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MERGER TRANSITION AND RESTRUCTURING ACTIVITIES
6 Months Ended
Jun. 30, 2013
MERGER TRANSITION AND RESTRUCTURING ACTIVITIES  
MERGER TRANSITION AND RESTRUCTURING ACTIVITIES

3.     MERGER TRANSITION AND RESTRUCTURING ACTIVITIES

 

As discussed in Note (2), $8,309 of the Actient purchase consideration represents compensation payable to former Actient management upon completion of their retention period with the Company. This amount was recorded as a prepaid asset as of the date of the acquisition and is being amortized to expense as compensation cost over such retention period. As of June 30, 2013, $6,902 of this merger consideration has been expensed and the remainder of this prepaid will be expensed in the third quarter of 2013. If any of this management holdback of consideration is forfeited by the former Actient management as a result of their failure to complete the required retention period, such consideration will revert to the previous owners of Actient.

 

In connection with the acquisition of Actient, the Company undertook actions to realign its sales,  sales support, and management activities and staffing which included severance benefits to former Actient employees. For former Actient employees that have agreed to continue employment with the Company for a merger transition period, the severance payable upon completion of their retention period is being expensed over their respective retention period. All severance obligations are expected to amount to $6,360, of which during the three and six months ended June 30, 2013 $3,123 has been expensed and $210 had been paid.