Consolidation of UK Operations

6 Months Ended

Jun. 30, 2011

Consolidation of UK Operations [Abstract]

Note 3 — Consolidation of UK Operations

Following its acquisition of Tepnel in April 2009, the Company had four locations in the UK: Manchester, Cardiff, Livingston, and Abingdon. In order to accommodate the anticipated growth in the business and to optimize expenses, the Company decided to consolidate its UK operations to Manchester and Livingston. This consolidation was communicated internally in May 2010. Consolidation activities related to the employees and facilities are being accounted for under ASC Topic 420, Exit or Disposal Costs (“ASC Topic 420”). The Company estimates that expenses related to this consolidation will total approximately $4.2 million and be incurred over a two-year period, as the consolidation will occur in phases. These expenses will include termination costs, including severance costs related to the elimination of certain redundant positions and relocation costs for certain key employees, and site closure costs.

During the six months ended June 30, 2011, the Company recorded approximately $0.5 million and $1.1 million of termination costs and site closure costs, respectively. These amounts are included in general and administrative expenses in the Company’s consolidated statements of income. As of June 30, 2011, the Company has recorded approximately $1.0 million and $1.8 million of cumulative termination costs and site closure costs, respectively, related to its UK consolidation activities.

The following table summarizes the restructuring activities accounted for under ASC Topic 420 for the six months ended June 30, 2011, as well as the remaining restructuring accrual on the Company’s consolidated balance sheets at June 30, 2011 (in thousands):


	Termination			Site Closure
	Costs			Costs			Total
Restructuring reserves at December 31, 2010	$	287		$	78		$	365
Charged to expenses		533			1,127			1,660
Amounts paid		(681	)		(794	)		(1,475	)
Foreign currency translation		12			3			15

Restructuring reserves at June 30, 2011	$	151		$	414		$	565