Restructuring

The following table provides a summary of activity for all of the restructuring actions, which are detailed further below (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	603		$	6,704		$	7,307
Costs incurred ⁽¹⁾	2,671			10,346			13,017
Cash disbursements	(1,933		)	(15,793		)	(17,726		)
Asset impairment	(111		)	—			(111		)
Translation adjustments and other	(46		)	111			65
Balance, November 30, 2013	$	1,184		$	1,368		$	2,552
Costs incurred	579			1,715			2,294
Cash disbursements	(1,316		)	(1,859		)	(3,175		)
Translation adjustments and other	(31		)	3			(28		)
Balance, November 30, 2014	$	416		$	1,227		$	1,643
Costs incurred	5,567			7,422			12,989
Cash disbursements	(690		)	(5,653		)	(6,343		)
Asset impairment	(4,962		)	—			(4,962		)
Translation adjustments and other	81			(47		)	34
Balance, November 30, 2015	$	412		$	2,949		$	3,361


(1)	$1.0 million of the costs incurred during fiscal year 2013 were included in income from discontinued operations, net.

2015 Restructurings

During the first quarter of fiscal year 2015, we restructured our operations in connection with the acquisition of Telerik. This restructuring resulted in a reduction in redundant positions primarily within the administrative functions. This restructuring also resulted in the closing of two facilities as well as asset impairment charges for assets no longer deployed as a result of the acquisition. During the second and third quarters of fiscal year 2015, we incurred additional costs with respect to this restructuring, including reduction in redundant positions primarily within the product development function, as well as an impairment charge discussed further below.

Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions, and other costs, which include asset impairment charges.

During the second quarter of fiscal year 2015, we decided to replace our existing cloud-based mobile application development technology with technology acquired in connection with the acquisition of Telerik. Accordingly, we evaluated the ongoing value of the assets associated with this prior mobile technology and, based on this evaluation, we determined that the long-lived assets with a carrying amount of $4.0 million were no longer recoverable and were impaired and wrote them down to their estimated fair value of $0.1 million. Fair value was based on expected future cash flows using Level 3 inputs under ASC 820.

As part of this first quarter restructuring, for the fiscal year ended November 30, 2015, we incurred expenses of $7.5 million. The expenses are recorded as restructuring expenses in the consolidated statements of operations. We do not expect to incur additional material costs with respect to this restructuring.

A summary of activity for this restructuring action is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2014	$	—		$	—		$	—
Costs incurred	4,406			3,108			7,514
Cash disbursements	(300		)	(2,801		)	(3,101		)
Asset impairment	(3,999		)	—			(3,999		)
Translation adjustments and other	102			2			104
Balance, November 30, 2015	$	209		$	309		$	518

Cash disbursements for expenses incurred to date under this restructuring are expected to be made through the third quarter of fiscal year 2016. As a result, the total amount of the restructuring reserve of $0.5 million is included in other accrued liabilities on the consolidated balance sheet at November 30, 2015.

During the fourth quarter of fiscal year 2015, our management approved, committed to and initiated plans to make strategic changes to our organization to further build on the focus gained from operating under our business segment structure and to enable stronger cross-collaboration among product management, marketing and sales teams and a tighter integration of the product management and product development teams. In connection with the new organizational structure, we no longer have presidents of our three segments, as well as certain other positions within the administrative organization. Our Chief Operating Officer, appointed during fiscal year 2015, assumed responsibility for driving the operations of our three segments. The organizational changes will not result in the closing of any of our facilities.

Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), and other costs, which include charges for the abandonment of certain assets.

As part of this fourth quarter restructuring, for the fiscal year ended November 30, 2015, we incurred expenses of $4.1 million. The expenses are recorded as restructuring expenses in the consolidated statements of operations. As we continue to operate under the new organization, which is still driven by our three segments, we may incur additional costs with respect to this restructuring, including severance charges and other employee costs.

A summary of activity for this restructuring action is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2014	$	—		$	—		$	—
Costs incurred	963			3,108			4,071
Cash disbursements	—			(483		)	(483		)
Asset impairment	(963		)	—			(963		)
Translation adjustments and other	—			(8		)	(8		)
Balance, November 30, 2015	$	—		$	2,617		$	2,617

Cash disbursements for expenses incurred to date under this restructuring are expected to be made through the fourth quarter of fiscal year 2016. As a result, the total amount of the restructuring reserve of $2.6 million is included in other accrued liabilities on the consolidated balance sheet at November 30, 2015.

