Real Estate Charges

3 Months Ended

Mar. 31, 2014

5.	Real Estate Charges

During 2010, we performed a comprehensive review of our real estate requirements in New York in connection with our workforce reductions commencing in 2008. As a result, during 2010 we decided to sub-lease over 380,000 square feet in New York (in excess of 90% of this space has been sublet) and largely consolidate our New York-based employees into two office locations from three. During the third quarter of 2012, in an effort to further reduce our global real estate footprint, we completed a comprehensive review of our worldwide office locations and began implementing a global space consolidation plan. As a result, our intention is to sub-lease approximately 510,000 square feet of office space (approximately 70% of this space has been sublet), more than 70% of which is New York office space (in addition to the 380,000 square foot space reduction in 2010), with the remainder consisting of office space in England, Australia and various U.S. locations.

During the first quarter of 2014, we recorded real estate charges of $1.9 million, comprising $1.9 million relating to the W.P. Stewart acquisition and $1.7 million of accelerated amortization of leasehold improvements (relating to the 2012 plan), offset by $1.7 million from a change in estimates relating to previously recorded real estate charges (primarily relating to the 2012 plan).

The activity in the liability account relating to our 2010 and 2012 office space consolidation initiatives for the following periods is as follows:

	Three Months Ended March 31, 2014			Twelve Months Ended December 31, 2013
	(in thousands)

Balance as of beginning of period	$	199,527		$	238,784
(Credit) expense incurred		(1,496	)		18,371
Deferred rent		—			326
Payments made		(12,208	)		(62,627	)
Interest accretion		1,252			4,673
Balance as of end of period	$	187,075		$	199,527

- 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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