20. Restructuring

Investment Banking and Fixed Income Businesses

The Company’s Board of Directors approved plans to discontinue operations in its Investment Banking division on May 30, 2013 and Fixed Income businesses on April 5, 2013. Exiting these businesses impacted approximately 150 employees. Refer to Note 21 herein for additional information.

ClearPoint — Homeward Transaction

On February 14, 2013, the Company entered into an agreement to sell substantially all of ClearPoint’s assets to Homeward. This transaction closed on February 22, 2013, and all remaining business activities of ClearPoint have been substantially wound down. Refer to Note 21 herein for additional information.

The following table summarizes the restructuring charges incurred by the Company for the three and nine months ended September 30, 2013, which have been recorded as a component of discontinued operations:

	Three Months Ended		Nine Months Ended
(In thousands of dollars)	September 30, 2013		September 30, 2013
Cash Charges:
Investment Banking
Severance compensation	$	—	$	1,417
Third party vendor contracts and other costs	70		332
Subtotal — Investment Banking (cash charges):	70		1,749
Fixed Income businesses
Severance compensation	262		8,323
Third party vendor contracts and other costs	491		6,134
Subtotal — Fixed Income (cash charges):	753		14,457
ClearPoint
Severance and other compensation	—		1,263
Third party vendor contracts and other costs	88		201
Subtotal — ClearPoint (cash charges):	88		1,464
Other
Severance compensation	43		712
Reserve for lease commitments	3,202		19,957
Subtotal — Other (cash charges):	3,245		20,669
Total — Cash Charges:	$	4,156	$	38,339
Non-Cash Charges:
Investment Banking
Intangible asset impairment	$	—	$	2,932
Stock-based compensation vesting	—		254
Subtotal — Investment Banking (non-cash charges):	—		3,186
Fixed Income businesses
Goodwill & intangible asset impairment	—		388
Stock-based compensation vesting	—		3,681
Subtotal — Fixed Income (non-cash charges):	—		4,069
ClearPoint
Intangible asset impairment	—		587
Deferred compensation and other charges	—		448
Subtotal — ClearPoint (non-cash charges):	—		1,035
Other
Stock-based compensation vesting	57		195
Impairment of fixed assets and leasehold improvements	531		4,006
Subtotal — Other (non-cash charges)	588		4,201
Total — Non-Cash Charges:	$	588	$	12,491
Restructuring expenses — Total:	$	4,744	$	50,830

The following table summarizes the changes in the Company’s liability related to the restructurings for the nine months ended September 30, 2013:

(In thousands of dollars)
Balance — January 1, 2013	$	—
Restructuring expense	50,830
Plus: Deferred rent obligation, prior to restructuring	2,160
Less: Non-cash charges	(12,491		)
Payment for lease termination — Company headquarters	(19,500		)
Payments for severance and other compensation	(11,715		)
Payments for third party vendor contracts and other costs	(3,000		)
Payments for lease commitments, net of sublease income	(1,331		)
Restructuring reserve — September 30, 2013	$	4,953

As previously mentioned, on September 27, 2013, the Company entered into an agreement terminating the lease for its headquarters at 1290 Avenue of the Americas, New York, New York. The Company’s total termination obligation was $19.5 million, satisfied by a cash payment of approximately $15.6 million and retention by the landlord of approximately $3.9 million previously deposited by the Company with the landlord as security under the lease. Refer to Note 15 “Leases” herein for additional information.

The Company’s remaining obligation associated with these exits at September 30, 2013 was approximately $5.0 million and was primarily related to costs associated with the termination of third party vendor contracts, and to a lesser extent, lease commitments. The Company expects the majority of its remaining liability to be settled within the next twelve months. No other material charges are expected to be incurred.