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RESTRUCTURING CHARGES

6 Months Ended

Jun. 30, 2012

11. RESTRUCTURING CHARGES

In November 2011, we announced a workforce cost reduction program across all of our business segments as a first step in a broader overall profit improvement initiative. These actions were the result of a review of our cost structure aimed at identifying ways to reduce our on-going operating costs and to adjust the size of our workforce to be consistent with current and expected activity levels. A significant portion of the workforce cost reduction program was completed in 2011, with the remainder expected to be completed in 2012.

During the six months ended June 30, 2012, we incurred $4.3 million of restructuring charges primarily related to consulting services and termination benefits. These charges are reflected as Restructuring charges in our condensed consolidated statements of operations. We currently estimate that we will incur additional charges with respect to the profit improvement initiative of approximately $1.0 million. We expect all of the estimated additional charges will result in cash expenditures.

The following table summarizes the changes to our accrued liability balance related to restructuring charges for the six months ended June 30, 2012 (in thousands):

	Restructuring Charges Accrual
Beginning balance at December 31, 2011	$	1,776
Additions for costs expensed	4,313
Less non-cash expenses	(83		)
Reductions for payments	(5,561		)
Ending balance at June 30, 2012	$	445

Restructuring charges by segment are as follows (in thousands):

	North America Contract Operations		International Contract Operations		Aftermarket Services		Fabrication		Other(1)		Total
Costs incurred in 2012	$	491	$	100	$	118	$	629	$	2,975	$	4,313
Cumulative costs incurred	511		602		540		2,203		12,051		15,907
Total expected costs	560		1,081		591		2,353		12,364		16,949

(1) Includes corporate related items

- 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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