Restructuring Charges

2014 Plan

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 was completed in the third quarter of 2015. The 2014 Plan impacted approximately 290 people. The total amount of the restructuring charges for the 2014 Plan is 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 2015 and 2014, are as follows:



	Employee Severance and Termination			Professional Fees, Office Closures and Other			Total
	(In thousands)
Restructuring liability, as of January 1, 2014	$	—		$	—		$	—
Restructuring charge	19,292			5,175			24,467
Non-cash items	(220		)	(77		)	(297		)
Cash paid	(3,630		)	(3,898		)	(7,528		)
Foreign exchange rate changes	(290		)	—			(290		)
Restructuring liability, as of December 31, 2014	$	15,152		$	1,200		$	16,352
Restructuring charge	576			1,572			2,148
Non-cash items	(205		)	—			(205		)
Cash paid	(12,861		)	(1,782		)	(14,643		)
Foreign exchange rate changes	(871		)	—			(871		)
Restructuring liability, as of December 31, 2015	$	1,791		$	990		$	2,781

Restructuring charges by segment are as follows:



	Year ended December 31, 2015		Total Incurred and Anticipated Charges
	(In thousands)
North America	$	33	$	1,044
International	376		18,207
Other	85		399
Corporate	1,654		6,965
Total	$	2,148	$	26,615

2013 Plan

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 and amounted to $12.7 million in total. Restructuring charges by segment were $0.5 million, $11.4 million, $0.1 million and $0.7 million for North America, International, Other, and Corporate, respectively.

The changes in our 2013 Plan restructuring liabilities, which are recorded in other accrued expenses, during 2014 and 2015 are as follows:



	(In thousands)
Restructuring liability, as of January 1, 2013	$	—
Restructuring charges	$	13,421
Non-cash items	$	(137	)
Cash paid	$	(5,990	)
Foreign exchange rate changes	$	160
Restructuring liability, as of December 31, 2013	$	7,454
Restructuring charges	(701		)
Non-cash items	17
Cash paid	(6,677		)
Foreign exchange rate changes	(93		)
Restructuring liability, as of December 31, 2014	—

2012 Plan

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 quarter of 2014, as well as the first three quarters of 2015, we incurred additional charges related to adjusting our sublease estimates.

The changes in our restructuring liabilities, which are recorded in other accrued expenses, during 2013, 2014 and 2015 are as follows:



	Employee Severance and Termination			Office Closures			Total
	(In thousands)
Restructuring liability, as of January 1, 2012	$	—		$	—		$	—
Restructuring charges	6,517			1,464			7,981
Non-cash items	(743		)	68			(675		)
Cash paid	(2,218		)	—			(2,218		)
Restructuring liability, as of December 31, 2012	3,556			1,532			5,088
Restructuring charges	370			3,132			3,502
Non-cash items	—			510			510
Cash paid	(3,851		)	(2,421		)	(6,272		)
Foreign exchange rate changes	(75		)	17			(58		)
Restructuring liability, as of December 31, 2013	—			2,770			2,770
Restructuring charges	—			2,466			2,466
Non-cash items	—			—			—
Cash paid	—			(3,532		)	(3,532		)
Foreign exchange rate changes	—			(10		)	(10		)
Restructuring liability, as of December 31, 2014	$	—		$	1,694		$	1,694
Restructuring charges	—			99			99
Non-cash items	—			(1		)	(1		)
Cash paid	—			(1,781		)	(1,781		)
Foreign exchange rate changes	—			(11		)	(11		)
Restructuring liability, as of December 31, 2015	$	—		$	—		$	—

Restructuring charges by segment are as follows:



	Year ended December 31, 2015			Plan to Date (1)
	(In thousands)
North America	$	(12	)	$	1,690
International	—			8,851
Corporate (2)	111			3,507
Total	$	99		$	14,048
(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 estimates, our actual restructuring charges will differ from our current estimates.
(2) 2012 corporate restructuring charges consist of share-based compensation expenses associated with severance for employees in our International division. Share-based compensation is not charged to operating divisions, but rather is recorded as part of our corporate expenses. 2013 and 2014 corporate restructuring charges include costs for administrative facility consolidation.

During 2015, the Company recognized additional lease, contract termination and other related costs of $1.4 million, of which $0.7m was in accrued liabilities at December 31, 2015. These costs represent additional restructuring activities outside of the original restructuring plans.