Restructuring And Other Items

3 Months Ended

Mar. 31, 2013

4. Restructuring and other items

Restructuring and other items recognized comprise:

	Three Months Ended
	March 31,		March 31,
	2013		2012
	(in thousands)

Restructuring charges	$	4,412	$	-
Total	$	4,412	$	-

Restructuring Charges

Restructuring charges of $4.4 million were recognized during three months ended March 31, 2013 under a restructuring plan adopted following a review by the Company of its operations. Under this restructuring plan the Company announced the closure of its Phase I facility in Omaha, Nebraska. This followed the expansion of the Company’s Phase I facility in San Antonio, Texas and the consolidation of the Company’s US Phase I capabilities in this location. The restructuring plan also included resource rationalizations in certain areas of the business to improve resource utilization. The restructuring charge recognized included $0.5 million in respect of lease termination costs associated with the Omaha facility and $3.9 million in respect of resource rationalizations.

Details of the movement in this restructuring plan recognized are as follows:

	Workforce			Office
	Reductions			Consolidations		Total
	(in thousands)

Initial provision recognized	$	3,903			509	$	4,412
Cash payments		(2,120	)		-		(2,120	)
Foreign exchange movement		(9	)		-		(9	)

Provision at March 31, 2013	$	1,774		$	509	$	2,283

Prior Period Restructuring Charges

Restructuring charges of $4.5 million were recorded during year ended December 31, 2012 (inclusive of the release of $0.1 million relating to the 2011 Restructuring Plans) under a restructuring plan (“the 2012 restructuring plan”) adopted following a review by the Company of its operations. The 2012 restructuring plan included resource rationalizations in certain areas of the business and a re-organization of available office space at the Company’s Philadelphia facility. The restructuring plan recognized included $3.4 million in respect of resource rationalizations and $1.2 million in respect of lease termination and exit costs associated with the re-organization of available space at the Company’s Philadelphia facility.

Details of the movement in the 2012 restructuring plan are as follows:

	Workforce			Office
	Reductions			Consolidations			Total
	(in thousands)

Initial provision recognized	$	3,394		$	1,250		$	4,644
Cash payments		(3,030	)		(824	)		(3,854	)
Foreign exchange movement		(4	)		-			(4	)

Provision at December 31, 2012	$	360		$	426		$	786

Cash payments		(157	)		(341	)		(498	)

Provision at March 31, 2013	$	203		$	85		$	288

- 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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