NOTE 11 – BUSINESS REORGANIZATION EXPENSES

In January 2012, the Company’s Chief Executive Officer approved a $1,000 plan of reorganization (“2012 Plan”) to streamline the Company’s support operations in each of Hudson’s regional businesses to match the aggregated operating segments and to improve support services to the Company’s regional and global professional business practices. The 2012 Plan primarily includes costs for actions to reduce support functions to match them to the revised operating structure. In April 2012, the Board of Directors (the “Board”) of the Company approved increases of up to $9,000, and in February 2013 the Board approved further increases of up to $4,000, for additional actions under the 2012 Plan. On December 17, 2013, the Board approved a further increase of up to $3,600 for additional actions under the 2012 Plan, consisting primarily of actions to reduce support functions and other operating costs. Restructuring charges associated with these initiatives for the 2012 Plan primarily included employee separation costs for the elimination of 96 positions. The headcount reductions identified in this action are expected to be completed in the first quarter of fiscal 2014 with the related payments to be completed in fiscal 2014. The payments include, but are not limited to, salaries, social pension fund payments, health care and unemployment insurance costs to be paid to or on behalf of the affected employees.

The Board approved other reorganization plans in 2009, 2008, and 2006 (“Previous Plans”) to streamline the Company’s support operations and included actions to reduce support functions to match them to the scale of the business, to exit underutilized properties and to eliminate contracts for certain discontinued services. These actions resulted in costs for lease termination payments, employee termination benefits and contract cancellations. Business reorganization expenses for the years ended December 31, 2013, 2012 and 2011 for the 2012 Plan and the Previous Plans, collectively, were as follows:



	Year Ended December 31,
	2013		2012		2011
Previous Plans	—		2,329		720
2012 Plan	6,721		5,453		—
Total	$	6,721	$	7,782	$	720

The following table contains amounts for Changes in Estimate, Additional Charges, and Payments related to prior restructuring plans that were incurred or recovered during the year ended December 31, 2013. The amounts for Changes in Estimate and Additional Charges are classified as business reorganization expenses in the Company’s Consolidated Statements of Operations and Other Comprehensive Income (Loss). Amounts in the “Payments” column represent primarily the cash payments associated with the reorganization plans. Changes in the accrued business reorganization expenses for the year ended December 31, 2013 were as follows:



	December 31, 2012		Changes in Estimate			Additional Charges		Payments			December 31, 2013
Lease termination payments	$	2,678	$	(21	)	$	1,305	$	(1,517	)	$	2,445
Employee termination benefits	715		—			4,977		(3,912		)	1,780
Other associated costs	27		—			460		(431		)	56
Total	$	3,420	$	(21	)	$	6,742	$	(5,860	)	$	4,281

Lease Termination Payments

The business reorganization expenses incurred for lease termination for the years ended December 31, 2013, 2012 and 2011 by segment were as follows:



Lease termination payments for the year ended December 31,	Hudson			Hudson		Hudson
Lease termination payments for the year ended December 31,	Americas			Asia Pacific		Europe		Corporate		Total
2013	$	(22	)	$	445	$	861	$	—	$	1,284
2012	$	179		$	613	$	2,491	$	—	$	3,283
2011	$	—		$	—	$	708	$	—	$	708

Employee Termination Benefits

The business reorganization expenses incurred for employee termination benefits for the years ended December 31, 2013, 2012 and 2011 by segment were as follows:



Employee termination benefits for the year ended December 31,	Hudson		Hudson		Hudson
	Americas		Asia Pacific		Europe		Corporate		Total
2013	$	1,319	$	505	$	2,363	$	790	$	4,977
2012	$	811	$	674	$	2,539	$	359	$	4,383
2011	$	—	$	—	$	—	$	—	$	—

Contract Cancellation Costs

The business reorganization expenses incurred for contract cancellation costs for the years ended December 31, 2013, 2012 and 2011 by segment were as follows:



Contract Cancellation Costs for the year ended December 31,	Hudson		Hudson			Hudson
Contract Cancellation Costs for the year ended December 31,	Americas		Asia Pacific			Europe		Corporate		Total
2013	$	—	$	37		$	423	$	—	$	460
2012	$	16	$	(2	)	$	101	$	—	$	115
2011	$	—	$	—		$	12	$	—	$	12