Restructuring and Severance

3 Months Ended

Mar. 31, 2014

Restructuring and Severance

12. Restructuring and Severance

During the first quarter of 2014, certain employees related to non-core functions were terminated as part of management’s efforts to simplify business operations which began in 2013. As a result, the Company recorded $0.4 million in restructuring and severance costs related to severance paid or accrued for these employees in its condensed consolidated statements of operations for the three months period ended March 31, 2014.

During the third and fourth quarters of 2013, there was a change of the Company’s chief executive officer (“CEO”) and chief financial officer (“CFO”), and as part of management’s efforts to simplify business operations, certain non-core functions were eliminated. As a result, the Company recorded $1.8 million in restructuring and severance costs in its consolidated statements of operations for the year ended December 31, 2013, primarily related to severance paid or accrued for our former CEO and CFO as well as other employees.

Of the total restructuring and severance accrual, $1.1 million is included in the other accrued expenses and liabilities and $0.2 million is included in the other long-term liabilities in the condensed consolidated balance sheets. Below are the details related to the restructuring and severance during the three months ended March 31, 2014 and during the year ended December 31, 2013 (in thousands):

	Restructuring and Severance
Balance as of December 31, 2012	$	—
Expense recorded during 2013		1,770
Payments and changes in estimates during 2013		(621	)
Balance as of December 31, 2013	$	1,149
Expense recorded during Q1 2014		437
Payments and changes in estimates during Q1 2014		(313)
Balance as of March 31, 2014	$	1,273