During the three and nine months ended September 30, 2012 and 2011, the Company undertook a number of restructuring activities primarily associated with reductions in the Company's capacity and workforce in both the Customer Management Services and Customer Growth Services segments to better align the capacity and workforce with current business needs.

During the second quarter of 2012, the Company made the decision to cease operations in Spain and terminated the contracts with its clients. The Company notified the employees and commenced severance procedures as required under Spanish law. In connection with this decision, a severance liability was established as of June 30, 2012 for $13.9 million. During the third quarter of 2012, $11.9 million was paid and the remaining $2.0 million was included in Other accrued expenses in the Consolidated Balance Sheets as of September 30, 2012.

A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2012 and 2011, respectively, is as follows (amounts in thousands):

			Three Months Ended September 30,				Nine Months Ended September 30,
			2012		2011		2012		2011
Reduction in force
	Customer Management Services		$	2,620	$	1,355	$	20,072	$	1,920
	Customer Growth Services			67		11		202		121
	Customer Technology Services			-		-		56		-
	Customer Strategy Services			-		-		-		-
	Corporate			58		185		570		185
		Total	$	2,745	$	1,551	$	20,900	$	2,226

			Three Months Ended September 30,				Nine Months Ended September 30,
			2012		2011		2012		2011
Facility exit charges
	Customer Management Services		$	(305)	$	65	$	(206)	$	72
	Customer Growth Services			-		-		-		-
	Customer Technology Services			-		-		-		-
	Customer Strategy Services			-		-		-		-
	Corporate			-		-		-		-
		Total	$	(305)	$	65	$	(206)	$	72

A rollforward 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, 2011		$	415	$	1,652	$	2,067
	Expense		169		20,900		21,069
	Payments		(209)		(17,635)		(17,844)
	Reversals		(375)		-		(375)
Balance as of September 30, 2012		$	-	$	4,917	$	4,917

The remaining restructuring accruals are expected to be paid or extinguished during the next twelve months and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheet.

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 three and nine months ended September 30, 2012, the Company recognized $0.2 million and $1.2 million, respectively, of losses related to leasehold improvement assets in the Customer Management Services segment. During the three and nine months ended September 30, 2011, the Company recognized zero and $0.2 million, respectively, of losses related to leasehold improvement assets in the Customer Management Services segment.

During the first quarter of 2012, the Company elected to rebrand the Direct Alliance Corporation (“DAC”) subsidiary to Revana™. Based on this decision and management's intention not to use the DAC name on a go-forward basis, the future cash flows associated with the trade name indefinite-lived intangible asset that was established as part of the purchase price accounting of DAC in 2006 was less than the asset's carrying value. Thus the $1.8 million asset was impaired as of March 31, 2012. This expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income.