10. Restructuring Charges
Restructuring charges in 2011 were $36,000, comprised primarily of adjustments to previous estimates for laser contract termination costs for previously closed vision centers, and additional severance costs. The restructuring charges in 2010 were principally the result of vision center closures and an 8% reduction in our workforce as part of our efforts to reduce costs and increase operational efficiencies.
2010 Restructuring Plan
In 2010, we announced a restructuring plan to close vision centers, reduce costs and increase operational efficiencies. As a result, we incurred restructuring charges totaling $3.8 million for 2010, which included $3.6 million of contract termination costs and vision center closing costs and $195,000 of employee separation benefits.
2009 Restructuring Plan
In 2009, we announced a restructuring plan to reduce costs and increase operational efficiencies. As a result, we incurred restructuring charges totaling $2.7 million for 2009, which included $2.2 million of contract termination costs and vision center closing costs and $922,000 of employee separation benefits. Partially offsetting the contract termination costs was a benefit of $435,000 due to a change in estimate of certain previously recognized contract termination costs related to our vision centers closed in 2008 after successful renegotiations with the lessors.
Under all previous restructuring plans, the fair value measurements utilized internal discounted cash flow analysis in determining fair value, which is a Level 3 input under U.S. GAAP.
The following table summarizes the restructuring liability activities (dollars in thousands):
| Employee Separation | Contract Termination |
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| Employees | Dollars | Costs | Total | |||||||||||||
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Balance at January 1, 2009 |
$ | — | $ | 474 | $ | 474 | ||||||||||
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Liabilities recognized |
108 | 922 | 1,774 | 2,696 | ||||||||||||
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Utilized |
(685 | ) | (1,156 | ) | (1,841 | ) | ||||||||||
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Balance at December 31, 2009 |
237 | 1,092 | 1,329 | |||||||||||||
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Liabilities recognized |
30 | 195 | 3,595 | 3,790 | ||||||||||||
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Utilized |
(325 | ) | (1,046 | ) | (1,371 | ) | ||||||||||
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Balance at December 31, 2010 |
107 | 3,641 | 3,748 | |||||||||||||
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Liabilities recognized |
2 | 26 | 10 | 36 | ||||||||||||
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Utilized |
(113 | ) | (1,353 | ) | (1,466 | ) | ||||||||||
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Balance at December 31, 2011 |
$ | 20 | $ | 2,298 | $ | 2,318 | ||||||||||
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At December 31, 2011 and 2010, we included current restructuring reserves of $1.3 million and $1.6 million, respectively, in "Accrued liabilities and other" in the Consolidated Balance Sheets. Long-term restructuring reserves, comprised of contract termination costs, were $1.0 million and $2.1 million at December 31, 2011 and 2010, respectively, and were included in "Other long-term liabilities."