RESTRUCTURING CHARGES

9 Months Ended

Sep. 30, 2011

RESTRUCTURING CHARGES

NOTE 15 – RESTRUCTURING CHARGES

In December of 2009, we announced the consolidation of operations within our returns and recall management services (“RMS”) business which has been completed and resulted in incremental expense of $0.1 million in 2011.

In December 2010, we reorganized the structure of our international management group in order to leverage strong local management, resulting in employee severance and other charges. During the third quarter of 2011 we expanded this program to include consolidation of administrative facilities in the United Kingdom and reorganization of our international legal structure. We recognized $0.3 million in expense during the first two quarters of 2011 and an additional $0.6 million in the third quarter of 2011. We had an accrual balance of $0.9 million at the end of third quarter of 2011 and expect approximately an additional $1.2 to $1.5 million in expense to be recognized primarily in the fourth quarter of 2011 and first quarter of 2012. We expect the accrual balance to be paid primarily during the fourth quarter of 2011 and first quarter 2012.

The following tables below highlight the pre-tax charges and changes in the reserves for the nine months ended September 30, 2011 and for the year ended December 31, 2010. All charges related to these costs are reflected on our Consolidated Statements of Income within “Restructuring costs” for both costs of revenue and selling, general, and administrative expenses.

In thousands
	Beginning Reserve at 01/01/11		Charges for the Nine Months Ended 9/30/11		Cash Paid			Ending Reserve at 9/30/11
Employee severance	$	1,835	$	397	$	(1,902	)	$	330
Other costs		217		689		(366	)		540
Total	$	2,052	$	1,086	$	(2,268	)	$	870

In thousands
	Beginning Reserve at 01/01/10		Charges for the Year Ended 12/31/10		Cash Paid			Ending Reserve at 12/31/10
Employee severance	$	666	$	3,100	$	(1,931	)	$	1,835
Other costs		6		1,080		(869	)		217
Non-cash items
Employee severance		0		3,266		0			0
Other costs		0		925		0			0
Total	$	672	$	8,371	$	(2,800	)	$	2,052