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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.