RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

6 Months Ended

Jun. 30, 2011

RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract]

RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

(9)       RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

Restructuring Charges

During the three and six months ended June 30, 2011the Company undertook a number of restructuring activities primarily associated with reductions in the Company's capacity and workforce in both the North American BPO and International BPO segments to better align the capacity and workforce with current business needs.

A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2011 and 2010, respectively, is as follows (amounts in thousands):

			Three Months Ended June 30,				Six Months Ended June 30,
			2011		2010		2011		2010
North American BPO
	Reduction in force		$	78	$	699	$	600	$	2,056
	Facility exit charges			-		-		7		-
	Revision of prior estimates			(344)		-		(344)		(5)
		Total	$	(266)	$	699	$	263	$	2,051
			Three Months Ended June 30,				Six Months Ended June 30,
			2011		2010		2011		2010
International BPO
	Reduction in force		$	46	$	613	$	256	$	730
	Facility exit charges			-		-		-		-
	Revision of prior estimates			163		(8)		163		(8)
		Total	$	209	$	605	$	419	$	722

A roll-forward of the activity in the Company's restructuring accruals is as follows (amounts in thousands):

		Closure of Delivery Centers		Reduction in Force		Total
Balance as of December 31, 2010		$	695	$	8,267	$	8,962
	Expense		7		856		863
	Payments		(172)		(6,584)		(6,756)
	Revision of prior estimates		-		(181)		(181)
Balance as of June 30, 2011		$	530	$	2,358	$	2,888

The remaining reduction in force accrual is expected to be paid during 2011, with the remaining accrual for the closure of delivery centers to be paid or extinguished no later than 2012.

Impairment Losses

During each of the periods presented, the Company evaluated the recoverability of its leasehold improvement assets at certain delivery centers. An asset is considered to be impaired when the anticipated undiscounted future cash flows of an asset group are estimated to be less than the asset group's carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During the six months ended June 30, 2011, the Company recognized impairment losses related to leasehold improvement assets of $0.2 million in its International BPO segment.For the three and six months ended June 30, 2010, the Companyrecognized impairment losses related to leasehold improvement assetsof $0.7 million in its North American BPO segment.