Restructuring

9 Months Ended

Sep. 30, 2011

Restructuring

Restructuring

24. Restructuring

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 25 herein for additional information.

The following table summarizes the restructuring charges incurred by the Company for the three months ended September 30, 2011, which have been recorded as a component of discontinued operations:

	Three Months Ended September 30,
(In thousands of dollars)	2011
Cash charges
Severance and other compensation	$	2,572
Third party vendor contracts	1,910
Real estate exit costs	597
Legal and other related costs	597
Non-cash charges
Stock-based compensation	1,339
Asset impairments	316
Total Restructuring expense*	$	7,331

* The Company does not expect to incur 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 three months ended September 30, 2011:

	Three Months Ended September 30,
(In thousands of dollars)	2011
Balance – June 30, 2011	$	—
Restructuring expense	7,331
-      Less: Non-cash charges	(1,655		)
Payments for severance	(2,516		)
Payments for real estate	(68		)
Payments for third party vendor contracts	(225		)
Payments for legal and other related costs	(516		)
Restructuring reserve – September 30, 2011	$	2,351

The restructuring reserve of $2.4 million as of September 30, 2011 is included within Accrued expenses within the Consolidated Statements of Financial Condition.