Restructuring And Asset Impairment Charges

6 Months Ended

Jun. 30, 2011

Restructuring And Asset Impairment Charges

Restructuring And Asset Impairment Charges

 

3. Restructuring and Asset Impairment Charges

Over the past several years, we have been focused on reducing our operating costs. In connection with this strategy, and in recognition of the challenging economic environment, we reduced our employee headcount from approximately 10,900 at December 31, 2007 to approximately 7,500 at June 30, 2011. Additionally, we reduced our branch network from 697 at December 31, 2007 to 539 at June 30, 2011. The restructuring charges for the three and six months ended June 30, 2011 and 2010 include severance costs associated with our headcount reductions, as well as branch closure charges which principally relate to continuing lease obligations at vacant facilities.

The table below provides certain information concerning our restructuring charges:

Description	Reserve Balance at December 31, 2010		Charged to Costs and Expenses(1)		Payments and Other			Reserve Balance at June 30, 2011
Branch closure charges	$	26	$	2	$	(6	)	$	22
Severance costs		2		1		(2	)		1
Total	$	28	$	3	$	(8	)	$	23

(1) Reflected in our condensed consolidated statements of operations as "Restructuring charge."

We have incurred total restructuring charges between January 1, 2008 and June 30, 2011 of $88, comprised of $69 of branch closure charges and $19 of severance costs. We expect that the restructuring activity will be substantially complete by the end of 2011.

In addition to the restructuring charges discussed above, the Company recorded asset impairment charges of $1 during the three and six months ended June 30, 2011, and $2 during the three and six months ended June 30, 2010. The asset impairment charges primarily relate to write-offs of leasehold improvements and other fixed assets which were recognized in connection with the consolidation of our branch network discussed above, and are reflected in non-rental depreciation and amortization in the accompanying condensed consolidated statements of operations.