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Legal Proceedings
12 Months Ended
Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings
15. Legal Proceedings

Borealis Settlement
In July 2012, Symyx and Symyx Solutions, Inc. (collectively, the “Symyx Parties” ), each a wholly owned subsidiary we acquired in 2010, received a request for arbitration from Borealis AG ( “Borealis” ), a customer of the Symyx Parties, and on October 5, 2012, Borealis served us with its Statement of Case in connection with the arbitration, which is pending before the London Court of International Arbitration. The dispute related to certain software and professional services arrangements that Borealis claimed were not completed by the Symyx Parties pursuant to the terms of the underlying agreements during periods prior to our acquisition of the Symyx Parties.

On December 20, 2013, we entered into a settlement agreement (the “Settlement Agreement”) with Borealis in connection with the arbitration. Pursuant to the Settlement Agreement, (i) each party agreed to release all Claims (as defined in the Settlement Agreement) against the other party, in each case without any admission of liability to the other, (ii) the Symyx Parties agreed to make a one-time settlement payment, net of any tax withholding, to Borealis of $16.0 million (the “Settlement Payment” ), and (iii) the parties agreed to take all actions necessary to obtain dismissal of the arbitration. We have received insurance proceeds relating to the Settlement Payment in the amount of approximately $10.1 million thereby resulting in a total net out of pocket payout by us of $5.9 million related to the Settlement Payment. We had previously accrued a reserve of approximately $10 million with respect to this matter and, accordingly, have reversed any excess accrual upon receipt of insurance proceeds in the fourth quarter of 2013. All amounts incurred in connection with these matters have been recorded in the “Business consolidation, restructuring and headquarter-relocation costs” line in the accompanying consolidated statements of operations.
Other Claims and Litigation
We are also subject to various other claims and legal proceedings arising in the ordinary course of our business. In connection with our regular assessments of such other claims and legal proceedings, we accrue an estimated loss contingency in our financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. However, a determination as to the amount of the accrual required for such contingencies is highly subjective and requires judgments about future events. As a result, the amount of ultimate loss, if any, may differ from our estimates. Management believes that the disposition of other claims and legal proceedings arising in the ordinary course of our business, in the aggregate, will not have a material adverse effect on our results of operations, liquidity or financial position.
For information regarding legal proceedings that have arisen since the fiscal year ended December 31, 2013, see Note 16.