Restructuring Charges

12 Months Ended

Dec. 31, 2011

Restructuring Charges [Abstract]

Restructuring Charges

Note 17. 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 2010 and 2009, 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 2011, the Company recorded restructuring charges related to leased facility consolidations and optimization of the Marketing & Events U.S. service delivery network. The Company expects additional restructuring charges during 2012 primarily related to facility consolidations.

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 represent the remaining contractual lease obligations on certain facilities, and are subject to periodic adjustments as a result of changes in estimated sublease activity and other factors. These adjustments can result in reversals of previously recorded amounts, or additional charges in some cases.

The table below represents a reconciliation of beginning and ending liability balances by major restructuring activity:

	Marketing & Events  Group Consolidation						Other Restructurings
	Severance & Employee Benefits			Facilities			Severance & Employee Benefits			Facilities			Total
							(in thousands)
Balance at January 1, 2009	$	—		$	—		$	201		$	6,343		$	6,544
Restructuring charges (recoveries)		8,115			7,104			—			(1,165	)		14,054
Cash payments		(5,043	)		(525	)		(201	)		(1,818	)		(7,587	)
Adjustment to liability		(739	)		(284	)		—			(333	)		(1,356	)
Balance at December 31, 2009		2,333			6,295			—			3,027			11,655
Restructuring charges (recoveries)		2,637			1,180			542			(137	)		4,222
Cash payments		(3,387	)		(2,164	)		(292	)		(875	)		(6,718	)
Adjustment to liability		(466	)		(258	)		(53	)		(373	)		(1,150	)
Foreign currency translation adjustment		(11	)		(2	)		—			—			(13	)
Balance at December 31, 2010		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

As of December 31, 2011, the liability of $831,000 and $24,000 related to severance and employee benefits in the Marketing & Events Group consolidation and other restructurings, respectively, is expected to be paid by the end of 2012. Additionally, as of December 31, 2011, the liability of $4.8 million and $1.3 million related to facilities in the Marketing & Events Group consolidation and other restructurings, respectively, relates to future lease payment obligations to be made over the remaining lease terms. See Note 20 for information regarding restructuring charges by segment.