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Restructuring
9 Months Ended
Sep. 30, 2016
Restructuring And Related Activities [Abstract]  
Restructuring

9. Restructuring

During the nine months ended September 30, 2016, we recorded total restructuring charges of $2.1 million which were classified within our consolidated statement of operations as follows: Research and Development $0.1 million and General and Administrative $2.0 million.

Q2 2015 Restructuring Plan

During the three months ended June 30, 2015, our board of directors authorized, and we implemented a restructuring plan that included a reduction in work force as part of the overall plan to reduce the Company’s long term cost structure. As a result of ongoing initiatives associated with this restructuring, we recorded a charge of $0.9 million in the nine months ended September 30, 2016, which is included in operating expenses in our consolidated statement of operations and comprised of lease and contract termination costs. The remaining liability related to our Q2 2015 restructuring plan as of September 30, 2016 was $20.8 million and is expected to be paid out over the next 5.8 years.

The following table presents the activity for the three months ended March 31, 2016 and June 30, 2016 and the three and nine months ended September 30, 2016 related to the Q2 2015 restructuring plan (in thousands):

 

 

 

Three Months Ended

 

 

Three Months Ended

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

March 31, 2016

 

 

June 30, 2016

 

September 30, 2016

 

 

September 30, 2016

 

Restructuring liability - beginning of

   period

 

$

26,406

 

 

$

25,089

 

$

21,837

 

 

$

26,406

 

Restructuring expense and adjustments

 

 

456

 

 

 

417

 

 

50

 

 

 

923

 

Cash payments

 

 

(1,773

)

 

 

(3,669

)

 

(1,079

)

 

 

(6,521

)

Restructuring liability (Q2 2015 Plan) -

   end of period

 

$

25,089

 

 

$

21,837

 

$

20,808

 

 

$

20,808

 

 

 

 

Q1 2014 Restructuring Plan

The following table presents the activity for the three months ended March 31, 2016 and June 30, 2016 and the three and nine months ended September 30, 2016 related to the Q1 2014 restructuring plan (in thousands):

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

March 31, 2016

 

 

June 30, 2016

 

 

September 30, 2016

 

 

September 30, 2016

 

Restructuring liability - beginning of

   period

 

$

2,290

 

 

$

1,525

 

 

$

2,184

 

 

$

2,290

 

Restructuring expense and adjustments

 

 

16

 

 

 

1,267

 

(1)

 

(104

)

 

 

1,179

 

Cash payments

 

 

(781

)

 

 

(608

)

 

 

(2,064

)

 

 

(3,453

)

Restructuring liability (Q1 2014 Plan) -

   end of period

 

$

1,525

 

 

$

2,184

 

 

$

16

 

 

$

16

 

 

 

(1)

A $1.3 million adjustment was recorded in the second quarter of 2016 to increase our restructuring liability as a result of revising the expected income from a subtenant in a data center facility we had previously vacated in the first quarter of 2014.

Other Plans

The following table presents the activity for the three months ended March 31, 2016 and June 30, 2016 and the three and nine months ended September 30, 2016 related to all other remaining historical restructuring plans from prior years (in thousands):

 

 

 

Three Months Ended

 

 

Three Months Ended

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

March 31, 2016

 

 

June 30, 2016

 

September 30, 2016

 

 

September 30, 2016

 

Restructuring liability - beginning of

   period

 

$

332

 

 

$

(82

)

$

83

 

 

$

332

 

Restructuring expense and adjustments

 

 

(10

)

 

 

18

 

 

6

 

 

 

14

 

Cash payments

 

 

(404

)

 

 

147

 

 

(22

)

 

 

(279

)

Restructuring liability (2013 Plan) -

   end of period

 

$

(82

)

(1)

$

83

 

$

67

 

 

$

67

 

 

The remaining liability of $67 thousand is expected to be paid out over the next 1.1 years.

 

(1)

The liability is a net receivable due to the timing of sublease income for restructured data center space in Virginia.