NOTE 25. Restructuring

Equities Business—Exit on August 22, 2011

On August 22, 2011, the Board of Directors of the Company approved a plan to exit the Equities business, effective immediately. The principal reasons for this decision were that the Equities division was an underperforming non-core asset, and that its closure would allow the Company to improve focus and invest in its core competencies. Exiting the Equities business impacted 62 employees. Refer to Note 26 herein for additional information.

The following table summarizes the restructuring charges incurred by the Company for the year ended December 31, 2011, which have been recorded as a component of discontinued operations:

(In thousands)	Year Ended December 31, 2011

Cash charges
Severance and other compensation	$	2,578
Third party vendor contracts		1,613
Real estate exit costs		597
Legal and other related costs		595
Non-cash charges
Stock-based compensation		1,395
Asset impairments		316

Total Restructuring expense*	$	7,094

*: The Company has not incurred any additional material charges with respect to this restructuring.

The following table summarizes the changes in the Company's liability related to this restructuring for the year ended December 31, 2012 and 2011:

(In thousands)	Year Ended December 31, 2012			Year Ended December 31, 2011

Balance—January 1	$	1,427		$	—
Restructuring expense		(447	)		7,094
—Less: Non-cash charges		92			(1,711	)
Payments for severance		—			(2,578	)
Payments for real estate		(217	)		(247	)
Payments for third party vendor contracts		(747	)		(541	)
Payments for legal and other related costs		—			(590	)

Restructuring reserve—December 31	$	108		$	1,427

The restructuring reserve is included within Accrued expenses within the Consolidated Statements of Financial Condition. The remaining reserve pertains to third party vendor contracts.