11. RESTRUCTURING

On July 21, 2011, we announced a restructuring of our manufacturing operations in Breisach, Germany. The restructuring reduced our manufacturing footprint by consolidating prototype and production functions and centralizing outsourced production control in our Eden Prairie, Minnesota production facility. The consolidation was driven by our strategy of driving efficiency improvements and enhancing customer service globally through more centralized operations. We will continue to maintain sales and research and development activities at the leased facility in Breisach, Germany. As a result of these initiatives, we expect the total charge to be $0.5 million on a pre-tax basis, which consists of $0.4 million for employee termination costs for 25 employees and $0.1 million for asset write-downs. We recorded a charge of $0.2 million in the fourth quarter of fiscal 2011, $0.2 million in the first quarter of fiscal 2012 and expect to record a charge of $0.1 million in the second quarter of fiscal 2012. The payments are expected to be completed in the second quarter of fiscal 2012. We ceased manufacturing in Breisach at the end of December 2011 and the building continues to be occupied by sales and research and development personnel. The lease on the Breisach facility ends in July 2013.

Below is listed a summary of the restructuring charges and other activity within the restructuring accrual (in thousands):


	Employee
	Termination Costs			Other			Total
Balance at June 30, 2011	$	—		$	—		$	—
Restructuring charge		148			76			224
Foreign currency fluctutation		(3	)		(1	)		(4	)

Balance at September 30, 2011		145			75			220

Restructuring charge		249			—			249
Payments		(160	)		—			(160	)
Reversal		(13	)		—			(13	)
Foreign currency fluctutation		(17	)		(4	)		(21	)

Balance at December 31, 2011	$	204		$	71		$	275