Operational Restructuring Charges

9 Months Ended

Sep. 30, 2011

Operational Restructuring Charges [Abstract]

Operational Restructuring Charges

(13) Operational Restructuring Charges

     On September 8, 2011, the Company announced plans to reduce its workforce to ensure that the Company is staffed appropriately to serve its customers well, while prudently managing expenses. The reduction will eliminate approximately 400 positions and is expected to be completed over the next several months. In September 2011, notifications were provided to approximately 100 management employees affected by the workforce reduction. The Company has followed and will follow prescribed steps in the collective bargaining agreement to notify approximately 300 union positions included in the workforce reduction. In connection with this plan, the Company expects to recognize $7 million to $13 million in restructuring charges, consisting of severance and one-time incentive payments. The charges that the Company expects to incur in connection with the workforce reduction are subject to a number of assumptions and actual amounts may differ. The Company may also incur other charges not currently contemplated due to events that may occur as a result of, or associated with, the workforce reduction.

     During the quarter ended September 30, 2011, the Company incurred severance charges of $3.3 million associated with the workforce reduction, which are included within cost of services and sales and selling, general and administrative expense in the condensed consolidated statement of operations. The Company expects to have additional expenses next quarter, but the expense cannot be reasonably estimated due to the terms of the collective bargaining agreement.