Restructuring Charges, Net

9 Months Ended

Sep. 30, 2011

Restructuring Charges, Net [Abstract]

8. Restructuring Charges, Net

On June 27, 2011, the Executive Committee of Sotheby's Board of Directors approved a restructuring plan (the "Restructuring Plan") impacting Sotheby's operations in Italy and the Netherlands. The Restructuring Plan will streamline Sotheby's European selling operations, with a renewed emphasis on relationships with key clients and the sourcing of important collections. The Restructuring Plan will also allow Sotheby's global management to focus resources on growing markets, especially China, and other strategic priorities. In the Netherlands, the Restructuring Plan will result in the cessation of all local auction sales. In Italy, Sotheby's will significantly reduce its auction sales calendar, but plans to continue to conduct auctions of Contemporary and Modern Art. Sotheby's streamlined European operations will continue to source property to its other selling locations throughout the world, as well as pursue private sale opportunities.

The Restructuring Plan will reduce staff by 24, which represents approximately 46% of Sotheby's current headcount in Italy and the Netherlands and 2% of its global headcount. The Restructuring Plan will also allow Sotheby's to completely exit its leased Amsterdam salesroom, replacing it with a smaller local office, and significantly reduce the cost associated with its Milan premises.

The following table summarizes net Restructuring Charges for the three and nine months ended September 30, 2011 (in thousands of dollars):


	Three Months Ended September 30, 2011		Nine Months Ended September 30, 2011
Employee termination benefits	$	133	$	1,812
Facility related costs		2,047		2,636
Other costs		28		28

Total	$	2,208	$	4,476

The facility related charges recognized in the third quarter of 2011 are the result of a lease termination fee incurred in September 2011 related to Sotheby's Amsterdam salesroom, which will be vacated by the end of the year. Accrued restructuring costs of $4.5 million are recorded within Accounts Payable and Accrued Liabilities in the September 30, 2011 Condensed Consolidated Balance Sheet. Total cash expenditures related to the Restructuring Plan are expected to be approximately $5 million, substantially all of which are expected to be made in the fourth quarter of 2011.