Note 7. Restructuring

In the three months ended September 30, 2014, the Company initiated a restructuring plan (the “2014 Restructuring Plan”) to refocus on its strategy execution, optimize its structure, and improve operational efficiencies. The 2014 Restructuring Plan consists of workforce reductions primarily in the U.S and in China. In the three and nine months ended September 30, 2014, the Company recorded $0.8 million in restructuring charges, within costs of goods sold and operating expenses, related to the 2014 Restructuring Plan. In the three and nine months ended September 30, 2013, restructuring charges, recorded in costs of goods sold and operating expenses, were $1.1 million and $1.4 million, respectively. The 2014 Restructuring Plan is expected to be completed in the fourth quarter of 2014.

The following table summarizes activity associated with restructuring obligations during the nine months ended September 30, 2014 (in thousands):

	Workforce Reduction			Facilities			Contract Termination			Total
Restructuring obligations, December 31, 2013	$	—		$	211		$	66		$	277
Restructuring costs incurred		796			—			—			796
Cash payments		(779	)		(82	)		(66	)		(927	)
Restructuring obligations, September 30, 2014	$	17		$	129		$	—		$	146