Reorganization Costs

9 Months Ended

Sep. 30, 2011

5) Reorganization Costs

We recorded net reorganization costs of $2.1 and $8.1 in the first nine months of 2011 and 2010, respectively, in Selling and Administrative Expenses, related to severances and office closures and consolidations in several countries. These expenses are net of reversals of previous accruals resulting mainly from larger-than-estimated cost savings from subleasing and lease buyouts as well as lower-than-expected severance costs. During the first nine months of 2011, we made payments of $18.8 out of our reorganization reserve. We expect a majority of the remaining $17.5 reserve will be paid by the end of 2012.

Changes in the reorganization reserve by reportable segment and Corporate are shown below. This presentation reflects the realignment of our segments. See Note 15 for further information.

	Americas(1)			Southern Europe(2)			Northern Europe			APME		Right Management			Corporate			Total
Balance, January 1, 2011	$	7.4		$	5.6		$	5.0		$	0.7	$	14.4		$	1.1		$	34.2
Severance costs, net		(0.1	)		0.9			1.0			0.4		0.1			-			2.3
Office closure costs, net		0.2			0.2			0.1			-		(0.7	)		-			(0.2	)
Costs paid or utilized		(4.5	)		(2.6	)		(2.4	)		-		(8.2	)		(1.1	)		(18.8	)
Balance, September 30, 2011	$	3.0		$	4.1		$	3.7		$	1.1	$	5.6		$	-		$	17.5

(1) Balance related to United States was $7.4 as of January 1, 2011. During the first nine months of 2011, United States recorded severance reversals of ($0.3) and office closure costs of $0.2 and paid out $4.4, leaving a $2.9 liability as of September 30, 2011.

(2) Balance related to France was $5.6 as of January 1, 2011. During the first nine months of 2011, France recorded office closure costs of $0.1 and paid/utilized $2.2, leaving a $3.5 liability as of September 30, 2011. Italy had no liability as of January 1, 2011 but recorded severance costs of $0.9 in the first nine months of 2011 and paid out $0.5, leaving a $0.4 liability as of September 30, 2011.