Other Operating Expenses, Net is comprised of the following (in thousands):

	Year Ended
	December 30,		December 31,		January 1,
	2011		2010		2010
Orthopaedic facility optimization^(a)	$	425	$	225	$	-
2007 & 2008 facility shutdowns and consolidations^(b)		-		1,348		7,069
Integration costs^(c)		-		42		3,077
Asset dispositions, severance and other^(d)		168		2,943		948
	$	593	$	4,558	$	11,094

(a) Orthopaedic facility optimization. In 2010, the Company began updating its Indianapolis, IN facility to streamline operations, consolidate two buildings, increase capacity, further expand capabilities and reduce dependence on outside suppliers. This initiative was completed in 2011.

In 2011, the Company began construction on an 80,000 square foot manufacturing facility in Allen County, IN and will transfer the manufacturing operations currently being performed at its Columbia City, IN location into this new facility. This facility is expected to be completed by mid-2012.

In 2011, the Company also initiated a multi-faceted plan to further enhance, optimize and leverage the Company's Orthopaedics manufacturing infrastructure. This plan includes the opening of two Orthopaedic design centers, transferring production of certain Orthopaedic product lines to other lower cost manufacturing facilities and the consolidation of the Company's Orthopaedic operations in Switzerland into a new facility. These initiatives are expected to be completed over the next two to three years.

The total capital investment expected to be incurred for these initiatives is between $50 million and $60 million, of which $13 million has been incurred. Total expense expected to be incurred for these initiatives is between $10 million and $15 million, of which $1 million has been incurred. All expenses will be recorded within the Greatbatch Medical segment and are expected to include the following:

Ultimately these updates will further reduce lead times, improve quality and allow the Company to better meet the needs of its customers. All expenses are cash expenditures, except accelerated depreciation and asset write-offs.

The change in accrued liabilities related to the Orthopaedic facility optimizations is as follows (in thousands):

		Severance and Retention		Production Inefficiencies, Moving and Revalidation		Accelerated Depreciation/Asset Write-offs		Other		Total
At	December 31, 2010	$	-	$	-	$	-	$	-	$	-
Restructuring charges			-		397		18		10		425
Write-offs			-		-		(18)		-		(18)
Cash payments			-		(397)		-		(10)		(407)
At	December 30, 2011	$	-	$	-	$	-	$	-	$	-

(b) 2007 & 2008 facility shutdowns and consolidations. From 2007 to 2010, the Company completed the following facility shutdowns and consolidation initiatives:

The total expenses incurred for these facility shutdowns and consolidations was $17.3 million and included the following:

All categories of costs are considered to be cash expenditures, except accelerated depreciation and asset write-offs. For 2010, costs relating to these initiatives of $0.3 million and $1.0 million were included in the Greatbatch Medical and Electrochem business segments, respectively. For 2009, costs relating to these initiatives of $1.6 million and $5.5 million were included in the Greatbatch Medical and Electrochem business segments, respectively.

As a result of these consolidation initiatives, two Greatbatch Medical facilities and one Electrochem facility were classified as assets held for sale. One Greatbatch Medical and one Electrochem facility were sold in 2010, which resulted in net cash proceeds of $2.4 million. The remaining Greatbatch Medical facility, which had a fair value of $1.9 million, was reclassified to Property, Plant and Equipment, Net in 2010 as management decided to utilize this facility for future operations. For 2010 and 2009 write-downs of $1.0 million and $0.3 million, respectively, were recorded relating to these facilities and were included in Other Operating Expenses, Net.

(c) Integration costs. During 2010 and 2009, the Company incurred costs related to the integration of the companies acquired in 2007 and 2008. The integration initiatives include the implementation of the Oracle ERP system, training and compliance with Company policies, as well as the implementation of lean manufacturing and six sigma initiatives. These expenses were primarily for consultants, relocation and travel costs.

(d) Asset dispositions, severance and other. During 2011, 2010, and 2009, the Company recorded (gains) write-downs in connection with various asset disposals, net of insurance proceeds received, if any. Additionally, during 2011 the Company incurred $0.6 million of acquisition related costs in connection with its purchase of Micro Power. During 2010, we realigned resources within Greatbatch Medical, which included the elimination of certain positions globally. Severance charges associated with this realignment were $2.3 million. A significant portion of the annual savings as a result of this initiative was reinvested into research and development activities with higher growth opportunities, including further investment in the Company's systems and device projects. During 2009, the Company incurred approximately $0.6 million in severance charges in connection with various workforce reductions.