OTHER CHARGES

Other charges recorded as a component of (loss) income from operations included:



in thousands	2011			2010			2009

Litigation costs	$	2,210		$	1,461		$	557
Severance and related costs	1,690			538			970
Bella Pictures® Acquisition costs	1,545			472			—
Portrait Gallery from Bella Pictures® costs	1,358			—			—
Kiddie Kandids® integration costs	204			1,335			—
Other transition-related costs - PCA Acquisition	202			388			527
Gain on sale of property and equipment	(214		)	(1,473		)	—
Proxy contest fees	—			—			871
Other	581			500			69

Total other charges	$	7,576		$	3,221		$	2,994

Litigation costs

Costs in 2011 and 2010 primarily related to legal expense of $1.9 million and $1.5 million, respectively, incurred in connection with the Chrissy Larkin vs. CPI Corp. case.

Costs in 2009 primarily related to net legal expense of $527,000 incurred in connection with the settlement of the Picture Me Press LLC vs. Portrait Corporation of America case.

Severance and related costs

Charges in 2011 and 2010 primarily related to severance costs resulting from the termination of employees in connection with corporate and operational support restructuring.

Charges in 2009 primarily related to severance costs resulting from the termination of employees in connection with the closure of the film lab facility in Canada due to the digital conversion of the SPS Canada studios.

Bella Pictures® Acquisition costs

Charges in 2011 related to certain integration costs incurred in connection with the Bella Pictures® Acquisition.

Charges in 2010 related to certain costs incurred in connection with the Bella Pictures® Acquisition, primarily related to legal and consulting fees.

Portrait Gallery from Bella Pictures® costs

Charges primarily related to certain lease-related costs incurred in connection with the opening of the Portrait Gallery from Bella Pictures® studio locations and amortization of deferred lease fees.

Kiddie Kandids® integration costs

Charges relate to certain integration costs incurred in 2011 and 2010 in connection with the Kiddie Kandids, LLC asset acquisition.

Other transition-related costs – PCA Acquisition

During 2011 and 2010, expense primarily related to lab closure-related costs.

During 2009, expense primarily related to lab closure-related costs of $1.1 million. This expense was offset in part by a $546,000 net gain recognized on the sale of certain properties previously held for sale.

Gain on sale of property and equipment

Represents the gain on sales of the Sandy, Utah facility and certain Bella®-related lab equipment in 2011 and the Brampton, Ontario facility in 2010.

Proxy contest Fees

Charges related to certain fees incurred in connection with the proxy contest in 2009.

Other

Costs in 2011 primarily related to fees incurred in connection with certain strategic initiatives.

Costs in 2010 primarily related to the $1.1 million write-off of debt fees related to the Company’s former credit facility as a result of its new revolving credit facility; offset in part by an early termination fee of $504,000 received from Walmart in relation to certain early PMPS studio closures.

Costs in 2009 primarily related to the write-off of certain Canada film inventory due to the digital conversion of the SPS Canada studios; offset in part by a reduction in certain lease obligation reserves of $288,000.

The following tables summarize the 2011 and 2010 activity in the reserves established in connection with strategic actions implemented by the Company to restructure its operations.



in thousands	Reserve Balance Feb. 5, 2011		2011 Charges (Credits)		Asset Write-Downs/Impairments		Cash Payments			Reserve Balance Feb. 4, 2012

Sears fees related to the settlement of the previous license agreement	$	418	$	73	$	—	$	(150	)	$	341
Reserves for severance and related costs	194		1,502		—		(1,676		)	20
Other	555		841		—		(1,211		)	185

Total	$	1,167	$	2,416	$	—	$	(3,037	)	$	546



in thousands	Reserve Balance Feb. 6, 2010		2010 Charges (Credits)		Asset Write-Downs/Impairments			Cash Payments			Reserve Balance Feb. 5, 2011

Sears fees related to the settlement of the previous license agreement	$	568	$	—	$	—		$	(150	)	$	418
Reserves for severance and related costs	601		538		—			(945		)	194
Other	250		1,461		(120		)	(1,036		)	555

Total	$	1,419	$	1,999	$	(120	)	$	(2,131	)	$	1,167