Restructuring Charges

12 Months Ended

Dec. 31, 2011

NOTE 7. Restructuring Charges

In 2011, we recorded restructuring charges, net of changes in estimates, of approximately $1.3 million consisting of severance charges for 129 employees and lease cancellation costs of $0.2 million. We have an accrual of $0.6 million, consisting of $0.5 million of severance charges and $0.1 million of lease obligations caused by closing facilities, remaining to be paid at December 31, 2011. We expect the facility closings and personnel changes to be completed by the middle of 2012.

In 2009, we recorded restructuring charges, net of changes in estimates, of approximately $0.9 million. This consisted of severance charges for 132 employees in 2009. Approximately $13,000 of severance payments remained to be paid as of December 31, 2009. No severance payments remained to be paid as of December 31, 2010.

All severance charges are included in Salaries and benefits and all lease obligation and closing costs are included in General and administrative in the Consolidated Statements of Income.

The following table displays the activity and balances of the restructuring reserves in the Consolidated Balance Sheets (in thousands):


	Hub			Hub						Mode			Hub
	Headcount			Consolidation			Hub			Headcount			Group
	Reduction			of Facilities			Total			Reduction			Total
Balance at January 1, 2009	$	—		$	—		$	—		$	—		$	—
Restructuring expenses		993			—			993			—			993
Change in estimate		(101	)		—			(101	)		—			(101)
Cash payments made		(879	)		—			(879	)		—			(879)

Balance at December 31, 2009	$	13		$	—		$	13		$	—		$	13
Cash payments made		(13	)		—			(13	)		—			(13)

Balance at December 31, 2010	$	—		$	—		$	—		$	—		$	—
Restructuring expenses		851			184			1,035			363			1,398
Change in estimate		(140	)		—			(140	)		—			(140	)
Cash payments made		(347	)		(47	)		(394	)		(250	)		(644	)

Balance at December 31, 2011	$	364		$	137		$	501		$	113		$	614

- 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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