Restructuring Charges (Notes)

12 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

NOTE 11. Restructuring Charges

Facilities restructuring initiative

On January 27, 2014, we announced a plan to exit our 47,000 square foot former headquarters facility in Poway, California (the Facilities restructuring initiative). This action was undertaken as the facility had excess space and capacity given our current operating plan. We entered into a termination agreement to end the lease on the facility as of April 30, 2014. The original term of the lease would have continued through February 29, 2016. Concurrently with the termination of the lease for the 47,000 square foot Poway, California facility, we entered into a new lease agreement on January 23, 2014 for a separate 21,300 square foot facility in Poway, California to house our Diagnostic Imaging operations.

As a result of the Facilities restructuring initiative, we incurred a total of $0.7 million of restructuring charges, all of which were incurred during the year ended December 31, 2014. The charges are comprised of lease termination, moving and other related costs. All restructuring efforts associated with this initiative were complete as of December 31, 2014.

The following table includes information regarding our Facilities restructuring initiative:



(in thousands)	Accrued at December 31, 2013		Accrued Costs		Cash Payments and Other Reductions		Accrued at December 31, 2014
Total Facilities restructuring initiative	$	—	$	663	$	660	$	3

Accrued Facilities restructuring initiative charges at December 31, 2014 are included in the accounts payable line item in the consolidated balance sheets. All Facilities restructuring initiative charges for the year ended December 31, 2014 are included in the Diagnostic Imaging segment.

Diagnostic Imaging restructuring initiative

On February 28, 2013, we announced a plan to restructure our Diagnostic Imaging business to significantly reduce costs and focus on maximizing cash flow from our Diagnostic Services business (the Diagnostic Imaging restructuring initiative). The Diagnostic Imaging restructuring initiative included a reduction in force. In addition, as part of the Diagnostic Imaging restructuring initiative, we entered into an agreement in September 2013 with a third party to outsource the majority of the manufacturing associated with our cameras. As a result of the Diagnostic Imaging restructuring initiative, we incurred a total of $1.8 million in restructuring charges, the majority of which were incurred during fiscal year 2013. Included in the total Diagnostic Imaging restructuring initiative charges are $1.6 million of employee related costs, with the remaining costs consisting of contract termination costs and other related costs. All restructuring efforts associated with this initiative were complete as of June 30, 2014.

The following table includes information regarding our Diagnostic Imaging restructuring initiative:



(in thousands)	Accrued at December 31, 2013		Accrued Costs		Cash Payments and Other Reductions		Accrued at December 31, 2014
Total Diagnostic Imaging restructuring initiative	$	489	$	29	$	516	$	2

All accrued Diagnostic Imaging restructuring initiative charges at December 31, 2014 are included in the accrued compensation line item in the consolidated balance sheets. All the Diagnostic Imaging restructuring initiative charges for the year ended December 31, 2014 are included in the Diagnostic Imaging segment.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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