Accrued Restructuring Costs

12 Months Ended

Dec. 31, 2011

Accrued Restructuring Costs [Abstract]

12.

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 eliminate 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. During third quarter of 2011, as a result of signing a sublease for the vacated space, the Company revised its estimate of exit costs and recorded a $0.2 million reduction of expense.

A summary of the restructuring activity during 2011 and 2010 is as follows:


(in thousands)	Personnel			Facilities			Total
Balance as of April 21, 2010	$	—		$	—		$	—
Restructuring costs		6,501			1,563			8,064
Cash payments		(3,749	)		(69	)		(3,818	)
Other (1)		—			623			623

Balance as of December 31, 2010	$	2,752		$	2,117		$	4,869

Restructuring costs		—			(62	)		(62	)
Cash payments		(2,509	)		(1,255	)		(3,764	)

Balance as of December 31, 2011	$	243		$	800		$	1,043

(1) Reflects the liability initially recorded for the acquired above market operating lease terms at acquisition, which was subsequently restructured.


(in thousands)	As of December 31, 2011		As of December 31, 2010
Reported as:
Accrued expenses	$	626	$	3,671
Other long-term liabilities		417		1,198

	$	1,043	$	4,869

- 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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