In April 2011, we initiated a restructuring plan to realign certain management and support functions across the organization. As part of the restructuring plan, we relocated the operations of our direct response business from Medford, Oregon to Southern California in the second half of 2011. We believe that having these operations at a single location will improve our ability to execute strategic initiatives.

In connection with this restructuring activity, we have incurred employee termination costs, which include retention bonuses and severance pay to personnel in Medford and at our corporate office. We have also incurred other transition costs, such as relocation assistance, additional recruiting and travel expense, information technology integration costs and other similar costs.

	Year ended December 31, 2011

	Guitar Center		Direct Response		Corporate		Total
Employee termination costs	$	190	$	4,182	$	1,044	$	5,416
Employee relocation and recruiting costs		143		433		1,786		2,362
Consulting costs		150		1,604		424		2,178
Other costs		983		1,667		365		3,015

Total	$	1,466	$	7,886	$	3,619	$	12,971

Costs incurred during 2011 represent the cumulative costs recognized from inception of the restructuring plan. Restructuring and exit activity costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations.

Employee termination costs include retention bonuses of $4.1 million and severance payments totaling $1.3 million under employment agreements with certain executives whose positions were eliminated in the restructuring.

Most of the restructuring costs have been incurred as of December 31, 2011. We expect to incur between $1 million and $1.5 million of additional costs at our direct response and corporate segments during the first quarter of 2012, primarily for termination benefits and relocation assistance.

The following table summarizes our restructuring accrual activity for the year ended December 31, 2011, as it relates to employee termination costs (in thousands):

	Termination Costs

Balance at December 31, 2010	$	—
Charges		5,416
Cash payments		(1,490	)

Balance at December 31, 2011	$	3,926

Accrued termination costs are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. We expect to pay the remainder of these costs during the first quarter of 2012.

Other restructuring costs are expensed as incurred. These costs are paid currently and the accrued balances were not material to our balance sheet as of December 31, 2011.

We expect to sell our owned office facility in Medford during 2012. Its carrying value as of December 31, 2011 was $2.9 million, representing its estimated fair value, net of estimated selling costs. The building is classified as held for sale and is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. We accelerated depreciation expense based its shortened expected useful life until it was classified as held for sale.