Restructuring Costs

In the fourth quarter of 2017, the Company executed a series of restructuring actions designed to sharpen the Company’s strategic focus and establish a more cost-efficient operating structure. The restructuring activities primarily focused on a reduction of the Company’s global workforce in conjunction with steps taken to:


•	Significantly reduce the Company’s presence in China and focus its efforts on Mobile OEM licensing in that region;


•	Cease its Mobile Advertising activities; and


•	Narrow its focus in the Gaming and VR/AR markets on development efforts to bolster its IP licensing model in these markets

The restructuring plan is expected to increase internal efficiencies through the consolidation of certain sites of operation and has resulted in the elimination of approximately 56 positions, or 41%, of the worldwide employee base.

For the year ended December 31, 2017, the Company recorded restructuring expenses of $1.6 million. The following table summarizes the total expenses recorded related to the 2017 restructuring activities reflected in the consolidated statements of operations by type of activity. There were no restructuring costs in 2016 and 2015.



	Twelve months ended December 31, 2017
(in Thousands)	Employee Separation Costs		Asset-Related Charges		Other		Total

Restructuring	$	1,515	$	22	$	82	$	1,620

Employee separation costs are associated with worldwide headcount reductions. Asset-related charges consist primarily of accelerated depreciation costs related to the closure of one of the Company’s offices in China. Accelerated depreciation costs represent the difference between the depreciation expense as determined using the useful life of the assets prior to the restructuring activities and the revised useful life resulting from the restructuring activities. Other expenses consist primarily of lease termination expenses related to the closure of one of the Company’s offices in China.

The following table presents a reconciliation of the restructuring reserve recorded within accrued liabilities on the Company’s consolidated balance sheet for year ended December 31, 2017:



	Twelve months ended December 31, 2017
(in Thousands)	Employee Separation Costs		Asset-Related Charges			Other			Total

Liability, beginning of period	$	—	$	—		$	—		$	—
Charges	1,515		22			82			1,620
Non-cash activity	7		(22		)	(25		)	(41		)
Liability end of period	1,522		—			57			1,579

The Company expects to pay substantially all accrued amounts related to the 2017 restructuring activities in the first quarter of 2018.