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Restructuring charges
 9 Months Ended
Sep. 30, 2012
Restructuring and Related Activities [Abstract]  
Restructuring charges
Restructuring charges

Net restructuring charges for each period consisted of the following components:
 
 
Quarter Ended September 30,
 
Nine Months Ended September 30,
 
 
2012
 
2011
 
2012
 
2011
Severance accruals
 
$
1,649

 
$
3,011

 
$
4,685

 
$
5,834

Severance reversals
 
(489
)
 
(205
)
 
(1,397
)
 
(1,114
)
Operating lease obligations
 
118

 
52

 
118

 
52

Net restructuring accruals
 
1,278

 
2,858


3,406


4,772

Other costs
 
1,656

 
1,740

 
3,326

 
5,904

Net restructuring charges
 
$
2,934

 
$
4,598


$
6,732


$
10,676


The net restructuring charges are reflected in the consolidated statements of comprehensive income as follows:
 
 
Quarter Ended September 30,
 
Nine Months Ended September 30,
 
 
2012
 
2011
 
2012
 
2011
Cost of goods sold
 
$
193

 
$
261

 
$
1,355

 
$
837

Operating expenses
 
2,741

 
4,337

 
5,377

 
9,839

Net restructuring charges
 
$
2,934

 
$
4,598


$
6,732


$
10,676



2012 restructuring charges – During the quarter ended September 30, 2012, the net restructuring accruals included severance charges related to employee reductions across functional areas as we continue to reduce costs. Restructuring charges for the nine months ended September 30, 2012 also included severance charges related to the closing of two customer call centers during the third quarter of 2012 and the planned closing of two printing facilities in the fourth quarter of 2012. The restructuring charges for the quarter and nine months ended September 30, 2012 included severance benefits for approximately 80 and 275 employees, respectively. These charges were reduced by the reversal of restructuring accruals recorded primarily in previous years, as fewer employees received severance benefits than originally estimated. Other restructuring costs, which were expensed as incurred, included items such as employee and equipment moves, training and travel related to our restructuring activities.

2011 restructuring charges – During the quarter and nine months ended September 30, 2011, the net restructuring accruals included severance charges related to employee reductions in various functional areas as we continued to reduce costs. The restructuring charges for the quarter and nine months ended September 30, 2011 included severance benefits for approximately 100 and 190 employees, respectively. These charges were reduced by the reversal of restructuring accruals, recorded primarily in 2010, as fewer employees received severance benefits than originally estimated. Other restructuring costs, which were expensed as incurred, included items such as employee and equipment moves, training and travel related to our restructuring activities.

Restructuring accruals of $3,360 as of September 30, 2012 are reflected in the consolidated balance sheet as accrued liabilities. Restructuring accruals of $6,032 as of December 31, 2011 are reflected in the consolidated balance sheet as accrued liabilities of $5,946 and other non-current liabilities of $86. The majority of the employee reductions are expected to be completed by mid-2013, and we expect most of the related severance payments to be paid by the end of 2013, utilizing cash from operations. The remaining payments due under operating lease obligations will be paid through May 2013. As of September 30, 2012, approximately 130 employees had not yet started to receive severance benefits. Further information regarding our restructuring accruals can be found under the caption “Note 8: Restructuring charges” in the Notes to Consolidated Financial Statements appearing in the 2011 Form 10-K.

As of September 30, 2012, accruals for our restructuring initiatives, summarized by year, were as follows:
 
 
2009
initiatives
 
2010
initiatives
 
2011
initiatives
 
2012
 initiatives
 
Total
Balance, December 31, 2011
 
$
184

 
$
781

 
$
5,067

 
$
—

 
$
6,032

Restructuring charges
 
11

 
15

 
263

 
4,514

 
4,803

Restructuring reversals
 
(2
)
 
(226
)
 
(990
)
 
(179
)
 
(1,397
)
Payments
 
(183
)
 
(413
)
 
(3,945
)
 
(1,537
)
 
(6,078
)
Balance, September 30, 2012
 
$
10

 
$
157


$
395


$
2,798


$
3,360

Cumulative amounts:
 
 

 
 

 
 

 
 

 
 

Restructuring charges
 
$
11,035

 
$
9,730

 
$
9,057

 
$
4,514

 
$
34,336

Restructuring reversals
 
(1,672
)
 
(1,548
)
 
(1,601
)
 
(179
)
 
(5,000
)
Payments
 
(9,353
)
 
(8,025
)
 
(7,061
)
 
(1,537
)
 
(25,976
)
Balance, September 30, 2012
 
$
10

 
$
157


$
395


$
2,798


$
3,360



As of September 30, 2012, the components of our restructuring accruals, by segment, were as follows:
 
 
Employee severance benefits
 
Operating lease obligations
 
 
 
 
Small Business Services
 
Financial Services
 
Direct Checks
 
 
Corporate
 
Small Business Services
 
Direct Checks
 
Total
Balance, December 31, 2011
 
$
887

 
$
1,397

 
$
744

 
$
2,647

 
$
69

 
$
288

 
$
6,032

Restructuring charges
 
2,005

 
338

 
166

 
2,176

 
—

 
118

 
4,803

Restructuring reversals
 
(117
)
 
(208
)
 
(90
)
 
(982
)
 
—

 
—

 
(1,397
)
Inter-segment transfer
 
184

 
(184
)
 
(40
)
 
40

 
—

 
—

 
—

Payments
 
(1,891
)
 
(1,122
)
 
(540
)
 
(2,293
)
 
(67
)
 
(165
)
 
(6,078
)
Balance, September 30, 2012
 
$
1,068

 
$
221


$
240


$
1,588


$
2


$
241


$
3,360

Cumulative amounts(1):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Restructuring charges
 
$
11,002

 
$
6,172

 
$
3,449

 
$
12,722

 
$
364

 
$
627

 
$
34,336

Restructuring reversals
 
(1,666
)
 
(923
)
 
(282
)
 
(2,129
)
 
—

 
—

 
(5,000
)
Inter-segment transfer
 
309

 
50

 
(38
)
 
(321
)
 
—

 
—

 
—

Payments
 
(8,577
)
 
(5,078
)
 
(2,889
)
 
(8,684
)
 
(362
)
 
(386
)
 
(25,976
)
Balance, September 30, 2012
 
$
1,068

 
$
221


$
240


$
1,588


$
2


$
241


$
3,360


(1) Includes accruals related to our cost reduction initiatives for 2009 through 2012.