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RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | 6 Months Ended
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Jun. 30, 2012
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (9) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES Restructuring Charges During the three and six months ended June 30, 2012 and 2011, the Company undertook a number of restructuring activities primarily associated with reductions in the Company's capacity and workforce in both the Customer Management Services and Customer Growth Services segments to better align the capacity and workforce with current business needs. During the second quarter of 2012, the Company made the decision to cease operations in Spain as a result of the termination of contracts with its clients. The Company has notified the employees and has commenced severance procedures as required under Spanish law. In connection with this decision, a severance liability was established as of June 30, 2012 for $13.9 million and was included in Other accrued expenses in the Consolidated Balance Sheets. A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2012 and 2011, respectively, is as follows (amounts in thousands):
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  | 2012 |  | 2011 |  | 2012 |  | 2011
Reduction in force |  |  |  |  |  |  |  |  |  |  |
| Customer Management Services | $ | 15,909 |  | $ | (57) |  | $ | 17,453 |  | $ | 565
| Customer Growth Services |  | 32 |  |  | - |  |  | 135 |  |  | 110
| Customer Technology Services |  | 56 |  |  | - |  |  | 56 |  |  | -
| Customer Strategy Services |  | - |  |  | - |  |  | - |  |  | -
| Corporate |  | 200 |  |  | - |  |  | 511 |  |  | -
|  | Total | $ | 16,197 |  | $ | (57) |  | $ | 18,155 |  | $ | 675
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  | 2012 |  | 2011 |  | 2012 |  | 2011
Facility exit charges |  |  |  |  |  |  |  |  |  |  |
| Customer Management Services | $ | 99 |  | $ | - |  | $ | 99 |  | $ | 7
| Customer Growth Services |  | - |  |  | - |  |  | - |  |  | -
| Customer Technology Services |  | - |  |  | - |  |  | - |  |  | -
| Customer Strategy Services |  | - |  |  | - |  |  | - |  |  | -
| Corporate |  | - |  |  | - |  |  | - |  |  | -
|  | Total | $ | 99 |  | $ | - |  | $ | 99 |  | $ | 7
A rollforward of the activity in the Company's restructuring accruals is as follows (amounts in thousands):
|  | Closure of Delivery Centers |  | Reduction in Force |  | Total
Balance as of December 31, 2011 | $ | 415 |  | $ | 1,652 |  | $ | 2,067
| Expense |  | 99 |  |  | 18,155 |  |  | 18,254
| Payments |  | (139) |  |  | (3,269) |  |  | (3,408)
| Reversals |  | - |  |  | - |  |  | -
Balance as of June 30, 2012 | $ | 375 |  | $ | 16,538 |  | $ | 16,913
The remaining restructuring accrual s are expected to be paid or extinguished during the next twelve months and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheet. Impairment Losses During each of the periods presented, t he Company evaluated the recoverability of its leasehold improvement assets at certain delivery centers. An asset is considered to be impaired when the anticipated undiscounted future cash flows of an asset group are estimated to be less than the asset group's carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During the three and six months ended June 30, 2012, the Company recognized $1.0 million of losses related to leasehold improvement assets in the Customer Management Services segment. During the three and six months ended June 30, 2011, t he Company recognized zero and $0.2 million, respectively, of losses related to leasehold improvement assets in the Customer Management Services segment. During the first quarter of 2012, the Company elected to rebrand the Direct Alliance Corporation (“DAC”) subsidiary to Revana™. Based on this decision and management's intention not to use the DAC name on a go-forward basis, the future cash flows associated with the t rade n ame indefinite-lived intangible asset that was established as part of the purchase price accounting of DAC in 2006 is less than the asset's carrying value. Thus the $1.8 million asset was impaired as of March 31, 2012. Th is expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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