Accrued Expenses

6 Months Ended

Jun. 30, 2011

Accrued Expenses [Abstract]

Accrued Expenses [Text Block]

Accrued Expenses

Accrued expenses consisted of the following:

	Successor Company		Predecessor Company
	June 30, 2011		December 31, 2010
Customer accommodations	$	729	$	10,387
Accrued interest	5,507		5,593
Restructure	3,447		2,214
Other (no item exceeds 5% of current liabilities)	7,356		8,912
Total accrued expenses	$	17,039	$	27,106

2011 Restructuring Plan

On March 31, 2011, our board of directors adopted a restructuring plan ("2011 Restructuring Plan") to complete the integration of the acquired Spheris operations into our operations. This integration resulted in termination costs of approximately $1.1 million in the first quarter of 2011 from a related reduction in workforce and a charge of $1.5 million in the first quarter of 2011 representing future lease payments on the Company's former corporate headquarters in Mt. Laurel, New Jersey and lease termination costs for the former data center in Sterling, Virginia, net of estimated sublease rentals. The future minimum lease payments on the Mt. Laurel facility total $2.5 million. The 2011 Restructuring Plan will be implemented throughout 2011 and may result in additional charges incurred later in 2011. We expect the majority of the remaining balance to be paid in 2011 and 2012.

We expect that acquisition and restructuring activities may continue in 2011, as management identifies opportunities for synergies including the elimination of redundant functions and as the Company may complete other acquisitions.

The table below reflects the financial statement activity related to the 2011 Restructuring Plan:

	Successor Company			Predecessor Company
	For the period February 12, to June 30, 2011			For the period January 1, to February 11, 2011
Beginning balance	$	—		$	—
Charge	2,965			—
Cash paid	(868		)	—
Ending balance	$	2,097		$	—

2010 Restructuring Plan

Management’s cost reduction initiatives, including process improvement, combined with the acquisition of Spheris, resulted in a restructuring plan ("2010 Restructuring Plan") involving staff reductions and other actions designed to maximize operating efficiencies.

The table below reflects the financial statement activity related to the 2010 Restructuring Plan:

	Successor Company			Predecessor Company
	For the period February 12, to June 30, 2011			For the period January 1, to February 11, 2011			For the year ended December 31, 2010
Beginning balance	$	1,889		$	2,039		$	—
Charge	—			—			3,460
Cash paid	(539		)	(150		)	(1,421		)
Ending balance	$	1,350		$	1,889		$	2,039

No other restructuring plan has a material impact on our balance sheets, results of operations or cash flows.