Notes to Consolidated Financial Statements
    
NOTE 2 - R e s t r u c t u r i n g  a n d  A s s e t  I m p a i r m e n t  C h a r g e s
For the year ended December 31, 2000, the Company recorded a restructuring charge of $17,200 in the first quarter plus a second restructuring charge of $7,433 in the fourth quarter, for a total of $24,633. These restructurings relate to the reduction of 364 employees and the closings of four production facilities.

Through December 31, 2000, the Company has paid or incurred $17,700 of the $24,633 restructuring charges. The Company anticipates that substantially all of the remaining restructuring costs will be paid by the end of fiscal year 2001.

(Dollars in thousands)
Total
Charge
Incurred
in 2000
Balance
December 31,
2000
Severance and employee related costs
$
8,013
$
8,013
$
-
Exit and termination costs
2,022
1,327
695
Plant and equipment write-downs
11,016
5,608
5,408
Inventories write-downs
3,582
2,752
830
Total
$
24,633
$
17,700
$
6,933

The total $8,583 accrued restructuring liability at December 31, 2000 also includes $1,650 of non-cancelable lease obligations and unsettled tax assessments recognized in connection with the acquisition of Uarco, Inc. on December 31, 1997.

In the fourth quarter of 2000, the Company completed a balance sheet review that identified assets whose carrying amounts are not recoverable. As a result of this review, the Company recorded asset impairment charges totaling $73,746. These charges include the write-off of goodwill of $48,129, write-off of unamortized software costs of $6,280, $17,242 of machinery and equipment write-downs, and a $2,095 investment impairment.

The write-off of goodwill is based on the market value method of assessing enterprise level goodwill for impairment. The impairment of goodwill results from the continued decline during 1999 and 2000 of the market price of the Company's stock. The software cost write-off relates to license fees and other costs incurred for projects that were subsequently abandoned. The machinery and equipment write-downs relate to idle manufacturing assets held for disposal. The investment impairment is recognized for permanent decline in value of a company in which the Company has a 10% equity interest.