NOTE 12 – BUSINESS REORGANIZATION EXPENSES

In April 2014, the Company engaged AlixPartners, LLP, (“AlixPartners”) to assist management in a comprehensive assessment of the Company’s organization and operations. In July 2014, in conjunction with the AlixPartners' review, the Company's Board of Directors (the “Board”) approved a program to restructure and realign the Company's cost base with current and anticipated future market conditions. At that time, the Board approved a $7,000 plan of reorganization at the regional and corporate level (the “2014 Plan”), with such charge to be increased as appropriate depending on the timing of other strategic actions, such as the sale of the Company's Legal eDiscovery business and formulation of action plans. Following the sale of the Company’s Legal eDiscovery business effective on November 9, 2014, the Company determined that additional restructuring actions were appropriate to align the Company’s cost base with its operations. Accordingly, in December 2014, the Board approved an increase of $4,100 for additional actions under the 2014 Plan and Discontinued Operations Exit Plan, consisting of actions for optimizations of existing real estate, including certain real estate related to the Company’s former Legal eDiscovery business which was recorded as discontinued operations (see Note 3 for further detail).

The Board previously approved other reorganization plans in 2012, 2009, 2008, and 2006 (“Previous Plans”) 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.

For the year ended December 31, 2014, restructuring charges associated with these initiatives primarily included employee separation costs for the elimination of 16 positions in Asia Pacific under the 2012 reorganization plan; employee separation costs for the elimination of 41 positions in Asia Pacific, Europe, the Americas and U.S. Corporate under the 2014 Plan; and lease termination payments for rationalized offices in the U.S. and Australia under the 2012 reorganization plan. The headcount reductions identified in these actions are expected to be completed in fiscal 2015. 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 lease termination payments are expected to continue through the remaining lease terms.

Business reorganization expenses for the years ended December 31, 2014, 2013 and 2012 for the 2014 Plan and the Previous Plans, collectively, were as follows:



	Year Ended December 31,
	2014		2013		2012
Business reorganization expenses from continuing operations
Previous Plans	$	1,140	$	5,440	$	7,506
2014 Plan	2,649		—		—
Total business reorganization expenses from continuing operations	$	3,789	$	5,440	$	7,506

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, 2014. The amounts for Changes in Estimate and Additional Charges are classified as business reorganization expenses in the Company’s 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, 2014 were as follows:



	December 31, 2013		Changes in Estimate		Additional Charges		Payments			December 31, 2014
Lease termination payments	$	2,297	$	774	$	128	$	(1,207	)	$	1,992
Employee termination benefits	1,430		—		2,764		(2,422		)	1,772
Other associated costs	19		—		123		(142		)	—
Total	$	3,746	$	774	$	3,015	$	(3,771	)	$	3,764

Lease Termination Payments

The business reorganization expenses incurred for lease termination for the years ended December 31, 2014, 2013 and 2012 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,	Americas			Asia Pacific		Europe		Corporate		Total
2014	$	91		$	771	$	40	$	—	$	902
2013	$	(22	)	$	445	$	713	$	—	$	1,136
2012	$	179		$	613	$	2,491	$	—	$	3,283

Employee Termination Benefits

The business reorganization expenses incurred for employee termination benefits for the years ended December 31, 2014, 2013 and 2012 by segment were as follows:



Employee termination benefits for the year ended December 31,	Hudson		Hudson		Hudson
	Americas		Asia Pacific		Europe		Corporate		Total
2014	$	3	$	510	$	1,285	$	966	$	2,764
2013	$	470	$	505	$	2,120	$	790	$	3,885
2012	$	681	$	674	$	2,394	$	359	$	4,108

Contract Cancellation Costs

The business reorganization expenses incurred for contract cancellation costs for the years ended December 31, 2014, 2013 and 2012 by segment were as follows:



Contract Cancellation Costs for the year ended December 31,	Hudson		Hudson			Hudson
Contract Cancellation Costs for the year ended December 31,	Americas		Asia Pacific			Europe		Corporate		Total
2014	$	—	$	40		$	83	$	—	$	123
2013	$	—	$	37		$	381	$	—	$	418
2012	$	16	$	(2	)	$	101	$	—	$	115