Note 8 - Restructuring, Redundancy and Related Reorganization Costs
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]
8.
Restructuring
, Redundancy
and Related Reorganization Costs
 
In the
fourth
quarter of
2016,
WD Services approved a redundancy plan related to the termination of employees as part of a value enhancement project (“Ingeus Futures’ Program”) to better align costs at Ingeus with revenue. In the
fourth
quarter of
2015,
WD Services approved
two
redundancy plans.  The
first
plan relates to the termination of employees delivering services under an offender rehabilitation program (“Offender Rehabilitation Program”).  The
second
plan primarily relates to the termination of employees delivering services under the Company’s employability and skills training programs and certain other employees in the UK (“UK Restructuring Program”).   The Company recorded severance and related charges of
$8,511
and
$10,551
during the years ended
December
31,
2016
and
2015,
respectively, relating to the termination benefits for employee groups and specifically identified employees impacted by these plans. The severance charges incurred are recorded as “Service expense” in the accompanying consolidated statements of income.
 
The initial estimate of severance and related charges at
December
31,
2015
for the Offender Rehabilitation Program and UK Restructuring Program and at
December
31,
2016
for the Ingeus Futures’ Program was based upon the employee groups impacted, average salary and benefits, and redundancy benefits pursuant to the existing policies. The charges incurred for the Offender Rehabilitation Program and UK Restructuring Program during
2016
related to the actualization of termination benefits for specifically identified employees impacted, as well as an increase in the number of individuals impacted by these plans. The final identification of the employees impacted by each program is subject to customary consultation procedures. Additionally, the Company anticipates the potential for further redundancy expenses under the Ingeus Futures’ Program as further costs become estimable.
 
Summary of Severance and Related Charges
 
 
 
January 1,
2016
 
 
Costs
Incurred
 
 
Cash Payments
 
 
Foreign Exchange
Rate Adjustments
 
 
December 31,
2016
 
Ingeus Futures' Program
   $
-
    $
2,456
    $
-
    $
(29
 )   $
2,427
 
Offender Rehabilitation Program
    
6,538
     
4,865
     
(8,924
 )    
(1,099
 )    
1,380
 
UK Restructuring Program
    
2,059
     
1,190
     
(3,031
 )    
(109
 )    
109
 
                                         
Total
   $
8,597
    $
8,511
    $
(11,955
 )   $
(1,237
 )   $
3,916
 
 
 
 
January 1,
2015
 
 
Costs
Incurred
 
 
Cash Payments
 
 
Foreign Exchange
Rate Adjustments
 
 
December 31,
2015
 
Offender Rehabilitation Program
   $
-
    $
8,465
    $
(1,839
 )   $
(88
 )   $
6,538
 
UK Restructuring Program
    
-
     
2,086
     
-
     
(27
 )    
2,059
 
                                         
Total
   $
-
    $
10,551
    $
(1,839
 )   $
(115
 )   $
8,597
 
 
 
The total of accrued severance and related costs of
$3,916
and
$8,597
are reflected in “Accrued expenses” in the consolidated balance sheets at
December
31,
2016
and
2015,
respectively. The amount accrued as of
December
31,
2016
for the Ingeus Futures’ Program, Offender Rehabilitation Program and UK Restructuring Program is expected to be settled by the end of
2017.