RESTRUCTURING EXPENSE

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

NOTE 5 — RESTRUCTURING EXPENSE

In the fourth quarter of 2010, the Company commenced a strategic assessment of its business and operations. This assessment focused on expanding revenue opportunities and lowering corporate overhead, including workforce and benefit reductions and facility rationalization. As a result of the execution of the strategic assessment and related restructuring plan, the Company incurred restructuring expenses of approximately $3.5 million and $8.6 million during the three and nine months ended September 30, 2011, respectively. Restructuring expenses during the three months ended September 30, 2011 consisted of approximately $1.4 million of facility-related costs, $1.0 million of third-party consulting costs, $0.4 million of employee severance and other benefit-related costs related to workforce reductions and $0.7 million of other costs. Restructuring expenses during the nine months ended September 30, 2011 consisted of approximately $4.1 million of third-party consulting costs, $1.9 million of employee severance and other benefit-related costs related to workforce reductions, $1.6 million of facility-related costs and $1.0 million of other costs.

Since inception of the strategic assessment and related restructuring plan, the Company has incurred approximately $12.1 million in total expenses, $5.2 million of third-party consulting costs, $4.3 million of employee severance and other benefit-related costs related to workforce reductions, $1.6 million of facility-related costs and $1.0 million of other costs. The Company anticipates additional restructuring expenses during the remainder of 2011 as a result of the execution of the strategic assessment and related restructuring plan.

The restructuring costs are included in restructuring expense on the Unaudited Consolidated Statements of Operations. As of September 30, 2011, there is a restructuring accrual of $4.4 million included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. The restructuring accrual activity consists of the following (in thousands):

	Employee Severance			Consulting			Facility-Related		Other
	and Other Benefits			Costs			Costs		Costs			Total
Liability balance as of December 31, 2010	$	3,387		$	433		$	-	$	-		$	3,820
Expenses incurred		1,917			4,070			1,630		1,027			8,644
Cash payments		(2,549	)		(4,453	)		-		(1,027	)		(8,029	)
Liability balance as of September 30, 2011	$	2,755		$	50		$	1,630	$	-		$	4,435