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RESTRUCTURING AND OTHER CHARGES
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Mar. 31, 2013
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| RESTRUCTURING AND OTHER CHARGES |
NOTE 14. RESTRUCTURING AND OTHER CHARGES
We executed restructuring actions primarily in the form of involuntary separation programs in the fourth quarter of 2012. These actions were in response to reduced demand in our U.S. businesses and most key markets around the world in the second half of 2012, as well as a reduction in orders in most U.S. and global markets for 2013. We reduced our worldwide professional workforce by approximately 650 employees, or 3 percent. We also reduced our hourly workforce by approximately 650 employees. During 2012, we incurred a pre-tax charge related to the professional and hourly workforce reductions of approximately $49 million.
Employee termination and severance costs were recorded based on approved plans developed by the businesses and corporate management which specified positions to be eliminated, benefits to be paid under existing severance plans or statutory requirements and the expected timetable for completion of the plan. Estimates of restructuring were made based on information available at the time charges were recorded. Due to the inherent uncertainty involved, actual amounts paid for such activities may differ from amounts initially recorded and we may need to revise previous estimates.
At March 31, 2013, of the approximately 1,300 employees affected by this plan, approximately 1,250 terminations have been completed. We expect the remaining terminations to be substantially complete by June 2013.
During 2012, we recorded restructuring and other charges of $52 million ($35 million after-tax). The following table summarizes the changes in the balance of accrued restructuring charges. The restructuring related accruals were recorded in “Other accrued expenses” in our Condensed Consolidated Balance Sheets.
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