COST-REDUCTION ACTIONS

9 Months Ended

Sep. 30, 2013

COST-REDUCTION ACTIONS

COST-REDUCTION ACTIONS

NOTE 9—COST–REDUCTION ACTIONS

On January 22, 2013, the Board of Directors of the Company approved a cost–reduction action to cease manufacturing at the Company’s East Windsor, Connecticut facility after being notified that its largest customer selected an alternative supplier. In addition, the Company executed further headcount reductions during the third quarter of 2013 to better align its cost structure with current sales. In total, the Company executed headcount reductions of approximately 150 employees on a global basis through the third quarter of 2013. See Note 16–Subsequent Events.

In conjunction with these headcount reductions, the Company recognized severance and related benefits of $0 and $1,281 in cost of sales and $223 and $606 in selling, general and administrative expense for the three and nine months ended September 30, 2013, respectively.

A rollforward of the restructuring accrual, which is recorded in accrued liabilities in the Condensed Consolidated Balance Sheets was as follows:

	September 30, 2013
Balance at December 31, 2012	$	200
Additions	2,155
Cash utilization	(2,035		)
Balance at September 30, 2013	$	320

The restructuring accrual as of September 30, 2013 consists of $52 for severance and benefits and $268 of other exit costs.

In addition, on October 15, 2013, the Company decided to eliminate the positions of Chief Operating Officer, Vice President of Human Resources, Chief Technology Officer and Vice President of Finance, effective November 15, 2013. Total severance costs expected to be incurred in the fourth quarter of 2013 is $770.