Note 15 RESTRUCTURING CHARGES, NET

Restructuring charges, net consists of costs associated with the Restructuring Plans Prior to 2012, the Q2’12 Restructuring Plan, the Q4’12 Korea Business Closure and the Q4’13 Restructuring Plan. These charges include employee severance pay and related costs, accelerations and reversals of stock-based compensation expense, facility restructuring costs, contract termination and other non-cash charges associated with the exit of facilities, as well as reversals of restructuring charges arising from changes in estimates.

For the years ended December 31, 2011, 2012, and 2013, restructuring charges, net was comprised of the following (in thousands):


	Year Ended December 31, 2011		Year Ended December 31, 2012
	Restructuring Plans Prior to 2012		Restructuring Plans Prior to 2012		Q2’12 Restructuring Plan			Q4’12 Korea Business Closure		Total
Employee severance pay and related costs	$	12,965	$	1,169	$	96,537		$	4,998	$	102,704
Non-cancelable lease, contract terminations, and other charges		10,251		8,462		9,541			8,996		26,999
Other non-cash charges, net		990		—		40,462			69,434		109,896

Sub-total before accelerations (reversals) of stock-based compensation expense		24,206		9,631		146,540			83,428		239,599
Accelerations (reversals) of stock-based compensation expense		214		—		(3,429	)		—		(3,429	)

Restructuring charges, net	$	24,420	$	9,631	$	143,111		$	83,428	$	236,170


	Year Ended December 31, 2013
	Restructuring Plans Prior to 2012			Q2’12 Restructuring Plan			Q4’12 Korea Business Closure			Q4’13 Restructuring Plan		Total
Employee severance pay and related costs (reversals)	$	(459	)	$	(15,401	)	$	(103	)	$	5,144	$	(10,819	)
Non-cancelable lease, contract terminations, and other charges		13,894			164			(20	)		—		14,038
Other non-cash charges		—			—			547			—		547

Restructuring charges (reversal), net	$	13,435		$	(15,237	)	$	424		$	5,144	$	3,766

Although the Company does not allocate restructuring charges to its segments, the amounts of the restructuring charges relating to each segment are presented below. For the years ended December 31, 2011, 2012, and 2013, restructuring charges, net consists of the following (in thousands):


	Year Ended December 31, 2011
	Restructuring Plans Prior to 2012
Americas	$	22,244
EMEA		952
Asia Pacific		1,224

Restructuring charges, net	$	24,420


	Year Ended December 31, 2012
	Restructuring Plans Prior to 2012			Q2’12 Restructuring Plan		Q4’12 Korea Business Closure		Total
Americas	$	9,834		$	92,789	$	—	$	102,623
EMEA		(617	)		45,977		—		45,360
Asia Pacific		414			4,345		83,428		88,187

Restructuring charges, net	$	9,631		$	143,111	$	83,428	$	236,170


	Year Ended December 31, 2013
	Restructuring Plans Prior to 2012		Q2’12 Restructuring Plan			Q4’12 Korea Business Closure		Q4’13 Restructuring Plan		Total
Americas	$	8,212	$	(7,641	)	$	—	$	—	$	571
EMEA		4,716		(6,998	)		—		5,144		2,862
Asia Pacific		507		(598	)		424		—		333

Restructuring charges, net	$	13,435	$	(15,237	)	$	424	$	5,144	$	3,766

Restructuring Plans Prior to 2012. Prior to 2012, the Company implemented workforce reductions, a strategic realignment, and consolidation of certain real estate facilities and data centers to reduce its cost structure, align resources with its product strategy, and improve efficiency. During the year ended December 31, 2011, the Company incurred total pre-tax cash charges of $23 million in severance, facility and other related costs, net of reversal for adjustments to original estimates totaling $12 million. In addition to the pre-tax cash charges, the Company recorded a non-cash charge of $1 million related to asset impairment. Of the $24 million in restructuring charges, net recorded in the year ended December 31, 2011, $22 million related to the Americas segment, $1 million related to the EMEA segment, and $1 million related to the Asia Pacific segment. During the year ended December 31, 2012, the Company recorded total pre-tax cash charges of $10 million in severance, facility and other related costs, net of reversal for adjustments to original estimates totaling $5 million. The majority of the $10 million in restructuring charges, net recorded in the year ended December 31, 2012, related to the Americas segment. During the year ended December 31, 2013, the Company incurred total pre-tax cash charges of $13 million in facility and other related costs, net of reversal for adjustments to original estimates totaling $1 million. Of the $13 million recorded for the year ended December 31, 2013, $8 million related to the Americas segment and $5 million related to the EMEA segment.

