Restructuring Charges

2013 Plan

On July 30, 2013, we approved a restructuring plan primarily focused on our International operations ("the 2013 Plan"). The goal of the 2013 Plan is to improve utilization, strategically engage our lower-cost off-shore and near-shore resources, and centralize management of administrative functions in key markets to leverage shared services functions. The actions of this plan are expected to impact approximately 250 employees. The 2013 Plan began in the third quarter of 2013 and a majority of restructuring activities have been completed as of December 31, 2013. The total amount of the restructuring charges for the 2013 Plan are expected to be approximately $13 million, substantially all of which will be settled in cash. The charges associated with the 2013 Plan are substantially all related to personnel severance and related employee benefit costs.

The changes in our 2013 Plan restructuring liabilities, which are recorded in other accrued expenses, during 2013 are as follows:



	(In thousands)
Restructuring liability, as of January 1, 2013	$	—
Restructuring charges	13,421
Non-cash items	(137		)
Cash paid	(5,990		)
Foreign exchange rate changes	160
Restructuring liability, as of December 31, 2013	$	7,454

Restructuring charges by segment are as follows:



	Year ended December 31, 2013 (1)
	(In thousands)
North America	$	660
International	12,116
Other	64
Corporate	581
Total	$	13,421
(1) As a majority of the actions have been completed through December 31, 2013, the total charges to date approximate the total anticipated charges by segment.

2012 Plan

On November 5, 2012, we approved a company restructuring plan ("the 2012 Plan"). The restructuring activities commenced in the fourth quarter of 2012 and related primarily to the consolidation of our real estate footprint, as well as organizational changes designed to simplify business processes, move decision-making closer to the marketplace, and create operating efficiencies. In the third quarter of 2013, all restructuring actions associated with this plan were completed. Total restructuring charges associated with the 2012 Plan were $11 million, of which approximately $1 million are non-cash charges related to stock compensation and lease-related expenses. The total restructuring expenses for the 2012 Plan include approximately $7 million related to personnel severance and related benefits primarily in our International segment, and approximately $4 million related to the closure of 17 offices and the consolidation of those locations into other existing Ciber locations, mostly in North America.

The changes in our restructuring liabilities, which are recorded in other accrued expenses, during 2012 and 2013 are as follows:



	Employee Severance and Termination			Office Closures			Total
	(In thousands)
Restructuring liability, as of January 1, 2012	$	—		$	—		$	—
Restructuring charges	6,517			1,464			7,981
Non-cash items	(743		)	68			(675		)
Cash paid	(2,218		)	—			(2,218		)
Restructuring liability, as of January 1, 2013	3,556			1,532			5,088
Restructuring charges	370			3,132			3,502
Non-cash items	—			510			510
Cash paid	(3,851		)	(2,421		)	(6,272		)
Foreign exchange rate changes	(75		)	17			(58		)
Restructuring liability, as of December 31, 2013	$	—		$	2,770		$	2,770

Restructuring charges by segment are as follows:



	Year ended December 31, 2013		Plan to Date (1)
	(In thousands)
North America	$	241	$	1,705
International	1,306		7,080
Corporate (2)	1,955		2,698
Total	$	3,502	$	11,483
(1) Our restructuring charges, particularly lease-related office closure costs, are subject to estimate. If we are unable to find tenants for vacated offices or sub-lease terms are different from our estimates, our actual restructuring charges will differ from our current estimates.
(2) 2012 corporate restructuring charges consist of share-based compensation expenses associated with severance for employees in our International division. Share-based compensation is not charged to operating divisions, but rather is recorded as part of our corporate expenses. 2013 corporate restructuring charges include costs for administrative facility consolidation.