Restructuring Charges

12 Months Ended

Dec. 31, 2011

8. Restructuring Charges

The following are the key restructuring activities we incurred over the last two years that have impacted our results from operations:

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As a result of the Intec Acquisition (see Note 3), during the fourth quarter of 2010, we recorded $2.0 million of restructuring expenses primarily related to changes in senior management of Intec after the closing of the transaction.

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Beginning in the second quarter of 2011, we implemented various cost reduction and efficiency initiatives, resulting in restructuring charges of $3.0 million, primarily in the following three areas:

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We reduced our resources in account services to better leverage our enhanced and expanded professional services talent across the global organization.

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We reduced our resources in certain development areas to ensure we are focusing a greater portion of our efforts on our next generation solutions like ACP, Singleview, and WBM Solution.

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We consolidated our print facilities from four to three locations as we took advantage of the advancements made in print technologies and the capabilities of our staff. The efficiencies and added speed resulting from our previous investments allowed us to significantly increase our production throughput.

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During the fourth quarter of 2011, we reduced our workforce by approximately 100 employees across many functions and geographies of our business. We did this in order to better align and allocate our resources as we continue to evolve and invest in those areas where we have identified growth opportunities. As a result, we incurred restructuring charges related to these involuntary terminations of $4.9 million.

The restructuring activities discussed above resulted in restructuring charges for 2011 and 2010 of $7.9 million and $2.2 million, respectively, which have been reflected as a separate line item in our Income Statements.

The activity in the business restructuring reserves related to continuing operations during 2011 and 2010 is as follows (in thousands):


	Termination Benefits			Facilities Abandonment			Other			Total
January 1, 2010, balance	$	—		$	—		$	—		$	—
Charged to expense during year		1,980			—			189			2,169
Cash payments		(816	)		—			(189	)		(1,005	)
Other		—			—			—			—

December 31, 2010, balance		1,164			—			—			1,164
Charged to expense during year		7,046			567			260			7,873
Cash payments		(4,439	)		—			(198	)		(4,637	)
Other		—			(78	)		(62	)		(140	)

December 31, 2011, balance	$	3,771		$	489		$	—		$	4,260

Primarily all of the business restructuring reserves as of December 31, 2011 were included in current liabilities.

- 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.

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