Restructuring Charges

On July 25, 2014, we approved a restructuring plan focused on the implementation of a go-to-market model, realigning the organization and improving our near and offshore delivery mix ("the 2014 Plan"). The 2014 Plan commenced in the third quarter of 2014 and is expected to be completed in the next twelve months. It is expected to impact approximately 280 people. We estimate the total amount of the restructuring charges for the 2014 Plan will be approximately $27 million, substantially all of which will be settled in cash. The total estimated restructuring expenses include approximately $20 million related to employee severance and related benefits and approximately $7 million related to office closures and other expenses.

The changes in our 2014 Plan restructuring liabilities, which are primarily recorded in other accrued expenses, during the three months ended September 30, 2014, are as follows:



	Employee Severance and Termination			Office Closures and Other		Total
	(In thousands)
Restructuring liability, as of July 1, 2014	—			$	—	$	—
Restructuring charge	19,599			1,574		21,173
Non-cash items	(220		)	—		(220		)
Cash paid	(336		)	—		(336		)
Restructuring liability, as of September 30, 2014	$	19,043		$	1,574	$	20,617

Restructuring charges by segment are as follows:



	Three Months Ended September 30, 2014		Total Anticipated Charges
	(In thousands)
North America	$	1,171	$	2,200
International	17,527		18,400
Other	314		314
Corporate	2,161		6,000
Total	$	21,173	$	26,914

On July 30, 2013, we approved a restructuring plan primarily focused on our International operations ("the 2013 Plan"). The goal of the 2013 Plan was to improve utilization, strategically engage our lower-cost off-shore and near-shore resources, and centralize management of administrative functions in key markets to leverage shared services functions. The actions of this plan impacted approximately 250 employees. We have completed all activities associated with the 2013 Plan. The charges associated with the 2013 Plan were substantially all related to personnel severance and related employee benefit costs.

The changes in our 2013 Plan restructuring liabilities, which are recorded in other accrued expenses, during the nine months ended September 30, 2014, are as follows:



	2013 Plan
	(In thousands)
Restructuring liability, as of January 1, 2014	$	7,454
Restructuring credit	(447		)
Non-cash items	17
Cash paid	(6,611		)
Foreign exchange rate changes	(93		)
Restructuring liability, as of September 30, 2014	$	320

Restructuring charges (credit) by segment are as follows:



	Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014			Plan to Date
	(In thousands)
North America	$	—	$	(112	)	$	548
International	28		(468		)	11,648
Other	—		(7		)	57
Corporate	—		140			721
Total	$	28	$	(447	)	$	12,974

On November 5, 2012, we approved a company restructuring plan ("the 2012 Plan"). In the third quarter of 2013, all restructuring actions associated with this plan were completed. Although we have completed all activities associated with the 2012 Plan, our lease-related office closure costs are subject to estimate and as such our actual restructuring charges may differ from our current estimates. In the second quarter of 2014, we incurred additional charges related to adjusting our sublease estimates.

The changes in our restructuring liabilities for the 2012 Plan, which are recorded in other accrued expenses, during the nine months ended September 30, 2014, are as follows:



	Office Closures
	(in thousands)
Restructuring liability, as of January 1, 2014	$	2,770
Restructuring charges	1,924
Cash paid	(2,298		)
Foreign exchange rate changes	(4		)
Restructuring liability, as of September 30, 2014	$	2,392

Restructuring charges by segment are as follows:



	Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014		Plan to Date (1)
	(In thousands)
North America	$	9	$	42	$	1,747
International	—		856		7,936
Corporate (2)	34		1,026		3,724
Total	$	43	$	1,924	$	13,407
(1) Our restructuring charges, particularly lease-related office closure costs, are subject to estimate. If we are unable to find tenants for vacated offices or sub-lease terms are different from our assumptions, our actual restructuring charges will differ from our current estimates.
(2) Corporate restructuring charges include costs for administrative facility consolidation.