BUSINESS REORGANIZATION EXPENSES

12 Months Ended

Dec. 31, 2012

Restructuring and Related Activities [Abstract]

NOTE 11 – BUSINESS REORGANIZATION EXPENSES

In January 2012, the Company’s Chief Executive Officer approved a $1,000 plan of reorganization (“2012 Plan”) to streamline the Company’s support operations in each of Hudson’s regional businesses to match the aggregated operating segments and to improve support services to the Company’s regional and global professional business practices. The 2012 Plan primarily includes costs for actions to reduce support functions to match them to the revised operating structure. In April 2012, the Company’s Board of Directors (the “Board”) approved an addition to the 2012 Plan of up to $10,000 for additional actions to accelerate the Company’s plans for increased global alignment and redirection of resources from support to client facing activities. Restructuring charges associated with these initiatives for the 2012 Plan primarily included employee separation costs for the elimination of 220 positions. The headcount reductions identified in this action are expected to be completed in the first half of fiscal 2013 with the related payments to be completed in fiscal 2013. The payments include, but are not limited to, salaries, social pension fund payments, health care and unemployment insurance costs to be paid to or on behalf of the affected employees.

The Board approved other reorganization plans in 2009 (“2009 Plan”), 2008 (“2008 Plan”) and 2006 (“2006 Plan”) to streamline the Company’s support operations and included actions to reduce support functions to match them to the scale of the business, to exit underutilized properties and to eliminate contracts for certain discontinued services. These actions resulted in costs for lease termination payments, employee termination benefits and contract cancellations. Business reorganization expenses for the years ended December 31, 2012, 2011 and 2010 by plan were as follows:



	Year Ended December 31,
	2012		2011			2010
2006 Plan	$	2,280	$	739		$	1,393
2008 Plan	—		—			74
2009 Plan	49		(19		)	227
2012 Plan	5,453		—			—
Total	$	7,782	$	720		$	1,694

The following table contains amounts for Changes in Estimate, Additional Charges, and Payments related to prior restructuring plans that were incurred or recovered during the year ended December 31, 2012. The amounts for Changes in Estimate and Additional Charges are classified as business reorganization expenses in the Company’s Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss). Amounts in the “Payments” column represent primarily the cash payments associated with the reorganization plans. Changes in the accrued business reorganization expenses for the year ended December 31, 2012 were as follows:



For The Year Ended December 31, 2012	December 31, 2011		Changes in Estimate		Additional Charges		Payments			December 31, 2012
Lease termination payments	$	1,309	$	2,230	$	1,053	$	(1,914	)	$	2,678
Employee termination benefits	75		97		4,286		(3,743		)	715
Other associated costs	5		—		116		(94		)	27
Total	$	1,389	$	2,327	$	5,455	$	(5,751	)	$	3,420

Lease Termination Payments

The business reorganization expenses incurred for lease termination payments for the years ended December 31, 2012, 2011 and 2010 by segment were as follows:



Lease termination payments for the year ended December 31,	Hudson		Hudson			Hudson
Lease termination payments for the year ended December 31,	America		Asia Pacific			Europe		Corporate		Total
2012	$	179	$	613		$	2,491	$	—	$	3,283
2011	$	—	$	—		$	708	$	—	$	708
2010	$	134	$	(18	)	$	1,348	$	—	$	1,464

Employee Termination Benefits

The business reorganization expenses incurred for employee termination benefits for the years ended December 31, 2012, 2011 and 2010 by segment were as follows:



Employee termination benefits for the year ended December 31,	Hudson		Hudson			Hudson
	America		Asia Pacific			Europe		Corporate		Total
2012	$	811	$	674		$	2,539	$	359	$	4,383
2011	$	—	$	—		$	—	$	—	$	—
2010	$	173	$	(17	)	$	67	$	—	$	223

Contract Cancellation Costs

The business reorganization expenses incurred for contract cancellation costs were not material for the years ended December 31, 2012, 2011 and 2010.

- 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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