Restructuring and Other Related (Benefits) Charges

9 Months Ended

Sep. 30, 2011

Restructuring and Other Related (Benefits) Charges [Abstract]

Restructuring and Other Related (Benefits) Charges

7. Restructuring and Other Related Charges

2011 — Restructuring Events

     During the three months ended September 30, 2011, the Company consolidated its New York City operations into one office space. As such, the Company exited a leased office space and recorded a restructuring charge of $0.9 million, consisting of contractual rental commitments and related costs, offset by sub-lease income. The term of the restructured lease ends in January 2016.

     During the three months ended March 31, 2011, the Company recorded a restructuring charge of $5.7 million related to cash and other termination benefits for two former Nitro executives whose positions were made redundant, as well as the re-positioning of a portion of its SapientNitro business in Australia from traditional advertising capabilities to digitally-led capabilities. This charge consisted of $1.1 million of cash severance and other associated termination benefits, and a $4.6 million non-cash charge related to the acceleration of unrecognized compensation expense for stock-based awards.

     The following table presents activity during the nine months ended September 30, 2011 related to the 2011 restructuring events (in thousands):

	Workforce			Facilities			Total
Balance, December 31, 2010	$	—		$	—		$	—
2011 provisions		5,687			934			6,621
Non-cash portion of 2011 provisions		(4,612	)		—			(4,612	)
Cash utilized		(1,075	)		(56	)		(1,131	)
Balance, September 30, 2011	$	—		$	878		$	878

     The total remaining accrued restructuring balance for the 2011 restructuring events of $0.9 million as of September 30, 2011 is expected to be paid in full by March 31, 2016.

2010 — Restructuring Event

     During the three months ended March 31, 2010, the Company consolidated its UK operations into one office space. As such, the Company exited one leased office space and recorded a restructuring charge of $0.9 million, consisting of contractual rental commitments and related costs, offset by estimated sub-lease income. The term of this lease ended in March 2011. For the nine months ended September 30, 2011, the Company recorded a net restructuring benefit associated with the 2010 restructuring event of less than $0.1 million, relating to changes in the estimated costs to be incurred. The following table presents activity during the nine months ended September 30, 2011 related to the 2010 restructuring event (in thousands):

	Facilities
Balance, December 31, 2010	$	242
2011 benefits, net		(23	)
Cash utilized		(158	)
Balance, September 30, 2011	$	61

     The total remaining accrued restructuring balance for the 2010 restructuring event of $0.1 million as of September 30, 2011 is expected to be paid in full by March 31, 2012.

2001, 2002, 2003 — Restructuring Events

     As a result of the decline in the demand for advanced technology consulting services that began in 2000, the Company restructured its workforce and operations in 2001, 2002 and 2003. The restructuring events consisted of ceasing operations and consolidating or closing excess offices. Estimated costs for the consolidation of facilities included contractual rental commitments or lease buy-outs for vacated office space and related costs, offset by estimated sub-lease income.

     For the nine months ended September 30, 2011, the Company recorded net restructuring charges associated with the 2001, 2002 and 2003 restructuring events of $0.2 million. This consisted primarily of a $0.3 million charge recorded in the three months ended September 30, 2011, relating to future payments owed to the Company under a sub-lease of one of the previously restructured office spaces which are no longer expected to be collected. This charge was partially offset by net benefits of $0.1 million recorded during the nine months ended September 30, 2011, primarily relating to changes in the estimated operating expenses to be incurred in connection with one of the previously restructured office leases.

     For the nine months ended September 30, 2010, the Company recorded a net restructuring benefit of $0.4 million, primarily relating to changes in the estimated operating expenses to be incurred and sub-lease income to be received in connection with one of the previously restructured office leases, which ends in the fourth quarter of 2011.

     The following table presents activity during the nine months ended September 30, 2011 related to the 2001, 2002 and 2003 restructuring events (in thousands):

	Facilities
Balance, December 31, 2010	$	2,887
2011 charges, net		179
Cash utilized		(2,390	)
Balance, September 30, 2011	$	676

     The total remaining accrued restructuring balance for the 2001, 2002 and 2003 events of $0.7 million as of September 30, 2011 is expected to be paid in full by November 2011.