XML 27 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Restructuring, CEO Transition and Other Costs
 3 Months Ended
Mar. 31, 2017
Restructuring and Related Activities [Abstract]  
Restructuring, CEO Transition and Other Costs
Restructuring, CEO Transition, and Other Costs
In July 2016, the Company entered into a transition agreement with its former Chief Executive Officer ("CEO") related to his transition from the position of CEO effective October 1, 2016, and subsequent services to be rendered through his separation date of February 28, 2017. Payments under this agreement are expected to be made through August 2018. In addition, in September 2016, the Company entered into retention agreements with certain key employees coinciding with the CEO transition for retention periods of up to one year. For the three months ended March 31, 2017, the Company recognized $0.4 million of costs associated with these retention agreements and expects to incur an additional $0.4 million of costs related to these agreements through August 2017.
For the three months ended March 31, 2017 the Company incurred $0.7 million of facility closure and lease costs related to the Company's focus on optimizing its resources worldwide. Additionally, during the three months ended March 31, 2017, the Company incurred $0.3 million of consulting costs related to the continued consolidation of its legal entities and restructuring of its contract management process to meet the requirements of upcoming accounting regulation changes and $0.6 million of other costs.
The following table summarizes activity related to the liabilities associated with restructuring, CEO transition, and other costs during the three months ended March 31, 2017 (in thousands):
 
Employee Severance Costs, Including Executive Transition Costs
 
Facility Closure and Lease Costs
 
Other Costs
 
Total
Balance at December 31, 2016
$
4,695

 
$
3,817

 
$
80

 
$
8,592

      Restructuring charges incurred (a)
352

 
722

 
527

 
1,601

      Cash payments made
(1,658
)
 
(974
)
 
(562
)
 
(3,194
)
Balance at March 31, 2017
$
3,389

 
$
3,565

 
$
45

 
$
6,999


(a) Total restructuring, CEO transition, and other costs for the three months ended March 31, 2017 include $0.3 million of other non-cash expenses that were not recorded as a restructuring liability and are therefore excluded from the rollforward above.
Liabilities associated with these costs are included in the "Accrued liabilities" and "Other long-term liabilities" line items in the accompanying unaudited condensed consolidated balance sheets. Costs recognized in net income during the period related to these activities are included in the "Restructuring, CEO transition, and other costs" line item in the unaudited condensed consolidated statements of operations. These costs are not allocated to the Company’s reportable segments because they are not part of the segment performance measures regularly reviewed by management.