3. RESTRUCTURING COSTS

6 Months Ended

Jun. 30, 2011

Restructuring and Related Activities Disclosure [Text Block]

3. RESTRUCTURING COSTS

     Below is a reconciliation of the beginning and ending balances of our accrued restructuring costs for the six months ended June 30, 2011. All expenses associated with these activities are reflected in “Restructuring costs” in our condensed consolidated statements of operations. Cash payments for restructuring costs from continuing operations were $4.5 million and $3.5 million during the six months ended June 30, 2011 and 2010, respectively. The components included in the reconciliation of the liability balances include activity for our continuing and discontinued operations (in thousands):

	Balance at December 31, 2010		Cash Payments			Non-cash			Balance at June 30, 2011
Accrued restructuring
costs:
Severance and exit costs	$	5,797	$	(3,625	)	$	(222	)	$	1,950
Contractual obligations		3,797		(915	)		218			3,100
Total restructuring costs	$	9,594	$	(4,540	)	$	(4	)	$	5,050

Realignment of Workforce – 2010

     During the year ended 2010, we recorded $10.2 million of severance costs and $0.6 million of lease termination costs associated with efforts to consolidate and streamline various functions of our work force. We also recorded $1.8 million of asset impairments in connection with these restructuring efforts. In addition, we recorded $0.9 million of exit costs related to marketing efforts abandoned during the year and $0.5 million of exit costs related to the reorganization of our operating structure subsequent to the sale of our PGiSend messaging business as restructuring costs. As part of these consolidations, we eliminated approximately 165 positions. On a segment basis, these restructuring costs totaled $8.5 million in North America, including accelerated vesting of restricted stock with a fair market value of $0.2 million, $2.5 million in Europe and $1.2 million in Asia Pacific. Our remaining accrual for the 2010

restructuring costs was $2.2 million at June 30, 2011, including $0.3 million for lease termination costs and $1.9 million for severance costs. We anticipate these severance-related costs will be paid this year, and these lease termination costs will be paid over the next 21 months.

Realignment of Workforce – 2009

     During the year ended December 31, 2009, we executed a restructuring plan to consolidate and streamline various functions of our work force. As part of these consolidations, we eliminated approximately 500 positions. During the year ended December 31, 2009, we recorded total severance and exit costs of $14.8 million, including accelerated vesting of restricted stock with a fair market value of $0.2 million. Additionally, during the year ended December 31, 2009, we recorded $4.4 million of lease termination costs associated with office locations in North America and Europe. On a segment basis, these restructuring costs totaled $12.0 million in North America, $6.6 million in Europe and $0.6 million in Asia Pacific. Our remaining accrual for the 2009 restructuring costs, representing lease termination costs, was $2.8 million at June 30, 2011. We anticipate these lease termination costs will be paid over the next eight years.