XML 41 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
Restructuring Charges
 12 Months Ended
Dec. 31, 2013
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Marketing & Events Group Consolidation
Beginning in 2009, Viad commenced certain restructuring actions designed to reduce the Company’s cost structure primarily within the Marketing & Events U.S. segment, and to a lesser extent in the Marketing & Events International segment. The Company implemented a strategic reorganization plan in order to consolidate the separate business units within the Marketing & Events U.S. segment. The Company also consolidated facilities and streamlined its operations in the United Kingdom and Germany. As a result, the Company recorded restructuring charges in 2013, 2012 and 2011, primarily consisting of severance and related benefits as a result of workforce reductions and charges related to the consolidation and downsizing of facilities representing the remaining operating lease obligations (net of estimated sublease income) and related costs. During 2012 and 2011, the Company recorded restructuring charges related to leased facility consolidations and optimization of the Marketing & Events U.S. segment’s service delivery network.
Other Restructurings
The Company has recorded restructuring charges in connection with the consolidation of certain support functions at its corporate headquarters, and certain reorganization activities within the Travel & Recreation Group. These charges primarily consist of severance and related benefits due to headcount reductions. In addition, the Company had recorded significant restructuring charges in past years, primarily within the Marketing & Events U.S. segment. These legacy restructuring liabilities represented the remaining contractual lease obligations on certain facilities, and were subject to periodic adjustments as a result of changes in estimated sublease activity and other factors.
The table below represents a reconciliation of beginning and ending liability balances by major restructuring activity:
 
Marketing & Events
Group Consolidation
 
Other Restructurings
 
 
(in thousands)
Severance &
Employee
Benefits
 
Facilities
 
Severance &
Employee
Benefits
 
Facilities
 
Total
Balance at January 1, 2011
$
1,106

 
$
5,051

 
$
197

 
$
1,642

 
$
7,996

Restructuring charges
1,182

 
2,519

 
26

 
55

 
3,782

Cash payments
(1,175
)
 
(2,356
)
 
(199
)
 
(158
)
 
(3,888
)
Adjustment to liability
(294
)
 
(397
)
 
—

 
(263
)
 
(954
)
Foreign currency translation adjustment
12

 
2

 
—

 
—

 
14

Balance at December 31, 2011
831

 
4,819

 
24

 
1,276

 
6,950

Restructuring charges
2,506

 
2,346

 
90

 
—

 
4,942

Cash payments
(2,670
)
 
(1,567
)
 
(114
)
 
(343
)
 
(4,694
)
Adjustment to liability
51

 
(27
)
 
—

 
—

 
24

Foreign currency translation adjustment
2

 
—

 
—

 
—

 
2

Balance at December 31, 2012
720

 
5,571

 
—

 
933

 
7,224

Restructuring charges (recoveries)
2,931

 
(315
)
 
1,967

 
(692
)
 
3,891

Cash payments
(2,411
)
 
(1,691
)
 
(498
)
 
(241
)
 
(4,841
)
Adjustment to liability
—

 
—

 
(478
)
 
—

 
(478
)
Balance at December 31, 2013
$
1,240

 
$
3,565

 
$
991

 
$
—

 
$
5,796


As of December 31, 2013, the liabilities related to severance and employee benefits are expected to be paid by the end of 2014. Additionally, the liability of $3.6 million related to future lease payments are to be paid over the remaining lease terms at the Marketing & Events Group. See Note 20 for information regarding restructuring charges by segment.