RESTRUCTURING AND RELATED CHARGES

(a) GridSense

During the second quarter of 2013, following a change in its management, the Company's GridSense segment made a decision to restructure operations in both its USA and Australian entities. This action was taken primarily in order to improve efficiency based on GridSense's revenue mix and skills mix. Accordingly, GridSense recorded a restructuring charge of $302 related to severance and other termination benefits for 17 employees whose positions were made redundant both in the United States and in Australia. In addition, in connection with downsizing its Australian operations, GridSense decided to move its operations to a smaller facility and recorded a restructuring charge of $101, consisting of contractual rental commitments and related moving costs. In connection with that move, GridSense recorded a loss of $39 reflecting the remaining book value of abandoned fixed assets. Following the restructuring, GridSense's Australian operations no longer have a production line and have minimal research and development activities. Substantially all product production and development now take place at GridSense's U.S. operations facility in Sacramento. As a result of the cessation of production activities in Australia, GridSense also recorded a provision of $152 related to products which had been produced in Australia, but will no longer be produced or supported by U.S. operations.

The following table summarizes GridSense's restructuring charges during the year ended December 31, 2013:



Employee severance and termination benefits	$	302
Facilities costs	101
Abandonment of fixed assets	39
Inventory obsolescence	152
Total	$	594

The following table presents activity during the year ended December 31, 2013 related to GridSense's restructuring:



	Employee severance and termination benefits			Facilities			Inventory and fixed asset impairments			Total
Balance at December 31, 2012	$	—		$	—		$	—		$	—
Provision	302			101			191			594
Cash payments	(239		)	(101		)	—			(340		)
Non-cash settlements	—			—			(191		)	(191		)
Balance at December 31, 2013	$	63		$	—		$	—		$	63

The total remaining accrued restructuring balance of $63 with respect to GridSense's restructuring is expected to be paid in full by December 31, 2014 and is included in Other current liabilities in the Company's Consolidated Balance Sheets.

(b) OmniMetrix

During the first half of 2013, OmniMetrix marketed its Power Generation Monitoring ("PG") products primarily to dealers and distributors of the most common brands of generators. While some larger dealers have embraced OmniMetrix's business model (a recurring revenue model where monitors are sold at or below cost in exchange for customer commitments for fixed term monitoring contracts), it has not universally resonated within the dealer marketplace and the rate of anticipated adoption (and thus sales of monitors and monitoring subscriptions) has been far slower than anticipated. Revenue in 2013 and expected future monitoring revenues from renewals were significantly adversely impacted by an inability to make sufficient new sales (see Note 12 for impairments of goodwill and intangibles). OmniMetrix has refined its strategic direction which includes marketing to end-users as well as to select dealers identified as possessing both substantial maintenance customer bases and a willingness to provide value-added services. The Company intends to share the resources of OmniMetrix with GridSense in order to capitalize on synergies from both companies’ machine-to-machine operating models, power assurance focus and complementary personnel, and as a first step appointed the CEO of GridSense to also serve as CEO of OmniMetrix in July 2013.

OmniMetrix has restructured its operations to better align expenses with revenues as now projected by its new management. This resulted in personnel layoffs and significantly reduced utilization of its leased facility in Buford, Georgia. Accordingly, OmniMetrix recorded a restructuring charge of $178 related to severance and other termination benefits for employees replaced or whose positions were made redundant. In addition, as a result of the expected significantly reduced utilization of its leased facility, OmniMetrix also recorded a restructuring charge of $202 for the expected net contractual rental commitments through the end of its lease in December 2019. Furthermore, OmniMetrix recorded a loss of $415 reflecting the write-down of a majority of the remaining book value of leasehold improvements associated with the leased facility net of the landlord's participation ($119) in those improvements. The entire restructuring charge at OmniMetrix of $795 is reflected in the unallocated cost of OmniMetrix headquarters (see Note 21(c)).

The following table summarizes OmniMetrix's restructuring charges during the year ended December 31, 2013:



Employee severance and termination benefits	$	178
Facilities costs	202
Fixed asset impairments, net	415
Total	$	795

The following table presents activity during the year ended December 31, 2013 related to OmniMetrix's restructuring:



	Employee severance and termination benefits			Facilities			Fixed asset impairments			Total
Balance at December 31, 2012	$	—		$	—		$	—		$	—
Provision	178			202			415			795
Cash payments	(133		)	(8		)	—			(141		)
Non-cash settlements	—			—			(415		)	(415		)
Balance at December 31, 2013	$	45		$	194		$	—		$	239

The total remaining accrued restructuring balance of $239 is expected to be paid in full by December 31, 2019 and is included in Other current liabilities ($74) and Other liabilities ($165) in the Company's Consolidated Balance Sheets.