Restructuring and Severance

12 Months Ended

Dec. 31, 2015

Restructuring And Related Activities [Abstract]

11. Restructuring and Severance

During the year ended December 31, 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 $3.1 million in restructuring and severance costs, lease termination costs, stock award modification charges and other closure related costs in its consolidated statement of operations for the year ended December 31, 2014. In addition, the Company recorded an additional $0.4 million in severance costs during the year ended December 31, 2014 in general and administrative expenses related to executive position resignations and eliminations in conjunction with recent corporate restructuring and cost reduction activities. During 2015, the Company recorded an additional $1.3 million in severance costs, as part of management’s continuing efforts to simplify business operations.

All unpaid restructuring and severance accruals are included in other accrued expenses and liabilities within current liabilities in the consolidated balance sheets at December 31, 2015 and 2014, respectively. Restructuring and severance activities during the year ended December 31, 2015 were as follows (in thousands):

	Restructuring
	and Severance
Balance at December 31, 2014	$	1,377
Restructuring expense incurred and changes in estimates		1,266
Other cost reduction activities		81
Payments and non-cash item adjustment		(2,091	)
Balance at December 31, 2015	$	633

In addition to the initiatives noted above, on January 27, 2016, the Company commenced the implementation of a worldwide restructuring plan designed to refocus its resources on its core business segments, including physical access and transponders, and to consolidate its operations in several worldwide locations. The restructuring plan includes a reduction of approximately 25% of its non-manufacturing employee base, reallocating overhead roles into direct business activities and the elimination of certain management and executive roles. See Note 15 Subsequent Events in the accompanying notes to the consolidated financial statements.