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Corporate Restructuring and Other Organizational Changes
 9 Months Ended
Sep. 30, 2012
Corporate Restructuring and Other Organizational Changes

8. Corporate Restructuring and Other Organizational Changes

Employee Actions

During the nine months ended September 30, 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 $9.6 million of termination costs were recognized in general and administrative expense in the accompanying consolidated statements of operations during the nine months ended September 30, 2012. The charges, by segment, were as follows for the nine months ended September 30, 2012: $4.1 million in the Americas segment, $4.6 million in the EMEA segment, and $0.9 million in the Asia/Pacific segment. Approximately $7.9 million of these termination costs were paid during the nine months ended September 30, 2012. The remaining liability is expected to be paid over the next 12 months.

Lease Terminations

During the three months ended September 30, 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 operations for the three months ended September 30, 2012.

During the three months ended September 30, 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 operations for the three months ended September 30, 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 is expected to be paid prior to 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

      9,595        3,456        13,051   

Unfavorable lease liability (2)

      —          518        518   

Amounts paid during the period

      (7,905 )      (1,141 )      (9,046 ) 

Other (1)

      (38 )      —          (38 ) 
  

 

 

    

 

 

    

 

 

  

Balance, September 30, 2012

    $ 1,652      $ 2,833      $ 4,485   
  

 

 

    

 

 

    

 

 

  

 

(1) Other includes the impact of foreign currency translation.
(2) As a part of the S1 purchase price allocation, $0.5 million had been allocated to an unfavorable lease liability related to the Dublin facility.

The $1.7 million for unpaid severance is included in accrued employee compensation and the $2.8 million for unpaid facilities closures is included in accrued and other current liabilities in the accompanying condensed consolidated balance sheet at September 30, 2012.