NOTE 7 – RESTRUCTURING CHARGES

The following is a reconciliation of the beginning and ended restructuring reserve balances for the years ended October 31, 2012, 2011 and 2010 (Dollars in millions):


	Cash Charges						Non-cash Charges
	Employee Separation Costs			Other costs			Asset Impairments			Inventory Write-down		Total
Balance at October 31, 2010	$	12.7		$	7.6		$	—		$	—	$	20.3
Costs incurred and charged to expense		13.3			12.7			4.5			—		30.5
Costs paid or otherwise settled		(14.2	)		(12.7	)		(4.3	)		—		(31.2	)

Balance at October 31, 2011	$	11.8		$	7.6		$	0.2		$	—	$	19.6

Costs incurred and charged to expense		13.4			9.8			10.2			—		33.4
Costs paid or otherwise settled		(19.0	)		(15.6	)		(10.4	)		—		(45.0	)

Balance at October 31, 2012	$	6.2		$	1.8		$	—		$	—	$	8.0

The focus for restructuring activities in 2012 was on the consolidation of operations in the Flexible Products & Services segment as part of the ongoing implementation of the Greif Business System and rationalization of operations and contingency actions in Rigid Industrial Packaging & Services. During 2012, the Company recorded restructuring charges of $33.4 million, consisting of $13.4 million in employee separation costs, $10.2 million in asset impairments and $9.8 million in other restructuring costs, primarily consisting of lease termination costs and professional fees. Four plants in the Rigid Industrial Packaging & Services segment were closed. There were a total of 513 employees severed throughout 2012 as part of the Company’s restructuring efforts.

The following is a reconciliation of the total amounts expected to be incurred from open restructuring plans which are anticipated to be realized in 2013 or plans that are being formulated and have not been announced as of the date of this From 10-K. Amounts expected to be incurred were $12.3 million as of October 31, 2012. The increase was due to the formulation of new plans by management (Dollars in millions):


	Amounts expected to be incurred		Amounts Incurred in 2012		Amounts remaining to be incurred
Rigid Industrial Packaging & Services:
Employee separation costs	$	16.6	$	11.5	$	5.1
Asset impairments		3.4		3.4		—
Other restructuring costs		13.7		7.2		6.5

		33.7		22.1		11.6
Flexible Products & Services:
Employee separation costs		2.2		1.9		0.3
Asset impairments		6.8		6.8		—
Other restructuring costs		3.0		2.6		0.4

		12.0		11.3		0.7

	$	45.7	$	33.4	$	12.3

The focus for restructuring activities in 2011 was on integration of recent acquisitions in the Rigid Industrial Packaging & Services and Flexible Products & Services segments as well as the implementation of certain cost-cutting measures. During 2011, the Company recorded restructuring charges of $30.5 million, consisting of $13.3 million in employee separation costs, $4.5 million in asset impairments and $12.7 million in other restructuring costs, primarily consisting of lease termination costs, professional fees, relocation costs and other costs. Two plants in the Rigid Industrial Packaging & Services segment were closed. There were a total of 257 employees severed throughout 2011 as part of the Company’s restructuring efforts.

The focus for restructuring activities in 2010 was on integration of recent acquisitions in the Rigid Industrial Packaging & Services and Flexible Products & Services segments. During 2010, the Company recorded restructuring charges of $26.7 million, consisting of $13.7 million in employee separation costs, $2.9 million in asset impairments, $2.4 million in professional fees and $7.7 million in other restructuring costs, primarily consisting of facility consolidation and lease termination costs. In addition, the Company recorded $0.1 million in restructuring-related inventory charges in cost of products sold. Seven plants in the Rigid Industrial Packaging & Services segment, one plant in the Flexible Products & Services segment and two plants in the Paper Packaging segment were closed. There were a total of 232 employees severed throughout 2010 as part of the Company’s restructuring efforts.