2014 Restructuring

During the third quarter of fiscal year 2014, our management approved, committed to and initiated plans to make strategic changes to our organization to provide greater focus and agility in the delivery of next generation application development, deployment and integration solutions. Effective September 1, 2014, we began to operate as three distinct business segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment, each with dedicated sales, product management and product marketing functions. In connection with the new organizational structure, we eliminated the position of global head of sales, as well as certain other positions within the sales and administrative organizations.

As part of the 2014 restructuring, for the twelve months ended November 30, 2015, we incurred expenses of $1.3 million, which are related to employee costs, including severance, health benefits, and outplacement services, but excluding stock-based compensation, and facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions. The expenses are recorded as restructuring expenses in the consolidated statements of operations. We do not expect to incur additional material costs with respect to the 2014 restructuring.

A summary of the fiscal year 2015 activity for the 2014 restructuring action is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2014	$	—		$	1,227		$	1,227
Costs incurred	130			1,206			1,336
Cash disbursements	(76		)	(2,369		)	(2,445		)
Translation adjustments and other	—			(40		)	(40		)
Balance, November 30, 2015	$	54		$	24		$	78

Cash disbursements for expenses incurred to date under the 2014 restructuring are expected to be made through the first quarter of fiscal year 2016. As a result, the $0.1 million is included in other accrued liabilities on the consolidated balance sheet at November 30, 2015.

A summary of the fiscal year 2014 activity for the 2014 restructuring action is as follows (in thousands):



	Excess Facilities and Other Costs		Employee Severance and Related Benefits			Total
Balance, December 1, 2013	$	—	$	—		$	—
Costs incurred	—		1,664			1,664
Cash disbursements	—		(437		)	(437		)
Balance, November 30, 2014	$	—	$	1,227		$	1,227

2013 and 2012 Restructurings

During the third quarter of fiscal year 2013, our management approved, committed to and initiated plans to restructure and improve efficiencies in our operations as a result of the sale of the Apama product line and the divestitures completed during the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013. We reduced our global workforce primarily within the administrative and sales organizations. This workforce reduction was conducted across all geographies and also resulted in the closing of certain facilities.

In the second quarter of fiscal year 2012, our management approved, committed to and initiated certain operational restructuring initiatives to reduce annual costs, including the simplification of our organizational structure and the consolidation of facilities. In addition, as part of the strategic plan announced during fiscal year 2012, we divested the product lines not considered core to our business. Our restructuring actions included both cost reduction efforts and qualifying costs associated with our divestitures.

Restructuring expenses for both restructurings related to employee costs, including severance, health benefits, outplacement services and transition divestiture arrangements (but excluding stock-based compensation), and facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions. Other costs include costs to terminate automobile leases of employees included in the workforce reduction, asset impairment charges for assets no longer deployed as part of cost reduction strategies, costs for unused software licenses as part of the workforce reduction and other costs directly associated with the restructuring actions taken.

As part of the 2013 and 2012 restructuring actions, for the twelve months ended November 30, 2015, we incurred expenses of $0.1 million. The expenses are recorded as restructuring expenses in the consolidated statements of operations. We do not expect to incur additional material costs with respect to the 2013 and 2012 restructuring actions.

A summary of the fiscal year 2015 activity for the 2013 and 2012 restructuring actions is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits		Total
Balance, December 1, 2014	$	416		$	—	$	416
Costs incurred	68			—		68
Cash disbursements	(314		)	—		(314		)
Translation adjustments and other	(21		)	—		(21		)
Balance, November 30, 2015	$	149		$	—	$	149

Cash disbursements for expenses incurred to date under the 2013 and 2012 restructuring actions are expected to be made through fiscal year 2017. The short-term portion of the restructuring reserve of $0.1 million is included in other accrued liabilities and the remaining long-term portion, which is minimal, is included in other noncurrent liabilities on the consolidated balance sheet as of November 30, 2015.

A summary of the fiscal year 2013 and 2014 activity for the 2013 and 2012 restructuring actions is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	603		$	6,429		$	7,032
Costs incurred	2,671			10,346			13,017
Cash disbursements	(1,933		)	(15,518		)	(17,451		)
Asset impairment	(111		)	—			(111		)
Translation adjustments and other	(46		)	111			65
Balance, November 30, 2013	$	1,184		$	1,368		$	2,552
Costs incurred	579			51			630
Cash disbursements	(1,316		)	(1,422		)	(2,738		)
Translation adjustments and other	(31		)	3			(28		)
Balance, November 30, 2014	$	416		$	—		$	416