12.

Restructuring

During the fourth quarter of 2013, we effected a restructuring that included a workforce reduction and the closure of our offices in Beijing, China and Munich, Germany. The workforce reduction impacted approximately 20% of our worldwide workforce. The restructuring was intended to better align our organizational structure with our strategic focus.

The staff reductions and office closures were substantially completed by the end of the fourth quarter of 2013 with some activities, including legal entity closures, continuing into 2014.

The total amount expected to be incurred in connection with the restructuring, inclusive of asset impairments, and the amount incurred during the year ended December 31, 2013 by expense type is as follows (in thousands):


	Total Estimated Expense		Incurred through December 31, 2013
Severance	$	419	$	419
Other		142		96

Total	$	561	$	515

A reconciliation of the beginning and ending liability balances by expense type follows (in thousands):


	Severance Expense			Other Expenses
Beginning Balance—January 1, 2013	$	—		$	—
Costs charged to expense		419			96
Costs paid or otherwise settled		(387	)		(96	)

Ending Balance—December 31, 2013	$	32		$	—

The foregoing costs are included in the results of operations as follows (in thousands):


Cost of revenue	$	163
Selling, general and administrative		221
Research and development		131

Total	$	515