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 nine months ended September 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 $5.7 million and $5.4 million during the nine months ended September 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		Provisions		Cash Payments			Non-cash			Balance at September 30, 2011
Accrued restructuring costs:
Severance and exit costs	$	5,797	$	43	$	(4,673	)	$	(293	)	$	874
Contractual obligations		3,797		257		(1,307	)		146			2,893
Total restructuring costs	$	9,594	$	300	$	(5,980	)	$	(147	)	$	3,767

Realignment of Workforce – 2011

During the quarter ended September 30, 2011, we recorded $0.7 million of severance costs, including $0.3 million recorded in discontinued operations, and $0.2 million of lease termination costs associated with efforts to consolidate and streamline various functions of our work force. As part of these consolidations, we eliminated

approximately 20 positions. On a segmented basis, these restructuring costs totaled $0.5 million in North America, $0.1 million in Europe and $0.3 million in Asia Pacific. Our remaining accrual for the 2011 restructuring costs was $0.3 million at September 30, 2011, including $0.2 million for lease termination costs and $0.1 million for severance costs. We anticipate the severance costs will be paid this year, and the lease termination costs will be paid through August 31, 2013. 

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 $0.9 million at September 30, 2011, including $0.2 million for lease termination costs and $0.7 million for severance costs. We anticipate the severance costs will be paid this year, and the lease termination costs will be paid through March 31, 2013.

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 $2.6 million at September 30, 2011. We anticipate the lease termination costs will be paid through August 31, 2018.