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Severance Reserve

6 Months Ended

Jun. 30, 2012

Note 6 — Severance Reserve

In the second quarter of 2012, as part of a strategic restructuring plan designed to reduce its cost structure, the Company eliminated approximately 120 corporate and distribution positions in its MRO segment. This restructuring resulted in a $6.6 million severance charge which is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income (Loss).

The table below shows the changes in the Company’s reserve for severance and related payments as of June 30, 2012 and 2011:


	(Amounts in thousands)
	Six Months Ended June 30,
	2012			2011
Balance at beginning of year	$	1,282		$	3,062
Charged to earnings		6,770			1,210
Cash paid		(1,672	)		(2,062	)

Balance at end of the period	$	6,380		$	2,210

Accrued severance charges are included in the line items of the Condensed Consolidated Balance Sheets at June 30, 2012 and December 31, 2011 as follows:


	(Dollars in thousands)
	June 30, 2012		December 31, 2011
Accrued severance included in:
Accrued expenses and other liabilities	$	5,135	$	1,187
Noncurrent other		1,245		95

Total accrued severance	$	6,380	$	1,282

All severance accrued at June 30, 2012 will be fully paid by June 30, 2014.