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Restructuring Expenses

9 Months Ended

Sep. 30, 2012

15. Restructuring Expenses

In July 2011, we announced that our Chicago facility would be permanently closed as of September 30, 2011. In addition, we had a small reduction of headcount in other areas of the Company. In October 2011, we announced a material Restructuring Plan that was approved by our Board of Directors. This Restructuring Plan involved a realignment of organizational structures, facility consolidations/closures and headcount reductions of approximately 20% of the Company’s worldwide workforce. Since the charges for the Restructuring Plan approved on October 18, 2011 were material, we chose to start reporting these expenses separately for the three months ended September 30, 2011, and recorded a charge of $1.0 million in that period. Of the total charges, all but approximately $0.4 million would be cash expenditures.

In February 2012, we undertook an additional Restructuring Plan that included a further reduction of headcount of 7-8% and other cost reductions that would result in annualized savings of approximately $7.0 million. One-time employee termination and other costs resulted in additional restructuring expenses of $0.3 million that was recorded in the three month period ended March 31, 2012. For the six month period from April 1, 2012 through September 30, 2012, we returned to profit $0.1 million of the restructuring reserve as a result of lower one-time employee termination benefits and relocation expenses.

The following is the activity in our restructuring liability account which is included in the accrued liabilities line item on the balance sheet for the period ended September 30, 2012 (in thousands):


	December 31, 2011								September 30, 2012
	Balance		Provision-net			Usage			Balance
One-time employee termination benefits	$	1,101	$	145		$	(1,238	)	$	8
Lease/rental terminations		448		(12	)		(436	)		—
Relocation, move, other expenses		116		105			(221	)		—

Total	$	1,665	$	238		$	(1,895	)	$	8

The remaining balance in the restructuring reserve is estimated to be used during the fiscal quarter ending December 31, 2012.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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