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Restructuring and other impairment charges | 12 Months Ended
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Dec. 31, 2012
Restructuring and other impairment charges | Note 4 — Restructuring and other impairment charges The amounts recognized in restructuring and other impairment charges for 2012, 2011 and 2010 consisted of the following:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
LMA restructuring program |  | $ | 2,515 |  |  | $ | — |  |  | $ | — |
2012 restructuring charges |  |  | 2,459 |  |  |  | — |  |  |  | — |
2011 restructuring program |  |  | — |  |  |  | 3,047 |  |  |  | — |
2007 Arrow integration program |  |  | (1,937 | ) |  |  | 461 |  |  |  | 2,875 |
Aggregate impairment charges — investments and certain fixed assets |  |  | — |  |  |  | 2,497 |  |  |  | — |
Restructuring and other impairment charges |  | $ | 3,037 |  |  | $ | 6,005 |  |  | $ | 2,875 |
LMA Restructuring Program In connection with the acquisition of LMA, the Company has formulated a plan related to the future integration of LMA and the Company’s businesses. The integration plan focuses on the closure of LMA corporate functions and the consolidation of manufacturing, sales, marketing, and distribution functions in North America, Europe and Asia. The Company estimates that it will incur an aggregate of up to approximately $16 million in restructuring and other impairment charges over the term of this restructuring program. Of this amount, $5 million relates to employee termination costs, $10 million relates to termination of certain distributor agreements and $1 million relates to facility closures costs and other actions. The charges associated with this restructuring program that are included in restructuring and other impairment charges during 2012 were as follows:
|  | 2012 |
|  | (Dollars in thousands) |
Termination benefits |  | $ | 2,229 |
Facility closure costs |  |  | — |
Contract termination costs |  |  | 274 |
Other restructuring costs |  |  | 12 |
|  | $ | 2,515 |
A reconciliation of the changes in accrued liabilities associated with the LMA restructuring program from December 31, 2011 through December 31, 2012 is set forth in the following tables:
|  | Termination benefits |  |  | Contract Termination Costs |  |  | Other Restructuring Costs |  |  | Total |
|  | (Dollars in thousands) |
Balance at December 31, 2011 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Subsequent accruals |  |  | 2,229 |  |  |  | 274 |  |  |  | 12 |  |  |  | 2,515 |
Cash payments |  |  | (488 | ) |  |  | — |  |  |  | — |  |  |  | (488 | )
Foreign currency translation |  |  | 3 |  |  |  | 3 |  |  |  | — |  |  |  | 6 |
Balance at December 31, 2012 |  | $ | 1,744 |  |  | $ | 277 |  |  | $ | 12 |  |  | $ | 2,033 |
2012 Restructuring Charges The Company regularly evaluates opportunities to consolidate facilities, lower costs and optimize operating efficiencies. In 2012, the Company identified opportunities to improve its supply chain strategy by consolidating its three North American warehouses into one centralized warehouse and lower costs and improve operating efficiencies through the termination of certain distributor agreements in Europe, the closure of certain North American facilities and workforce reductions. These projects will entail costs related to reductions in force, contract terminations related distributor agreements and leases, and facility closure and other costs. During 2012, the Company incurred restructuring charges of $2.4 million related to these projects. The Company expects to complete the projects over a one year period and anticipates incurring additional charges of $3.7 million related to these initiatives. 2011 Restructuring Program In 2011, the Company initiated a restructuring program at three facilities to consolidate operations and reduce costs. In connection with this program, the Company recorded contract termination costs of approximately $2.6 million associated with a lease termination, as the Company has vacated 50% of the premises during 2011. In addition, the Company recorded approximately $0.4 million for employee termination benefits in connection with workforce consolidations. The Company expects to incur additional contract termination costs of approximately $2.7 million when it has completely exited a leased facility. The payment of the lease contract termination costs will continue until 2015. 2007 Arrow Integration Program The charges associated with the 2007 Arrow integration program that were included in restructuring and other impairment charges for the years ended 2012, 2011, and 2010 were as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
Termination benefits |  | $ | 20 |  |  | $ | (16 | ) |  | $ | 1,015 |
Facility closure costs |  |  | 230 |  |  |  | 166 |  |  |  | 812 |
Contract termination costs |  |  | (2,166 | ) |  |  | 311 |  |  |  | 1,503 |
Gain on sale of assets |  |  | — |  |  |  | — |  |  |  | (458 | )
Other restructuring costs |  |  | (21 | ) |  |  | — |  |  |  | 3 |
|  | $ | (1,937 | ) |  | $ | 461 |  |  | $ | 2,875 |
A reconciliation of the changes in accrued liabilities associated with the 2007 Arrow integration program from December 31, 2010 through December 31, 2012 is set forth in the following tables:
|  | Termination benefits |  |  | Facility Closure Costs |  |  | Contract Termination Costs |  |  | Other Restructuring Costs |  |  | Total |
|  | (Dollars in thousands) |
Balance at December 31, 2010 |  | $ | 600 |  |  | $ | — |  |  | $ | 2,138 |  |  | $ | 22 |  |  | $ | 2,760 |
Subsequent accruals |  |  | (16 | ) |  |  | 166 |  |  |  | 311 |  |  |  | — |  |  |  | 461 |
Cash payments |  |  | (268 | ) |  |  | (166 | ) |  |  | (414 | ) |  |  | — |  |  |  | (848 | )
Foreign currency translation |  |  | 4 |  |  |  | — |  |  |  | 98 |  |  |  | (1 | ) |  |  | 101 |
Balance at December 31, 2011 |  |  | 320 |  |  |  | — |  |  |  | 2,133 |  |  |  | 21 |  |  |  | 2,474 |
Subsequent accruals |  |  | 20 |  |  |  | 230 |  |  |  | (2,166 | ) |  |  | (21 | ) |  |  | (1,937 | )
Cash payments |  |  | (11 | ) |  |  | (230 | ) |  |  | — |  |  |  | — |  |  |  | (241 | )
Foreign currency translation |  |  | 1 |  |  |  | — |  |  |  | 80 |  |  |  | — |  |  |  | 81 |
Balance at December 31, 2012 |  | $ | 330 |  |  | $ | — |  |  | $ | 47 |  |  | $ | — |  |  | $ | 377 |
The reduction in the accrual for contract termination costs in 2012 relates to a revised estimate for the settlement of a dispute involving the termination of a European distributor agreement that was established in connection with the acquisition of Arrow in 2007. As of December 31, 2012, the Company expects future restructuring expenses associated with the 2007 Arrow integration program, if any, to be nominal. Impairment Charges During 2011, the Company recognized impairment charges of $2.5 million related to the decline in value of its investments in affiliates that are considered to be other than temporary. In making this determination, the Company considered multiple factors, including its intent and ability to hold investments, operating losses of investees that demonstrate an inability to recover the carrying value of the investments, the investee’s liquidity and cash position and market acceptance of the investee’s products and services.

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- Definition The entire disclosure for aggregate costs incurred during the period for restructuring, remediation, implementation, integration and asset impairment activities. Description of restructuring activities such as exit and disposal activities, could 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. This would also include disclosure of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. + References No definition available. + Details
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