Restructuring Charges

12 Months Ended

Dec. 31, 2012

14. 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 completed in 2012.

During the years ended December 31, 2012 and 2011, we incurred $6.6 and $11.6 million, respectively, of restructuring charges primarily related to termination benefits and consulting services. These charges are reflected as Restructuring charges in our consolidated statements of operations.

The following table summarizes the changes to our accrued liability balance related to restructuring charges for the years ended December 31, 2011 and 2012 (in thousands):

	Restructuring Charges Accrual
Beginning balance at December 31, 2010	$	—
Additions for costs expensed	11,594
Less non-cash expenses	(1,575		)
Reductions for payments	(8,243		)
Ending balance at December 31, 2011	1,776
Additions for costs expensed	6,636
Less non-cash expenses	(83		)
Reductions for payments	(8,329		)
Ending balance at December 31, 2012	$	—

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 2011	$	53	$	502	$	422	$	1,574	$	9,043	$	11,594
Costs incurred in 2012	968		800		485		902		3,481		6,636
Total costs incurred	$	1,021	$	1,302	$	907	$	2,476	$	12,524	$	18,230

(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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