This excerpt taken from the SAF 10-Q filed May 7, 2008.
NOTE 7: RESTRUCTURING AND ASSET IMPAIRMENT CHARGES
In 2008, we began implementation of a restructuring initiative that includes activities related to corporate reorganization, real estate consolidation, and business process outsourcing. As a result of this plan, approximately 350 positions will be eliminated. We anticipate that this plan will be completed by the middle of 2009.
Charges have been recognized and accrued as restructuring and asset impairment charges and allocated to our reportable segments in accordance with SFAS 146, Accounting for Costs Associated with Exit or Disposal Activities, and SFAS 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Other costs that do not meet the criteria for accrual are being expensed as restructuring charges when we incur them.
In 2008, we will incur lease termination and employee relocation costs in connection with our real estate consolidation efforts. Costs associated with lease termination and employee relocation are measured at fair value and reported as a liability on our Consolidated Balance Sheets.
Total estimated costs we expect to incur in connection with the restructuring, including costs incurred in the three months ended March 31, 2008 are as follows:
These costs are allocated to reportable segments as follows:
Activity related to restructuring charges as of March 31, 2008 was as follows: