Restructuring Charges

9 Months Ended

Sep. 30, 2013

Note 12. Restructuring Charges

In the first quarter of 2013, the Company exited and closed one facility at its headquarters location to align its facilities usage with its current size. As a result, the Company recorded a restructuring charge in operating expenses related to the facility impairment of approximately $0.3 million. As of September 30, 2013, the remaining balance on this restructuring obligation was $0.2 million, which the Company expects to pay through 2015.

In the third quarter of 2013, the Company approved and implemented a restructuring plan to reduce its workforce and close a facility in China and to exit its contract manufacturing activities in Malaysia. The workforce reduction affected 67 employees, or approximately 3% of the Company’s total workforce, all of which were terminated prior to September 30, 2013. The Company recorded a restructuring charge of $1.1 million in the quarter ended September 30, 2013 of which $0.5 million was recorded in operating expenses with the remainder recorded in cost of goods sold.

The following table summarizes activity associated with the restructuring during the nine months ended September 30, 2013 (in thousands):

	Severance			Facilities			Contract Termination		Total
Restructuring obligations, December 31, 2012	$	-		$	-		$	-	$	-
Restructuring costs incurred in 2013		699			317			387		1,403
Cash payments		(699	)		(152	)		-		(851	)
Non-cash settlements and other		-			71			-		71
Restructuring obligations, September 30, 2013	$	-		$	236		$	387	$	623

- 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