Subsequent Events

12 Months Ended

Dec. 31, 2015

(16) SUBSEQUENT EVENTS

As of January 6, 2016, the Company accepted the resignation of Steven L. Mueller as Chief Executive Officer (“CEO”) of the Company and appointed William J. Way as CEO. Mr. Way will continue as President and was elected as a director of the Company as of January 6, 2016. Mr. Mueller will continue as a non-officer employee of the Company and as a director and non-executive Chairman of the Board of Directors of the Company through May 17, 2016, the date scheduled for the next annual meeting of stockholders and will not stand for re-election.

On January 21, 2016, the Company notified employees of a workforce reduction plan. Affected employees were offered a severance package, which included a one-time cash payment depending on length of service and, if applicable, amendments to outstanding equity awards that modified forfeiture provisions on separation from the Company. Some affected employees were offered the opportunity to accept reduced roles with the Company. The Company expects the plan to be substantially implemented by the end of the first quarter of 2016.

The Company expects to record a pre-tax charge to earnings in the first quarter of 2016 ranging from approximately $60 to $70 million, including the following:

one-time cash severance payments and payment of taxes totaling approximately $45 to $50 million, and

costs associated with the elimination of service requirements for equity awards to certain terminated employees of approximately $15 to $20 million.

Each range of charges is an estimate. The actual charge may vary based on various factors, including the number of affected employees who accept different jobs with the Company.