IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES

12 Months Ended

Dec. 31, 2011

IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES

IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES

2.  IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES

Impairment Losses

During the year ended December 31, 2011, we incurred $2,381 of impairment losses ($2,173 in our U.S. segment and $208 in our Canadian segment), due to the impairment of certain long-lived assets for which the carrying value of those assets is not recoverable.  We recorded $1,053 in impairment losses ($845 in our U.S. segment and $208 in our Canadian segment) during 2011 related to long-lived assets such as computer equipment, software, equipment and furniture and fixtures for which the future cash flows did not support the carrying value of the assets.  In addition, in our U.S. segment we recorded approximately $1,328 of impairment losses on two buildings to reduce the carrying value to its fair value based upon third-party broker valuations.  Refer to Note 7, “Fair Value Measurements,” for additional information on the fair value measurements for all assets and liabilities that are measured at fair value in the Consolidated Financial Statements.  During the year ended December 31, 2010 we incurred $4,112 of impairment losses ($3,161 in our U.S. segment and $951 in our Canadian segment), due to the impairment of certain long-lived assets for which the carrying value of those assets is not recoverable.

Assets Held for Sale

In 2010, we committed to a plan to sell the buildings at our closed facilities in Laramie, Wyoming and Greeley, Colorado.  We received estimates of the selling prices of these buildings, and have reduced the value of the buildings and land to fair value less the costs to sell.  As of December 31, 2010 this value was $5,103 in our U.S. segment.  During 2011, we received a new estimated selling price on our Greeley, Colorado facility from our broker due to changing market conditions, which resulted in an impairment of approximately $1,001 to reduce the carrying value to fair value less costs to sell.  As of December 31, 2011, the fair value of the buildings and land less the costs to sell was $4,102.  These long-lived assets are presented as current assets held for sale on our Consolidated Balance Sheet.  In order for an asset to be held for sale, management must determine that the asset is to be held for sale in its current condition, an active plan to complete the sale of the asset has been initiated and the sale of the asset is probable within one year.  We evaluated the facilities during 2010 and 2011 and determined these assets meet all the criteria for an asset held for sale.

Restructuring Charges

A summary of the activity under the restructuring plans as of December 31, 2011, and changes during the years ended December 31, 2011, 2010 and 2009 are presented below:

	Facility-Related Costs
	Victoria			Laramie			Grand Junction			U.S. Total
Balance as of January 1, 2010	$	—		$	—		$	—		$	—
Expense	288			87			455			830
Payments, net of receipts for sublease	(563		)	(58		)	(17		)	(638		)
Reclassification of liability	766			3			68			837
Balance as of December 31, 2010	$	491		$	32		$	506		$	1,029
Expense	157			65			—			222
Payments, net of receipts for sublease	(222		)	(74		)	(229		)	(525		)
Reclassification of liability	57			40			(25		)	72
Balance as of December 31, 2011	$	483		$	63		$	252		$	798

	Facility-Related Costs
	Regina			Thunder Bay			Sarnia			Kingston			Canada Total
Balance as of January 1, 2009	$	—		$	—		$	—		$	—		$	—
Expense	4,436			—			—			—			4,436
Payments, net of receipts for sublease	(1,294		)	—			—			—			(1,294		)
Reclassification of liability	118			—			—			—			118
Foreign currency translation adjustment	720			—			—			—			720
Balance as of December 31, 2009	$	3,980		$	—		$	—		$	—		$	3,980
Expense	(1,802		)	(372		)	67			—			(2,107		)
Payments, net of receipts for sublease	(1,380		)	(381		)	(53		)	—			(1,814		)
Reclassification of liability	170			701			22			—			893
Foreign currency translation adjustment	65			52			(4		)	—			113
Balance as of December 31, 2010	$	1,033		$	—		$	32		$	—		$	1,065
Expense	1,168			—			—			87			1,255
Payments, net of receipts for sublease	(1,325		)	—			(32		)	(73		)	(1,430		)
Reclassification of liability	—			—			—			(14		)	(14		)
Foreign currency translation adjustment	(24		)	—			—			—			(24		)
Balance as of December 31, 2011	$	852		$	—		$	—		$	—		$	852

	Termination Benefits
	Cornwall			Kingston			Canada Total
Balance as of January 1, 2011	$	—		$	—		$	—
Expense	1,081			557			1,638
Payments	(1,145		)	(453		)	(1,598		)
Foreign currency translation adjustment	64			(104		)	(40		)
Balance as of December 31, 2011	$	—		$	—		$	—

During the year ended December 31, 2010, we entered into sublease agreements for our Thunder Bay, Ontario, Canada and Victoria, Texas facilities through the remainder of their respective lease terms.  We had assumed a sublease in our original estimated restructuring liabilities for Thunder Bay and Victoria and do not expect to incur material changes to the restructuring liabilities in future periods as a result of the subleases.  We have recorded an accrual for certain property taxes we still owe in Victoria, which we expect to pay through the remainder of our lease term, or 2014.  The leases for our Sarnia, Ontario, Canada and our Kingston, Ontario, Canada locations expired in January 2011 and October 2011, respectively, and we do not expect to incur material changes to the restructuring liabilities in future periods for these locations.

We expect completion of the Laramie, Wyoming, Grand Junction, Colorado and Regina, Saskatchewan restructuring plans no later than 2012 for all facilities; however, completion may be earlier or later depending on our ability to sublease the facilities, buy-out the lease or sell the facilities.  We have made certain assumptions related to our ability to sublease, sell or buy-out the lease on these facilities.  Refer to Note 7, “Fair Value Measurements,” for additional information on the fair value measurements for all assets and liabilities, including restructuring charges, that are measured at fair value in the Consolidated Financial Statements.  We expect to pay $1,961 in our U.S. segment and $5,390 in our Canadian segment in facility related costs and $1,598 in our Canadian segment in termination benefits over the term of the restructuring plans.  The cumulative amount paid as of December 31, 2011 related to the closures was $1,163 in our U.S. segment and $6,136 in our Canadian segment ($4,538 in facility-related costs and $1,598 in termination benefits).

Note Receivable

In connection with the sublease of our Victoria, Texas facility, the sublessee is making payments to us for certain furniture, fixtures, equipment and leasehold improvements in the facility.  The payments will be made over the remainder of the lease term, or December 1, 2014, after which time the sublessee will own the assets.  As of December 31, 2011, we have recorded a note receivable of $1,852 for the payments due under this agreement, net of unearned interest income of approximately $128.  The note receivable bears interest at a rate of 4.4% per annum.  Future minimum lease payments under this note receivable are:  $660 in 2012, $660 in 2013 and $660 in 2014.