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RESTRUCTURING
12 Months Ended
Dec. 31, 2012
RESTRUCTURING

 

NOTE 13 — RESTRUCTURING

Restructuring information as of December 31, 2012 was as follows:

 

     Restructuring  
     2012     2011     2010     2009        
     Workforce     Workforce     Facilities
Related
    Workforce     Facilities
Related
    Facilities
Related
    Total  

Balance as of January 1, 2011

     —        $ —          —          296        1,585        581      $ 2,462   

Charges to operations

     —          548        96        41        —          —          685   

Non Cash Adjustments

     —          —          (86 )      (117 )      —          (23 )      (226 ) 

Charges settled in cash

     —          (548 )      (10 )      (220 )      (932 )      (324 )      (2,034 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 31, 2011

     —          —          —          —          653        234        887   

Charges to operations

     1,371        —          —          —          —          —          1,371   

Charges settled in cash

     (1,367 )      —          —          —          (653 )      (234 )      (2,254 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 31, 2012

   $ 4      $ —        $ —        $ —        $ —        $ —        $ 4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

During 2009, 2010, 2011 and 2012, the Company’s management approved restructuring plans to improve the effectiveness and efficiency of its operating model and reduce operating expenses around the world. The 2012 restructuring plans included $1,371 of restructuring charges relating to employee termination costs in the Company’s APAC, Brazil and Kirkland, Washington offices and a reduction of executive sales and marketing headcount in the United States and Spain. The 2011 restructuring plans included $548 of restructuring charges relating to employee termination costs in the Company’s APAC, Latin America, Russia and United Kingdom offices. The remaining restructuring charge of $96 related primarily to facility-related charges resulting from vacating a portion of the Company’s Moscow offices. Since the inception of the 2010 restructuring plan through December 31, 2012, the Company incurred $1,581 of restructuring charges relating to employee termination costs in the Company’s United States, APAC, Latin America and United Kingdom offices. The Company also incurred additional facility-related restructuring charges of $1,854 related primarily to the relocation of the Company’s corporate headquarters to San Francisco. The Company does not expect to incur any additional charges under the 2011, 2010 and 2009 restructuring plans.

As of December 31, 2012, the Company’s remaining restructuring liability of $4 was comprised primarily of employee termination costs which were fully paid in the first quarter of 2013. As of December 31, 2011, the Company’s remaining restructuring liability of $887 was comprised of facility related costs and was fully paid down during 2012. The Company anticipates incurring additional termination costs of approximately $450 in 2013 in connection with other restructuring activities implemented in the first quarter of 2013 in order to better align sales and marketing and research and development expenses with the Company’s current business strategy and to finalize the closure of its Brazil office.