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IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES
6 Months Ended
Jun. 30, 2012
Restructuring and Related Activities [Abstract]  
Restructuring, Impairment, and Other Activities Disclosure [Text Block]

5. IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES

 

Impairment Losses

 

During the three and six months ended June 30, 2012, we incurred $0 and $3,086, respectively, of impairment losses (all in our Domestic segment), due to the impairment of certain long-lived assets for which the carrying value of those assets is not recoverable. The impairment losses related to long-lived assets in two facilities where we received customer notification of a ramp-down in business. Future cash flows did not support the carrying value of the long-lived assets in these facilities, such as computer equipment, software, equipment and furniture and fixtures. Refer to Note 8, “Fair Value Measurements,” for additional information on the fair value measurements for all assets and liabilities that are measured at fair value in the Condensed Consolidated Financial Statements. During the three and six months ended June 30, 2011 we incurred approximately $1,026 of impairment losses (all in our Domestic segment).

 

Assets Held for Sale

 

In 2010, we committed to a plan to sell the buildings at our closed facilities in Laramie, Wyoming and Greeley, Colorado. We received estimates of the selling prices of these buildings, and have reduced the value of the buildings and land to fair value less the costs to sell. In 2012, we committed to sell the facility in Enid, Oklahoma. As of June 30, 2012, the fair value of the buildings and land less the costs to sell was $4,969. These long-lived assets are presented as current assets held for sale on our Condensed Consolidated Balance Sheets.  In order for an asset to be held for sale, management must determine that the asset is to be held for sale in its current condition, an active plan to complete the sale of the asset has been initiated and the sale of the asset is probable within one year. We evaluated the facilities during the second quarter of 2012 and determined these assets meet all the criteria for an asset held for sale.

 

Restructuring Charges

 

A summary of the activity under the restructuring plans as of June 30, 2012, and changes during the three and six months ended June 30, 2012, are presented below:

 

    Facility-Related Costs  
    Victoria     Laramie     Grand
Junction
    Regina     Decatur   Total  
Balance as of January 1, 2012   $ 483     $ 63     $ 252     $ 852   $   $ 1,650  
Expense                 3           464     467  
Payments, net of receipts for sublease     42       (38 )     (85 )     (552 )   (193)     (826 )
Foreign currency translation adjustment                       17         17  
Balance as of June 30, 2012   $ 525     $ 25     $ 170     $ 317   $ 271   $ 1,308  

 

During the year ended December 31, 2010, we entered into sublease agreements for our Thunder Bay, Ontario, Canada and Victoria, Texas facilities through the remainder of their respective lease terms. We had assumed a sublease in our original estimated restructuring liabilities for Thunder Bay and Victoria and do not expect to incur material changes to the restructuring liabilities in future periods as a result of the subleases. We have recorded an accrual for certain property taxes still owed in Victoria, which we expect to pay through the remainder of our lease term, or December 2014. We expect completion of the Laramie, Wyoming, Grand Junction, Colorado and Regina, Saskatchewan restructuring plans no later than 2012 for all facilities; however, completion may be earlier or later depending on our ability to sublease the facilities, buy-out the lease or sell the facilities. We have made certain assumptions related to our ability to sublease, sell or buy-out the lease on these facilities. Refer to Note 8, “Fair Value Measurements,” for additional information on the fair value measurements for all assets and liabilities, including restructuring charges that are measured at fair value in the Condensed Consolidated Financial Statements. We expect to pay $7,675 in our Domestic segment in facility related costs over the term of the restructuring plans. The cumulative amount paid as of June 30, 2012 for facility related costs related to the closures was $6,366 in our Domestic segment.