RESTRUCTURING EXPENSE

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

NOTE 5 — RESTRUCTURING EXPENSE

In the fourth quarter of 2010, the Company commenced a strategic assessment of its business and operations. This assessment focused on expanding revenue opportunities and lowering corporate overhead, including workforce and benefit reductions and facility rationalization. As a result of the execution of the strategic assessment and related restructuring plan, the Company incurred restructuring expenses of approximately $3.9 million and $5.2 million during the three and six months ended June 30, 2011, respectively. Restructuring expenses during the three months ended June 30, 2011 consisted of approximately $1.7 million of third-party consulting costs associated with the strategic assessment, $1.2 million of employee severance and other benefit-related costs related to workforce reductions and $1.0 million of other costs, such as lease termination costs. Restructuring expenses during the six months ended June 30, 2011 consisted of approximately $2.7 million of third-party consulting costs associated with the strategic assessment, $1.5 million of employee severance and other benefit-related costs related to workforce reductions and $1.0 million of other costs.

Since inception of the strategic assessment and related restructuring plan, the Company has incurred approximately $8.7 million in total expenses, $3.9 million of third-party consulting costs associated with the strategic assessment, $3.8 million of employee severance and other benefit-related costs related to workforce reductions and $1.0 million of other costs. The Company anticipates additional restructuring expenses during the remainder of 2011 as a result of the execution of the strategic assessment and related restructuring plan.

The restructuring costs are included in restructuring expense on the Consolidated Statements of Operations. As of June 30, 2011, there is a restructuring accrual of $4.5 million included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. The restructuring accrual activity consists of the following (in thousands):

	Employee Severance			Consulting			Other
	and Other Benefits			Costs			Costs			Total
Liability balance as of December 31, 2010	$	3,387		$	433		$	-		$	3,820
Expenses incurred		1,508			2,722			960			5,190
Cash payments		(1,317	)		(2,672	)		(523	)		(4,512	)
Liability balance as of June 30, 2011	$	3,578		$	483		$	437			4,498