Restructuring Charges

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

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 we expect it to be completed in the third quarter of 2015. We expect the 2014 Plan 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 professional fees, 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 March 31, 2015, are as follows:



	Employee Severance and Termination			Professional Fees, Office Closures and Other			Total
	(In thousands)
Restructuring liability, as of January 1, 2015	$	15,152		$	1,200		$	16,352
Restructuring charge	25			—			25
Cash paid	(4,192		)	(1,200		)	(5,392		)
Foreign exchange rate changes	(627		)	—			(627		)
Restructuring liability, as of March 31, 2015	$	10,358		$	—		$	10,358

Restructuring charges by segment are as follows:



	Three Months Ended March 31, 2015		Plan to Date		Total Anticipated Charges
	(In thousands)
North America	$	—	$	1,011	$	1,011
International	—		17,831		18,400
Other	25		339		339
Corporate	—		5,311		7,189
Total	$	25	$	24,492	$	26,939

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 and fourth quarters of 2014, as well as the first quarter of 2015, 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 three months ended March 31, 2015, are as follows:



	Office Closures
	(in thousands)
Restructuring liability, as of January 1, 2015	$	1,694
Restructuring charges	36
Cash paid	(403		)
Foreign exchange rate changes	(17		)
Restructuring liability, as of March 31, 2015	$	1,310

Restructuring charges by segment are as follows:



	Three Months Ended March 31, 2015		Plan to Date (1)
	(In thousands)
North America	$	1	$	1,703
International	—		8,851
Corporate (2)	35		3,431
Total	$	36	$	13,985
(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.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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