Restructuring Charges

9 Months Ended

Sep. 30, 2011

Restructuring Charges [Abstract]

RESTRUCTURING CHARGES

14. RESTRUCTURING CHARGES

The Company’s key transportation clients are continuing to exercise a significant amount of caution in granting new infrastructure projects or entering into extensions of existing commitments, as well as placing certain funded projects on hold. As a result, in the second and third quarters of 2011, the Company announced and implemented reduction in force programs. The following represents a reconciliation of the charges that are accrued under the caption “Other accrued expenses” in the Condensed Consolidated Balance Sheet as of September 30, 2011:

(In thousands)
Balance, December 31, 2010	$	—
Termination costs		2,240
Cash paid		(2,018	)
Balance, September 30, 2011	$	222

For the three and nine months ended September 30, 2011, the Company recognized charges related to the reduction in force under the caption “Selling, general and administrative expenses” in the Condensed Consolidated Statement of Income totaling approximately $0.4 million and $2.2 million, respectively, which include severance payments and COBRA subsidy medical benefits provided to severed employees. These amounts were recorded at the Corporate level then allocated to the Federal and Transportation segments based on direct labor. In addition, other savings initiatives were put in place that included a reduction in a portion of the employer match for the Michael Baker Corporation 401(k) Plan for the remainder of the year, a delay in annual salary increases until the end of third quarter of 2011 and the elimination of benefits for certain reduced-work-schedule employees. The reduction in force programs is complete and the Company does not anticipating incurring any additional restructuring charges in the fourth quarter of 2011.