Accrued Restructuring Costs

6 Months Ended

Jun. 30, 2011

Accrued Restructuring Costs

Accrued Restructuring Costs

9.    ACCRUED RESTRUCTURING COSTS

During 2010, in connection with the Company's integration plan of Chordiant, the Company recorded $6.5 million of severance and related benefit costs for the reduction of approximately 50 personnel in redundant roles. These personnel were primarily in general and administrative functions and their employment ended by the third quarter of 2010. The severance and related benefit costs will be paid by the end of the second quarter of 2012.

In connection with the Company's evaluation of its combined facilities, the Company approved a plan to exit space within one facility. The Company ceased use of this space during the fourth quarter of 2010 and recognized $1.6 million of restructuring expenses, representing future lease payments and demising costs, net of estimated sublease income for this space. The lease expires at the end of 2013. During the first quarter of 2011, the Company incurred an additional $0.1 million of exit costs related to the elimination of this space.

A summary of the restructuring activity during the first six months of 2011 is as follows:

(in thousands)	Personnel			Facilities			Total
Balance as of December 31, 2010	$	2,752		$	2,117		$	4,869
Restructuring costs		-			141			141
Cash payments		(1,769	)		(980	)		(2,749	)
Balance as of June 30, 2011	$	983		$	1,278		$	2,261

(in thousands)	June 30, 2011		December 31, 2010
Reported as:
Accrued expenses	$	1,548	$	3,671
Other long-term liabilities		713		1,198
	$	2,261	$	4,869