Restructuring and Other Special Charges

9 Months Ended

Sep. 30, 2012

8. Restructuring and Other Special Charges

2011 Restructuring

Beginning in the third quarter of 2011, the Company made the strategic decision to no longer engage in arbitrage lead generation activities within the Internet Advertising & Fees segment due to the diminishing profit opportunity and the promulgation of new regulations applicable to the Company’s customers in the for-profit education business. The Company also made the decision to cease operations in one country within the Careers-International segment. As a result of these strategic decisions, the Company reduced its workforce, closed certain office facilities and impaired certain assets. During the three months ended March 31, 2012, the Company recorded a reduction to restructuring expense related to a change in estimated sublease income.

The following table displays a roll forward of the 2011 restructuring and other special charges for the period from December 31, 2011 to September 30, 2012:


	Accrual at December 31, 2011		Expense			Cash Payments			Non-Cash Utilization			Accrual at September 30, 2012
Workforce reduction	$	1,298	$	—		$	(1,232	)	$	—		$	66
Consolidation of office facilities		1,750		(503	)		(724	)		—			523
Impairment of assets		130		—			—			(130	)		—

Total	$	3,178	$	(503	)	$	(1,956	)	$	(130	)	$	589

January 2012 Restructuring

On January 24, 2012, the Company committed to a plan to take a series of strategic restructuring actions. The Company’s decision to adopt the strategic restructuring actions resulted from the Company’s desire to provide the Company with more flexibility to invest in marketing and sales activities in order to improve its long-term growth prospects and profitability. Through September 30, 2012, the Company has notified approximately 325 associates and approximately 60 associates have voluntarily left the Company, reducing the Company’s workforce by approximately 385 associates. The restructuring actions also included the consolidation of certain office facilities and the impairment of certain fixed assets.

The following table displays a roll forward of the January 2012 Restructuring and other special charges and related liability balances:


	Accrual at December 31, 2011		Expense		Cash Payments			Non-Cash Utilization			Accrual at September 30, 2012
Workforce reduction	$	—	$	14,701	$	(12,303	)	$	—		$	2,398
Consolidation of office facilities		—		6,002		(756	)		(882	)		4,364
Impairment of assets		—		5,249		156			(5,405	)		—
Other costs and professional fees		—		229		(152	)		—			77

Total	$	—	$	26,181	$	(13,055	)	$	(6,287	)	$	6,839

- 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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