Restructuring Activities

3 Months Ended

Mar. 31, 2012

Restructuring and Related Activities [Abstract]

Following its acquisition of Tepnel Life Sciences plc (“Tepnel”) in April 2009, the Company had four locations in the United Kingdom (“UK”): Manchester, Cardiff, Livingston, and Abingdon. In order to accommodate the anticipated growth in the business and to optimize expenses, the Company decided to consolidate its UK operations to Manchester and Livingston. This consolidation was communicated internally in May 2010. The Company estimates that expenses related to this consolidation will total approximately $4.7 million and will be incurred in phases over a two-year period ending in the second quarter of 2012. These expenses will include termination costs, including severance costs related to the elimination of certain redundant positions and relocation costs for certain key employees, and site closure costs.

During the first quarter of 2012, the Company decided to restructure certain of its business activities relating to its acquired Genetic Testing Institute, Inc. (“GTI Diagnostics”) business and the customer service functions for the U.S. portion of its Tepnel business. The restructuring is intended to optimize the operational efficiency and cost structure of the Company. The Company estimates that expenses relating to this restructuring will total $0.5 million and will be incurred within the first half of 2012. These expenses will include severance costs related to the elimination of certain positions and site closure costs relating to a facility outside of the U.S.

During the three months ended March 31, 2012, the Company recorded approximately $1.1 million of termination and site closure costs. These amounts are included in general and administrative expenses in the Company’s consolidated statements of income. Through March 31, 2012, the Company has recorded approximately $4.9 million of cumulative termination and site closure costs related to these restructuring activities.

The following table summarizes the restructuring activities accounted for under ASC Topic 420 for the three months ended March 31, 2012, as well as the remaining restructuring accrual on the Company’s consolidated balance sheets as of March 31, 2012 (in thousands):



	Termination Costs			Site Closure Costs			Total

Restructuring reserves as of December 31, 2011	$	267		$	440		$	707
Charged to expenses	657			448			1,105
Amounts paid	(460		)	(425		)	(885		)
Foreign currency translation	10			14			24
Restructuring reserves as of March 31, 2012	$	474		$	477		$	951

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, 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.

+ References+ Details

GEN PROBE INC 10-Q