expenses.

The following table shows the restructuring activity for 2012 (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
Charges	359	71	--	430
Settlements	(522)	(136)	(384)	(1,042)
Balance at December 31, 2012	$--	$--	$--	$--