4. Special Charges

During the year ended December 31, 2010, we recorded special charges of $52.0 million, of which $32.3 million was non-cash. The non-cash charges primarily included trade name impairment charges related to our global FTI Consulting branding strategy and other strategic branding decisions. The remaining charges related to a realignment of our workforce and a consolidation of four office locations. The charges reflect actions we took to support our corporate positioning, as well as actions taken to better align capacity with expected demand, to eliminate certain redundancies resulting from acquisitions and to provide for appropriate levels of administrative support.

During the quarter ended June 30, 2011, we recorded special charges of $16.8 million, of which $6.4 million was non-cash. The charges reflect actions we took to reduce senior management related overhead in connection with our recent realignment of our segment management on a global basis and to align our workforce with expected market trends. These actions included a reduction in workforce totaling 37 employees. The special charges consisted of:

•

$10.4 million of salary continuance and other contractual employee related costs associated with the reduction in workforce;

•

$3.6 million related to loan forgiveness and accelerated vesting of share-based awards related to the reduction in workforce; and

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$2.8 million of deferred costs under a service contract without a substantive future economic benefit to the Company.

The following table details the special charges by segment for the quarter ended June 30, 2011:


Corporate Finance/Restructuring	$	11,000
Forensic and Litigation Consulting		839
Economic Consulting		2,093

		13,932
Unallocated Corporate		2,840

Total	$	16,772

The total cash outflow associated with the 2010 special charges is expected to be $19.7 million, of which $19.1 million has been paid as of June 30, 2011. The total cash outflow associated with the 2011 special charges is expected to be $10.4 million, of which $0.5 million has been paid as of June 30, 2011. Of the remaining liability at June 30, 2011, $6.9 million is expected to be paid during the remainder of 2011 and the balance of approximately $3.6 million is expected to be paid during 2012. A liability for the amounts to be paid is included in "Accounts payable, accrued expenses and other" on the Condensed Consolidated Balance Sheets. Activity related to the liability for these costs for the six months ended June 30, 2011 is as follows:


	Employee Termination Costs			Lease Termination Costs			Total
Balances at January 1, 2011	$	1,920		$	2,762		$	4,682
Additions		10,370			—			10,370
Payments		(1,798	)		(2,646	)		(4,444	)
Adjustments		(36	)		(116	)		(152	)

Balances at June 30, 2011	$	10,456		$	—		$	10,456