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Restructuring and Other Charges
12 Months Ended
Dec. 31, 2012
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES
The components of restructuring and other charges, net in 2012, 2011 and 2010 were as follows: 
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Restructuring charges, net:
 
 
 
 
 
 
Severance and employee-related costs
 
$
7,205

 
3,162

 

Contract termination costs
 
865

 
493

 

 
 
8,070

 
3,655

 


As mentioned in Note 29, “Segment Reporting,” our primary measure of segment financial performance excludes, among other items, restructuring and other charges, net. However, the applicable portion of the restructuring and other charges, net that related to each segment in 2012, 2011 and 2010 were as follows:
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Fleet Management Solutions
 
$
6,448

 
3,531

 

Supply Chain Solutions
 
1,346

 
124

 

Central Support Services
 
276

 

 

Total
 
$
8,070

 
3,655

 


 
2012 Activity
In the second quarter of 2012, we approved a plan to eliminate approximately 350 employees, primarily in the U.S, as a result of cost containment actions. These actions have been completed. Workforce reductions resulted in a a pre-tax charge of $7 million. Restructuring charges, net in 2012 also included severance and employee related costs associated with the elimination of certain positions assumed in the Euroway acquisition offset by benefits from refinements in estimates from restructuring charges in the prior year. During 2012, we also recorded a pre-tax charge of $1 million associated with non-essential leased facilities assumed in the Hill Hire acquisition.

2011 Activity
During 2011, we eliminated certain positions and terminated non-essential equipment contracts assumed in the Hill Hire and Scully acquisitions, which resulted in a pre-tax charge of $4 million.
The following table presents a roll-forward of the activity and balances of our restructuring reserves, including discontinued operations for the years ended December 31, 2012 and 2011:
 
 
 
 
 
 
Deductions
 
 
 
 
 
 
Beginning
Balance
 
Additions
 
Cash
Payments
 
Non-Cash
Reductions(1)
 
Foreign
Translation
Adjustment
 
Ending
Balance
 
 
(In thousands)
Year ended December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
Employee severance and benefits
 
$
2,607

 
8,460

 
6,711

 
1,307

 
98

 
3,147

Contract termination costs
 
2,639

 
1,084

 
1,519

 
575

 
99

 
1,728

Total
 
$
5,246

 
9,544

 
8,230

 
1,882

 
197

 
4,875

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011:
 
 
 
 
 
 
 
 
 
 
 
 
Employee severance and benefits
 
$
234

 
3,290

 
736

 
105

 
(76
)
 
2,607

Contract termination costs
 
3,813

 
493

 
1,557

 
141

 
31

 
2,639

Total
 
$
4,047

 
3,783

 
2,293

 
246

 
(45
)
 
5,246

____________ 
(1)
Non-cash reductions represent adjustments to the restructuring reserve as actual costs were less than originally estimated.
At December 31, 2012, outstanding restructuring obligations are generally required to be paid over the next year.