Restructuring and Severance

9 Months Ended

Sep. 30, 2014

Restructuring And Related Activities [Abstract]

11. Restructuring and Severance

During the third and fourth quarters of 2013, there was a change of the Company’s CEO and 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 nine months ended September 30, 2014, certain employees were terminated as part of management’s efforts to simplify business operations and facilities were closed or are scheduled to close. As a result, the Company recorded $1.8 million and $2.9 million in restructuring and severance costs, lease termination costs, stock award modification charges and other closure related costs in its condensed consolidated statements of operations for the three and nine months ended September 30, 2014, respectively. In addition, the Company recorded an additional $0.3 million in severance costs during the three and nine months ended September 30, 2014 in general and administrative expenses related to executive position resignations and eliminations in conjunction with recent corporate restructuring and cost reduction activities.

All unpaid restructuring and severance accruals are included in other accrued expenses and liabilities within current liabilities in the condensed consolidated balance sheet at September 30, 2014. Restructuring and severance activities during the nine months ended September 30, 2014 were as follows (in thousands):

	Restructuring
	and Severance
Balance at December 31, 2013	$	1,149
Restructuring expense incurred and changes in estimates for the nine months ended September 30, 2014		2,874
Other cost reduction activities for the nine months ended September 30, 2014		309
Payments and non-cash item adjustment for the nine months ended September 30, 2014		(2,465	)
Balance at September 30, 2014	$	1,867

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details