Restructuring Charges

6 Months Ended

Jun. 30, 2013

(7) Restructuring Charges

On November 5, 2012, we approved a company restructuring plan (“the 2012 Plan”). The restructuring activities commenced in the fourth quarter of 2012 and relate primarily to the consolidation of our real estate footprint, as well as organizational changes designed to simplify business processes, move decision-making closer to the marketplace, and create operating efficiencies. We currently estimate the total amount of the restructuring charges associated with the 2012 Plan to be approximately $13 million, of which approximately $1 million will be non-cash charges related to stock compensation and fixed-asset write-downs related to facility closures. The total estimated restructuring expenses for the 2012 Plan include approximately $7 million (all of which has been incurred to date) related to personnel severance and related benefits primarily in our International segment, and approximately $6 million (of which approximately $2 million has been incurred to date) related to the closure of 17 offices and the consolidation of those locations into other existing Ciber locations, mostly in North America. The 2012 Plan activities began in the fourth quarter of 2012, and we expect all restructuring activities associated with this plan to be completed by the end of 2013.

The changes in our restructuring liabilities, which are recorded in other accrued expenses, during the six months ended June 30, 2013 are as follows:

	Employee Severance and Termination			Office Closures			Total
	(In thousands)
Restructuring liability, as of January 1, 2013	$	3,556		$	1,532		$	5,088
Restructuring charges	411			542			953
Non-cash items	—			(117		)	(117		)
Cash paid	(3,707		)	(974		)	(4,681		)
Foreign exchange rate changes	(80		)	—			(80		)
Restructuring liability, as of June 30, 2013	$	180		$	983		$	1,163

Restructuring charges by segment are as follows:

	Three Months Ended June 30, 2013		Six Months Ended June 30, 2013			Plan to Date		Total Anticipated Charges
	(In thousands)
North America	$	39	$	(104	)	1,360		$	1,796
International	504		930			6,704		7,157
Corporate (1)	61		127			870		3,547
Total	$	604	$	953		$	8,934	$	12,500

(1) 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 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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