Restructuring and Severance

6 Months Ended

Jun. 30, 2014

Restructuring and Severance

12. Restructuring and Severance

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.

During the first and second quarter of 2014, certain employees were terminated as part of management’s efforts to simplify business operations. As a result, the Company recorded $0.6 million and $1.0 million in restructuring and severance costs related to severance paid or accrued for in its condensed consolidated statements of operations for the three and six month ended June 30, 2014, respectively.

     Of the total restructuring and severance accrual at June 30, 2014, $1.0 million is included in the other accrued expenses and liabilities and $0.1 million is included in the other long-term liabilities in the condensed consolidated balance sheets. Restructuring and severance activities during the six months ended June 30, 2014 and during the year ended December 31, 2013 were as follows (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 six months of 2014		1,049
Payments and changes in estimates during six months of 2014		(1,131	)
Balance as of June 30, 2014	$	1,067