Corporate Restructuring and Other Organizational Changes

12 Months Ended

Dec. 31, 2012

Corporate Restructuring and Other Organizational Changes

8. Corporate Restructuring and Other Organizational Changes

Employee Actions

During the year ended December 31, 2012, the Company reduced its headcount by 272 employees as a part of its integration of its recent acquisitions. In connection with these actions, approximately $9.2 million of termination costs were recognized in general and administrative expense in the accompanying consolidated statements of income during the year ended December 31, 2012. The charges, by segment, were as follows for the year December 31, 2012: $3.7 million in the Americas segment, $4.6 million in the EMEA segment, and $0.9 million in the Asia/Pacific segment. Approximately $8.4 million of these termination costs were paid during the year ended December 31, 2012. The remaining liability is expected to be paid over the next 12 months.

Lease Terminations

During the year ended December 31, 2012, the Company terminated the lease for its facility in New York, New York. Under the terms of the termination agreement, the Company paid a termination fee of approximately $1.1 million that was recorded in general and administrative expenses in the accompanying consolidated statements of income for the year ended December 31, 2012.

During the year ended December 31, 2012, the Company terminated the lease for its facility in Dublin, Ireland. Under the terms of the termination agreement, the Company agreed to pay a termination fee of approximately $2.8 million, of which $2.3 million was recorded in general and administrative expenses in the accompanying consolidated statements of income for the year ended December 31, 2012. The remaining balance of $0.5 million had been accounted for as an unfavorable lease liability in the S1 purchase price allocation. The termination fee was paid during the year ended December 31, 2012.

During the year ended December 31, 2012 the Company ceased-use of all or a portion of its leased facilities in Toronto, Canada and Chertsey, England, which resulted in additional expense of $1.3 million that was recorded in general and administrative expenses in the accompanying consolidated statements of income for the year ended December 31, 2012.

The components of corporate restructuring and other reorganization activities from the recent acquisitions are included in the following table (in thousands):

	Severance			Facility Closures			Total
Balance, December 31, 2011	$	—		$	—		$	—
Restructuring charges incurred		9,203			4,850			14,053
Unfavorable lease liability		—			518			518
Amounts paid during the period		(8,425	)		(4,098	)		(12,523	)
Foreign currency translation adjustments		(160	)		26			(134	)
Balance, December 31, 2012	$	618		$	1,296		$	1,914

The $0.6 million for unpaid severance is included in accrued employee compensation and the $1.3 million for unpaid facilities closures is included in accrued and other current liabilities in the accompanying consolidated balance sheet at December 31, 2012.