During the three and nine months ended September 30, 2013 and 2012, the Company undertook a number of restructuring activities primarily associated with reductions in the Company's capacity and workforce in its Customer Management Services, Customer Technology Services and Customer Strategy 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. The Company recorded $14.7 million of severance and $0.4 million of center closure expenses for the year ended December 31, 2012. As of the third quarter of 2013, $14.9 million was paid and the remaining $0.2 million was included in Other accrued expenses in the Consolidated Balance Sheets as of September 30, 2013.

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, 2013 and 2012, respectively, is as follows (amounts in thousands):

			Three Months Ended September 30,				Nine Months Ended September 30,
			2013		2012		2013		2012
Reduction in force
	Customer Management Services		$	628	$	2,678	$	3,614	$	20,642
	Customer Growth Services			7		62		7		198
	Customer Technology Services			73		5		73		60
	Customer Strategy Services			-		-		189		-
		Total	$	708	$	2,745	$	3,883	$	20,900

			Three Months Ended September 30,				Nine Months Ended September 30,
			2013		2012		2013		2012
Facility exit charges
	Customer Management Services		$	50	$	(305)	$	298	$	(206)
	Customer Growth Services			-		-		-		-
	Customer Technology Services			-		-		-		-
	Customer Strategy Services			-		-		-		-
		Total	$	50	$	(305)	$	298	$	(206)

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, 2012		$	-	$	4,079	$	4,079
	Expense		298		4,098		4,396
	Payments		(298)		(5,762)		(6,060)
	Change in estimates		-		(215)		(215)
Balance as of September 30, 2013		$	-	$	2,200	$	2,200

The remaining restructuring accruals are expected to be paid during 2013 and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheets.

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, 2013, the Company recognized zero and $0.1 million, respectively, of losses related to leasehold improvement assets in the Customer Management Services segment. 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 second quarter of 2013, the Company recorded an impairment charge of $1.1 million related to the PRG trade name intangible asset within the Customer Strategy Services segment. See Note 5 for further information. This expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income.

During the first quarter of 2012, the Company rebranded its Direct Alliance Corporation (“DAC”) subsidiary to RevanaTM, thus the $1.8 million DAC trade name was impaired as of March 31, 2012. This expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income.