Restructuring And Impairment Charges

9 Months Ended

Sep. 30, 2011

Restructuring And Impairment Charges [Abstract]

Restructuring And Impairment Charges

8. Restructuring and Impairment Charges

For the nine months ended September 30, 2011, we incurred net restructuring charges of $56,000. The restructuring charges consisted primarily of a change in estimate related to previously accrued lease termination costs and employee separation benefits. For the nine months ended September 30, 2010, we incurred a net restructuring charge of $794,000. The charges were $328,000 for exit and disposal costs associated with the closing of vision centers and $466,000 for contract termination costs. Contract termination costs resulted primarily from the closure of one of our licensed operations and the termination of the related license agreement. Other exit and disposal costs incurred in 2010 were primarily expenses related to the closures of facilities and the relocation of various medical equipment.

At September 30, 2011 and December 31 2010, we included short-term restructuring reserves of $1.4 million and $1.6 million, respectively, in "Accrued liabilities and other" in the Condensed Consolidated Balance Sheets. Long-term restructuring reserves were $1.3 million and $2.1 million at September 30, 2011 and December 31, 2010, respectively, and were included in "Long-term rent obligations and other." Restructuring reserves declined due to payments during the nine month period. The fair value measurements in all periods utilized market prices of similar assets in determining fair value, which is a Level 2 input under U.S. GAAP.

The following table summarizes the restructuring reserve for the three and nine months ended September 30, 2011 (in thousands):

	Employee Separation Costs			Contract Termination Costs			Total
Balance at December 31, 2010	$	107		$	3,641		$	3,748
Liabilities recognized		20			36			56
Utilized		(127	)		(427	)		(554	)
Balance at March 31, 2011		—			3,250			3,250
Liabilities recognized		—			—			—
Utilized		—			(329	)		(329	)
Balance as of June 30, 2011	$	—		$	2,921		$	2,921
Liabilities recognized		—			—			—
Utilized		—			(270	)		(270	)
Balance as of September 30, 2011	$	—		$	2,651		$	2,651

For the three and nine months ended September 30, 2011, we incurred no impairment charges. In the three and nine months ended September 30, 2010, we recorded impairment charges to reduce the carrying amount of long-lived assets by $1.6 million and $1.7 million, respectively. The impairment charge recognized during the three months ended September 30, 2010 reflected primarily our decision to consolidate vision center operations in four markets and close vision centers in four additional underperforming markets in order to preserve cash. We also included in the impairment charge $164,000 related to certain assets held for use in one vision center. We assess the impairment of property and equipment whenever events or circumstances indicate that the carrying value might not be recoverable. We write down to fair value, which is generally determined from estimated discounted cash flows for assets held for use, recorded values of property and equipment that we do not expect to recover through undiscounted future net cash flows. The use of discounted cash flows represents a Level 3 fair value input under U. S. GAAP.