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Restructuring

12 Months Ended

Dec. 31, 2011

3. Restructuring

In July 2011, we announced that our Chicago facility would be permanently closed as of September 30, 2011 and resulted in charges of $1.0 million recorded in the third quarter of fiscal year 2011. In October 2011, we announced a material Restructuring Plan that was approved by our Board of Directors resulting in charges of $2.2 million in the fourth quarter of fiscal year 2011. This Restructuring Plan involved a realignment of organizational structures, facility consolidations/closures and headcount reductions that will amount to approximately 20% of the Company’s worldwide workforce. The Restructuring Plan is expected to be implemented primarily during the fourth quarter of the Company’s 2011 fiscal year. Of the total charges, all but approximately $0.4 million will be cash expenditures.

The following is the activity in our restructuring liability account which is included in Accrued liabilities line item on the balance sheet for the year ended December 31, 2011 (in thousands):


	December 31, 2010							December 31, 2011
		Balance	Provision		Usage		Reclass	Balance
One-time employee termination benefits		$ -	$2,230	($	1,129	)	$ -	$1,101
Lease/rental terminations		-	558		(110	)		448
Relocation, move, other expenses		-	396		(284	)	4	116

Total		$ -	$3,184	($	1,523	)	$ 4	$1,665

$1.2 million of the remaining balance of the restructuring liability account is estimated to be used during the fiscal quarter ending March 31, 2012, with the remainder to be used by the end of the fiscal year 2012.

Subsequent to December 31, 2011, but before the filing of this Form 10-K, we undertook an additional restructuring that includes a further reduction of headcount of 7-8% and other cost reductions that will result in annualized savings of approximately $7.0M. One-time employee termination and other costs will result in additional restructuring expenses of approximately $0.3-0.4 million to be recorded in the fiscal quarter ending March 31, 2012.

- 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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