RESTRUCTURING, REORGANIZATION, RELOCATION AND SEVERANCE

Group Structure Reorganization

In January 2013, we announced our intention to reorganize the company into a group structure in order to enable us to efficiently execute our growth strategy. The reorganization was completed in the first quarter of 2013. The costs associated with the reorganization include primarily severance costs and resulted in the termination of certain positions throughout the company. In anticipation of this reorganization, we incurred $2.9 million of severance costs during the fourth quarter of 2012. We recorded an additional 1.1 million of severance costs during 2013. We do not expect to incur any additional charges related to the reorganization.

Manufacturing Transfer

In 2008 we entered into an arrangement to outsource aspects of our manufacturing processes. In 2011, we notified our largest contract manufacturer, accounting for approximately 10% of our revenue, that we were terminating the arrangement and that we would transfer the manufacturing process back to FEI. The termination contract was signed during the fourth quarter of 2011 and the manufacturing process was transitioned back to FEI as of April 2, 2012. The costs associated with the termination of the outsourcing arrangement were accrued in the fourth quarter of 2011. No additional costs were incurred in 2012 or 2013 and we do not expect to incur any significant additional costs associated with the termination of this arrangement.

April 2010 Restructuring

On April 12, 2010, we announced a restructuring program to consolidate the manufacturing of our small DualBeam product line by relocating manufacturing activities currently performed at our facility in Eindhoven, The Netherlands to our facility in Brno, Czech Republic. The balance of our small DualBeam product line is already based in Brno. The move, which has been substantially completed, resulted in severance costs, costs to transfer the product line, costs to train Brno employees and costs to build-out the existing Brno facility to add capacity for the additional small DualBeam production. In addition to the product line move, the April 2010 restructuring plan involved organizational changes designed to improve the efficiency of our finance, research and development and other corporate programs and improve our market focus. Costs incurred in connection with this plan were related to the consolidation of the manufacturing of our small DualBeam product line in Brno.

Information for costs related to the April 2010 restructuring plan is as follows (in thousands):



	Year Ended
Costs Incurred	2013		2012		2011		Life of Plan
Severance costs related to work force reduction and reorganization	$	—	$	—	$	184	$	6,617
Product line transfer, training of Brno employees and facility build-out in Brno	—		—		963		1,835
Total costs incurred	$	—	$	—	$	1,147	$	8,452

All of the costs incurred resulted in cash expenditures. We do not expect to incur significant additional costs associated with this plan.

Restructuring, Reorganization, Relocation and Severance Accrual

The following tables summarize the charges, expenditures, write-offs and adjustments related to our restructuring, reorganization, relocation and severance accrual (in thousands):



Year Ended December 31, 2013	Group Structure Reorganization			Total
Beginning accrued liability	$	2,692		$	2,692
Charged to expense, net	1,090			1,090
Expenditures	(3,782		)	(3,782		)
Write-offs and adjustments	50			50
Ending accrued liability	$	50		$	50



Year Ended December 31, 2012	Severance, outplacement and related benefits for terminated employees			Manufacturing Transfer			Group Structure Reorganization			Total
Beginning accrued liability	$	113		$	2,100		$	—		$	2,213
Charged to expense, net	—			—			2,859			2,859
Expenditures	—			(2,100		)	(254		)	(2,354		)
Write-offs and adjustments	(113		)	—			87			(26		)
Ending accrued liability	$	—		$	—		$	2,692		$	2,692



Year Ended December 31, 2011	Product line transfer and training of Brno employees			Severance, outplacement and related benefits for terminated employees			IT system upgrades			Abandoned leases, leasehold improvements and facilities			Manufacturing Transfer		Total
Beginning accrued liability	$	—		$	4,832		$	20		$	32		$	—	$	4,884
Charged to expense, net	963			184			—			(32		)	2,100		3,215
Expenditures	(963		)	(5,083		)	—			—			—		(6,046		)
Write-offs and adjustments	—			180			(20		)	—			—		160
Ending accrued liability	$	—		$	113		$	—		$	—		$	2,100	$	2,213