Restructuring Charges
In June 2011, the Company identified opportunities for cost savings through office consolidations of underutilized space and workforce reductions of non-client service professionals. The portion of the charges related to office consolidations was estimated based on the discounted future cash flows of rent expense that the Company is obligated to pay under the lease agreements, partially offset by projected sublease income which was calculated based on certain sublease assumptions. These assumptions may be revised in future periods as new information becomes available. The portion of the charges related to workforce reductions represent termination benefits. A reconciliation of the liabilities for restructuring charges is summarized as follows:
|
| | | | | | | | | | | | | |
| | | Liabilities for Restructuring Charges |
| | | Office Consolidations | | Employee Severance and Benefits | | Total |
| Balance as of December 31, 2010 | | $ | — |
| | $ | — |
| | $ | — |
|
| Restructuring charges | | 3,436 |
| | 654 |
| | 4,090 |
|
| Adjustments to deferred rent | | 624 |
| | — |
| | 624 |
|
| Cash payments | | (661 | ) | | (561 | ) | | (1,222 | ) |
| Balance as of December 31, 2011 | | 3,399 |
| | 93 |
| | 3,492 |
|
| Restructuring charges | | 860 |
| | (37 | ) | | 823 |
|
| Cash payments | | (1,410 | ) | | (56 | ) | | (1,466 | ) |
| Write-off of furniture and fixtures | | (239 | ) | | — |
| | (239 | ) |
| Balance as of December 31, 2012 | | $ | 2,610 |
| | $ | — |
| | $ | 2,610 |
|
In March 2012, the Company identified opportunities for cost savings through the elimination of the Company's M&A Advisory practice in France and certain other Investment Banking positions in France. The charges totaled $974 and related to termination benefits and were primarily based on assumptions underlying anticipated assessments and payments, including those to be made in accordance with local statutory requirements. These assumptions may be revised in future periods as new information becomes available.