Q2’12 Restructuring Plan. During the second quarter of 2012, the Company began implementing the Q2’12 Restructuring Plan to reduce its worldwide workforce by approximately 2,000 employees and to consolidate certain real estate and data center facilities. During the year ended December 31 2012, the Company recorded total pre-tax cash charges of $139 million in severance and facility related costs and $40 million in non-cash facility and other asset impairment charges. The total pre-tax charges were offset by changes to original estimates of $33 million in severance related costs recognized throughout 2012, primarily as a result of redeployments and voluntary resignations of employees prior to their planned severance dates and a $3 million credit related to non-cash stock-based compensation expense reversals for unvested stock awards that were forfeited. Of the $143 million in restructuring charges, net recorded in the year ended December 31, 2012, $93 million related to the Americas segment, $46 million related to the EMEA segment, and $4 million related to the Asia Pacific segment. During the year ended December 31, 2013, the Company recorded total pre-tax cash charges of $7 million in severance, facility and other related costs, which were offset by a credit of $22 million for severance related reversals due to adjustments to original estimates as a result of redeployments and voluntary resignations of employees prior to their planned severance dates. Of the $15 million credit in restructuring charges, net recorded in the year ended December 31, 2013, $7 million related to the Americas segment, $7 million related to the EMEA segment, and $1 million related to the Asia Pacific segment.

Q4’12 Korea Business Closure. During the fourth quarter of 2012, the Company decided to close its Korea business by the end of 2012 to streamline its operations and focus its resources. During the year ended December 31, 2012, the Company incurred total pre-tax cash charges of $13 million in severance and contract termination costs. In addition to the pre-tax cash charges, the Company recorded a non-cash charge of $86 million related to goodwill and other asset impairment and a non-cash credit approximately of $16 million related to the reversal of previously recorded cumulative foreign currency translation adjustments. As a result, the Company recorded a net $83 million in restructuring charges all related to the Asia Pacific segment for the year ended December 31, 2012. During the year ended December 31, 2013, the Company recorded net pre-tax charges of less than $1 million in severance, facility and contract termination costs related to the Asia Pacific segment.

Q4’13 Restructuring Plan. During the fourth quarter of 2013, the Company started the process of closing its Cairo, Egypt and Rolle, Switzerland offices as part of its continued efforts to streamline its operations and focus its resources. During the year ended December 31, 2013, the Company recorded total pre-tax cash charges of $5 million in severance and other related costs, which all related to the EMEA segment.

Restructuring Accruals. The $30 million restructuring liability as of December 31, 2013 consists of $5 million for employee severance pay expenses, which the Company expects to pay out by the end of the third quarter of 2014 and $25 million relates to non-cancelable lease and contract termination costs that the Company expects to pay over the terms of the related obligations which extend to the fourth quarter of 2021.

The activity in the Company’s restructuring accruals for the years ended December 31, 2012 and 2013 is summarized as follows (in thousands):


	Restructuring Plans Prior to 2012			Q2’12 Restructuring Plan			Q4’12 Korea Business Closure			Q4’13 Restructuring Plan			Total
Balance as of January 1, 2012	$	49,127		$	—		$	—		$	—		$	49,127
Employee severance pay and related costs		5,924			128,701			4,998			—			139,623
Non-cash reversals of stock-based compensation expense		—			(3,429	)		—			—			(3,429	)
Non-cancelable lease, contract termination, and other charges		8,792			9,997			8,996			—			27,785
Other non-cash charges, net		—			40,462			69,434			—			109,896
Changes in estimates and reversals of previous charges		(5,085	)		(32,620	)		—			—			(37,705	)

Restructuring charges, net for the year ended December 31, 2012	$	9,631		$	143,111		$	83,428		$	—		$	236,170
Cash paid		(30,746	)		(68,018	)		(4,307	)		—			(103,071	)
Non-cash reversals of stock-based compensation expense		—			3,429			—			—			3,429
Other non-cash charges, net		(232	)		(40,148	)		(69,157	)		—			(109,537	)
Foreign currency		(64	)		(3,325	)		138			—			(3,251	)

Balance as of December 31, 2012	$	27,716		$	35,049		$	10,102		$	—		$	72,867
Employee severance pay and related costs		28			6,722			443			5,144			12,337
Non-cancelable lease, contract termination, and other charges		14,407			164			1,251			—			15,822
Other non-cash charges		—			—			547			—			547
Changes in estimates and reversals of previous charges		(1,000	)		(22,123	)		(1,817	)		—			(24,940	)

Restructuring charges (reversals), net for the year ended December 31, 2013	$	13,435		$	(15,237	)	$	424		$	5,144		$	3,766
Cash paid		(19,082	)		(16,829	)		(9,471	)		(624	)		(46,006	)
Other non-cash charges		—			—			(547	)		—			(547	)
Foreign currency		280			(218	)		(171	)		125			16

Balance as of December 31, 2013	$	22,349		$	2,765		$	337		$	4,645		$	30,096

As of December 31, restructuring accruals were included in the Company’s consolidated balance sheets as follows (in thousands):


	2012		2013
Accrued expenses and other current liabilities	$	57,642	$	21,741
Capital lease and other long-term liabilities		15,225		8,355

Total restructuring accruals	$	72,867	$	30,096

As of December 31, restructuring accruals by segment consisted of the following (in thousands):


	2012		2013
Americas	$	42,689	$	18,078
EMEA		18,144		11,284
Asia Pacific		12,034		734

Total restructuring accruals	$	72,867	$	30,096